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
From PS2 vs Xbox, XBO vs PS4, and XSS/XSX vs PS5, that's 3 of 4 game console generations that PlayStation is clubbing Xbox like clubbing a baby seal.
What you're saying is that because microsoft is not as successful in the gaming market they get to simply buy their way to the top, absolutely ridiculous
Windows runtime clone SteamOS / Windows-based X86 gaming handhelds are crossing over into the handheld market segment and directly competing against Google's Android runtime ecosystem which includes desktop ChromeOS.
The scope of your thinking is too narrow. Look in the mirror.
With Sony's PacMan's moves, Sony executed extensive exclusive games for Sony's walled garden PlayStation platform. This is not including Sony's paid exclusive games from 3rd party game studios.
For the UK game console revenue, Xbox only has 10.9%.
Your argument is hypocritical (double standards).
Your argument is absurd and not based on facts. Look in the mirror.
(Did you actually watch that movie and understand what was happening in that scene?)
Sony's walled garden game console dominance is due to Sony's extensive exclusive games for PlayStation.
Sony's arguments are absurd and the height of hypocrisy.
For context
As for Sony, a spokesperson repeated its stance in a statement sent to Reuters, calling the deal "bad for competition, bad for the gaming industry and bad for gamers themselves." Microsoft's acquisition would give the Xbox ecosystem "a unique combination of tech and content," they said, which in turn would give the tech giant a dominant position in gaming that would have "devastating consequences for consumers, independent developers, and Sony itself."
UK's CMA has adopted Sony's complaints.
UK's game consoles software revenue for 2022
XBox has 10.9%.
Sony has 45%
Nintendo has 44%
4.09 : 1 ratio win for Sony.
4 : 1 ratio win for Nintendo.
UK's desktop game consoles software revenue for 2022
Xbox has a 19.6%
Sony has 80%
Game consoles software revenue by HQ's country of origin
Xbox = 10.9%
PS+SW = 89%
Worldwide install base
PS4 / PS4 Pro = 116.7 million
PS5 = 38 million (extends PS4 runtime platform)
Total: 154 million
Switch = 107 million
vs
XBO / X1X = 63 million
XSS = 8 million (extends XBO runtime platform)
XSX = 13 million (extends XBO runtime platform)
Total: 84 million
PS4 / PS4 Pro vs XBO / X1X = 1.85 : 1 ratio win for Sony.
Switch vs XBO / X1X = 1.69 : 1 ratio win for Nintendo.
PS5 vs XSS/XSX = 1.9 ratio win for Sony.
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The cruncher against UK CMA, Activision chief Bobby Kotick has said that “the UK is clearly closed for business” while saying his company would “meaningfully expand our investment and workforce throughout the EU”.
The EU effectively threw the UK under the bus and exploited UK CMA's debacle for the EU's own interest i.e. it's about EU jobs.
You can't handle the truth.
Here's what you're not posting, how much was the Activision Blizzard revenue in the UK? I can only find a number for 2020 - 850M£ - and would you look at that, that's more than Sony, Nintendo and Microsoft combined!
Your arguments and cherry picked numbers are complete garbage
PS5 Exclusives Will Increase While PC Versions Remain Staggered, Says Jim Ryan
We also fully understand the importance of PS5 exclusive titles. As I mentioned earlier, PlayStation Studios' main responsibility is to have people enjoy the game experience using the latest PS. We are increasing the number of PS5 exclusive titles and staggering the release of the PC version.I often have the opportunity to ask game fans for their opinions, and when I ask them about the time lag, they say that selling the PC version two or three years after the release of the PS version is accepted favorably.
www.zoominfo.com/c/sony-corp/559786743
Sony UK has revenues of $1.5 billion
www.eurogamer.net/playstation-5-hits-2m-uk-sales-at-same-pace-as-ps3-despite-higher-price
The PS5 has generated £919 million through those two million units sold over 98 weeks. The average price of the console is £455 according to GfK data reported by GamesIndustry.biz).
Your argument is the real bullshit.
You reposted the same numbers multiple times before, SIE made 271M£ in software sales in 2020, not any kind of billions you decided to pull from somewhere else now
www.statista.com/statistics/269667/activision-blizzards-revenue-by-platform/
Activision's worldwide revenue by platform
Consoles = $1.7 billion
PC = $1.6 billion
Mobile = $3.5 billion (dominated by Google Android and Apple iOS)
Other = $605 million
Console gaming accounts for approximately 23 percent of Activision Blizzard's annual revenue. Activision Blizzard earned more on mobile games.
Microsoft's recent handheld devices have Android OS. The recent Windows 11 subsystem supports the Android ecosystem.
Sony Interactive Entertainment (aka Playstation) is not disclosing the total revenue for the UK, hence I used 98 weeks of PS5 sales i.e. it easily exceeds Activsion's UK revenue just in 98 weeks.
Now please hush. Repeating yourself OVER and OVER again does NOT make you correct.
If you were reacting with anything other than your pride and ego, you would have given up days ago..
SONY INTERACTIVE ENTERTAINMENT EUROPE LIMITED
According to SONY INTERACTIVE ENTERTAINMENT EUROPE LIMITED latest financial report submitted on 2021-03-31, the company has a Turnover of £6 billion, Gross-Profit of £998M.
About $7.47 Billion USD for SONY INTERACTIVE ENTERTAINMENT EUROPE LIMITED, based at 10 GREAT MARLBOROUGH STREET LONDON, United Kingdom.
Sony Interactive Entertainment Europe (SIEE) is responsible for sales, marketing, distribution, and software development for the PlayStation brand and has offices around Europe, the Middle East, Australia, and New Zealand.
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suite.endole.co.uk/insight/company/02829355-sony-interactive-entertainment-uk-limited
Sony Interactive Entertainment UK Limited
Revenue: £502.65 million or $625.62 million USD for the Year Ended March 2022.VS
For 2022, www.statista.com/statistics/269665/activison-blizzards-revenue-by-region/
Activision-Blizzards' EMEA revenue is $2.236 billion USD
Activision-Blizzards' worldwide revenue is $7,528 billion USD.
It takes 3.3X Activision-Blizzards' EMEA revenue streams to rival SONY INTERACTIVE ENTERTAINMENT EUROPE LIMITED
EMEA is an acronym used by governments, marketers, and business officials to group the countries of Europe, the Middle East, and Africa.
For this topic, the EU allowed MS to buy Activision-Blizzard.
You have lost this argument. Do you get that? The information you keep posting is meritless because it is both incomplete and is lacking proper scope. You're blathering on and only a brick wall is going to hear anything.
China has approved Microsoft's proposed acquisition of Activision Blizzard.
From www.eurogamer.net/microsofts-proposed-acquisition-of-activision-blizzard-approved-in-chinaJapan approves Microsoft's Activision Blizzard takeover
"Unlikely to result in substantially restraining competition."You can't handle the truth.