This past January marks the first official year since the announcement for Microsoft’s plans to acquire Activision Blizzard. The $69 billion deal since its inception still remains to be a full-on battle in courts across the globe. In December, the United States Federal Trade Commision (FTC) announced a lawsuit to counteract against the buyout.
Amidst the ongoing discussion against Microsoft, Phil Spencer responded in one interview that the PlayStation’s Sony is the largest party deflecting any progress being made by the Xbox firm. In a surprise statement elsewhere from Valve/Steam founder Gabe Newell, he shared to be in favor of the deal. Many arguments favored the conversation of diluting competition within the market.
However, even Take-Two Interactive CEO said this to not be the case in one instance. In a new document released by the United Kingdom’s Competition and Markets Authority (CMA), it concludes its investigation determining the deal to be more harmful than good to the global market as it does not benefit competition and further limits access to games with growing emphasis on cloud gaming.
Part of the discussion given by U.K. CMA is to entirely remove Activision from the purchase; specifically in terms of acquiring Call of Duty. The entity does acknowledge Microsoft’s efforts to further support titles on competing platforms like PlayStation & Nintendo for the next decade, but is more in favor of splitting the deal with Activision on the cutting room floor. This would be more realistic as Spencer stated emphasis on the PC/mobile empire primarily crafted by King & Blizzard.
It’s been estimated that there are around 45 million gamers in the UK, and people in the UK spend more on gaming than any other form of entertainment including music, movies, TV, and books. Strong competition between Xbox and PlayStation has defined the console gaming market over the last 20 years. Exciting new developments in cloud gaming are giving gamers even more choice.
Our job is to make sure that UK gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation. We have provisionally found that this may be the case here. We have also today sent the companies an explanation of how our concerns might be resolved, inviting their views and any alternative proposals they wish to submit.
Martin Coleman, U.K. Competition and Markets Authority Chair of the Independent Panel
Microsoft in a statement to Video Game Chronicles said this: “We are committed to offering effective and easily enforceable solutions that address the CMA’s concerns. Our commitment to grant long term 100% equal access to Call of Duty to Sony, Nintendo, Steam and others preserves the deal’s benefits to gamers and developers and increases competition in the market,” says Microsoft corporate vice president and deputy general counsel Rima Alaily.
“Our commitment to grant long term 100% equal access to Call of Duty to Sony, Nintendo, Steam and others preserves the deal’s benefits to gamers and developers and increases competition in the market. 75% of respondents to the CMA‘s public consultation agree that this deal is good for competition in UK gaming.”
“These are provisional findings, which means the CMA sets forth its concerns in writing, and both parties have a chance to respond,” Activision Blizzard issues in its own statement. “We hope between now and April we will be able to help the CMA better understand our industry to ensure they can achieve their stated mandate to promote an environment where people can be confident they are getting great choices and fair deals, where competitive, fair-dealing business can innovate and thrive, and where the whole UK economy can grow productively and sustainably.”
What do you think about the current update on the Microsoft deal for Activision Blizzard?
