Activision head explained reasons behind Microsoft deal and lamented lack of resources

Activision CEO Bobby Kotick spoke with VentureBeat regarding the historic deal that will see one of the world's largest gaming companies lose its independence for $68.7 billion.

• Activision lacks the resources and capabilities to develop artificial intelligence, cloud technology, machine learning, and cybersecurity. Competitors such as Tencent, NetEase, Sony, Google, Amazon, Apple, Meta*, and Microsoft have moved further in this direction;
• Microsoft Gaming CEO Phil Spencer reached out to Activision just as the company was beginning to formulate long-term development plans in new areas;
• According to Kotick, the deal made sense for Activision because Microsoft can provide the company with resources and staff for development;
• Kotick admitted that all the scandals and legal proceedings hit the stock price much harder than the delays of Diablo 4 and Overwatch 2. Call of Duty: Vanguard failing to meet expectations also played a role;
• Microsoft is not as strong in the mobile space, which made King a great addition to the deal;
• Activision was assured that its projects will be available on as many platforms as possible;
• Kotick does not compare Activision to Ubisoft, Take-Two, and EA, preferring to view Facebook*, Tencent, and Amazon as competitors, in comparison to whom his company is simply tiny;

“I think Strauss [Take-Two CEO] did a great deal [referring to the Take-Two and Zynga deal] because he recognized the importance of mobile. Even if we had consolidated with EA, that wouldn't have given us what we need going forward. We needed a big partner.”

• Kotick has long wanted to see a new installment of Guitar Hero, but the company lacks the ability to dedicate a separate team to developing the game and a new controller for it. The chip shortage also has a significant impact;
• Right now, Kotick is completely focused on making Activision's transition under Microsoft's management go as smoothly as possible. He is ready to assist with this process a month and even a year after the deal closes;
• If there were a way for Activision to achieve its goals without losing its independence, it would have taken it. Kotick did not want to sell the company.