Microsoft is doubling down on its huge gaming bet as it strikes a deal to acquire Activision Blizzard for $68.7 billion. CEO Satya Nadella explains that the will play a key role in the development of metaverse platforms at Microsoft. In other words, they’re not leaving this space to Meta/Facebook.

Microsoft gains iconic titles in the deal:

Microsoft is acquiring Activision, the troubled publisher of Call of Duty, World of Warcraft, and Diablo. The deal will value Activision at $68.7 billion, far in excess of the $26 billion Microsoft paid to acquire LinkedIn in 2016. It’s Microsoft’s biggest push into gaming, and the company says it will be the “third-largest gaming company by revenue, behind Tencent and Sony” once the deal closes.

Microsoft plans to add many of Activision’s games to Xbox Game Pass once the deal closes. With the acquisition of Activision, Microsoft will soon publish franchises like Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush. “Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog,” says Microsoft’s CEO of gaming Phil Spencer.

There have been tons of problems at Activision Blizzard regarding allegations of sexual harassment. Microsoft will have plenty to deal with through any transition. For gamers it will be interesting to see if this creative studio will thrive or wilt under the Microsoft umbrella. Nadella is an excellent CEO so their track record is improving.