Jost van DrunenThe acquisition is described in a new article in his newsletter, SuperJoost Playlist, by the NYU Stern School of Business professor and former founder of SuperData Research Activision and Bethesda In a “slow-motion reverse takeover,” the publisher Microsoft spent $76.5 billion to acquire ended up being the division best equipped to manage the studios and IP Microsoft created. Microsoft.
Let’s see what the professor means.
Van Drunen’s explanation
Van Dreunen concluded that Microsoft’s acquisition involved less intellectual property rights; Plus management talent. Its own revenue analysis shows this effect.
Xbox first-party software revenue Those revenues, which had remained under $2 billion annually until 2019, surged to $13.7 billion in 2025 after a deal with Activision Blizzard, totaling about $22 billion more than third-party revenue. Acquired franchises are no longer just part of Xbox’s first-party business; now they actually form its backbone.
Rare is reportedly developing “other projects” outside of Sea of Thieves, including under Activision
When one A significant portion of revenue comes from acquired intellectual property rightsinvestment, talent and organizational authority inevitably move in the same direction. Obsidian is the most high-profile example: the studio behind Fallout: New Vegas is working on a new chapter of Fallout and is now responding directly to the IP’s owner, Bethesda. Xbox Studios itself is increasingly organized around purchased franchises rather than those created in-house.
In other words, Activision and Bethesda are becoming more and more powerful within Xbox, which can be considered “reverse takeover”.
Finally, the new organization of Xbox, Bethesda, and Activision Studios is explained with pictures.