Monday, May 15th 2023
EU Regulators Approve Microsoft's Activision Blizzard Acquisition
Microsoft's $68.7 billion deal to acquire Activision Blizzard has been approved by EU regulators today - rumors emerged late last week that the bloc's executive arm, the European Commission, would give the takeover bid a thumbs up this week, with early indications that May 15 would be the day of declaration. EU antitrust regulators have let the acquisition pass due to commitments/reassurances from Microsoft relating to the cloud gaming sector. This is in sharp contrast to the UK's Competition and Markets Authority (CMA) organization's judgment, who chose to block the deal in late April and have since added restrictions (as of late last week) via a new interim order.
EU antitrust regulators have found that Microsoft "would have no incentive to refuse to distribute Activision's games to Sony" and that "even if Microsoft did decide to withdraw Activision's games from the PlayStation, this would not significantly harm competition in the home gaming console market." But the European Union's competition regulators have found points of concern (much like the UK CMA's further investigations) and reckon that the segment could be disrupted in the area of cloud gaming services - on PC and console platforms. The body has received the promise of several remedies from Microsoft - these matters will be resolved through flexible terms - including a free license to consumers in EU countries that will grant stream access to "any cloud game streaming services of their choice" - with the ownership of Activision Blizzard PC and console titles (current and future). Cloud providers operating within EU markets will also be offered a free license to stream the Acti-Blizz library.
Microsoft has been busy making 10-year licensing deals with games distribution services and its competitors in recent times - for example Sony and Nintendo have been offered the Call of Duty franchise as part of a ten year agreement. Margrethe Vestager, executive vice president of competition policy at the European Commission states: "Our decision represents an important step in this direction, by bringing Activision's popular games to many more devices and consumers than before thanks to cloud game streaming. The commitments offered by Microsoft will enable for the first time the streaming of such games in any cloud game streaming services, enhancing competition and opportunities for growth." Activision Blizzard has not licensed its library for distribution on cloud gaming services - the giant games publisher (and development) group prefers its current model of direct digital sales as well as physical product launches.
The USA government's Federal Trade Commission (FTC) is due to deliver its own verdict in August of this year - Microsoft is anticipating a blockage in its home nation - the FTC has long indicated that it does not approve of the proposed merger with Activision Blizzard.
Sources:
The Verge, Guardian UK
EU antitrust regulators have found that Microsoft "would have no incentive to refuse to distribute Activision's games to Sony" and that "even if Microsoft did decide to withdraw Activision's games from the PlayStation, this would not significantly harm competition in the home gaming console market." But the European Union's competition regulators have found points of concern (much like the UK CMA's further investigations) and reckon that the segment could be disrupted in the area of cloud gaming services - on PC and console platforms. The body has received the promise of several remedies from Microsoft - these matters will be resolved through flexible terms - including a free license to consumers in EU countries that will grant stream access to "any cloud game streaming services of their choice" - with the ownership of Activision Blizzard PC and console titles (current and future). Cloud providers operating within EU markets will also be offered a free license to stream the Acti-Blizz library.
The USA government's Federal Trade Commission (FTC) is due to deliver its own verdict in August of this year - Microsoft is anticipating a blockage in its home nation - the FTC has long indicated that it does not approve of the proposed merger with Activision Blizzard.
76 Comments on EU Regulators Approve Microsoft's Activision Blizzard Acquisition
2. Windows 10/11 and Xbox Series X games have separate builds. Your argument is about shared license rights, not shared game code builds e.g. insert the XBO game disc and run it on Windows 10 / 11.
Windows 11 DirectX12U with NVIDIA or Intel GPUs gaming PCs do not support Xbox One / Xbox Serise S/X near the hit-the-metal ecosystem that is coupled with its DirectX12U variant.
Strip away Microsoft's Xbox Play Anywhere marketing, it's still separated.
Windows is an open platform while Nintendo's and Sony's platforms are walled gardens.
And I think indeed video games are not considered critical enough to worry about. At the same time, it is part of the market the EU wants to regulate so well, so that then doesn't really mix well.
But yeah, picking fights they are, and FWIW, some good progress has been made. I guess we can't have everything.
Either way MS can buy whatever they like, I just don't do on-demand services for gaming at all, my care level is sub zero. MS also means 'MainStream'... well take a look at Game Pass and you see that is what you get: the exact games I generally avoid, or only play feature/DLC complete at a minimum price and then forget about entirely. EA just opened its floodgates of yearly filler content for Game Pass.
I seriously am going to love not going into that shithole, and not giving MS a dime. They can stick their corporate power grab with the sheep that love their yearly rehashes.
Microsoft basically had a choice of making more games (good for consumer), or buying up existing IP via buying a publisher (bad for consumers).
This ultimately means less games, we going further down that narrowing cone.
Too many publishers deciding they prefer to keep releasing games as a service, and sticking to known successful brands instead of new ideas and new content.I have observed a lot of the third party exclusivity deals for PS5 now dont exclude PC, typically they timed exclusive PS5 only, then make it to PC, but never to Xbox.
From en.wikipedia.org/wiki/List_of_acquisitions_by_Sony
Not including Sony Pictures Entertainment's exclusive IPs.
We cant be pro monopoly and competitive. Its one or the other.
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For the UK market
For 2022, Xbox only has 10.9% of the UK game console market.
"Walled garden" consoles are no different from "walled garden" entertainment cloud platforms.
EDIT:
And for the record, I'm not mini-modding. I'm trying to keep us on topic so the mods don't have a reason to have to do what they do.While that can be true, they are obligated to keep the future effect of said merger in focus. This merger is where the line needs to be drawn as microsoft has gotten too big for it's britches. Enough is enough.
US FTC lied about the Microsoft-Activision merger and the EU Commission defended MS.
gamerant.com/eu-contradicts-ftc-claim-microsoft-activision-blizzard-acquisition/
The EU Commission issues a response refuting a key claim from the FTC's argument against Microsoft's acquisition of Activision Blizzard.
The real irony.
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Switch = 107 million
PS4 / PS4 Pro = 116 million
PS5 = 38 million (extends PS4 runtime ecosystem)
vs
XBO / X1X = 63 million
XSX = 13 million (extends XBO runtime ecosystem)
XSS = 8 million (extends XBO runtime ecosystem)
Windows 10 / 11 DirectX12U doesn't extend the XBO runtime ecosystem due to hit-the-metal (coupled with DirectX12U Xbox differences) and DRM incompatibilities. Windows is an open platform that allows 3rd party gaming eStores to be established.