Friday, March 24th 2023
UK CMA Provisionally Approves Microsoft's Proposed Acquisition of Activision Blizzard
The UK's Competition and Markets Authority (CMA) regulatory body has today delivered its provisional approval of Microsoft's proposed purchase of the Activision Blizzard group, but has added that it will conduct further reviews into the topic of whether the buyout will have any detrimental effect on competition in the area of cloud gaming services: "where the CMA is continuing to carefully consider the responses provided in relation to the original provisional findings. The CMA's merger investigation continues, and it remains due to issue its final report by 26 April 2023."
The antitrust watchdog's stance looks to have changed in a significant way since February, when it declared that Microsoft's proposed acquisition of Activision Blizzard had the potential to "harm U.K. gamers". New evidence has been presented to the CMA in recent weeks, and its members have moved to provisionally conclude that: "overall, the transaction will not result in a substantial lessening of competition in relation to console gaming in the UK."
A key factor in this turn of events is the hypothetical situation the Call of Duty series faces under Microsoft ownership: "The most significant new evidence provided to the CMA relates to Microsoft's financial incentives to make Activision's games, including Call of Duty (CoD), exclusive to its own consoles. While the CMA's original analysis indicated that this strategy would be profitable under most scenarios, new data (which provides better insight into the actual purchasing behaviour of CoD gamers) indicates that this strategy would be significantly loss-making under any plausible scenario. On this basis, the updated analysis now shows that it would not be commercially beneficial to Microsoft to make CoD exclusive to Xbox following the deal, but that Microsoft will instead still have the incentive to continue to make the game available on PlayStation."
Microsoft has been highly critical of the CMA's earlier findings, but today appeared to be glowing about the latest judgement. A company spokesperson told Eurogamer: "We appreciate the CMA's rigorous and thorough evaluation of the evidence and welcome its updated provisional findings. This deal will provide more players with more choice in how they play Call of Duty and their favourite games. We look forward to working with the CMA to resolve any outstanding concerns."
The Activison Blizzard group provided their own very positive view of the provisional verdict, its spokesperson stated to Eurogamer: "The CMA's updated provisional findings show an improved understanding of the console gaming market and demonstrate a commitment to supporting players and competition. Sony's campaign to protect its dominance by blocking our merger can't overcome the facts, and Microsoft has already presented effective and enforceable remedies to address each of the CMA's remaining concerns. We know this deal will benefit competition, innovation, and consumers in the UK."
It is curious that Activison Blizzard makes mention of Sony in their statement - there is very little consolation offered when you read into it. Eyes will soon turn to other regulator bodies around the world, and theories will emerge regarding new evidence being submitted to members holding sceptical views of the tentative buyout. Microsoft has argued that its rival, Sony, is in good enough financial shape to embark on creating its own shooter franchise that can compete with Call of Duty.
Sources:
GOV UK, Eurogamer News
The antitrust watchdog's stance looks to have changed in a significant way since February, when it declared that Microsoft's proposed acquisition of Activision Blizzard had the potential to "harm U.K. gamers". New evidence has been presented to the CMA in recent weeks, and its members have moved to provisionally conclude that: "overall, the transaction will not result in a substantial lessening of competition in relation to console gaming in the UK."
Microsoft has been highly critical of the CMA's earlier findings, but today appeared to be glowing about the latest judgement. A company spokesperson told Eurogamer: "We appreciate the CMA's rigorous and thorough evaluation of the evidence and welcome its updated provisional findings. This deal will provide more players with more choice in how they play Call of Duty and their favourite games. We look forward to working with the CMA to resolve any outstanding concerns."
It is curious that Activison Blizzard makes mention of Sony in their statement - there is very little consolation offered when you read into it. Eyes will soon turn to other regulator bodies around the world, and theories will emerge regarding new evidence being submitted to members holding sceptical views of the tentative buyout. Microsoft has argued that its rival, Sony, is in good enough financial shape to embark on creating its own shooter franchise that can compete with Call of Duty.
24 Comments on UK CMA Provisionally Approves Microsoft's Proposed Acquisition of Activision Blizzard
what a fucking $urpri$e
The second point is that already games are mostly digital copies. Especially PC ones and they are not yours. They literally don't belong to you - you have the right to use but not eg sell. Still paying full price :banghead:
Soon, gaming will be subscription-only - you don't buy games, just pay for access to your account.
For me it's not about which company will buy Activision-Blizzard. The point here is that there are other companies able to buy a such big video game holding company (?!). Maybe Activision-Blizzard doesn't release dozens of games but it has very significant game brands, big revenue. In general, its not good for players and the market that company like Activision-Blizzard to be taken over by large corporations like MS. Microsoft has own studios, bought a few others - they shouldn't get approval. They don't have enough staff in the gaming department? They can't come up with new game series themselves, don't they already have a dozens of game brands?
Nothing good for competition in the market ever came after consolidation moves like this, and time after time "we" - as in regulator bodies - refuse to learn. How many studios will be too many for Microsoft to gobble up!?
Oh well, step by step Microsoft builds their monopoly up. Better make peace with it, seems like the deal is going through.
But yes
find-and-update.company-information.service.gov.uk/company/07847880
www.sledgehammergames.com/blog/2021/Sledgehammer-Game-expands-to-the-UK
Me I'm fine with MS buying them. They need new direction and MS has been sensible in their handling of other studios so far. The world is too deep in capitalism to reverse, so bigger and bigger buyouts/mergers it is.
www.reuters.com/markets/deals/eu-unlikely-demand-asset-sales-microsoft-activision-deal-sources-say-2023-03-02/No it's not, buying a huge publisher and it's portfolio is completely different than buying a small studio here and there.Forget about Sony, they do not matter. They are the ones that are fighting the most against the deal because it's in their interest of course, but this is not about them just as it isn't about who gets to buy activision, sony or microsoft. This is about a market player dumping money to get a majority and dominant stake on said market. If instead of Microsoft, it was the Embracer group the situation would be all the same - except that Sony wouldn't really care, but we should!
This discussion is always getting poisoned by people who picked or are sympathetic towards one of the main console sides (I don't really count Nintendo because nowadays they quite literally play a different game) but that's not the important point, the issue is Microsoft is buying a lot of stuff - Zenimax (Bethesda et al) made the headlines but they're not the only ones - and the gaming market is getting severely consolidated.
The number of exclusive games Sony has is also often misconceived, yes there's a bunch and they usually make a big splash and generate a lot of headlines but in terms of market share, sales or even raw number they aren't dominating shit. The fact that Microsoft like Sony is not able to produce a first party game that dominates headlines (be it exclusive or not - i.e. Death Stranding only took 6 months to release on PC, not really exclusive, it's like when games release on epic first or rockstar first on consoles) doesn't mean they should be allowed to gobble up another big part of the market.
In the heat of the argument peolpe is missing the point entirely...
This deal must not happen. It would be destructive in many ways.
The current hurdles are not about Microsoft being too big, they're about Microsoft being too big in the gaming market.
and it's gone
www.bbc.co.uk/news/business-65407005
For those wondering, because the UK has blocked it, the US and EU have little choice but to follow. Treaties and whatnot. This is a win for whole gaming world.