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Microsoft's $300M Bet on Call of Duty Sparks Controversy

10/7/2025

37 2 Full Breakdown

Summary

Story summary

Microsoft reportedly spent over $300 million in potential COD sales by launching Call of Duty: Black Ops 6 on Game Pass.
About 82% of COD sales occur on PlayStation.
Game Pass growth has stagnated since 2020, with a 16% revenue rise after the release.
Analysts say pricing misalignment from Game Pass prompts Ultimate to $30/month and day-one releases cannibalize high-margin titles.

History

Historical Context

Microsoft announced its $68.7 billion acquisition of Activision Blizzard on January 18, 2022, aiming to strengthen its gaming portfolio amid fierce competition, particularly from Sony. The deal, finalized on October 13, 2023, positioned Microsoft as the third-largest video game publisher, with Activision's franchises like Call of Duty significantly influencing market dynamics and revenue models in the gaming industry.

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Story summary

Microsoft reportedly spent over $300 million in potential COD sales by launching Call of Duty: Black Ops 6 on Game Pass.
About 82% of COD sales occur on PlayStation.
Game Pass growth has stagnated since 2020, with a 16% revenue rise after the release.
Analysts say pricing misalignment from Game Pass prompts Ultimate to $30/month and day-one releases cannibalize high-margin titles.

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