Business Case Studies & Business Publications

Uniting Worlds: Microsoft's Acquisition ...

Palomba, Anthony

Case

Uniting Worlds: Microsoft's Acquisition of Activision

Palomba, Anthony

S-0411 | Published March 18, 2025 | 13 pages Case

Collection: Darden School of Business

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Set in 2023, this case explores the merger between Microsoft Corporation (Microsoft) and Activision Blizzard, Inc. (Activision), two of the largest companies in the video game industry. The merger could significantly disrupt the industry, representing opportunities for Microsoft and Activision and threats to rivals such as Sony Group Corporation and Nintendo Co. Ltd. While the merger represented potential competitive advantages, it also created complex communication questions, both internally (how to handle a possible culture clash between the companies) and externally (how to respond to regulatory backlash, as well as ensure effective messaging to multiple stakeholders within the industry and beyond). Communication was fundamental to not only the merger, but the media industry itself; for these two firms, clear and effective communication strategies would thus be critical to successfully navigating the merger and the industry shifts it posed. The case also examines possible synergies from the merger, monetization models within the video game industry, and theoretical frameworks surrounding the psychology of gameplay. This case is taught in “Media and Entertainment Businesses,” an elective course for second-year MBA students that aims to prepare them for careers in the media and entertainment industry. The case would be appropriate for MBA or executive education courses related to media and corporate communication strategies, particularly courses on entertainment, consumer and audience behavior, and the gaming and technology industries.

• To examine theories and frameworks that are relevant in understanding video game consumption behavior. • To highlight the challenges and opportunities within the video game industry. • To analyze factors that influence video game development.