Microsoft’s acquisition of Activision Blizzard King, the largest purchase in video game history, has had a significant impact on the industry and triggered a number of major changes. One of the main losers in this acquisition has been Jim Ryan, the CEO of Sony Interactive Entertainment (SIE) and PlayStation… well, CEO at least until March 2024.
The situation is part of a power struggle between PlayStation and Xbox since the beginning of the current generation of consoles. While PlayStation under Ryan’s leadership sought a unifying and global approach, Xbox, led by Phil Spencer, was committed to breaking hardware barriers, focusing on the ecosystem and facilitating access for players.
As you remember LevelUp, Microsoft’s acquisition of Bethesda and Zenimax in 2020 had already raised concerns about the future of Bethesda titles on PlayStation consoles. However, PlayStation seemed to be in a strong position due to the success of the PlayStation 5 console and the good reception of PS5 exclusives.
But everything changed with Microsoft’s purchase of Activision Blizzard King. This acquisition posed significant challenges for PlayStation, as Crucial franchises for the brand such as Call of Duty came under the Microsoft umbrella. Jim Ryan, in an attempt to prevent the takeover, led opposition through regulators in the United States and the United Kingdom. However, the acquisition eventually went ahead.
An awkward position for Play
Microsoft’s purchase of Activision left PlayStation in a difficult position. Call of Duty was revealed to be a vital revenue stream for the brand, and without it, PlayStation exclusives could be in jeopardy from a financial perspective. Jim Ryan looked for alternatives, such as the acquisition of Bungie, to diversify revenue sources and adapt to new industry trends, such as games as a service.
Despite some efforts on PlayStation’s part, Microsoft’s acquisition of Activision continued. This marked the beginning of a new era in the video game industry, with Xbox emerging as a powerhouse with a broad ecosystem of studios and franchises.
Jim Ryan’s departure as president of SIE was announced shortly after the acquisition of Activision, a position that will remain until March 2024. Although it was officially presented as a decision related to his residence in a country other than the company’s headquarters, the context suggests that defeat in the fight to prevent the takeover was a major factor in his resignation.
Good job, Private Ryan. But the most important and media transaction in the video game industry was made by Microsoft for Xbox under your mandate at Sony…