Microsoft’s big Activision Blizzard acquisition could enter the final round. Having reported repeatedly in recent months about the difficulties Microsoft sees itself running into over monopoly concerns, this culminated in a rather vague message about Call of Duty just a few days earlier. Because Sony might be afraid that Microsoft will add a lot of bugs to the PlayStation version of the shooter. Microsoft’s promise to bring Call of Duty to all other platforms, even the Nintendo Switch, for at least ten years has caused a stir. Because of this promise, British regulators now seem confident that a takeover will not be a problem. A major step towards completing the $69 billion deal…
The deal does not result in “much less competition”
Microsoft’s $69 billion deal to buy Activision Blizzard came in handy for the Redmond-based group yesterday Friday: British regulators announced in a preliminary decision that the acquisition wouldn’t hurt competition, though they previously hinted the Xbox maker might have to spin off the Call of Duty business. until the transaction is completed.
The UK’s Competition and Markets Authority (CMA) was initially skeptical of Microsoft’s promise to keep the military shooter available on PlayStation consoles for at least ten years, arguing that there might be a financial incentive to continue the blockbuster series into the future. platform. Now, the agency appears to have changed its mind, saying that after receiving more detailed information about Call of Duty players’ spending, it’s clear that Microsoft stands to lose a lot of money if the series is developed exclusively for Xbox.
How to write in a press release: The CMA Investigative Group has updated its findings and has come to the preliminary conclusion that, overall, the deal will not lead to a material reduction in competition for UK console gaming. While the CMA’s original analysis indicated that this strategy may Profitable in Most Scenarios The new data (which offers better insight into CoD players’ actual buying behavior) indicates that this strategy will incur significant losses in every plausible scenario.
Accordingly, the updated analysis now shows that making CoD exclusive to Xbox after the deal would not be economically beneficial for Microsoft, but Microsoft would still have an incentive to continue making the game available on PlayStation instead. “.
But the deal is not done yet
While those words initially sound positive for Microsoft, that doesn’t mean the deal is now out of the question. Even the CMA isn’t quite sure about “Call of Duty” and is therefore checking Xbox Game Pass in particular. Microsoft also takes skepticism seriously and has struck deals with all relevant manufacturers and publishers in recent weeks, according to which Xbox Game Pass and games containing it will also be made available on other platforms.
There remains a big question about the final form of the deal between Microsoft and Sony. An Activision spokesperson recently claimed that Sony Interactive Entertainment CEO Jim Ryan was unwilling to negotiate, saying his only goal was to permanently block the takeover. But with that outcome becoming increasingly likely, Sony will likely have no choice but to negotiate the details of some sort of deal with Microsoft.
Meanwhile, Microsoft still has to get approval from European regulators and deal with an antitrust lawsuit from the Federal Trade Commission. In any case, investors seem to love all disputes, and Activision stock has recently skyrocketed to new highs. But how do you see it: will the deal become a reality, or will Microsoft and Sony continue to fight each other to the hilt? Feel free to write it in the comments!
source: CMA press release
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