In 2023, Microsoft completed its nearly 70 billion dollar acquisition of Activision Blizzard. The goal was clear to take control of the Call of Duty franchise and use it to drive growth for Game Pass subscriptions.
In reality, the strategy has not delivered the expected results. Game Pass saw only modest growth, while sales of new Call of Duty titles declined significantly due to their availability in the subscription from day one. Against this backdrop and following leadership changes within Microsoft Gaming, the company may reconsider its approach.
Windows Central senior editor and insider Jez Corden said on The Xbox Two podcast that the next Call of Duty entry might not launch on Game Pass on release day. According to him, Microsoft Gaming’s new head Asha Sharma is considering abandoning this model, as it has proven financially inefficient and makes it harder to justify the development of expensive titles.
Additionally, because many players choose subscription access over purchasing games, Activision and its studios receive less revenue for ongoing content support. As a result, player interest tends to fade more quickly.
Corden noted that he is not one hundred percent certain about this information, but said the reasoning makes sense. Many analysts have already pointed to the unprofitability of recent entries, although it is worth noting that Black Ops 7 released in 2025 was one of the weakest titles in the franchise, meaning its failure cannot be fully attributed to Microsoft’s strategy.
This leaves one key question why Microsoft spent 70 billion dollars on Activision Blizzard if the core part of its plan did not meet expectations.
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