Microsoft's Struggles with Activision Acquisition

Microsoft's acquisition of Activision Blizzard for $75 billion has not yielded the anticipated growth for Xbox Game Pass, with reports indicating that the service's subscriber growth has stagnated. Despite the addition of popular titles like Call of Duty, the expected influx of new users has failed to materialize, and several game studios are resisting Microsoft's offers to place their titles on Game Pass. The company's ambitious target of reaching 100 million subscribers by 2030 appears increasingly difficult, as they would need to triple their current user base within five years. Additionally, internal challenges and regulatory hurdles have complicated the integration of Activision's assets into Xbox Game Pass. While Microsoft's overall gaming revenue has shown some growth, it has not met internal expectations, leading to a reevaluation of Game Pass as a key performance metric for CEO Satya Nadella. As Microsoft focuses on its AI and cloud services, the gaming division is left to grapple with the disappointing outcomes of its high-profile acquisitions.