Microsoft-Activision Merger Reshapes Gaming Industry Landscape
The completed Microsoft-Activision merger is already transforming the gaming industry, with the combined entity now controlling the largest portfolio of gaming franchises in history. The $69 billion deal has positioned Microsoft as the dominant force in gaming.
By Michael Anderson - Foreign Correspondent
Last Updated: December 15, 2025
Gaming industry transforms following Microsoft-Activision merger
A New Gaming Giant
Microsoft Gaming now operates franchises including Call of Duty, World of Warcraft, Candy Crush, Minecraft, Halo, Elder Scrolls, and Doom. The combined catalog generates over $30 billion in annual revenue, making it the third-largest gaming company globally.
The integration has proceeded faster than expected, with Activision titles now appearing on Xbox Game Pass. Call of Duty's addition alone has driven millions of new Game Pass subscriptions.
Game Pass Transformation
Xbox Game Pass has grown to over 50 million subscribers, up from 25 million before the merger. The service now offers an unmatched value proposition, with day-one access to major titles from both companies.
Microsoft has maintained its commitment to keep Call of Duty on PlayStation, though the latest installment launched first on Xbox platforms with exclusive features.
Industry Reaction
Sony and Nintendo have responded with their own strategic moves. Sony acquired several studios and expanded PlayStation Plus, while Nintendo focused on exclusive content for its upcoming console.
Smaller publishers face increased pressure as the industry consolidates around major platforms. Independent developers, however, have found new opportunities through Game Pass discovery.
Cloud Gaming Push
Microsoft is leveraging the expanded catalog to push cloud gaming, allowing players to stream AAA titles to phones, tablets, and TVs. The company aims to reach 3 billion gamers who don't own traditional consoles.