Xbox CEO unsure whether Activision Blizzard merger is paying off
Microsoft’s $68.7 billion acquisition of Activision Blizzard stands as the largest video game merger in history, yet the deal’s success remains uncertain. During a Bloomberg Technology 2026 panel, Xbox CEO Asha Sharma notably declined to affirm the acquisition is paying off, despite acknowledging the undeniable value of acquired properties like Call of Duty—which now generates more revenue than the Marvel Cinematic Universe—and Candy Crush, one of the world’s top three apps.
The acquisition’s real-world outcomes have proven disappointing. Xbox hardware sales have declined significantly since the deal closed, undermining expectations that major franchises would drive console adoption. Microsoft has conducted multiple rounds of layoffs across its divisions, including Xbox Game Studios, resulting in thousands of lost jobs and several studio closures. These workforce reductions have cast serious doubt over the deal’s strategic value and long-term viability.
Sharma’s cautious response highlights a central challenge: translating valuable gaming intellectual property into tangible business success requires more than acquisition capital. What was anticipated as a transformative home run for Xbox’s competitive position has instead become a cautionary example of how even unprecedented merger spending cannot guarantee market dominance without effective execution, strategic integration, and operational discipline.