It seems the jury is nonetheless out as to whether Microsoft’s seismic $68.7 billion merger with Name of Responsibility maker Activision Blizzard represented good worth for cash.
Throughout an on-stage interview at Bloomberg Tech 2026, Xbox CEO Asha Sharma was requested whether the deal—which presently stands as the biggest online game acquisition in historical past—is paying off. Regardless of praising the corporate itself, she notably failed to supply an affirmative reply.
“I do not know anyone in leisure who would not need Name of Responsibility, which is now grossing in additional income than [the] Marvel Cinematic Universe; who would not need one of many high three apps on the planet in Sweet Crush; who would not need World of Warcraft; who would not need a staff that for 20 years has been in a position to create predictable hits each single 12 months,” mentioned Sharma.
“I like Activision Blizzard King. Look, it was purchased at a time earlier than ChatGPT. It was purchased at a time when our technique was predominantly on the core consoles. It was a time once we had been proper in the course of COVID. So it is onerous to say how to consider these selections, however I feel these are unbelievable belongings and we proceed to put money into them.”
Microsoft has sanctioned 4 main rounds of layoffs since finishing its merger with Activision Blizzard in 2023.
These cuts included widespread redundancies throughout Xbox Sport Studios, with the corporate eliminating 1,900 roles in 2024 earlier than shuttering key studios resembling Arkane Austin, Alpha Canine Video games, and Tango Gameworks (the latter of which was ultimately salvaged by Krafton).
It then laid off one other 650 online game employees in September 2024.
In July 2025, Microsoft reportedly laid off 4 p.c of its whole workforce, with these cuts impacting studios and divisions resembling King, Zenimax, and The Initiative.
Xbox {hardware} gross sales have additionally didn’t set the world alight because the merger concluded and stay in regular decline.
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