Microsoft is open to more acquisitions

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Key takeaways

  • Microsoft is open to more gaming acquisitions.
  • Presumably, the company isn't working on any “imminent” deals until the end of 2024.
  • Microsoft is unlikely to pursue blockbuster deals the size of its Activision Blizzard acquisition anytime soon.



Microsoft is open to more acquisitions in the gaming space, a senior company official has revealed. However, it may be a while until Microsoft adds to its growing family of game studios.

The company most recently did so in October 2023, when Microsoft completed its acquisition of Activision Blizzard after spending nearly a year actively dealing with regulatory pushback. With a total cost of $75.4 billion, the all-cash purchase was not only the largest gaming acquisition, but also the largest deal of its kind in the entire technology industry.

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But Microsoft isn't done yet, at least in the sense that it sees more opportunities for gaming M&A activity in the future. That's according to Microsoft Gaming CEO Phil Spencer, who said in a recent interview with Bloomberg. “We definitely want to be in the market [for more acquisitions]” the executive said. Expanding on that point, Spencer explained that all potential future acquisitions will depend on “finding the teams and technology and capabilities that support what we're trying to do in gaming.” His comments suggest Microsoft's vision for games. Studio acquisitions remain largely unchanged. .



Microsoft is not planning any 'imminent' gaming acquisitions

However, Microsoft isn't planning any “imminent” moves on the M&A front until late 2024, Spencer said. The executive also suggested that blockbuster deals comparable to the size of the Activision Blizzard acquisition likely won't happen anytime soon. This is largely because Microsoft is still in the process of fully integrating its latest acquisition into its publishing business. These ongoing efforts have already led to some redundancies, with Microsoft laying off hundreds of Activision Blizzard employees through 2024. The company's gaming unit has laid off more than 2,000 employees since the start of the year, though not all of them were from Activision. snowfall


When we can find teams and technology and capabilities that add to what we're trying to do in gaming at Microsoft, we'll absolutely hold our heads high.

Microsoft wants to pursue more gaming partners in China

Meanwhile, Microsoft wants to diversify its gamemaking operations by engaging more with China. Spencer described the possibilities of teaming up with Chinese studios for a global release as a “real opportunity”. His comments did not refer to acquisitions, but to traditional collaborations in the vein of the recent releases Age of empire mobilewas made in partnership with Call of Duty: Mobile The developer is TiMi Studio Group, a subsidiary of Chinese tech giant Tencent.


2023 Activision Blizzard acquisition makes Microsoft the world's third largest game publisher by revenue, behind Tencent and Sony Interactive Entertainment. And while the company now appears to be in a better position to pursue a sustainable game publishing business, Spencer's latest comments suggest that Microsoft is still open to inorganic gaming growth through acquisitions.

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