Phil Spencer, the chief executive of Microsoft’s gaming business, said that whatever the metaverse may end up being, “gaming will be at the forefront of making that mainstream.” For now, he said, the acquisition is about gaining a stronghold in mobile gaming, where Microsoft barely competes, and a studio that produces hugely popular games. He called Call of Duty “one of the amazing entertainment franchises on the planet.”
Federal regulators may raise concerns about the acquisition, as Democrats and Republicans alike have pushed to limit the power of technology giants. On Tuesday, the Justice Department and Federal Trade Commission announced a new effort to broaden how they should determine if deals are anticompetitive.
Microsoft is valued at more than $2.3 trillion, second only to Apple. The takeover of Activision would make Microsoft the world’s third-largest gaming company by revenue, behind Tencent and Sony, the company said. Microsoft now makes Xbox consoles and owns studios that produce hits like Minecraft.
The game industry has been consolidating rapidly. A force behind that — and one that could grab the attention of regulators — is the arms race for exclusive content. Microsoft sometimes makes the games it owns available only on its own devices, such as its Xbox console, and unavailable on those made by competitors, like Sony’s PlayStation.
When asked whether Activision games like Call of Duty would become exclusive to Xbox, Mr. Spencer would say only that “our goal is to allow the content to reach as many players as possible.”
Microsoft has been hunting for ways to spend its immense cash reserve — more than $130 billion — to expand its consumer business. It has looked at acquiring the booming social network TikTok and the popular chat app Discord.
In Activision, which faces accusations that senior executives ignored sexual harassment and discrimination, Microsoft found a target under stress. The allegations have weighed on Activision, with its shares falling 27 percent since California sued the company in July over the claims.
The game maker’s shares rose more than 25 percent in trading on Tuesday. Microsoft’s shares fell by 2 percent.