Microsoft’s acquisition of Activision Blizzard sent shockwaves through the gaming industry, yes, but it also destabilized the American company, which shelled out $69 billion for the deal.

Thanks to this deal, XBOX did secure prestigious licenses and significant resources. According to information shared by Jez Corden of Windows Central, XBOX was using the profits generated by Activision Blizzard, primarily by Call of Duty, to subsidize other parts of the company. This was also intended to offset the decline in revenue from XBOX Game Studios.

Unfortunately, this plan fell apart when Call of Duty: Black Ops 7 underperformed and received poor critical reception. As a result, the business model implemented by Microsoft collapsed. Competition was also fierce against titles like Battlefield 6 and ARC Raiders. Combined with the price increase for Game Pass in October 2025, XBOX found itself in serious trouble.