Thursday, April 27th 2023
Microsoft Boss Continues Tirade Against UK Market Regulator, Following Blocking of Activision Blizzard Takeover
Brad Smith, vice chair and president at Microsoft has been doing the rounds with the UK press, and the incensed executive continues to express anger about the nation's Competition and Markets Authority (CMA) preventing his company's proposed buyout of Activision Blizzard. The UK antitrust watchdog yesterday blocked the deal on the grounds that a merging of (already massive) games publishers could result in a potentially catastrophic skew in Microsoft's favor within the fast growing cloud gaming market sector. The CMA's latest findings suggest that the takeover would "lead to reduced innovation and less choice for UK gamers over the years to come." This verdict comes as a major blow to Microsoft's gaming division following a number of victories - including Japan's competition regulator approving the takeover bid late last month. The company's gaming division (Xbox Game Studios) is awaiting verdicts from the EU commission and US Federal Trade Commission.
In a business-themed podcast interview (conducted by the BBC), Microsoft boss Brad Smith declared that the UK government's blocking of the merger represented a bad move "for Britain" in terms of attracting international business. Microsoft has been operating in country for four decades, and Smith casts doubt on that relationship - in his opinion - the mega corporation has experienced its "darkest day" in the region: "It does more than shake our confidence in the future of the opportunity to grow a technology business in Britain than we've ever confronted before. People are shocked, people are disappointed, and people's confidence in technology in the UK has been severely shaken." Smith insists that fledgling companies should look elsewhere to start a base of operations: "There's a clear message here - the European Union is a more attractive place to start a business than the United Kingdom."
According to the BBC - a UK government spokesman countered Mr Smith's claims about the CMA's decision being bad for Britain: "Those sorts of claims are not borne out by the facts." The spokesperson outlines that the UK government is more than willing to co-operate with Microsoft going forward - the UK video games market is expected to double in size within the next decade, and the spokesperson theorizes that Team Green is set to benefit well from growth the sector. Microsoft's official statement from yesterday (issued in reaction to the regulator's verdict) contained a veiled threat to curb its investment in Britain - with that context Mr Smith stated that the UK government "needs to look hard at the role of the CMA and the regulatory structure." The UK CMA's chief executive, Sarah Cardell, has also made comments to news outlets and today stated that she does not agree with the views expressed by Microsoft's leader: "I think this decision shows actually how important it is to support competition in the UK and that the UK is absolutely open for business. We want to create an environment where a whole host of different companies can compete effectively, can grow and innovate."
Industry experts have found it odd that the UK CMA had granted provisional approval of Microsoft's deal (across a broader context) last month, yet the smaller issue of cloud gaming turned out to be the main sticking point within the final judgement. Ultimately, Sony's leadership is likely celebrating yesterday's verdict - their PlayStation organization has long protested that a successful buyout of Activision Blizzard would result in an unfair market skew in Microsoft's direction. The rival games publishers have been fighting fierce over the Call of Duty franchise's future and other platform exclusives.
Sources:
BBC News, BBC Money Podcast, Bloomberg
In a business-themed podcast interview (conducted by the BBC), Microsoft boss Brad Smith declared that the UK government's blocking of the merger represented a bad move "for Britain" in terms of attracting international business. Microsoft has been operating in country for four decades, and Smith casts doubt on that relationship - in his opinion - the mega corporation has experienced its "darkest day" in the region: "It does more than shake our confidence in the future of the opportunity to grow a technology business in Britain than we've ever confronted before. People are shocked, people are disappointed, and people's confidence in technology in the UK has been severely shaken." Smith insists that fledgling companies should look elsewhere to start a base of operations: "There's a clear message here - the European Union is a more attractive place to start a business than the United Kingdom."
Industry experts have found it odd that the UK CMA had granted provisional approval of Microsoft's deal (across a broader context) last month, yet the smaller issue of cloud gaming turned out to be the main sticking point within the final judgement. Ultimately, Sony's leadership is likely celebrating yesterday's verdict - their PlayStation organization has long protested that a successful buyout of Activision Blizzard would result in an unfair market skew in Microsoft's direction. The rival games publishers have been fighting fierce over the Call of Duty franchise's future and other platform exclusives.
44 Comments on Microsoft Boss Continues Tirade Against UK Market Regulator, Following Blocking of Activision Blizzard Takeover
The arrogance. The gall. Wow
anywho, what is the big problem with MS buying up activision/blizzard anyway? what real problem comes from that other then the company maybe needing to better their ways because now it would reflect poorly on MS.
Reading stuff like this always amazes me, these people are so childish, so emotional and dramatic, instead of spouting nonsense...how about we skip all that and talk about what its really about.....
I have zero clue what brittain's CMA is on about...cloud gaming? what? if MS was buying the now defunct Google Stadia you might have a point but Activision/Blizzard? what does that have to do with Cloud gaming?
And less innovation and choice for UK gamers? what? how? and since when does blizzard or activision stand for innovation? they release cod time and time again and diablo and remade Overwatch....such innovation....imagine having to miss all of that thought provoking content....
As for the later questions... innovation is hampered when an entity is so influential it can simply push everything else out of the market. This is not about what MS or Activision produces, it is about how inviting the market is for new players.
MS is bad news for gaming imo.
Age of Empires 1-2, Fable1, Dungeon Siege1, maybe Gears Tactics, and maaaaybe State of Decays. But this list is really scarce. Well, Wasteland 3 was also made by inXile bought by MS, so thats a plus.
Wtaf is this guy on Microsoft are so far away from a fledgling company.
Ms need to drag this tool to the Kirb and fff him off, total fool.
Crying because he can't have his toy's.
Fffff Ms they were too big once before and they're getting too big again.
I'll return the mental vitreous on MS and until this tit is in a dole que not a penny of mine will MS get.
Microsoft should tell them they are going to continue the merger and if they don't like it they will remove every investment, every job from the UK. Furthermore they will disable all Microsoft services and updates to Microsoft products for UK users.
Then the US Government should threaten sanctions if the UK attempts to meddle in the affairs of US corporations again!
Who do they think they are?
I guess a problem for me is that I dont attach any value at all of the term "AAA", who gets to decide what that is and what adhears to it and what that is worth, the most interesting games are not what is considered tripple A.
CoD has essentially been the same game for a decade or 2 now....all tripple A? ok? and? im not impressed by CoD.
What does it ultimately matter if there is another company higher up that owns that?
What if Disney owned Microsoft and Microsoft owned Activision and Activision owned Nightdive and Nightdive made a remake of Sin....how does that ultimately matter for the end consumer?
I mean sure EA is notorious for buying up beloved Developer studios and then basically axing the games (bullfrog) but in this case what on earth does MS gain by buying up A/B and then have them not bring out their super popular titles?
EA also published stuff that people were hyped for like Jarny or whatever and No Man's Sky which would have not seen the light of day without a publisher financing it.
Its more about how the big company acts that determines if it matches with unique great content and imo MS does not seem like a company that even cares about what those under it release, as long as it sells and makes them money.
as for the later answer, I mean is that really a thing though? we live in a time of Internet and independent Journalists, if some Indie company actually comes up with something amazing, it will be made known to the public, nothing an MS can really do about that.
Look at that recent police shooter game, everyone is talking about it because it looked so realistic, but its just an indie dev so again, I dont think anyone really suffers from MS buying a shitty company like Activision/Blizzard and it certainly has zero to do with freaking cloud gaming.
We cannot equate this with messed up situations in Murica where some local airline company buys up all the little players so you can only fly with their overpriced shitty service airline.
We have a rich history of companies sitting on a release of X or Y so they can make more money with last-year's Z.
We have a history of Google and Apple buying start-ups to add to their semi-walled gardens. Start ups with great innovative ideas. You're right, you get the ideas, still, but now disguised as a Google or Apple product.
You mention EA, and 'sure is notorious for'... exactly. Bioware is one very good example of how its corporate control quickly destroyed a talented studio. EA buried more studios than the economy did by now I reckon.
Even just the way releases are going to be timed is in MS hands, so they can maximize exposure for all their filler content. Activision no longer competes with whatever shooter MS was going to make either, so MS might just not make one right now, they have CoD.
Do you need more examples? I can fill three pages without blinking if you need it. If you have the slightest grasp of how business works, you can too, its not hard...
Even the FTC is against the buyout. Maybe the USA should threaten actions against the USA.
If there's anything that scares these corporations shitless is the market figuring out how to replace them. There's also the little bit of countries not liking little bitches challenging their power.
So yeah, any of these "suggestions" would backfire so hard it's hilarious just thinking about it.
I mean yeah in a perfect world all devs are doing well on their own and capitalism doesn't exist and hasn't sucked the blood out of everything but that is not the reality we live in. Are we barreling towards the Games as a Service wasteland and yet another damned remake of Bioshock and Skyrim Again? Yes, and this block will not do a thing to stop that. The only thing stopping it is revolution. In a way we're already there with AAA gaming. It's all doomed anyway, but so far MS has done good so I say embrace the athropy.
Regulators taking a tough line is good for the economy and people. The well has dried up and big tech has been a liability for sometime now.