Sony is criticizing UK regulators over their “surprising, unprecedented, and irrational” reversal on Microsoft’s $69 billion purchase of Activision Blizzard. The Competition and Markets Authority (CMA) had initially pushed back against the mega-acquisition, citing concerns that Microsoft would have a financial incentive to pull Call of Duty from PlayStation consoles, which would result in Sony losing users. However, after receiving more data and input from Microsoft, the CMA changed its tune and announced a new provisional finding that suggested the opposite.
The controversy centers around how the impact of blockbuster exclusives is measured. Microsoft claims that any players who switched to Xbox to play Call of Duty would not make up for the total loss of all Call of Duty spending on PlayStation, thus incentivizing it to keep the series on Sony’s consoles. Sony argues that the players who switch consoles to keep playing Call of Duty are precisely the diehard fans who spend the most money on new releases and in-game microtransactions, suggesting that Microsoft might eventually pull the colossal franchise exclusively into its own console ecosystem after all.
While Sony has received criticism for opposing the deal over concerns about exclusives considering its own history of paying for them, it has at least been consistent in its logic. It thinks exclusives matter a lot, which is why it pays for them and why it’s so terrified of its rival doing the same. It remains to be seen how the deal will affect some of 2023’s biggest releases like a reportedly new standalone Call of Duty: Modern Warfare game and Diablo IV. Microsoft originally planned for the deal to close by the end of June, though it’s also still awaiting approval from the European Union and facing an antitrust lawsuit by the Federal Trade Commission.
The acquisition of Activision Blizzard by Microsoft would also have an impact on the industry as a whole. If the deal goes through, Microsoft will become the largest video game company in the world, with a market value of nearly $2 trillion. This would undoubtedly give Microsoft a lot of power in the industry, which could lead to some negative consequences. For example, some fear that Microsoft may use this power to increase the price of games or reduce the quality of games in order to increase profits.
Another concern is that the acquisition could lead to a lack of diversity in the gaming industry. Activision Blizzard is known for its popular franchises like Call of Duty, World of Warcraft, and Candy Crush, and if Microsoft gains control of these properties, it could potentially limit the number of new and innovative games that are developed. Furthermore, the consolidation of power in the industry could make it more difficult for smaller studios to compete, which could lead to a stagnation in the development of new and exciting games.
Finally, the acquisition could also have an impact on the relationship between game developers and publishers. Activision Blizzard is known for its controversial business practices, including the treatment of its employees and its use of microtransactions. If Microsoft gains control of these practices, it could potentially exacerbate these problems, which could lead to a backlash from consumers and employees alike.
In conclusion, the potential acquisition of Activision Blizzard by Microsoft is likely to have a significant impact on the gaming industry. While it could lead to some positive changes, such as increased investment in the development of new games and technology, it could also lead to some negative consequences, such as a lack of diversity and a consolidation of power. Ultimately, it remains to be seen how the acquisition will play out, but it is clear that it will have a significant impact on the gaming industry as a whole.
The potential acquisition of Activision Blizzard by Microsoft could have a significant impact on the games industry, particularly in terms of exclusivity and competition. The deal, which is worth $69 billion, has faced several obstacles, with the UK’s Competition and Markets Authority (CMA) now appearing likely to approve the purchase.
Sony, however, has criticized UK regulators for accepting Microsoft’s math on how many users it might lose if Call of Duty became an Xbox exclusive. In February, the CMA provisionally concluded that Microsoft would have a financial incentive to pull Call of Duty from PlayStation consoles, but later changed its tune after receiving more data and input from Microsoft. With the CMA set to issue its final decision before the end of April, Sony has responded with a detailed list of all the ways it thinks the regulators messed up.
The controversy centers around how the impact of big blockbuster exclusives is measured. Microsoft claims that any players who switched to Xbox to play Call of Duty would not make up for the total loss of all Call of Duty spending on PlayStation, thus incentivizing it to keep the series on Sony’s consoles (in addition to promises it won’t make the series exclusive anyway). Sony, however, argues that the players who switch consoles to keep playing Call of Duty are precisely the diehard fans who spend the most money on new releases and in-game microtransactions, suggesting that Microsoft might eventually pull the colossal franchise exclusively into its own console ecosystem after all.
The potential acquisition of Activision Blizzard by Microsoft could have a significant impact on the games industry, particularly in terms of exclusivity and competition. The deal, which is worth $69 billion, has faced several obstacles, with the UK’s Competition and Markets Authority (CMA) now appearing likely to approve the purchase.
Sony, however, has criticized UK regulators for accepting Microsoft’s math on how many users it might lose if Call of Duty became an Xbox exclusive. In February, the CMA provisionally concluded that Microsoft would have a financial incentive to pull Call of Duty from PlayStation consoles, but later changed its tune after receiving more data and input from Microsoft. With the CMA set to issue its final decision before the end of April, Sony has responded with a detailed list of all the ways it thinks the regulators messed up.
The controversy centers around how the impact of big blockbuster exclusives is measured. Microsoft claims that any players who switched to Xbox to play Call of Duty would not make up for the total loss of all Call of Duty spending on PlayStation, thus incentivizing it to keep the series on Sony’s consoles (in addition to promises it won’t make the series exclusive anyway). Sony, however, argues that the players who switch consoles to keep playing Call of Duty are precisely the diehard fans who spend the most money on new releases and in-game microtransactions, suggesting that Microsoft might eventually pull the colossal franchise exclusively into its own console ecosystem after all.
It remains to be seen how the deal will ultimately play out and what its impact will be on the games industry as a whole. However, one thing is clear: the potential acquisition of Activision Blizzard by Microsoft is a significant development that will have wide-ranging implications for both gamers and industry insiders alike.