In a significant turn of events, Microsoft’s bid to acquire Activision Blizzard for a whopping $68.7 billion is seeing light at the end of the tunnel. The UK’s Competition and Markets Authority has been the major player, voicing concerns and taking center stage in this gaming drama. Their main worry? The potentially monopolistic influence this deal could exert on the budding cloud gaming market.
However, Microsoft made a surprising power move, signaling they’re not here to play monopoly. In an attempt to allay CMA’s apprehensions, they’ve agreed to carve out cloud gaming rights of all Activision Blizzard titles, handing them to Ubisoft. This is like Microsoft buying a Michelin star restaurant and then agreeing they’ll bid to cook in its kitchen just like every other chef in town. Unexpected, right? The CMA seems to think so too, stating:
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.
We are encouraged by this positive development in the CMA’s review process. We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18…
— Brad Smith (@BradSmi) September 22, 2023
The official green light from the CMA isn’t stamped yet, but the vibe is pretty positive. If everything aligns as expected, we could see the deal get its official blessing before the October 18 deadline previously set by Activision Blizzard and Microsoft.
It’s intriguing to see Microsoft’s decision to sidestep cloud gaming rights, especially considering it’s the industry’s latest buzzword. But perhaps this move sheds light on the unpredictable trajectory of cloud gaming, a segment which many anticipated would skyrocket by now but remains nascent. This also underlines the sheer value Microsoft sees in other facets of the Activision Blizzard empire, notably the mobile gaming stronghold provided by Candy Crush creators, King.
Microsoft president, Brad Smith, took to Twitter/X, echoing optimism: “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline.” On the other side of the spectrum, Activision Blizzard CEO, Bobby Kotick, shared a note with his team, praising their dedication through the tumultuous merger process.
But it’s not just about the UK. The landscape in the U.S. is equally intriguing. While the Federal Trade Commission is still battling against a court decision preventing it from blocking the merger, the outlook isn’t too promising for them. This entire process took a dramatic turn with a massive leak of confidential Microsoft documents. However, with UK being the last significant regulatory challenge, it looks like the odds are in favor of this gaming merger behemoth.
Word in the gaming grapevine suggests that, pending this mega-merger’s approval, we might just see Call of Duty land on Game Pass just in time for the festive season, but its inclusion along with Diablo has been denied in the past.
Either way, there’s a broader context to consider. The regulatory bodies worldwide had different stances regarding this mega-merger. While regions like China and the EU voiced minimal concerns, the U.S.’ FTC and the UK’s CMA posed as notable hurdles. As the landscape unfolds, even the naysayers seem to be coming around to the idea of a Microsoft-Activision Blizzard union.
While mergers of this magnitude always spark debates about the potential monopolization of the industry, it’s clear that the gaming industry is evolving at breakneck speed. This deal, if it goes through, will not only reshape the gaming landscape but could potentially set the tone for future mergers, acquisitions, and collaborations in the industry.
It’s a dynamic time to be a gamer, and we’re all here for a front-row seat to this epic saga!
Speaking of Call of Duty, the upcoming season solidifies Activision Blizzard’s plan to turn Call of Duty into the next Fortnite.
