{"id":13641,"date":"2022-09-01T14:57:52","date_gmt":"2022-09-01T14:57:52","guid":{"rendered":"https:\/\/scienceandnerds.com\/2022\/09\/01\/microsoft-pleads-for-its-activision-blizzard-deal-as-uk-regulator-signals-in-depth-review\/"},"modified":"2022-09-01T14:57:53","modified_gmt":"2022-09-01T14:57:53","slug":"microsoft-pleads-for-its-activision-blizzard-deal-as-uk-regulator-signals-in-depth-review","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2022\/09\/01\/microsoft-pleads-for-its-activision-blizzard-deal-as-uk-regulator-signals-in-depth-review\/","title":{"rendered":"Microsoft pleads for its Activision Blizzard deal as UK regulator signals in-depth review"},"content":{"rendered":"

Source: https:\/\/www.theverge.com\/2022\/9\/1\/23332451\/microsoft-activision-blizzard-deal-uk-cma-comments<\/a>
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Microsoft is publicly pleading for its Activision Blizzard deal to go ahead, just as the UK\u2019s Competition and Markets Authority (CMA) has expressed concerns. Microsoft surprised the gaming world earlier this year with its plans to acquire Activision Blizzard in a $68.7 billion deal<\/a>, by far the biggest ever in gaming. Now regulators are starting to take notice.<\/p>\n

The UK\u2019s CMA says<\/a> it\u2019s \u201cconcerned that Microsoft\u2019s anticipated purchase of Activision Blizzard could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services.\u201d After an initial research phase, the CMA is signaling it will move to what it calls a Phase 2 investigation if Microsoft isn\u2019t able to answer its concerns within five working days.<\/p>\n

A Phase 2 investigation will see an independent panel examine Microsoft\u2019s deal in more detail and whether control over games like Call of Duty<\/em> and World of Warcraft <\/em>will harm rivals. In response, Microsoft Gaming CEO and head of Xbox Phil Spencer has spelled out Microsoft\u2019s position in a blog post today<\/a>.<\/p>\n

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Call of Duty will remain on PlayStation.<\/em>
\n<\/figcaption>Image: Activision Blizzard<\/cite><\/p>\n

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Detailing Microsoft\u2019s plans for gaming beyond just Xbox consoles, Spencer says the company will pursue a \u201cprincipled path\u201d in its approach to Xbox Game Pass and Call of Duty<\/em>. Microsoft says it will make Overwatch<\/em>, Diablo<\/em>, and Call of Duty <\/em>all available in Xbox Game Pass but not prevent games like Call of Duty<\/em> from being available on PlayStation.<\/p>\n

\u201cWe\u2019ve heard that this deal might take franchises like Call of Duty<\/em> away from the places where people currently play them,\u201d says Spencer. \u201cThat\u2019s why, as we\u2019ve said before, we are committed to making the same version of Call of Duty<\/em> available on PlayStation on the same day the game launches elsewhere.\u201d<\/p>\n

Spencer likens Microsoft\u2019s Activision Blizzard deal to the company\u2019s $2.5 billion acquisition of Minecraft<\/em>. \u201cWe know players benefit from this approach because we\u2019ve done it with Minecraft<\/em>, which continues to be available on multiple platforms and has expanded to even more since Mojang joined Microsoft in 2014,\u201d says Spencer.<\/p>\n

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Overwatch, <\/em>Diablo, and <\/em>Call of Duty will all be on Xbox Game Pass.<\/em>
\n<\/figcaption>Image: Microsoft<\/cite><\/p>\n

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Brad Smith, Microsoft president and vice chair, is even more direct about the Call of Duty<\/em> situation. \u201cWe\u2019re ready to work with the CMA on next steps and address any of its concerns.\u202f Sony, as the industry leader, says it is worried about Call of Duty<\/em>, but we\u2019ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.\u201d\u202f<\/p>\n

Microsoft has also previously argued that not distributing games like Call of Duty<\/em> at rival console stores \u201cwould simply not be profitable\u201d for the company. In documents submitted<\/a> to Brazil\u2019s Administrative Council for Economic Defense (CADE) regulator, the company says a strategy of not distributing Activision Blizzard games on rival consoles would only be profitable if the games could attract a high number of players over to the Xbox ecosystem, resulting in revenue to compensate for losses from not selling these titles on rival consoles.<\/p>\n

While the FTC, CMA, and the European Commission are still analyzing Microsoft\u2019s Activision Blizzard deal, Saudi Arabia became the first country to approve the acquisition last month<\/a>. I understand Microsoft still expects the deal to close fully in spring 2023, with many months ahead for competitors to voice concerns and Microsoft to argue for this giant acquisition. Spencer says he\u2019s open and ready for the thorough reviews ahead:<\/p>\n

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\u201cWe will continue to engage with regulators with a spirit of transparency and openness as they review this acquisition. We respect and welcome the hard questions that are being asked. The gaming industry today is robust and dynamic. Industry leaders, including Tencent and Sony, continue to expand their deep and extensive libraries of games as well as other entertainment brands and franchises, which are enjoyed by players everywhere. We believe that a thorough review will show that the combination of Microsoft and Activision Blizzard will benefit the industry and players.\u201d<\/p>\n<\/blockquote>\n

Update, September 1st, 8:35AM ET<\/strong><\/em>: This article has been updated with a statement from Microsoft president Brad Smith.<\/em><\/p>\n<\/div>\n


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Source: https:\/\/www.theverge.com\/2022\/9\/1\/23332451\/microsoft-activision-blizzard-deal-uk-cma-comments<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: Microsoft is publicly pleading for its Activision Blizzard deal to go ahead, just as the UK\u2019s Competition and Markets Authority (CMA) has expressed concerns. Microsoft surprised the gaming world earlier this year with its plans to acquire Activision Blizzard in a $68.7 billion deal, by far the biggest ever in gaming. Now regulators are […]<\/p>\n","protected":false},"author":1,"featured_media":13642,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[59,8],"tags":[11],"class_list":["post-13641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-microsoft","category-technology","tag-microsoft"],"yoast_head":"\nMicrosoft pleads for its Activision Blizzard deal as UK regulator signals in-depth review - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/09\/01\/microsoft-pleads-for-its-activision-blizzard-deal-as-uk-regulator-signals-in-depth-review\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Microsoft pleads for its Activision Blizzard deal as UK regulator signals in-depth review - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Microsoft is publicly pleading for its Activision Blizzard deal to go ahead, just as the UK\u2019s Competition and Markets Authority (CMA) has expressed concerns. 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