Explain your Thoughts According to the Harvard Business

Explain your Thoughts

According to the Harvard Business Review, “Companies make capital investments in order to create and exploit profit opportunities” (Dixit & Pindyck, 2014). On January 18, 2022, Microsoft signed a $68 billion deal to acquire the video game company, Activision Blizzard. This deal makes Microsoft the “world’s third-largest gaming company by revenue” (Microsoft 2022). With ownership of Activision Blizzard, Microsoft now owns the rights to various video games franchise such as Call of Duty, World of Warcraft, and Candy Crush. According to Time Magazine, this acquisition poses a huge impact on the company, its potential is revealed by the company’s past acquisitions (Austin, 2022). Microsoft and XBox’s Game Pass subscriptions increased drastically after the 2021 acquisition of the video game company Bethesda, which increased the number of games available on the service, thus increasing the number of subscribers (Austin, 2022). Microsoft also will have the opportunity to expand into mobile gaming, thanks to Activision Blizzard.