Microsoft and Activision Blizzard may add a second point to the world map to show where it was acquisition for $68.7 billion approved. After Saudi Arabia, the Brazilian authorities (CADE) spoke in favor of this. He carefully researched the addition of Call of Duty manufacturer and publisher to the Xbox family and came up with some interesting conclusions.
The acquisition was a Brazilian authority approved for the customer, not competition (implicitly Sony or Nintendo). Brazilians are fully aware of the strategic opportunities Microsoft may have in the future to decide on Call of Duty exclusivity in its ecosystem (Xbox, PC and Game Pass subscriptions).
The CAD came to the conclusion that Call of Duty exclusivity does not threaten the gaming industry. Moreover, the task of this body is not the protection of specific competitors, but the well-being of Brazilian consumers. Consequently authorities dismissed Sony’s arguments that the acquisition violated competition rules..
Source: Microsoft/Activivision BlizzardMicrosoft thinks Activision Blizzard is a win-win for the Xbox family
SONY HAS A RELIABLE DIRECTORY OF EXCLUSIVE GAMES
Brazilian officials write in a report that exclusive games are important and are indicative of the rivalry between Microsoft and Sony, although So far, no company has created or acquired an exclusive game that would fundamentally change the balance of power in favor of one of the consoles.. According to CADE, exclusive games are less popular and generate less revenue than AAA titles from third-party studios that are available on Xbox and PlayStation consoles.
Nintendo doesn’t need Activision Blizzard’s brands to attract gamers, while Sony has a competitive edge on several important points. According to CADE, Sony has the strength of a top global brand with over 20 years of industry experience, the largest user base, the largest installed base of consoles, a solid catalog of exclusive games, partnerships with many publishers and loyal brand customers. These benefits are intended to help keep PlayStation consoles competitive in the event that Microsoft stops publishing Activision Blizzard games for the PlayStation.
Source: SonyThe head of PlayStation was in Brussels to personally voice his concerns about Activision’s Xbox deal.
CADE acknowledges that some PlayStation users may decide to switch to Xbox (or PC) if Activision Blizzard games (especially Call of Duty) become exclusive to the Microsoft ecosystem, but authorities do not believe this in itself poses a threat to competition on market. console market. On the other hand, CADE also believes that gamers loyal to the PlayStation brand can simply abandon the series and move on to other games on their favorite console.
“It cannot be ruled out that Microsoft will find it potentially beneficial to adopt an exclusivity strategy for Activision Blizzard games, even if this decision may sacrifice a corresponding part of sales, users and even the popularity of Call of Duty. In theory, such a strategy could help increase Xbox sales, expand the Game Pass subscriber base, and strengthen the Microsoft ecosystem to offset any short-term losses in gaming revenue.” writes Brazilian authority.
As for other markets, according to the latest information, the US Federal Trade Commission (FTC) may make a decision before the end of November this year. On the contrary, the British authorities have set a deadline of March 1, 2023 for publishing the results of their investigation. The deal is also under investigation by the European Commission.
Source :Indian TV
