The UK regulator is softening its stance on Microsoft’s takeover of Activision Blizzard. However, the CMA remains concerned about cloud gaming.
The UK is softening its objections to Microsoft’s takeover of Activision Blizzard. The Competition and Markets Authority (CMA) reviewed its findings and determined that the merger would not significantly reduce competition in the video game and console market. Unless various proofs are presented, the UK regulator now believes that the fact that Microsoft has licenses like Call of Duty in its wallet will not “materially affect”Sony’s ability to be competitive in the market with its Playstation systems. Microsoft may be “downgrading”the PlayStation’s appeal, according to the CMA, but Sony’s platform has a robust enough catalog to limit the damage.
UK regulator softens stance on Microsoft takeover of Activision Blizzard
The authorities have also reconsidered their stance on the benefits Microsoft can take from restricting access to Call of Duty to the PlayStation public. According to Microsoft’s latest figures, the giant won’t incur significant losses by making this license available only to Xbox or by offering exclusive benefits, according to the CMA. In other words, not enough gamers will switch from PlayStation to Xbox for this strategy to work.
In any case, the CMA has made it clear that these new findings do not change its concerns about cloud gaming services. The regulator said in February that Microsoft represents up to 70% of the global cloud gaming market, and the completion of this acquisition by Activision Blizzard could hurt gamers who can’t afford an expensive console or PC.
Activision Blizzard told Engadget in a statement that the CMA now has a “better understanding”of the console market and that Microsoft already has solutions for remaining concerns. Activision claims that Sony is simply trying to “defend its dominance”by challenging the acquisition.
However, the CMA remains concerned about cloud gaming.
Sony has always opposed the takeover, calling it “a threat to our industry”and adding that it could affect the quality of Call of Duty on the PlayStation. Microsoft has already made a number of concessions in hopes of softening the stance of regulators, including pledging to keep Call of Duty on other platforms for 10 years and porting many games to competing platforms.
This change in the position of the British regulator did not affect the resistance of regulators in other countries. In the United States, the Federal Trade Commission is continuing its legal action to prevent this merger and is highlighting the fact that Microsoft has held several Xbox exclusive days like Redfall on consoles despite these promises to the European Union. Opponents can also comment on these new findings before the end of March. However, this new position clearly improves the Redmond firm’s chances of completing this acquisition. To be continued!