T0@st
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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.
View at TechPowerUp Main Site | Source
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.
View at TechPowerUp Main Site | Source
I think the US is the only bigger market in question right now. 
