Monday, a proposal was submitted for Microsoft to purchase “Call of Duty” publisher Activision Blizzard. This is the second submission to the U.K. Competition and Markets Authority about the acquisition. However, regulators have concerns…
Gaming has long since proven it’s not just for kids anymore. As of 2023, the industry’s market share is estimated at around $221.4 billion. And the worth of video game stock continues to climb.
BUT TECHNOLOGY IS GROWING FAST. AND THE LAWS THAT REGULATE ITS PRACTICES IS HAVING TROUBLE KEEPING UP.
So when Microsoft announced its intent to takeover Activision Blizzard, the CMA wanted to take a closer look…
Impact of Microsoft Making ‘Call of Duty’ EXCLUSIVE
You might be thinking that “Call of Duty,” is just a game, so who cares if it is owned by Microsoft?
WELL, THE SITUATION IS NOT SO BLACK AND WHITE.
The initial version of the $69 billion sale was denied in the U.K. for what comes down to one thing…
Exclusivity.
“Call of Duty” averages over 700,000 players per day. These gamers access the game through Playstation, Xbox, and PC — for now.
The Competition and Markets Authority is concerned this acquirement would mean Microsoft would have an unfair advantage in the marketplace.
However, Microsoft vice-chairman and president, Brad Smith, said:
“WE’VE WORKED TO ADDRESS THEM, AND BY ADDRESSING THEM, WE HAVE PUT TOGETHER A TRANSACTION THAT WILL ADVANCE COMPETITION, WHILE ALSO ELIMINATING THE CONCERNS ON THE ANTI-COMPETITIVE SIDE THAT SOME PEOPLE HAD.”
In the revised offer, Microsoft will not have “cloud rights” for existing PC and console Activision Blizzard games for the next 15 years…
But are these measures enough for the U.K. regulators?
Let Them Play Games
The CMA’s deadline is Oct 18, 2023, to approve the Microsoft and “Call of Duty” developer’s merger. So far, there is no hint from the commission on their decision either way…
“I THINK WE NEED TO LET THE REGULATORS SPEAK FOR THEMSELVES,” SMITH SAID WHEN ASKED TO SPECULATE.
At the end of the day, gamers just want to game how they choose. Meanwhile, we will have to see how this prospective deal will affect that.
Be Great,
GCTV Staff
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