ABK is a huge multiplatform punisher. There's plenty of benefits to acquiring them like owning one of the largest FPS franchises. Then there's all the IPs that ABK owns. Plus King is pretty huge in the mobile world.
Exclusion would have been applied just like eoth Bethesda and they could have given Xbox multiple selling points.
I know it has other benefits that helped sell the acquisition, but so would selling more Xboxes and getting more people on game pass.
They could have done this instead:
Brought the series X price down to $299 U.S. (10 Billion)
Sold the Series S for $149. (5 Billion)
Launched a dedicated handheld for $299 (10 Billion)
Exclusivity for FF (2 Billion)
Exclusivity for GTA VI (10 billion)
Tied up a crap ton of Ubisoft games (5 Billion)
Tied up most EA franchises (5 Billion)
Still had money to buy some more studios (20 Billion)
What's the return you ask?
- Far more game pass subscribers
- Higher overall market penetration
- Higher overall xbox game sales and add on sales
- Increased user base attracts more third party development and leads to more revenue from 30% cut
- Well positioned going into the next gen
While it's probably true that Activision would get them more immediate revenue, I wasn't under the impression the goal was short term.