So here we are. Now that the storm has settled (a bit), it’s worth discussing the big news. Of course, Microsoft’s announced acquisition of Activision Blizzard has sent shockwaves through the industry, an acquisition that somehow dwarfs the company’s previous mega-acquisition of Bethesda. As the news has broken, everyone has reacted in a state of collective disbelief and mass distress about what it all means for the industry, for Xbox, Phil Spencer, Bobby Kotick’s wallet and the average player. Inexplicably, there was some excitement about how the company could get its franchises back on track.
This frenzied discussion isn’t unwarranted. After all, there’s so much to discuss, so many unknowns. But for now, let’s focus on one aspect. Whilst yes, there’s plenty to be said for the dangers of this corporate consolidation (particularly with the deal between Sony and Bungie) and the ever-growing oligarchy that is a part of this deal, the major aspect of this is the same reason that Activision Blizzard would even be willing to sell at a price that could be bought.
As California’s Department of Fair Employment & Housing brought a lawsuit in July 2021 against Activision Blizzard, they detailed allegations that the company “fostered a pervasive “frat boy” workplace culture”, along with details of women being passed up unfairly for promotions and a lack of equal pay, with examples of sexual harassment rife including a case of a woman committing suicide following a business trip. The lawsuit and its allegations created shockwaves that have permeated through the company and the gaming industry.
From there, more and more information gathered and allegations uncovered. Employees were exposed, such as Alex Afrasiabi and his 2013 ‘Cosby Suite’. That in turn brought Blizzard staffer Jesse McCree into disrepute, leading to the renaming of Overwatch’s cowboy. More employees left, including then-president J.Allen Brack, and former Blizzard co-lead Jen Oneal spoke of how she didn’t receive equal pay to her fellow co-lead Mike Ybarra, with both speaking up before Oneal departed the company. A spokeswoman for the company confirmed that 37 employees had been pushed out since the lawsuit. Despite that, these consequences haven’t really touched senior figures. The board were dismissive initially until it became irrefutable. It’s brought about necessary employee movement.
Let’s face it, the company is at an all-time low. The lawsuit brought by California’s DFEH, the subsequent details of how much Bobby Kotick knew, the company’s disastrous response and the workers’ collective action and recent trade union formation for Raven Software QA staff which Activision are refusing to recognise, this is a landslide moment for gaming with one of its biggest players exposed as a place exemplary of disgraceful workplace practises and a culture of sexual harassment wilfully ignored, allowing it to fester. This is what Microsoft has spent $68.7bn on, pending any antitrust laws.
Yes, they get some good IPs, which has been the focus of a lot of the press statements, such as Phil Spencer’s love for Guitar Hero. The focus has been on the potential creative advantages, and not the legal battle and pervasive issues within the company. Of course, what they can say is limited, and doing so is something that could jeopardise their purchase, with congressmen having raised the issue which could be scrutinised and the Federal Trade Commission now taking a look at the deal, which Satya Nadella seems rather confident won’t create any issues apparently, despite the Commission currently preventing Nvidia’s acquisition of chip manufacturer Arm.
Early signs seem to be promising. Rumours of Kotick’s exit from his position appeared shortly following the announcement and in a recent CNBC interview, Microsoft President Brad Smith mentioned the leadership of Activision Blizzard would be watched closely, saying “Most importantly, we want to see the culture evolve, and we’ll see how people perform between now and the day this closes, assuming it’s approved.”
With all of this said from my soapbox, it’s worth also saying this. Xbox fans do tend to love Phil Spencer, and it’s easy to see why. He worked his way up from an intern to head of Microsoft Gaming. He speaks readily to the press and raises issues around gaming preservation, accessibility and emulation. There’s nothing to dispute that he comes across well. However, when the deal goes through (as we assume), how he handles this massive conglomerate will be the true test. Will he acknowledge the growth of trade unions started by Raven Software? Will Kotick’s rumoured removal stick? How will the workplace practises change? For all the talk, for all of the unknowns, these questions are ones which should persist and should be answered. Hopefully in a positive manner.
