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Intel Won't Compete Against NVIDIA's High-End AI Dominance Soon, Starts Laying Off Over 2,200 Workers Across US

Intel's taking a different path with its Gaudi 3 accelerator chips. It's staying away from the high-demand market for training big AI models, which has made NVIDIA so successful. Instead, Intel wants to help businesses that need cheaper AI solutions to train and run smaller specific models and open-source options. At a recent event, Intel talked up Gaudi 3's "price performance advantage" over NVIDIA's H100 GPU for inference tasks. Intel says Gaudi 3 is faster and more cost-effective than the H100 when running Llama 3 and Llama 2 models of different sizes.

Intel also claims that Gaudi 3 is as power-efficient as the H100 for large language model (LLM) inference with small token outputs and does even better with larger outputs. The company even suggests Gaudi 3 beats NVIDIA's newer H200 in LLM inference throughput for large token outputs. However, Gaudi 3 doesn't match up to the H100 in overall floating-point operation throughput for 16-bit and 8-bit formats. For bfloat16 and 8-bit floating-point precision matrix math, Gaudi 3 hits 1,835 TFLOPS in each format, while the H100 reaches 1,979 TFLOPS for BF16 and 3,958 TFLOPS for FP8.

Six Mod Artists Compete to Redesign Thermaltake TOUGHRAM XG RGB D5

Thermaltake, a leading PC DIY brand for premium hardware solutions, kicked off the "2024 Thermaltake RAM MOD Invitational" an annual competition that gathers modders from all corners of the world to mod the designated Thermaltake ram into their own masterpiece. This year we invited six modders from Austria, Italy, Japan, Thailand, and the United Kingdom to modify the TOUGHRAM XG RGB D5 Memory DDR5.

Participating modders are given a specific time frame to modify the RAM heatsinks, without changing the overall appearance and layout of the RAM itself. Contestants must only use our TOUGHRAM XG RGB D5 modules and cannot add the ram to a motherboard or a PC build. However, they can create a stand or platform for the modules but the overall modules must remain intact with the original design as the main focus.

French Authorities to File Competition Charges Against NVIDIA

On July 1st, Reuters reported that the French antitrust authority plans to file charges against NVIDIA for alleged anti-competitive practices, marking France as the first country to take such action against the tech giant. This follows a raid on NVIDIA's local offices in September 2023, as we reported here, which was part of a broader investigation into the graphics card and cloud computing sectors. A recent report released by French authorities regarding competition in generative AI highlighted concerns about potential abuses of power by chip suppliers, specifically noting the industry reliance on NVIDIA. If NVIDIA is to be found guilty of charges made by French authorities it can be facing fines of up to 10% of its global annual revenue. However, NVIDIA may have the option to make concessions to avoid such penalties.

As the world's largest manufacturer of AI chips and computer graphics cards, NVIDIA is under intense scrutiny from antitrust authorities in Europe and the United States. The European Commission is gathering informal feedback to assess whether NVIDIA had breached its antitrust rules, though it has not yet launched a formal investigation. The Department of Justice and Federal Trade Commission are reportedly conducting joint investigations into NVIDIA, Microsoft, and OpenAI, reflecting growing regulatory concern in the United States over these tech giants' market influence.

G.Skill Announces OC World Record Event 2024 Alongside New Product Launches

G.SKILL International Enterprise Co., Ltd., the world's leading brand of performance overclock memory and PC components, is excited to showcase multiple new products at Computex 2024, including new DDR5 memory, peripherals, and PC cases for PC enthusiasts. G.SKILL will also host two major annual extreme overclocking events at the G.SKILL Computex booth - the 10th Annual OC World Record Stage 2024 and the 8th Annual OC World Cup 2024 - as well as the 4th Annual G.SKILL Extreme Mod Stage 2024 to showcase creative system mods. G.SKILL sincerely invites you to come visit our booth at Nangang Exhibition Center, Hall 1 (TaiNEX 1), 1F, Booth J0601a during Computex from June 4 to June 7, 2024.

G.SKILL OC World Record Stage has been a highly anticipated overclocking event in the extreme overclocking community. It's a great venue where the world's top professional overclockers gather at the G.SKILL Computex booth and try to achieve as many overclocking records as possible using liquid nitrogen (LN2) for extreme cooling. This year, this extreme overclocking event features high-end performance motherboards from ASRock, ASUS, GIGABYTE, and MSI, the latest Intel platform, and G.SKILL DDR5 memory.

Xbox Giving Away One-of-a-Kind Fallout Vault Box

Xbox and Fallout fans, rejoice! Today, we are thrilled to announce a striking collaboration between Xbox and new series on Prime Video "Fallout", premiering on April 11. Introducing the Xbox and Fallout Vault Box—a custom collaboration that combines the rugged essence of the Fallout universe with the unparalleled security of a Fort Knox vault. Based on one of the greatest video game series of all time, "Fallout" is the story of haves and have-nots in a world in which there's almost nothing left to have. Two-hundred years after the apocalypse, the gentle denizens of luxury fallout shelters are forced to return to the irradiated hellscape their ancestors left behind—and are shocked to discover an incredibly complex, gleefully weird, and highly violent universe waiting for them.

The series comes from Kilter Films and executive producers Jonathan Nolan and Lisa Joy. Nolan directed the first three episodes. Geneva Robertson-Dworet and Graham Wagner serve as executive producers, writers and co-showrunners. The series stars Ella Purnell (Yellowjackets), Aaron Moten (Emancipation) and Walton Goggins (The Hateful Eight). Athena Wickham of Kilter Films also executive produces along with Todd Howard for Bethesda Game Studios and James Altman for Bethesda Softworks. Amazon MGM Studios and Kilter Films produce in association with Bethesda Game Studios and Bethesda Softworks.

U.S. CHIPS Act Outlines $500 Million Fund for Research Institutes & Packaging Tech Development

Yesterday, the U.S. Department of Commerce publicly announced two new notices of intent—as reported by Tom's Hardware, this involves the latest distributions from the CHIPS Act's $11 billion R&D budget: "$300 million is to be made available across multiple awards of up to $100 million (not including voluntary co-investment) for research on advanced packaging, while another $200 million (or more) is set aside to create the CHIPS Manufacturing USA Institute. Companies will have to compete for the funds by filing an application." The Act's primary $39 billion tranche is designated to new construction endeavors, e.g. the founding of manufacturing facilities.

A grand total of $52 billion was set aside for the CHIPS Act in 2022, which immediately attracted the attention of several semiconductor industry giants. Companies with headquarters outside of North America were allowed to send in applications. Last year, Intel CEO Pat Gelsinger, made some controversial statements regarding his company's worthiness of government funding. In his opinion, Team Blue is due the "lion's share" due to his operation being a USA firm—the likes of TSMC and Samsung are far less deserving of subsidies.

ESL FACEIT Group, Intel, and Acer Expand Strategic Partnership Across Premier Counter-Strike and Dota 2 Competitions

ESL FACEIT Group (EFG), the leading esports and video game entertainment company, and Intel, have today announced the extension and expansion of their partnership with Acer. As the exclusive Original Equipment Manufacturer (OEM) partner, Acer's gaming brand Predator will empower EFG Counter-Strike 2 and Dota 2 competitions across 2024. Intel and EFG have been partners in the esports space for over 20 years, fostering and supporting a passionate global community through world-leading esports events, activations and opportunities. Their vision is shared by Acer, and the mutual desire for progress, innovation, and delivering exceptional experiences has been the catalyst in the success, and now renewal, of their partnership.

"Acer's partnership with Intel and EFG is driven by our shared commitment of supporting the esports community, bringing gameplay to new heights," said Vincent Lin, Associate Vice President, Global Product Marketing and Planning, Acer Inc. "Our latest Predator gaming laptops powered by Intel Core 14th Gen processors provide powerful performance and combine AI-powered features that enhance the overall gaming experience."

Xbox & ESA Partner on Starfield Space Suit Design Competition

Starfield is the first new universe in over 25 years from the award-winning creators behind Skyrim and Fallout 4, Bethesda Game Studios. Gamers from around the world were excited to jump into this interstellar universe rich with adventure, peril, and excitement. But before anyone hops into space, they need something critical: a spacesuit. So, Xbox has partnered up with the European Space Agency (ESA) to give Starfield fans around the world a chance to win the spacesuit of their dreams, in real life, in addition to other incredible Xbox prizes. This is a physical, wearable, one-of-a-kind garment, fabricated for the most intrepid explorers.

Whether using a provided template as a base, or pushing their imagination to the limit with any creative format of their choice, fans will be asked to provide both a visual illustration of the suit from all sides—hand-drawn, 3D-rendered, or however their vision sees fit—as well as a description of the inspiration of the suit. More specifically, Xbox, Bethesda and the ESA want to know what you would wear in outer space - how would your spacesuit reflect your personal style, individuality and vision for space travel?

AMD Instinct MI300X Released at Opportune Moment. NVIDIA AI GPUs in Short Supply

LaminiAI appeared to be one of the first customers to receive an initial shipment of AMD's Instinct MI300X accelerators, as disclosed by their CEO posting about functioning hardware on social media late last week. A recent Taiwan Economic Daily article states that the "MI300X is rumored to have begun supply"—we are not sure about why they have adopted a semi-secretive tone in their news piece, but a couple of anonymous sources are cited. A person familiar with supply chains in Taiwan divulged that: "(they have) been receiving AMD MI300X chips one after another...due to the huge shortage of NVIDIA AI chips, the arrival of new AMD products is really a timely rainfall." Favorable industry analysis (from earlier this month) has placed Team Red in a position of strength, due to growing interest in their very performant flagship AI accelerator.

The secrecy seems to lie in Team Red's negotiation strategies in Taiwan—the news piece alleges that big manufacturers in the region have been courted. AMD has been aggressive in a push to: "cooperate and seize AI business opportunities, with GIGABYTE taking the lead and attracting the most attention. Not only was GIGABYTE the first to obtain a partnership with AMD's MI300A chip, which had previously been mass-produced, but GIGABYTE was also one of the few Taiwanese manufacturers included in AMD's first batch of MI300X partners." GIGABYTE is expected to release two new "G593" product lines of server hardware later this year, based on combinations of AMD's Instinct MI300X accelerator and EPYC 9004 series processors.

AMD Believes NVIDIA is Behind in Driver-Based Upscaler Development

AMD is readying its Fluid Motion Frames (AFMF) technology for public release later this month (January 24 to be exact). Aaron Steinman, a Senior Radeon Manager, believes that arch rival NVIDIA will need to take some drastic steps once AFMF arrives due to its more open nature. He stated in a short interaction with PC Gamer: "I would be curious to know if NVIDIA feels now they have to match what we've done in making some of these solutions driver-based." His software engineering buddies have already released the Radeon Super Resolution (RSR) technology, which functions via in-driver operation.

Unlike Team Red's heavily marketed FidelityFX Super Resolution (FSR) system, AFMF and RSR are not reliant on official support from games developers. The driver-based solutions will be packaged within an upcoming version of AMD's HYPR-RX feature set. Steinman continued with his statement: "I think what we're gonna start seeing, DLSS is only available on certain solutions, so either NVIDIA is going to have to benefit from our solution because we did make it open-source and cross-vendor, or they're probably going to need to do something similar." The publication points out that Team Green has something in the same ballpark—NVIDIA Image Scaling—but its nowhere near as advanced as their headlining "AI-infused" DLSS tech. Steinman conceded to PC Gamer that his main opponent will inevitably pull ahead in the future: "I mean, the competition will never end, right? We'll have new technologies, they (NVIDIA) will have new technologies."

NVIDIA Giving Away Jensen Huang Signed RTX 4080 SUPER FE Cards

NVIDIA's presence at CES 2024 has focused mainly on the introduction of new GeForce RTX 40-series SUPER graphics cards—TPU spent some quality time over at Team Green's Las Vegas Convention Center booth where a plethora of the latest Ada Lovelace gaming products were on display. To coincide with this event, interested punters on social media or in-person can enter a competition—NVIDIA is giving away two Founders Edition GeForce RTX 4080 SUPER graphics cards (valued at $999 per unit) with something extra courtesy of the technology company's esteemed CEO.

The competition page states: "We have two Founders Edition GeForce RTX 4080 SUPER graphics cards signed by NVIDIA's founder and CEO, Jensen Huang, that we're giving away, one for our social channels and one for CES attendees. The first chance to win is by following our GeForce social channels on X, Facebook, Instagram, TikTok, and by looking for key prompts and instructions (please check the complete set of rules for the giveaway here)."

Logitech McLaren G Challenge Returns for 6th and Biggest Season Ever

Logitech G, a brand of Logitech and leading innovator of gaming technologies and gear, and McLaren Racing are excited to announce the sixth season of the Logitech McLaren G Challenge racing competition, featuring the genre's hottest new title, Forza Motorsport by Turn 10 Studios. Last year, over 3,500 gamers participated in four months of exciting competition that came down to the wire, with the winners from Singapore, Germany, Canada, Chile, and Ireland, taking home the grand prize. For motorsports enthusiasts and amateur drivers, the official 2023-24 Logitech McLaren G Challenge racing season launches on November 16th, 2023 and will feature several opportunities to win prizes for both casual and hardcore drivers.

"We are excited for this new season of the Logitech McLaren G Challenge," said Joseph Bentley, Head of Logitech G's Experiences & Production Team. "We wanted to make this season a special one, so we're excited to share that this year's G Challenge will be integrated in-game using Forza Motorsport's Rivals system, as well as include live semi and grand final grid races. We look forward to hosting an awesome G Challenge that is sure to thrill racing fans worldwide."

Intel CEO Doesn't See Arm-based Chips as Competition in the PC Sector

During the Q3 2023 earnings call, Intel CEO Pat Gelsinger was answering some questions from analysts regarding the company's future and its position on emerging competition. One of the most significant problems the company could face is the potential Arm-based chip development not coming from x86 vendors like Intel and AMD. Instead, there could be fierce competition in the near future with the recently announced Qualcomm Snapdragon Elite X, possible NVIDIA Arm-based PC processor, and in the future, even more Arm CPU providers that Intel would have to compete against in the client segment. During the call, Pat Gelsinger noted that "Arm and Windows client alternatives, generally, they've been relegated to pretty insignificant roles in the PC business. And we take all competition seriously. But I think history as our guide here, we don't see these potentially being all that significant overall. Our momentum is strong. We have a strong roadmap."

Additionally, the CEO noted: "When thinking about other alternative architectures like Arm, we also say, wow, what a great opportunity for our foundry business." If the adoption of Arm-based CPUs for Windows PCs becomes more present, Intel plans to compete with its next-generation x86 offerings like Meteor Lake, Arrow Lake, Lunar Lake, and even Panther Lake in the future. As stated, the CEO expects the competition to manufacture its chips at Intel's foundries so that Intel can provide a platform for these companies to serve the PC ecosystem.

NVIDIA's French Office Reportedly Raided by Competition Regulators

Bloomberg reports that French competition regulators have raided a business alleged to be engaging in "anti-competitive practices in the graphics cards sector," which the Wall Street Journal identified as NVIDIA. The dawn raid was authorized by a liberty and custody judge, France's competition authority said in its statement, where it did not name NVIDIA. The regulator clarified that raids "do not presuppose the existence of a breach of law, which only a full investigation into the merits of the case could establish, if appropriate."

It's pertinent to note here, that while the anti-competitive allegations concern "graphics cards," the allegation is that the company (identified by WSJ as NVIDIA) has cornered the AI GPU market, and which is responsible for the rise of NVIDIA as the largest hardware company in Silicon Valley by market capitalization. While NVIDIA's AI HPC processors lack any raster graphics components, they are still considered GPUs, as they are built on the same principles, and for the most part, share a microarchitecture with gaming GPUs. Meanwhile, Bloomberg notes that the NVIDIA stock remains completely unfazed by the developments in France. "The shares gained 1.5% to $430.89 at the close in New York trading Thursday, bringing their year-to-date gain to 195%," it wrote.

The European Commission Re-Imposes €376.36 Million Fine on Intel for Anticompetitive Practices in the Market for Computer Chips

The European Commission has re-imposed a fine of around €376.36 million on Intel for a previously established abuse of dominant position in the market for computer chips called x86 central processing units ('CPUs'). Intel engaged in a series of anticompetitive practices aimed at excluding competitors from the relevant market in breach of EU antitrust rules.

With today's decision, we are re-imposing a €376.36 million fine on Intel for having abused its dominant position in the computer chips market. Intel paid its customers to limit, delay or cancel the sale of products containing computer chips of its main rival. This is illegal under our competition rules. Our decision shows the Commission's commitment to ensure that very serious antitrust breaches do not go unsanctioned. - Commissioner Didier Reynders, in charge of competition policy

UK Regulator Provisionally Approves Microsoft & Activision Blizzard Deal

Microsoft's proposed $69 billion takeover of Activision Blizzard got the "go ahead" from the vast majority of regulatory bodies around the world, but the UK's Competition and Markets Authority (CMA) ultimately chucked a spanner into the works—consequently the deal's signing off date was delayed into the autumn. The top brass at Microsoft and Acti-Blizz have worked on a revised set of terms (to address concerns raised earlier this year), and the outcome has been semi-positive. The competition watchdog appears to be satisfied, prior to making a concrete announcement: "While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues. The CMA is now consulting on the remedies before making a final decision."

Under the newly redrafted deal—submitted for approval last month—Microsoft has agreed to transfer the rights to stream Activision games from the cloud to French video games publisher—Ubisoft—for a 15 year long term. The CMA's freshly published press release provides an insight into future infrastructures: "Under that new deal, Microsoft will not purchase the cloud gaming rights held by Activision, which will instead be sold to an independent third party, Ubisoft Entertainment SA (Ubisoft), before the deal is completed. The prior sale of the cloud gaming rights will establish Ubisoft as a key supplier of content to cloud gaming services, replicating the role that Activision would have played in the market as an independent player."

Microsoft and Sony Co-Sign Agreement to Keep Call of Duty on PlayStation for a Decade

Microsoft and Xbox leaders have declared that the Call of Duty series will remain on PlayStation systems for the next ten years, following a possible successful acquisition of the (current owners of the IP) Activision Blizzard video game holding company. Phil Spencer, the outspoken head of Xbox stated via Twitter: "We are pleased to announce that Microsoft and PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard. We look forward to a future where players globally have more choice to play their favorite games."

His superior, Brad Smith (vice chair and president of Microsoft) added: "From Day One of this acquisition, we've been committed to addressing the concerns of regulators, platform and game developers, and consumers. Even after we cross the finish line for this deal's approval, we will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before." The silence on Sony/PlayStation's part is very telling, they are perhaps resigned to the merger becoming concrete this summer. Fans of the series (who favor Sony systems) will be relieved to know that PlayStation 5 and its possible successor are covered for another decade—it will be interesting to see how Sony's planned cloud gaming service will operate with the CoD franchise in mind. Microsoft has been presenting ten-year deals to a variety of rivals over the past year, with Sony and Nintendo courted alongside a number of different organizations. NVIDIA and Nintendo agreed on 10-year partnerships with Xbox earlier this year.

Microsoft Closer to Finalizing Activision Blizzard Merger - FTC Injunction Request Rejected by US Judge

Microsoft is closing in on its proposed $69 billion acquisition of Activision Blizzard—the company is celebrating another victory, following the conclusion of a crucial court case against the US Federal Trade Commission (FTC). Both parties were recently engaged in five days of arguments and deliberation—yesterday Judge Jacqueline Scott Corley's final ruling stated: Microsoft's acquisition of Activision has been described as the largest in tech history. It deserves scrutiny. That scrutiny has paid off: Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox. It made an agreement with Nintendo to bring Call of Duty to Switch. And it entered several agreements to for the first time bring Activision's content to several cloud gaming services."

The lady justice continued: "This Court's responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED."

Apple Requests that US Supreme Court Reverse Ruling in Epic Games Case

Apple and Epic Games have been locked in a bitter legal feud for two years, relating to an antitrust case started by the latter company. The iPhone and Mac computer giant has made an appeal to the US Supreme Court—as demonstrated in a court filing that was released to the public on Monday (June 3). They request that justices take up its appeal of a ruling for tomorrow (June 7) by the San Francisco-based 9th U.S. Circuit Court (of Appeals). A 2021 verdict determined that Apple had to cease anti-steering practices. Apparently game developers were restricted to certain payment practices (imposing of fees) within the iOS App store. Epic Games sued Apple for anti-competitive practices back in 2020, with the US district court of California rejecting nine of out Epic's ten claims the following year—only the aforementioned anti-steering case was allowed to proceed.

The Ninth Circuit rejected petitions from Apple and Epic late last week—both companies urged that the court reconsider an April 2023 decision about the Californian law violation. Epic thinks that certain legal decisions have been made in Apple's favor, and the latter continues to rile against the App Store order. It argues that Epic was the sole "non-representative" plaintiff, yet the injunction applies to all iOS developers and US states outside of California. Apple believes that the ruling "raises far-reaching and important questions" about the federal court's limited authority to issue injunctions that apply to organizations not directly involved in the case.

Microsoft Predicts Sub-$300 MSRP for Sony's Project Q Handheld

Stephen Totilo, a writer for the gaming section of Axios, has uncovered an intriguing tidbit from Microsoft's Federal Trade Commission (FTC) court documents. He injected some humor into this finding and posted on Twitter: "Microsoft's lawyers with some Project Q hype." According to the legal team's footnotes: "Sony is also anticipated to release a handheld version of PlayStation 5 later this year for under $300." The handheld gaming device was first revealed during late May's PlayStation Showcase, but teaser material only revealed a small number of details.

Sony indicated that Project Q will feature a 1920 x 1080 display (with a max. 60 Hz refresh) and in-built WiFi connectivity that allows the user to stream games from a host PlayStation 5 system. Insider Gaming's Tom Henderson has gathered information from company sources since that showcase, and proposed that the device can only sustain 3-4 hour play times. He also proposed that Sony should seriously consider launching the device at a low price of $200, given the handheld's alleged limited function as Remote Play-only. It is odd that Microsoft's legal representatives think that Project Q will act as a highly portable PlayStation 5 console, but they likely did not pay attention to the limited details available to them.

Sony Boss Thinks PlayStation Division is Capable of Taking on Cloud Gaming Challenges

Kenichiro Yoshida, the chief executive at Sony Corporation has recently sat down with the Financial Times for an interview discussing his company's plans for the future. He touched upon his PlayStation division's early experiments in the cloud gaming sector - arch rival Microsoft has already carved out a strong position here with its Xbox Game Pass subscription service. Yoshida-san discussed numerous issues (latency is major point of contention) that the Sony gaming arm continues to battle with, but the team will persevere: "I think cloud itself is an amazing business model, but when it comes to games, the technical difficulties are high...so there will be challenges to cloud gaming, but we want to take on those challenges."

Sony has looked at competitors in order to learn lessons in advance - most notably in the area of high and low traffic periods: "The dark time for cloud gaming had been an issue for Microsoft as well as Google (with their now defunct Stadia platform), but it was meaningful that we were able to use those (quieter) hours for AI learning." stated Yoshida. The company has been figuring out ways to get the most out of idle/low activity cloud gaming periods - an AI agent called GT Sophy has been tasked with figuring out ways to beat human opponents during periods of low activity.

AMD Reportedly Adjusts Radeon RX 7600 GPU MSRP to $269/€299

According to brand new information sent to the press and influencers yesterday, AMD has likely made a last minute change to its pricing strategy - VideoCardz has communicated with insider sources and confirms that an official email contains this message: "The Radeon RX 7600 will now be available starting at an SEP of $269 USD, beginning on May 25."

Industry experts were predicting a $299 MSRP for the upcoming Radeon RX 7600 graphics card lineup, based on possible earlier communications (under embargo) from AMD, but the company has seemingly decided to change its pricing strategy ($269/€299) only three days before the May 25 launch. Its monolithic RDNA 3 Navi 33 XL GPU (6 nm) is set to go head-to-head against NVIDIA's GeForce RTX 4060 Ti graphics card range later this week - the latter's specifications look to be superior according to leaked info - so Team Red could be making adjustments in order to stay competitive in the lower-end gaming-oriented GPU market.

Chinese Antitrust Regulators Approve Microsoft's Activision Blizzard Acquisition

There were rumblings late last week about China's competition regulatory bodies giving Microsoft the go ahead for its proposed takeover of the Activision, Blizzard & King games publishing group. The crowd-sourced content site Seeking Alpha was the first online outlet to break the news last Friday - the author had learned from capital market firm - Dealreporter - that China's State Administration for Market Regulation had granted unconditional approval for the $68.7 billion bid, following the conclusion of a "Phase 3" investigation. The latest judgement arrived only a few days after the EU Commission's approval of the deal.

Microsoft has chosen to make an official announcement about this verdict - and has today released statements to several gaming news outlets, including GamesIndustry.biz and Eurogamer: "China's unconditional clearance of our acquisition of Activision Blizzard follows clearance decisions from jurisdictions such as the European Union and Japan, bringing the total to 37 countries representing more than two billion people. The acquisition combined with our recent commitments to the European Commission will empower consumers worldwide to play more games on more devices." Microsoft's next challenge sits with the US government's Federal Trade Commission (FTC) - a final deliberation is due this August.

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 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."
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