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Microsoft's Acquisition of Activision:

A Game-Changing Move or Monopolistic Concerns?

By Majid khanPublished about a year ago 2 min read
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In 1975, two childhood friends from Seattle embarked on a journey that would transform the technology landscape. Bill Gates and Paul Allen converted a computer programming language for use on a personal computer (PC), laying the foundation for what would become Microsoft. Over the years, Microsoft's success skyrocketed, making Gates and Allen two of the richest individuals in the world. However, their rise to prominence also brought forth concerns of a monopolistic grip, leading to legal battles and controversies. Fast forward to the present day, and Microsoft's recent acquisition of Activision has sparked a wave of speculation and debate. This article explores the implications of Microsoft's move and sheds light on the company's tumultuous history.

The Rise of Microsoft:

Between 1975 and 1980, Gates and Allen focused on refining their programming languages, particularly BASIC, but their breakthrough came when IBM approached them to develop the operating system for their first PC, the IBM PC. Microsoft modified an existing operating system, renamed it MS-DOS (Microsoft Disk Operating System), and released it with the IBM PC in 1981. This milestone propelled Microsoft's success, with PC manufacturers crediting MS-DOS as their operating system of choice. By the early 1990s, Microsoft had sold over 100 million copies of MS-DOS, establishing its dominance over rival operating systems.

Windows Takes Center Stage:

In 1985, Microsoft released its first version of Windows, but it was the third iteration, Windows 3.0, launched in 1990, that revolutionized the industry. Windows 3.0 and subsequent versions gained immense popularity, capturing a significant market share. By 1993, nearly 90 percent of the world's PCs ran on a Microsoft operating system, cementing the company's position as a technology powerhouse. Microsoft's ascent continued as they became one of the most profitable companies in American history, consistently generating substantial profits and revenue.

Legal Battles and Controversies:

While Microsoft's success seemed unstoppable, challenges and controversies lurked beneath the surface. The company initially lagged behind in internet software until Netscape Communications launched Navigator in 1994. Responding to the threat, Microsoft released Internet Explorer in 1995, leading to accusations of anti-competitive behavior. Netscape sued Microsoft for violating a consent decree, prompting the U.S. Justice Department to investigate the company for possible antitrust violations. In 1999, Microsoft was found guilty of violating the Sherman Antitrust Act, resulting in an order to break up the company. Although the order was later overturned, Microsoft faced subsequent fines from the European Union for non-compliance.

Expanding Horizons and Setbacks:

Microsoft ventured into various markets, hoping to diversify its offerings and stay ahead of the competition. The company introduced products like the Zune music player in 2006, aiming to rival Apple's iPod, but it failed to gain traction and was eventually discontinued in 2011. Despite the success of Windows 7 in 2009, Microsoft's search engine, Live Search, struggled to compete with Google. The launch of Bing in 2009 aimed to revitalize Microsoft's search efforts, while also pursuing the acquisition of Yahoo. While the Yahoo deal eventually materialized, Microsoft faced criticism and legal challenges along the way.

The Acquisition of Activision:

In January 2022, Microsoft announced its intention to acquire Activision, a prominent gaming company, for $68.7 billion. With Activision's parent company, Activision Blizzard, known for popular games like Call of Duty, Microsoft claimed the move aimed to benefit gamers by offering more games across multiple devices, flexible payment options, and increased variety for mobile gaming enthusiasts. However, concerns

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