Microsoft’s Proposed $69 Billion Activision Blizzard Acquisition: What Does It Mean for the Future of Gaming?
In a move that could potentially reshape the gaming industry, Microsoft has proposed a $69 billion acquisition of Activision Blizzard.[0] The deal has met with opposition from many entities, with Sony being one of the most vocal opponents.[1] This is due to fears that the deal could give Xbox an unfair advantage and make the Call of Duty franchise an Xbox exclusive.[2]
In an attempt to appease regulators, Microsoft has reportedly offered Sony a ten-year agreement to keep Call of Duty on PlayStation consoles. However, Sony has refused the offer, claiming that even with the agreement, Microsoft could still sabotage Call of Duty on PlayStation in order to lure customers to Xbox.
In response, Microsoft has denied these allegations. They have stated multiple times that they have no intention of withholding Call of Duty from PlayStation and have entered a 10-year deal with Nintendo to bring the franchise to the Switch.[3]
The CMA has raised concerns about the deal, suggesting it could “harm UK gamers” and lead to a “substantial lessening of competition in gaming consoles.”[4] Microsoft has now addressed these specific concerns in its response to the CMA's notice of possible remedies, insisting, “The game engine that powers Warzone is mature and has been optimised to run on a wide range of hardware devices.”[5]
It is now up to the CMA to decide if they will intervene to safeguard Sony, the lead market participant, or search for alternatives that would provide more gamers with a greater selection of games.[6] By April 26th, the CMA is expected to give a definitive decision regarding the deal.[4] It has millions of Microsoft and Activision documents, and thousands of emails from the public to take into account.[4]
Ultimately, it is still uncertain whether Microsoft will be allowed to buy Activision Blizzard.[4] While the company has taken steps to ensure that Call of Duty will remain on PlayStation, Sony is still worried that Microsoft could push the advantages of playing Call of Duty on Xbox in different ways.[7] The outcome of the CMA’s ruling could have far-reaching implications for the future of the gaming industry.
0. “Activision Blizzard exec claims that Sony CEO “just wants to block” Microsoft merger” TechRadar, 9 Mar. 2023, https://www.techradar.com/news/activision-blizzard-exec-claims-that-sony-ceo-just-wants-to-block-microsoft-merger
1. “Microsoft Addresses Xbox Game Pass Price Increase Concerns” GameRant, 8 Mar. 2023, https://gamerant.com/xbox-game-pass-price-increase-activision-blizzard-deal
2. “Sony has some extreme ideas about Microsoft making future Call of Duty PS5 games buggy” Neowin, 8 Mar. 2023, https://www.neowin.net/news/sony-has-some-extreme-ideas-about-microsoft-making-future-call-of-duty-ps5-games-buggy
3. “PlayStation Shares Conspiracy Theories About Xbox's Activision Blizzard Acquisition” Den of Geek, 8 Mar. 2023, https://www.denofgeek.com/games/playstation-conspiracy-theories-xbox-activision-deal-call-of-duty/
4. “Sony's concerned Call of Duty will be worse on PlayStation if Microsoft buys Activision” Engadget, 8 Mar. 2023, https://www.engadget.com/sonys-concerned-call-of-duty-will-be-worse-on-playstation-if-microsoft-buys-activision-201212041.html
5. “Microsoft “confident” it can run Call of Duty natively on Switch” Nintendo Everything, 8 Mar. 2023, https://nintendoeverything.com/microsoft-confident-it-can-run-call-of-duty-natively-on-switch
6. “Sony More Paranoid Than Ever About Xbox Owning Call Of Duty” Kotaku, 8 Mar. 2023, https://kotaku.com/sony-xbox-call-of-duty-activision-deal-merger-cma-buggy-1850204459
7. “PlayStation Boss Jim Ryan Said He Doesn't Want New Call of Duty Deal, Activision Exec Claims” GameSpot, 9 Mar. 2023, https://www.gamespot.com/articles/playstation-boss-jim-ryan-said-he-doesnt-want-new-call-of-duty-deal-activision-exec-claims/1100-6512198
