The UK Competition and Markets Authority (CMA) is the third key market concerned about Microsoft’s $68.7 billion acquisition of Activision Blizzard.. The US Federal Trade Commission and the European Commission have already expressed concern.
While this is only a report with a preliminary conclusion, the investigation is still ongoing. However, the CMA is already publicly stating that Activision Blizzard’s merger with Microsoft could harm UK gamers and potentially lead to higher prices, fewer choices or less innovation.
CMA notes that it will be important for the success of cloud services to offer popular games to attract users in a growing and developing market.
“The evidence presented by the CMA suggests that it would be commercially beneficial for Microsoft to have Activision games available exclusively on its cloud gaming service (or on other services at significantly worse terms),” the report said.
According to this Microsoft controls 60-70% of the world’s cloud services and has other important assets in cloud gaming. thanks to the Xbox console, the leading PC operating system (Windows), and global cloud infrastructure (Azure and Xbox Cloud Gaming).
The acquisition of one of the world’s largest game publishers will strengthen this strong position and significantly reduce competition, which Microsoft will face in the UK cloud gaming market. “This could affect the future of gaming and harm gamers in the UK, especially those who cannot or do not want to buy an expensive game console or gaming PC,” the CMA warned.
As part of the preliminary findings, the CMA also mentions Microsoft’s strategy in the case of previous studies and the brands that the company has bought. They are now exclusive to the Microsoft ecosystem.
VGC server states what CMA has to offer as a potential solution partial sale to Activision Blizzard. This will mean complex changes to Activision Blizzard’s structure. Examples are as follows:
- Sale of the part responsible for Call of Duty (for example, Infinity Ward, Treyarch, Sledgehammer Games)
- Sale of Activision
- Selling parts to Activision and Blizzard (maybe King Studios?)
Another solution total ban on merger. But there is not a single mention of this in the official CMA report. Only Microsoft should have received these offers from the CMA.
Microsoft has until February 22, 2023 to comment on the proposals. CMA wants to close the case on 04/26/2023..
CALL OF DUTY IN COMPETITION 10 YEARS
Previously, Microsoft pledged to provide equal access with Call of Duty for Sony, Nintendo and Steam. The American firm promised to release Call of Duty on PlayStation consoles for at least 10 years. Related to this term are the same content, price, quality, playability… He also recalls that 75% of respondents agreed that the acquisition would benefit the UK.
Even before the official CMA report, he asked for attention Bobby Kotick. Controversial Activision CEO Blames Blizzard in CNBC Interview officials that they know nothing about the video game market. According to him, the United Kingdom should not miss the merger between Activision Blizzard and Microsoft. At the same time, he hints at the situation after Brexit.
“This is probably the first country where you see a recession and its real, serious consequences,” Kotick said, noting that these are not Sony and Microsoft platforms, but the future of technology.
“UK Prime Minister Rishi Sunak said that they would like to become the Silicon Valley of Europe and if such deals do not go through this process, then it will not be Silicon Valley, but Death Valley” added Kitty.
Source :Indian TV
