With a takeover of Activision Blizzard, Microsoft would secure control of successful games.
(Photo: Reuters)
Dusseldorf Microsoft’s acquisition of game maker Activision Blizzard is uncertain. The $69 billion deal, which was engineered in early 2022, is under the scrutiny of various antitrust authorities around the world. After the US authority FTC, the British CMA expressed concerns on Wednesday.
The takeover could hurt competition in the UK video games market, the cartel regulator warned. The CMA had recently requested documents in order to be able to examine the deal more deeply. The decision had been expected in industry circles.
The objections relate specifically to access to the Call of Duty series of games, which Activision produces and distributes. The series is considered one of the most successful ever.
The latest installment, Modern Warfare 2, sold more than $1 billion in just ten days after it went on sale in October. As a result, the games now generate higher revenues than cinema blockbusters.
The UK antitrust authority is one of three pioneering bodies investigating the deal more closely. According to the FTC, “Microsoft has already demonstrated that it can and will withhold content from its gaming competitors.”
They want to prevent Microsoft from taking control of a leading independent game studio and using it to harm competition in several dynamic and fast-growing game markets. Concerns from the competition authorities are also expected in Brussels.
Without Call of Duty, Sony in particular has a problem
The CMA now makes free access to the game a mandatory requirement for Microsoft. The authority therefore requires that players continue to have equal access to Call of Duty via consoles such as the Sony Playstation – without having to take out a subscription to Microsoft.
The US group has until February 22 to comment and can also take appropriate initiatives. The CMA plans to publish its final decision on April 26.
Insiders reported the fear that Microsoft wants to use “Call of Duty” as a driving force for its own game subscription “Game Pass” – and allows access to other consoles at a later time. Microsoft had always stated that it did not want to restrict access.
It’s common in the industry to release games exclusively for certain consoles. Call of Duty is currently free to play. Should Microsoft only make the Call of Duty series available to its own customers in the future, this would result in a massive exodus of players from other consoles, above all from Sony.
>> Read also: Between boom and consolidation – This is how the gaming industry has changed
The big console manufacturers Sony and Microsoft have been fighting for market shares for years. They secured more and more control over gaming brands through acquisitions.
Microsoft has now moved its gaming business heavily to its cloud and is becoming increasingly device-independent. Sony relies heavily on its hardware, the Playstation and the games specifically designed to play on it. The smaller Nintendo, on the other hand, has said goodbye to competitions like Call of Duty and is developing more for recreational gamers.
With agency material
More: US antitrust authority FTC wants to block Activision purchase by Microsoft.