Sony is sounding the alarm to regulators, raising Call of Duty to the skies and pointing to a serious weakening of competition. All this in order to stop Microsoft acquisition of Activision Blizzard for nearly $69 billion. Some markets aren’t taking Xbox’s connection to the Call of Duty publisher lightly and are scrutinizing everything.
At first it might seem that officials are leaning towards Sony with the PlayStation. But now it seems that the scales are leaning more and more towards approval of the acquisition. Analyst Piers Harding-Rolls of Ampere Analysis is convinced of this and is following the process closely.
His opinion is supported by an update from the UK Competition and Markets Authority (CMA for short). In a preliminary opinion, the CMA concluded that the acquisition would not materially reduce competition for console gaming in the UK.. New data suggests that Call of Duty’s exclusivity to the Microsoft ecosystem (not including the PlayStation game) will be very unprofitable. According to the CMA, Microsoft should still aim to bring Call of Duty to the PlayStation.
Source: Guerrilla Games / Sony10 years is enough time for Sony to create its own Call of Duty, Microsoft says
Now it will matter how the CMA decides on cloud gaming services. But there shouldn’t be any special problems here either, Microsoft has already made concessions and signed a contract with Nvidia. This ensures that Call of Duty will be available on GeForce Now for 10 years. Nintendo has the same contract.
Anyway, Microsoft is still willing to work with the CMA to address additional issues.. Now they had according to analysts, increase the chances of acquisition approval from 50 to 70 percent. Wall Street points to a 60% chance of a deal, up 10% after the CMA comments.
Where Microsoft and Activision Blizzard can tick, so be it Japan. The local authority has not determined that the deal has harmed competition and does not expect to have a major negative impact on competition in the video game industry.
THE PROBLEM FOR SONY IN JAPAN
This news comes at a time when submitted by the US Congress to investigate Sony’s anti-competitive tactics in Japan. Sony is said to be committing anti-competitive behavior at the expense of Xbox in the domestic market. Sony is said to be deliberately doing exclusive deals with third party publishers to ensure the Xbox doesn’t take off in Japan.
According to US politicians, Sony controls 98% of the high-end console market in Japan and enters into contracts that de facto block US companies, which could violate trade agreements between the US and Japan.. In particular, contracts with Square Enix and Konami can become a problem, which do not allow the release of Final Fantasy XVI, Final Fantasy VII Remake or Silent Hill 2 Remake on Xbox.
Microsoft is sympathetic to the investigation, saying through spokesman David Cuddy that Sony’s tactics deserve discussion and an investigation that will ensure equality in the video game industry. According to Axios, Microsoft’s government relations team has already been in talks with members of Congress. Sony has not commented.
Source :Indian TV
