The revenue increase percentage is less than expected.
Microsoft
According to a recent report, Microsoft didn't get the expected results after the acquisition of Activision Blizzard, as its growth figures are below the target ones.
As stated by The Information, the purchase deal was expected to convince more players to acquire the Game Pass subscription. However, in the year to June, Microsoft’s gaming business's revenue grew 5.8%, which is below the target of 11%. Also, the report claims that some of the leading game developers resisted Microsoft's pitch to put their titles on Game Pass in exchange for fees that Microsoft offers to pay to the developers.
Apart from this, Microsoft expected that the purchase of Activision would attract game studios to rent its Azure cloud servers. Although, the report says that Activisiom uses its own servers for development along with the ones from Google Cloud and Amazon Web Services.
Microsoft acquired Activision Blizzard and its IPs, including Call of Duty, World of Warcraft, Overwatch, Diablo, Candy Crush, and more, in October 2023, after almost two years of legal battles.
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