Did Xbox Acquire Activision or Did Activision Acquire Xbox?
Activision is now in charge of 4 of Xbox's properties, which begs the question. Who acquired whom?
In 2023, Microsoft acquired Activision Blizzard for a staggering $75.4 billion. The announcement sparked a humorous debate among industry observers - would Xbox consume Activision Blizzard, or would Activision Blizzard assimilate Xbox? Now, it appears that the latter scenario has become a grim reality.
Earlier this year, Xbox CEO Asha Sharma announced significant layoffs and restructuring within Xbox. The company laid off approximately 3,200 employees, with several key studios being impacted, including Halo Studios, Rare, and World's Edge. Halo Studios, responsible solely for the Halo franchise, World's Edge, which oversees the Age of Empires franchise, and Rare, behind legendary titles such as Banjo-Kazooie, Perfect Dark, and Sea of Thieves, have all been affected by the restructuring.
Asha Sharma's successor, Xbox COO Matt Booty, revealed that Halo Studios will now operate under a new team within Activision, while Rare and World's Edge will join Activision's roster. This move has led to the unfortunate loss of 268 jobs, with reports suggesting that only 20 employees remain at Halo Studios. Creative Director Adam Isgreen of World's Edge indicated that under half of the studio's workforce was affected by the layoffs.
The restructuring has resulted in four major Xbox properties now falling under Activision's wing: the Halo franchise, the Age of Empires franchise, and the Sea of Thieves and Age of Empires games. Despite Halo's past success, its future remains uncertain within the Activision umbrella. Additionally, Microsoft Casual Games will now join King, the company behind the popular Candy Crush game.
This development is particularly interesting due to King's history as a subsidiary of Activision Blizzard before the latter's acquisition by Microsoft.
While these changes undoubtedly have a negative impact on employees, they also appear to be a strategic decision to streamline Xbox's operations. Notably, Xbox still maintains several successful franchises under other studios, including Forza, Fable, Elder Scrolls, Fallout, and Gears of War. Ultimately, one could view this situation as Activision Blizzard taking control of Xbox's most successful properties, or alternatively, Activision Blizzard becoming the 'largest tenant' within Xbox.
Written by urgent.news from HackerNoon's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
