Xbox CEO: Hard to Judge if Activision Deal Paid Off

Asha Sharma, chief executive of Xbox, told attendees at a technology conference in 2026 that it is difficult to judge whether Microsoft’s $68.7 billion acquisition of Activision Blizzard has paid off.

She noted the deal closed before widespread use of generative AI tools such as ChatGPT and during the COVID-19 pandemic, when Xbox’s strategy focused on core consoles. Those timing factors complicate efforts to assess the purchase.

Sharma highlighted the acquired studios and franchises as strong assets, naming Call of Duty, Candy Crush and World of Warcraft. She pointed to the teams’ record of producing regular hits over the past two decades.

She added, “I don’t know anybody in entertainment who wouldn’t want Call of Duty, which is now grossing in more revenue than the Marvel Cinematic Universe; who wouldn’t want one of the top three apps in the world in Candy Crush; who wouldn’t want World of Warcraft; who wouldn’t want a team that for 20 years has been able to create predictable hits every single year.” She said the company continues to invest in those properties.

Since the acquisition, Xbox hardware sales have declined and Microsoft has carried out multiple rounds of layoffs, including cuts within Xbox Game Studios. The restructurings removed thousands of roles and led to the closure of several development studios.

Microsoft completed the acquisition of Activision Blizzard King, bringing major intellectual property and mobile and MMO businesses under its control. Sharma declined to give a definitive verdict on whether the purchase has delivered expected returns to date, citing timing and changing market conditions.