Microsoft’s New $75 Billion Investment Is In The Hands of Your Basement Dweller Cousin

Microsoft just went Casino Royale style, sliding a $75 billion pot onto Activision Blizzard. And their high-stakes play? None other than Call of Duty, a game with a cult following that could either blow up their subscriber base or leave Microsoft as shaken as Bond's martinis.

With Black Ops 6 hitting Game Pass from day one, Microsoft’s testing the waters to see if this massive deal can turn Game Pass into a must-have or if they'll be left holding the empty controller.

The gaming world’s seen some “big ball” moves, but Microsoft’s bet on Activision is next-level high-stakes. It’s their biggest acquisition ever, leagues ahead of their $26 billion LinkedIn (which, as we all know, really changed the social media world… or not). But the real question isn’t just if Call of Duty can reel in players; it’s whether those players will part with $19.99 a month for Game Pass instead of paying the usual $69.99 to own the game outright.

(Source: Microsoft News)

Microsoft’s vision is to be a "Netflix for games." Yet, much like streaming, convincing hardcore gamers to trade their library for a cloud-based subscription isn’t as simple as loading another episode of Gilmore Girls.

Black Ops 6 is Microsoft’s Trojan Horse in the Game Pass fortress, aiming to seduce gamers into a monthly subscription model. And if analysts like Wedbush Securities’ Michael Pachter are right, this could be a big win: adding around 3-4 million subscribers. But it may come at a cost—potentially up to six million fewer individual game sales, as many loyalists might opt for the subscription over the one-time purchase.

That said, the idea of streaming a high-action shooter is divisive. Hardcore fans, like Massachusetts tech consultant Eric Webster, aren’t exactly leaping for joy. "When you look at a game being streamed, you see how over-compressed those images look," he says, sticking his middle finger up at the idea of trading his souped-up gaming PC for a stream that might lag right as he’s about to score a kill.

Microsoft’s cloud gaming vision is to let you jump into a game on your Xbox, pause, and pick it up later on your phone or smart TV. It sounds fantastic on paper, but making it work (without gamers throwing their controllers in frustration) might take time. Right now, Game Pass has around 34 million subscribers, which is solid but still a fraction of the 3.1 billion gamers worldwide.

With every Call of Duty game traditionally selling around 25 million copies annually at $70 each, Microsoft is stepping off a lucrative path. They’re banking that the lost revenue will be more than offset by in-game purchases—Call of Duty’s secret weapon. Think skins, battle passes, and all the cosmetic goodies players shell out for. But does the average gamer want to pay monthly just to keep playing?

Some experts are optimistic. Joe Tigay from Equity Armor Investments sees it as Microsoft positioning itself perfectly for the "streaming revolution" in gaming. "It won’t happen all at once," he says, but he believes the idea has legs.

Here’s the real question: Is Black Ops 6 enough to make gamers reconsider Game Pass? Or will it end up being just another expensive attempt to lure them to the cloud? I guess Microsoft’s $75 billion gamble now lies in the hands of basement-dwelling joystick warriors who’d rather rage-quit than pay for another subscription—so good luck with that, Microsoft.

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Stock.News has positions in Microsoft and Netflix.