New Zealand regulator raises concerns about the Microsoft Activision Blizzard deal

Of particular interest here is the fate of Call of Duty, which recently welcomed the second-fastest-selling game of all time with Call of Duty: Modern Warfare 2 last year.

The fear is that Microsoft might hold the keys to the castle, so to speak, denying rivals such as Sony or NVIDIA access to this popular franchise and thereby affecting the competitive balance in cloud gaming.

The other side of the coin, not to be neglected, is the console market. There is a lingering question as to whether the deal could tip the scales there too. Post-acquisition, there's a chance Microsoft might play favorites with its Xbox brand and, in essence, make Activision Blizzard content exclusive to the Xbox platform, despite earlier denials.

Regulators are not idle, however. They are doing their due diligence, with the New Zealand Commerce Commission recently extending their decision deadline to July 17, while calling for submissions from interested parties by July 4. In parallel, an evidentiary hearing was held on June 22 and 23, following the FTC's complaint and temporary block on the acquisition.

This tussle has drawn global attention, with both opposition and acceptance in different corners of the world. While the acquisition has cleared in over 40 countries, including China, South Korea, and the entire European Economic Area, it faces staunch opposition in the United States and the United Kingdom, among others.

Notably, the deal has experienced significant pushback in the UK, where the CMA has officially blocked the merger. In the US, the FTC has gone to a federal court, seeking a preliminary injunction to prevent closure. The court's decision on this matter will be pivotal, not only for the Microsoft-Activision deal but potentially for future gaming industry acquisitions as well.

The stakes are high, and the clock is ticking. The July 18 deadline looms large, after which Microsoft could be forced to pay a hefty $3 billion breakup fee to Activision Blizzard, unless a renegotiation occurs. Microsoft's ambition to merge with one of gaming's finest publishers, Activision Blizzard, and potentially reshape the landscape of the gaming world hangs in the balance, and only time will tell how this high-stakes drama unfolds.