Microsoft bought Activision in 2022 to ensure the future of Xbox.
On March 20th, 2022, Microsoft announced that it had acquired Activision for $18.2 billion. The move was unexpected and came just two days after the launch of its new Xbox One console. However, it quickly became clear that this was not a purchase motivated by greed or lust for power. Rather, Microsoft’s intention was to secure the future of Xbox as a gaming platform.
Why did Microsoft buy Activision?
Microsoft’s acquisition of Activision in 2022 was driven by a single desire: to secure the future of Xbox as a gaming platform. In recent years, Sony had been making major strides with its PlayStation brand, successfully moving into streaming and becoming one of the world’s biggest entertainment companies. This left Microsoft in a difficult position; while it had been focusing on diversifying into other areas such as healthcare and artificial intelligence, Sony had made great strides in gaming and now seemed set to dominate the industry for years to come.
