“These are the consequences”: Is It the Case That Xbox’s Acquisition of Activision Blizzard Is To Blame For the Current State of Phil Spencer’s Microsoft Gaming Division?

Phil Spencer's comments at Gamescom 2024 highlight significant shifts away from console exclusives and changes in the Microsoft gaming division.

phil spencer, activision blizzard
Image by OceanHok, licensed under CC BY-SA 2.0, via Wikimedia Commons.

SUMMARY

  • Microsoft is moving away from Xbox-exclusive titles, with major games like Indiana Jones and the Great Circle launching on multiple platforms, including PlayStation and PC.
  • The $69 billion acquisition of Activision Blizzard hasn't delivered expected returns, contributing to declining Xbox sales and prompting a re-evaluation of Microsoft's gaming strategy.
  • As console sales drop, Microsoft may be shifting its focus towards cloud gaming as a potential new staple for its gaming division.
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Gamescom 2024 gave fans a glimpse of several big titles to look forward to. However, one of the biggest highlights of the event was not exactly a game teaser but a key detail related to Microsoft gaming. Furthermore, Activision Blizzard might be the driving force behind Microsoft’s major changes to how Xbox gaming has been working so far.

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In particular, Microsoft has been under scrutiny for quite some time due to the plummeting of Xbox sales and the closure of multiple studios. Furthermore, several games that were exclusive to the console are now being released on other platforms, and the trend is going to continue.

Activision Blizzard Might Be the Reason for Current Microsoft Gaming Woes

Phil Spencer commenting about future plans at Gamescom 2024.
Is Activision Blizzard’s purchase by Microsoft responsible for altering their future plans? Image credit: Gamescom 2024

Back on October 13, 2023, Microsoft splashed a big amount of $69 billion to purchase Activision Blizzard. The video game company is responsible for many of the biggest name titles, and it made sense that Microsoft is taking a leap.

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Although many were sceptical about the amount of money being spent, it is to be expected that if someone is going to buy Activision Blizzard, it’s going to cost a lot. However, the fruits of the purchase have not made any significant difference when it comes to how fans perceive Microsoft or Xbox gaming in general. Instead, we are seeing somewhat of a downfall in the Microsoft gaming division.

CEO of Microsoft Gaming, Phil Spencer, had some interesting words to share regarding Xbox gaming during Gamescom 2024.

“It’s definitely true inside of Microsoft the bar is high for us in terms of the delivery we have to give back to the company. Because we get a level of support from the company that’s just amazing and what we’re able to go do.”

This came after the confirmation that the upcoming mega title Indiana Jones and the Great Circle will be released on PC and PlayStation as well and won’t be exclusive to Xbox.

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Obviously, there is no concrete reason why Xbox is not rolling with console exclusives anymore, but it’s not far-fetched to say that releasing games only for Xbox hasn’t been working as a viable commercial strategy for the company.

What Does the Launch of Indiana Jones and the Great Circle on PlayStation Mean in the Long Run?

A glimpse of the upcoming Indian Jones game.
Indiana Jones and the Great Circle will be available on PlayStation. Image credit: Bethesda

For a long time, we saw both Xbox and PlayStation going head-to-head for the best console title. Each console consistently released games exclusive to themselves, which made them more special. However, Xbox has changed how it approaches exclusive titles, as every major game we see now under the wing of Microsoft is released on PlayStation and PC as well.

That’s not to say that PlayStation doesn’t do the same, but games for the console are generally exclusive on release and later become available for other platforms. Many believe this is Microsoft’s attempt to recoup the money they have lost over the past few years, and it definitely highlights the mistakes made by Microsoft’s gaming division.

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It’s pretty much confirmed that we won’t have exclusive titles for Xbox, at least for the foreseeable future, which makes buying the console even more redundant. Sales of Xbox Series X and S are going down, and maybe Microsoft is already looking at cloud gaming to become their staple.

What are your thoughts on Microsoft’s decision to steer away from Xbox-exclusive titles? Does the costly purchase of Activision Blizzard have something to do with it? Let us know in the comments below.

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Written by Kuldeep Thapa

Articles Published: 111

Kuldeep is an electrical engineer and a writer for FandomWire with over 5 years of experience under the belt. He is a keen learner who consistently tries to improve and is always up for the grind. Besides delving into the Pokemon world, he enjoys playing League of Legends and many other competitive games.