Microsoft saw how successful sony's strategy of exclusive games was last generation and is copying it to help their SAASification of the gaming market. Microsof

Microsoft saw how successful sony's strategy of exclusive games was last generation and is copying it to help their SAASification of the gaming market. Microsoft is also well positioned to build a successful VR headset since they control the enterprise productivity software market and can parlay that into hardware employers will buy for their VR meetings. Combining their exclusive games and employer sponsored headsets could lead to Microsoft dominating the VR market. So really I think the synergy between microsoft and activision is where a lot of the price comes from as opposed to the actual cash flow that activision brings in.