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Stadia Architect Says Activision Deal Will Make Competition Difficult For Other Streaming Platforms, Court Document Shares

Amid the still developing Activision Blizzard acquisition, there is a growing list of companies that are against the entire deal. Of course, PlayStation is if not the largest opposing the $69 billion purchase with president & CEO Jim Ryan openly against it being processed. Additionally, we’ve witnessed regulator also argue against the acquisition as well.

Most recently, we saw the Xbox firm battle in court against the Federal Trade Commission (FTC) on the matter, but remained ahead in the outcome. Across the Atlantic, the same can also be said for the U.K. Competition and Markets Authority (CMA). Recently, it was shared in a statement that the regulator is lightening up to the deal in the forthcoming deadline for the acquisition.

However, a document archived in the FTC case reveals that Stadia architect Dov Zimring, director of product management, also happened to oppose the deal. Giving a lengthy overview of the approach, progression, and closure of Stadia, Zimring ended the document with a push back to the Activision Blizzard deal elaborating that there is little room for competition if the deal is finalized. 

Zimring’s comment does play into a developing rivalry between Microsoft & Google. Previously, it was reported that much of the blame for Stadia Games & Entertainment shortcoming was due to the acquisition of ZeniMax Media by Microsoft in 2021. Even more, Zimring corroborates this matter in the same document as well. “However, on February 1, 2021, Google announced the closure of SG&E.

“The decision to close Stadia’s internal game studios after less than 14 months of operation was in large part a result of the increasing costs of creating best-in-class video games. These games require many years of development time, specialized expertise, and significant investment. This increase in costs was a significant factor in Google’s decision to abandon its attempt to compete in the development of first party video games (games developed by SG&E) in a consolidating industry with vertically integrated platform operators like Microsoft that, in some cases, acquire multiple independent studios to support their existing blockbuster titles.”

Additionally, this can also be said the other way on the side of Xbox. Previously, Phil Spencer made a statement referring to Amazon & Google the true competitors in the gaming landscape in the long-term rather than console giants Nintendo and PlayStation. You can read the full report by heading here.

What is your opinion on Zimring’s statement?

Source: FTC

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