Microsoft pleads for its Activision Blizzard deal as UK regulator signals in-depth review

Microsoft is publicly pleading for its Activision Blizzard deal to go through, just as the UK’s Competition and Markets Authority (CMA) has expressed concerns. Microsoft surprised the gaming world earlier this year with its plans to acquire Activision Blizzard in a $68.7 billion deal, arguably the largest ever in gaming. Now regulators are starting to take notice.

God says the UK’s CMA It “concerns that Microsoft’s expected acquisition of Activision Blizzard could significantly reduce competition in game consoles, multiplayer subscription services, and cloud gaming services.” After an initial research phase, the CMA signals that it will move to what it calls a Phase 2 investigation if Microsoft cannot answer its concerns within 5 working days.

The Phase 2 inquiry will see an independent panel examine Microsoft’s deal in more detail, and whether controlling games such as Sense of mission and World of Warcraft will hurt opponents. In response, Microsoft Gaming CEO and Xbox head Phil Spencer detailed Microsoft’s position In today’s blog post.

While detailing Microsoft’s plans for games beyond just Xbox consoles, Spencer says the company will continue “principled” in its approach to Xbox Game Pass and Sense of mission. Microsoft says it will Overwatch, Deviland Sense of mission All are available on Xbox Game Pass, but games like Sense of mission from being available on PlayStation.

“We have heard that this deal may require franchises like Sense of mission Away from the places where people are currently playing,” Spencer says. “That’s why, as we’ve said before, we’re committed to making that version of Sense of mission Available on PlayStation the same day the game launches elsewhere.”

Spencer compares Microsoft’s Activision Blizzard deal to the company’s $2.5 billion purchase of Minecraft. “We know players benefit from this approach because we’ve done it with Minecraftwhich continues to be available on multiple platforms and has expanded to more since Mojang joined Microsoft in 2014,” says Spencer.

Image: Microsoft

Brad Smith, President and Vice Chairman of Microsoft, will be even more direct about Sense of mission Situation. “We are prepared to work with the CMA on next steps and address any of its concerns. Sony, as the industry leader, says it is concerned Sense of mission, but we said we were committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.”

Microsoft has also claimed in the past that they do not distribute games like Sense of mission Competing console stores “simply wouldn’t be profitable” for the company. In documents filed with Brazil’s Economic Defense Executive Council (CADE) regulator, the company says a strategy of not distributing Activision Blizzard games on competing consoles will only be profitable if the games can attract a high number of players to the Xbox ecosystem, and as a result. in revenue to make up for losses from not selling these titles on competing consoles.

While the FTC, CMA and European Commission are still analyzing Microsoft’s Activision Blizzard deal, Saudi Arabia has become the first country Confirm the purchase last month. I understand that Microsoft still expects the deal to fully close in the spring of 2023, with many months before competitors raise concerns and Microsoft makes a case for this giant acquisition. Spencer says he is open and ready for the following thorough reviews:

“We will continue to engage with regulators in a spirit of transparency and openness as they review this acquisition. We respect and welcome the tough questions being asked. The gaming industry today is strong and dynamic. Industry leaders, including Tencent and Sony, continue to expand their deep and extensive game libraries, as well as entertainment brands and other franchises that players everywhere enjoy. We believe that a thorough review will show that the combination of Microsoft and Activision Blizzard will benefit the industry and players.”

Update, Sept. 1 8:35 a.m. ET: Article updated with a statement from Microsoft President Brad Smith.