The UK’s Competition and Markets Authority claims that a number of video game companies are in favor of Microsoft acquiring Activision Blizzard.
It has been difficult for tech giant Microsoft to acquire Activision Blizzard thus far, but recent data released by the UK’s Competition and Markets Authority (CMA) indicates that a number of gaming companies support the deal. Sony has fiercely opposed Microsoft, arguing that the merger would “irreparably harm competition” because it would include the hugely successful Call of Duty franchise.
Call of Duty will be available on various platforms for the following ten years thanks to agreements Microsoft has made with them. Sony has been steadfast in its opposition, even claiming that Microsoft might purposefully release buggy versions of Call of Duty on PlayStation to harm the console’s sales in the future. This is in contrast to companies like Nintendo who have accepted Microsoft’s offer.
Six gaming companies have responded to the CMA in support of Microsoft buying Activision Blizzard. Except for 4J Studios, based in Dundee, the companies are not identified. One company simply states that they don’t believe the deal would have a negative impact on competition, especially given Microsoft’s commitment to making Call of Duty available on all platforms, while another company even goes so far as to say that Sony’s concerns are “out of proportion.” The responses range from generally positive to outright supportive. Another response from Market Participant E, who prefers to remain anonymous, claims that while sales on PlayStation have stagnated, they have reached a larger audience on Xbox.
the CMA has published responses from 6 different games companies to the Microsoft Blizzard deal in the UK. All 6 believe the deal should go ahead. One company even says it’s likely to create a “sorely needed” level playing ground between Xbox and PlayStation pic.twitter.com/5hAVrsE87v
— Tom Warren (@tomwarren) March 16, 2023
It should come as no surprise that Sony is the only respondent who opposed Microsoft’s acquisition of Activision Blizzard; there was only one respondent who supported the acquisition. Although the CMA has not yet made a final decision regarding the transaction, it appears that UK gaming studios are overwhelmingly in favor of the move at this time. the CMA’s April 26, 2023 statutory deadline. Microsoft appears to be giving ten-year contracts to just about everyone in the interim, including local game streaming services like Boosteroid, which is based in Ukraine.
It’s unlikely that Sony will soften its stance against its main console rival as the saga surrounding Microsoft’s Activision Blizzard deal continues. On a different front, Valve has rejected Microsoft’s offer, saying that it has good faith in Microsoft and doesn’t think a contract is necessary. Microsoft’s offer guaranteed that Call of Duty will be available on Steam for the next ten years. The strange response from Valve is yet another setback for Sony’s objections to the acquisition.
Source: Marc Keever
