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Phil Spencer: Activision Blizzard Acquisition is 'Well Beyond Anything I've Ever Done'

Phil Spencer: Activision Blizzard Acquisition is 'Well Beyond Anything I've Ever Done' - News

by William D'Angelo , posted on 01 March 2022 / 2,911 Views

Microsoft Gaming CEO Phil Spencer in an interview with Axios discussed Microsoft's plans to acquire Activision Blizzard for $68.7 billion.

He said the deal is beyond anything that he has ever done and the responsibility of a successful transition of the thousands of employees at Activision Blizzard.

Spencer hopes the Activision Blizzard employees feels Microsoft and Xbox is "a long-term place for them where they can do their best work in a supported way." 

This is by far the biggest acquisition in video game and Microsoft history and Spencer feels the weight on his shoulders.

Phil Spencer: Activision Blizzard Acquisition is 'Well Beyond Anything I've Ever Done'

"That's something well beyond anything I've ever done," said Spencer. "I don't know that I'm equipped to do it, and the responsibility for that definitely hits home."

He added, "I do not feel like we're in a position, assuming this deal gets closed, to start to uniquely, on our own, shape policies around video games."

Spencer did reveal that on the day Microsoft got approval for the $7.5 billion ZeniMax deal the board at Microsoft asked, "What was next? And the constant conversation had always been about mobile and casual."

He added, "The longest goal for us is: 'Do creators on our platform feel like they have the best opportunity to reach the maximum number of players with the maximum creative diversity that they need?'"


A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.


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59 Comments
aTokenYeti (on 05 February 2022)

I do think Phil is showing some candor here, but the line about not having power to shape labor markets is calculated. Microsoft is trying to present a benign face to regulators.

But Microsoft will be the largest employer of game developers in the United States by a wide margin after this deal goes through, and they will be close to the largest in the world. That carries an huge amount of power to set wages and industry working standards. That will be another thing regulators will be keeping an eye on

  • +9
Pemalite aTokenYeti (on 05 February 2022)

I honestly thought that US didn't really care much about wages?

I mean, the $7.25 minimum wage and tipping etc' does tell me that decent wages aren't really a priority over there.

Or is that a false impression I have?

  • +9
Yassgragra Pemalite (on 05 February 2022)

Facts.

  • 0
aTokenYeti Pemalite (on 05 February 2022)

Sort of, what regulators will be looking at will be whether Microsoft’s power to control labor costs industry wide will be able to be used as a competitive advantage. It’s less a worry about what the workers are actually being paid and more a worry about whether it will damage a healthy and competitive market

  • +3
scrapking aTokenYeti (on 06 February 2022)

According to GlassDoor, Microsoft already pays developers the best in the industry, on average.

  • 0
Kakadu18 scrapking (on 06 February 2022)

Worldwide? How much would that be?

  • 0
scrapking Kakadu18 (on 06 February 2022)

Look at the site. GlassDoor is the best resource we have on who gets paid what around the world, just as VGChartz is the best resource we have as to game and system sales. GlassDoor uses anonymous reviews of pay and working environments within organizations, including by former staff members. Neither GlassDoor nor VGChartz is perfect, but in both cases I think they give us a pretty accurate general idea. Last I recall, Microsoft is #1 and Nintendo is #2.

  • 0
Mr Puggsly Pemalite (on 05 February 2022)

Very few people actually make the federal minimum. Stats suggest is pretty rare. Many states and even cities go well above. More like $12 to $15. The cost of living varies wildly as well.

Jobs that rely on tips often pay better overall than other low skill jobs. Which is why the most vocal are lefties with agendas and not the actual workers. Some people just hate tipping well because they are poor or greedy.

  • -7
Pemalite Mr Puggsly (on 06 February 2022)

Honestly, I wouldn't even get out of bed for $30.

Fact is, I think tipping is ridiculous... But it seems like it's an expectation in the USA.
The price you see on the menu, is all you should have to pay as a consumer... It should include taxes, wages, running costs, transaction fees... Everything.

The fact that waiters need tips AT ALL to "make ends meet" or get a second job, just shows that the system isn't fair and that the business clearly doesn't value it's employees enough to pay them a living wage.

It's good news that many states and cities go well above the federal minimum wage of $7.25, but lets keep in mind that obviously isn't universal.. And the $7.25 wage is a level that can be blatantly exploited as it's legislative law.
An increase needs to happen at a federal level, not a state or city level... It's a "United States" is it not?
Otherwise people get an advantage based on geographical location of birth... And thus inequality in living conditions, wages and opportunities.

I'm not really "into" the whole left vs right agendas in the USA, but wages are almost a none issue here. (Although, everyone always loves to be paid more.)

By boosting the federal minimum wage however, it would remove the opportunity for ANY company, be it Microsoft or a local restaurant to abuse wages and undercut the competition.

  • +3
DonFerrari Pemalite (on 06 February 2022)

You are mixing your culture with others and being judgemental about it as if your is superior.

  • 0
Random_Matt DonFerrari (on 06 February 2022)

Nah, just means Australia gives a shit.

  • +2
Mr Puggsly Random_Matt (on 06 February 2022)

I will tell you this. I have great respect for how Australia handles immigration. That tells me they actually care about their citizens more than US politicians.

I am genuinely disgusted how open our country is right now even though we are apparently living in the worst pandemic in history.

  • -5
Pemalite Mr Puggsly (on 06 February 2022)

I love our border policies, it's very right-wing conservative, which I don't have anything against, but it absolutely works.

Even the left here has thrown bipartisan support behind it due to the overwhelming evidence of how effective it is.

But we also have the advantage of geography on our side in managing it... I.E. We don't share borders with any other nation.

  • -3
mjk45 Pemalite (on 06 February 2022)

That's wrong I'm also Australian and while we Australian's see the need for strong borders , mandatory detention is very contentious and was just a populist action done to win votes in marginal seats it hasn't reduced illegal immigration. because since the mid twentieth century the vast majority of international people movement is now done by air and Australia's geography strengthens that use , so just like the rest of us travellers the vast majority of illegal immigrants arrive on tourist visa's and offshore detention didn't change that only covid and that stopped every one except the privileged from coming.

  • +2
mjk45 Pemalite (on 06 February 2022)

I would like to point out that your statement IE. ""we don't share borders with any other nation" is factually incorrect .
Signed,
Mark McGowan, President Elect of the sovereign nation of Western Australia.

  • +4
Pemalite DonFerrari (on 06 February 2022)

No Don.
I am wanting people in the United States to be better, to have it better... For all it's citizens.
And that won't change unless people push for it... And one of the best ways to do that is to showcase how and why the grass is greener on the other side.

  • +3
mjk45 Pemalite (on 06 February 2022)

While I like you agree with a strong safety net, you just cant look at the minimum wage in isolation factors like cost of living cost need to be taken into account because S12 an hour may equate to $24 an hour somewhere else when it comes to purchasing power.

  • +4
Mnementh DonFerrari (on 06 February 2022)

Fair pay is a cultural thing? "Oh my culture doesn't care about fair pay for work."
Nope, fair pay is something that should be standard everywhere, the same as proper health care, drinkable water, education and so on.

  • +3
Mr Puggsly Pemalite (on 06 February 2022)

Yeah, that would be about $50K+ annually. Which is pretty close to the median in the US. While the federal minimum lefties complain about is barely a thing.

The tip is optional. You are just considered a trash person if you are bad tipper. If you make about $30 an hour, giving $5 or $10 is not a big deal for your average dining experience with 2 or more people. It keeps prices lower and you can be as generous as you want.

I hate bar food but I like going to bars to watch UFC. So even I get nothing I will give the waiter like $20 since I watched a PPV for free and they brought me waters or whatever. The only people who find that ridiculous are poor and greedy.

Again, jobs that rely on tips tend to pay better. They can even pay as much or better than what it takes to get you out of bed. Which is why people who rely on tips actually like the system.

Again, the stats show very few people work for the federal minimum. Its so rare that you have ask why these people do it and of course moving is always a viable option. I bet our street beggers make more than the federal minimum wage.

I am telling you some of the most vocal about our tipping culture are left leaning people, that's a fact. While the people actually working jobs relying on tips want them to fuck off. Why? Because generous people make tip jobs better paying.

Dude, big companies pay more than small companies can compete with. We live in country where business compete for good employees. The problem is the cost living is getting higher especially right now.

The real complaint is the high cost of living. People want a low skill job to provide for an entire family and do it comfortably. And quite honestly, that just isn't realistic. So left leaning politicians essentially say they will provide it to people just by taking it from the rich.

  • +6
Pemalite Mr Puggsly (on 06 February 2022)

Well. That is thing. It doesn't keep prices lower, it hides costs, which is my argument.

A consumer shouldn't ever feel the need to feel guilty about not tipping.
If they can earn $30 an hour (And I earn allot more than that...) then that is fine, but is that guaranteed?

I understand that jobs that rely on tips pay better, but the point I am making is that is shouldn't be necessary at all.

Are tips taxed? Does that get added to the general federal taxation? Or is it just cash in hand? Does that then miss an opportunity to help get homeless (I.E. Veterans) off the streets via increased tax revenue?

It also doesn't matter if things are left or right wing, it doesn't make the argument they present... redundant or false.
You need to weight the points they present rather than focus on irrelevant points like... Are they left wing policies?

If it's so rare, why have it so low to start with?

All countries with companies compete to try and get the best employees, we use resumes here too you know.

  • -3
VAMatt Pemalite (on 06 February 2022)

This just shows a fundamental misunderstanding of how tipping works, at least in the United States. I'm not sure how to explain it to you, but it is plain as day, as an American that has it various times work for tips, managed people working for tips, and owned a small business, that you don't understand how it works.

There's definitely no hiding of costs. All Americans understand how the system works. What it represents is direct payments to the people providing you a service, rather than funneling that money through "the boss". It is the opposite of hiding cost. Also, tipping takes away the ability of a business to mistreat their workers, at least from a compensation standpoint. It literally isn't possible for the business to control their pay.

Anyway, I've spent tons of my life in and around multiple tipped industries, as have many of my friends and family. I can't think of any single person that would prefer to move away from the tip system, save for one guy that is essentially a communist.

  • +6
mjk45 VAMatt (on 06 February 2022)

Paying someone a fair basic wage doesn't make tipping illegal it turns it back into what it was a tip for good service, still it's nice to see your against the communist tip jar.

  • +4
VAMatt mjk45 (on 06 February 2022)

This comment shows me that you also don't understand how tipping, at least in the United States works.

Tipping, in the American sense, is a direct payment for service. You are simply advocating putting a middleman in there to take a piece of that payment. It's a very anti-labor position, and not one that very many tipped Americans want.

  • +3
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mjk45 VAMatt (on 07 February 2022)

I know how it works but to me there are better alternatives that can ensure no drop in tip reliant workers take home pay while returning tipping to what it once was a reward for good service .

  • 0
VAMatt mjk45 (on 07 February 2022)

I know you think you understand it. But again, your comment shows me that you don't. Tipping in the United States is not, and to my knowledge never has been a reward for good service. It definitely has been this way for all of modern times. It is a payment for service. Not a reward based on the quality. A big tip is often a reward for exceptional service. But a tip in general is just a direct payment. It is no different than the company raising prices and raising the base wage, except that in the tips scenario, the money is not filtered through the business, who of course takes a cut of all money that flows through.

The thing where you talk about a drop in tipped income.... That's not a real concern of any tip workers that I've ever known. Again, your comment gives away that you don't get it. Tips are given nearly 100% of the time in industries where tips are customary. Some will be below average, others will be above. But, it always equalizes to somewhere around the average. It's no different than being an hourly employee in a business with variable demand. Some weeks you might get 40 hours, but other weeks you might only get 32. So there's some variability, but generally not much. As an example of how this plays out in real life, tipped employees generally do not have problems obtaining credit. This demonstrates that creditors understand that the income is reliable. They don't base your credit worthiness on the $2 an hour wage that you receive. They base your credit worthiness on your average income including tips.

Anyway, I don't know why you would advocate putting a middleman between workers and the people paying them. You are literally advocating for a reduction in real wages, given cetirus perebus. The fact that you seem to be coming from a position of siding with the workers gives away the fact that you don't get it. You're saying you're on the side of the workers, while advocating for them to make less money.

  • +3
mjk45 VAMatt (on 07 February 2022)

Disagree with me all you want but just stop with all the you don't understand nonsense here's an example of what I know https://time.com/5404475/history-tipping-american-restaurants-civil-war/

  • 0
VAMatt mjk45 (on 07 February 2022)

There's no way for us to have this discussion if you need me to pretend like you understand something that you clearly don't.

As an example, earlier in this thread you were arguing that we need to return tipping to what it was meant to be - a gift. But, you just posted an article that refutes your own point.

Think about this: you are arguing with Americans about American culture, arguing that you know better than tipped workers what is best for them, and posting stuff refuting your own points.

Sometimes you just have to accept that you're not an expert on everything. Just let it go dude. You're making yourself look ridiculous by continuing.

  • 0
mjk45 VAMatt (on 07 February 2022)

Like I said don't act like a condescending arsehole and tell me what I know or don't know and can and can't have an opinion on, the article says it was initially popularised by wealthy Americans who wanted to feel aristocratic and over time with many ups and downs evolved into what it is today no ones arguing it's present purpose .
but until you learn to be civil and realise opinions are universal and not bound by nationality this is my last reply.

  • 0
VAMatt mjk45 (on 07 February 2022)

You're certainly allowed to have any opinion you want. But, when your opinion comes from a place of ignorance, you are rightfully called out on it. I don't know how to be any more civil than I am, short of pretending like you have some credibility that you do not have. Patronizing you in that way would be substantially more rude, in my opinion.

  • 0
Mr Puggsly Pemalite (on 06 February 2022)

The costs aren't hidden if the prices can be at par with inferior fast food and tip is optional. The tip is also a small fraction by the way, so relax. If you make $50K+ then a decent tip won't ruin your quality of life.

There have also been times I basically don't tip because service was laughably bad. So it's also an incentive for better service.

Not all low skill jobs are gonna provide a great living. I think that includes much of the world. It's not unique to the US.

Tips are taxed, but you seem to make the assumption a fortune doesn't already go to helping the poor/homeless. Honestly, our government does little right and arguably encourages people to become homeless by making it easier to live that way.

I was trying to stress the people that complain about tip reliant jobs are lefties, this is objective. The people that do those jobs don't want people with political agendas meddling with a system they like. People also perform better when there are incentives. Which is why many of us are okay with tipping. It's not just an expectation from the worker, it also means better service is expected for the person paying.

I was trying to say wage abusing is less of problem when businesses are actually looking for good employees. That's why jobs tend to go above the minimum wages. A smaller pool of employees also means more competitive wages. Which is why low skill jobs will always pay less.

On a side note, in the US local governments create high minimum wages to avoid exploitation. But also ignores people getting paid under the table if it doesn't fit their narrative. In that sense, people being exploited is also encouraged by our government.

  • +3
Pemalite Mr Puggsly (on 07 February 2022)

I make almost 150k. But how much I earn isn't the point of why I am against tipping. (And if I go to the USA, I would refuse to tip out of principle.)
Sometimes personal morals are just more important.

The price is certainly hidden... You buy a meal for $10. If you are expected to tip say... 10%, then the price becomes $11. It is still only advertised for $10.
Do the Americans include taxation in the sale price as well or is that an added extra when they "calculate" the final cost of the sale? Some countries don't... Which I find odd... They instead add tax after the consumer has committed to a purchase which can inflate the price above that $10 figure again.

There is just far to much variability in tipping for me to take it seriously.

And just remember, I did start this conversation postulating a question, seeking clarification, which I have received, although hasn't changed my mind on why I am against tipping.

Low skilled jobs should pay decent either way, because we DONT want people stuck in an endless loop.. We want to provide people the opportunity to further their career, get supplemental experience, training and experience... That is the reason for a decent wage... The upside to that is, skilled employees become more valuable.

I mean, I was once earning a pathetic 28k a year. I left high-school in 9th grade. Only had the clothes on my back when I left home.

I worked hard... But the Australian system also provides everyone equal opportunity... And I exploited that... My sister didn't, she is in jail on drug and gun related crime and has never worked a day in her life.

  • 0
VAMatt Pemalite (on 07 February 2022)

"And if I go to the USA, I would refuse to tip out of principle."

If this is true, then you are a common thief. Not tipping in a situation where you know tips are expected is theft, directly out of the workers pocket. It is no different at all than walking into a mom and pop shop and shoplifting, morally speaking.

You don't seem like a bad person, so this comment further shows us that you don't understand how it works. Your position, in reality, is anti-worker, and marginally pro business.

With all of that said, you are starting to sound like a real clown by continuing to talk about this stuff like you have any idea of how the system works. You're over here arguing that American workers should take a pay cut because you don't understand how they get paid. Think about how ridiculous that position is.

  • 0
Mr Puggsly Pemalite (on 07 February 2022)

You make over a 150K and you would refuse to tip people you know rely on it? Fortunately, most of us value good service and would tip. But there are places for you in the US, it's called fast food.

By the way, I hate paying taxes out of principal. I believe my country is incredibly wasteful. The difference is that some principals put me in jail. While tipping is courtesy for a job well done.

Tipping isn't that difficult to comprehend. 10 to 20 percent is considered fine or good. Not tipping is also not surprising if service is shit.

Not everybody in Australia seeks out out every opportunity to get ahead. Nor do people in the US. But people in both countries have opportunities to move up if they search for it. That's why many come to the US. Meanwhile few go to Australia because you people have a prison island with great border security. I actually respect that and will even neglect you live in an ethnostate.

  • 0
VAMatt Mr Puggsly (on 07 February 2022)

I've come to the conclusion that the Australians in this thread either do not want to, or cannot understand it. It is probably the latter, as they don't have any experience to draw from in this regard. Consequently, they've both become married to positions that don't make any sense, and would have an effect contrary to what they seem to be thinking they're arguing for. This is what happens when people get bogged down into discussion of stuff that they don't understand.

  • 0
Mr Puggsly VAMatt (on 07 February 2022)

A lot of people that travel to the US seem to grasp many jobs actually depend on tips. They don't bitch about it, they understand it and tip because that's the custom. Saying you will take the service but refuse to tip on principal, well then you will be perceived as a greedy jerk that also seems to brag about being a caring individual.

  • 0
rykdrewbr Pemalite (on 06 February 2022)

My Country: minimum wage is U$2,00. That´s because i don´t live in my country !

  • 0
VAMatt Pemalite (on 06 February 2022)

I'd say that's a false impression. The minimum wage in particular just really isn't a factor in anything other than political discussions. Essentially nobody is working for that number. Even high school kids working in fast food or making $12 per hour or more.

I'd say the tipping is a good example of how much Americans do think about the compensation of others. It's a voluntary system by which consumers pay the people that serve them directly, rather than funneling the money through some other entity.

  • +8
LudicrousSpeed VAMatt (on 07 February 2022)

It’s a sham way for employers to pass costs onto customers instead of taking responsibility for taking care of their employees themselves. Why should a restaurant pay a server a real living wage when they can pay them peanuts and have the servers depend on the kindness of others to make a living.

In an ideal world the costs would be represented on the menu and you wouldn’t need to tip.

  • -3
VAMatt LudicrousSpeed (on 07 February 2022)

That's simply not an accurate statement. Tipping in the United States is not about kindness. It's about paying somebody that is providing you a service. It's a payment, the same as you do anytime you buy something. However, in the example of restaurant service, rather than funneling the payment through a third party (the restaurant), the money goes directly to the person that is serving you. It's a more efficient system, favored by people that work in the restaurant service industry, and essentially every American that I've ever spoken to about it.

Costs are represented on the menu. Service is a separate item when dining in a restaurant in the United States. I'm not familiar with Australia, but I have traveled quite a bit in Europe and understand how it works over there. There's a substantial difference in restaurant service and the dining experience between the United States and Europe. The easiest way for me to explain it is that in the United States, the server is employed by the diner for the period of time that that diner is in the restaurant. In Europe, the server is employed by the restaurant. The experience and expectations are different, and the compensation system is different accordingly.

  • 0
siebensus4 (on 05 February 2022)

Well, I guess "the maximum number of players" means release on game pass and not release on every console.

  • +5
Kristof81 siebensus4 (on 06 February 2022)

It means, release on every console ... through GP. Now whether GP is on every console or not, is up to console manufacturers. But we all know that ain't gonna happen

  • -1
Zeldadude (on 05 February 2022)

In other news, water is wet.

  • +1
DonFerrari (on 06 February 2022)

You don`t say.
On his last paragraph. If the developers say yes they are lying since, the only way to have everyone playing wherever they want them it would need to release in everything.

  • 0
Azzanation (on 05 February 2022)

Its well behind anything, anyone has ever done.

  • -7
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LudicrousSpeed ClassicGamingWizzz (on 06 February 2022)

Game of the Year awards LOL

I hope they win zero. I like to play games that don’t tickle the nutsack of mainstream games journalism and check all of their boxes.

  • -9
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LudicrousSpeed ClassicGamingWizzz (on 06 February 2022)

Wait, you worry about awards? Weird. Also didn’t MS games win a lot of GOTY awards this year? Even at that awful Game Awards? You’re out of touch.

  • +7
Imaginedvl ClassicGamingWizzz (on 06 February 2022)

Game award is really stupid and the majority of the winners makes no sense usually. Now if this is really important to you for some reason, Microsoft won a lot of those dumb award last year so… I guess it means a lot to you :) come on, of course you think he did nothing for gaming, of course you do, no need to even write a list or anything, we all know why

  • +1
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Imaginedvl ClassicGamingWizzz (on 06 February 2022)

Nobody is upset but you :) calm down, everything will be alright. Finding something pointless is far different from being upset, you are the one bringing a lot of emotions into all of this.
I’m waiting in a room right now to get my third vaccin dose, if you need to talk about it, do not hesitate I have few minutes of free time.

  • +1
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LudicrousSpeed shikamaru317 (on 06 February 2022)

And in the case of games like Horizon, Wasteland, and Psychonauts, the developers have been on record as saying the MS acquisition helped make their games better.

  • +9
VAMatt LudicrousSpeed (on 06 February 2022)

To be fair, what else are they going to say about their new employer?

  • 0
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Mnementh ClassicGamingWizzz (on 06 February 2022)

I don't know about Playground (Horizon dev), but InXile and DoubleFine were vocal about the difficulties of a game studio their size, because if they get a project greenlighted by a publisher they need staff, but once a project is closed and no other is just greenlighted, they have to let the staff go. Which is very unhealthy for building a stable and creative team. InXile and DoubleFine therefore are founding members of fig, a project directly aimed at creating a more stable financing of the participating companies. So yes, the acquisition through MS helped themto get more stable finances and hence a more stable team that can grow better organically.

  • +2
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