The CMA investigation into the Microsoft and Activision Blizzard merger

How the CMA is investigating the merger, what it means for gamers and the industry, and how you can share your views.

[XiNatsuDragnel]

Imo it's very interesting.

[SullysCigar]

It is interesting. If the CMA could be bought off, they probably would have been by now, so it's good to see them taking their role seriously.

Then again, maybe they're already in Microsoft's pocket and this is all a show to appear above board. Who knows.

I think they need to set an example here and put their foot down. Microsoft have a tendency to go for the shortcut to the top, which is precisely what competition law is supposed to govern.

We've all seen Microsoft's statements. They're hardly being honest with the very people they're trying to sway. That can't sit well.

The CMA will be well aware that one risk of letting this through would be the president it sets. It could open the floodgates - as most of us already recognise - and that is NOT safeguarding the industry, or more importantly the consumers, which is kind of their raison d'être.

[VenomUK]

Unlike the US regulator the FTC which appears to have waved through all Microsoft's previous mega-deals (GitHub $7.5 billion in 2018, LinkedIn for $26 million 2016, Nuance $26 billion 2021). It appears that CMA doesn't blindly allow Big Tech to do whatever it wants. Three days ago it ordered Meta-Facebook to sell Giphy because it would limit the choice of UK social media users and limit advertising.

https://www.gov.uk/governme...

[SullysCigar]

^ Spot on, @VenomUK, it certainly seems big tech giants are not properly governed in the US and it makes you wonder what goes on..

Notice the usual disagrees with zero riposte? Sometimes you need to acknowledge the elephant in the room, whether it's popular or not.

When it's your job to protect the consumer, you need to hear from them. I've seen people in other threads suggest it's because they can't do their job themselves, when in fact it's a key part of their process.

If they want our feedback, they should get it. They won't likely trawl the N4G comments section, so if we're concerned it's time to click the link and make our voices heard.

[XiNatsuDragnel]

@venomuk
Fr that is what imo a functioning company is like.

[anubusgold]

The US is on the take really lol? The CMA is letting sony argue you cant let them buy people they will challenge us for first place we are the only ones allowed to be in first place help us lol. This is a cowardly argument and sony just doesnt want to compete and wants to charge people 70 dollars for games. The fact that the CMA is letting sony argue this is a total joke; Its like Microsoft crying to the EU to protect them from Apple in the OS market lol.

[Orchard]

"It appears that CMA doesn't blindly allow Big Tech to do whatever it wants."

Their past record with Microsoft suggests otherwise though. Take Nuance for example, their most recent acquisition - the CMA opened the same investigation and later concluded it was fine - and the acquisition closed.

[InUrFoxHole]

Well this consumer welcomes the deal..

[dcbronco]

Man you're laying the whole victim thing on thick. Sony started this process but the board is in Microsoft's pocket?🤔 And what floodgates are being opened? Microsoft has a history of working with others. They've tried to do cross-platform. Minecraft is everywhere despite being an opportunity to get children hooked on the Microsoft brand. The long history of exclusivity, whether paid or not, will be proof of just how much harm can be done by one console manufacturer or another. In fact, since Sony fans say Sony doesn't pay for exclusives despite getting far more third party exclusivity it would be proof of favoritism for Sony. That diminishes any potential hard to Sony. If I were Microsoft I'd also direct the CMA to sites like N4G where they can read comments and see the downvotes from 30 years that say Sony has a clear advantage. Plus the idea of them bringing up cloud gaming on one hand hurts Microsoft but on the other helps because as the industry transitions to a system where everyone is their own publisher content matters. So acquisitions are the future of gaming. Sony had the misfortune of the Cell issue that set them back as a company and is the cause of them not being in a better position. But it's Sony's responsibility to fix that issue. The government can't save them. And it can't hold Microsoft back for having the vision and means to remain relevant. Sony is embarrassing themselves with running to the government. It makes them look weak and you have believe they've just caught on to the future issues they're facing. This isn't going to go their way. It makes me curious what that means for the next generation.

[VenomUK]

@SullysCigar - Thanks. Yes, it is unlikely that the CMA will be reading N4G comments for opinions... but you never know! The key is for concerned members of the public, whether for against the deal, is to be able to crystallise the pertinent issue about the buyout's affect that goes beyond the 'I prefer this company, I dislike this company' expressions and be able to presents coherent arguments.

[VariantAEC]

@VenomUK
MS has people in Government in the U.S. I hope MS holds no seats in Parliament as they do in Congress.

[blackblades]

Meh, shows MS BS and if this goes through there will be more that they will aquire after the success of 2 big publishers. Going by MS previous many bad moves and history, doing so might backfire on them or F it all up.

[badz149]

EA will be next. especially now that their FIFA license has expired

[anubusgold]

Tell sony to stop attacking game pass and microsoft may stop buying people to supply content for their platform. The more deals sony sign to keep games off xbox the more developers microsoft will buy to make sure their gamers have content on their system. Sonys tactics to keep games off xbox has come back to bite them in the ass. Oh we cant have the game sony we will just buy the company that is what is happening now.

[RCslayer]

Haha you obviously don't understand how business works. They aren't just buying devs, this process takes years, the MS and Activision deal started back before covid even hit the world. It isn't like oh sony is pissing in our cornflakes lets go buy so and so lol

[anubusgold]

@RCslayer works oh i know who business works and a government shouldn't protect sonys number one spot the CMA is full of crap.

[badz149]

wait...since when is this a merger? it's an acquisition, right?

[onisama]

love seeing sony trying to stop the deal jim rayan is always making statements of things PS was doing to secure his top position which is funny ....like we fair that MS make bonus contents for COD in xbox....bro you have been doing that the last 10 years lol and even doing a contract to stop it from coming to gamepass and many other games ...sony is full of hypocracy

[MrDead]

It's like you're actively trying not to understand what's happening.

[MrDead]

Let's have a look at MS buy up and banning of publishers on competing systems.
Are MS spending $80 billion on making new games. No
Are MS spending $80 billion on bringing games to Xbox that weren't coming to Xbox. No
Ms are spending $80 billion on removing games from competition, that's it. Two publishers with over 30 years of multiplatform IP's gone, no single company has ever been so anti-gamer as MS

[shinoff2183]

This is the best way I have seen this put. Good job mr dead.

Ill also add that most of those games they are buying to take away from the competition sold better on the competitions console.

[ChiefofLoliPolice]

Hit the nail right on the head.

[Petebloodyonion]

Please mentioned the several existing IP that MS removed from PlayStation
Go ahead ill be waiting...

[ziggyzinfirion]

Dino Crisis 3

[babadivad]

He can't

[z2g]

The CMA investigation into the Microsoft and Activision Blizzard merger....

....is becoming a joke.

[babadivad]

It was always a joke.

[Orchard]

I've submitted my views on why this is good for consumers and why it should pass.

Not that I genuinely believe anyone from the government is going to read things submitted to this email address - I suspect this is all just theatre before this M&A gets approved.

[anubusgold]

Greater news! Sony reported Cod money that was far higher than what they reported to Activision if what they reported to the CMA is true then Sony stole money from Activision or they lied to the CMA if true they snitched on themselves lol.

[rlow1]

As far a MS buying them I don’t have a problem with it. My problem with this investigation has been the fact that the commission has only talked about how this affects Sony. Sony is not the whole industry, plus no other games that Activision owns has even been mentioned. A very narrow view. I would hope the CMA would look at the industry as a whole and not just how one company is affected. So far Sony has been the only one to really say anything against it (accept Google, though they haven’t pushed it). Every other major publisher has not had a problem with it and has said they can compete against it. So really this is about protecting Sony at the end of the day. Possibly because they don’t have a true Gamepass competitor in place. Xbox division is in third place and Sony is in a very strong first place. They have done so by putting out some fantastic games but also by paying devs to not put games on Gamepass, exclusives deals and have locked out content permanently from their competitors. Their have been many times were Xbox players paid the same price for a game as Sony players but were locked out of that content permanently because of Sonys deals with Activision. They have raised the prices on their console and games because they know their fanbase would pay for it anyways. That only happens when you are a strong market leader without fears of competition.
They (Sony) are the 146th most valuable company in the world.
Revenue of $89 billion so far in 2022, profit of $8 billion so far in 2022
Assets of over $260 Billion

So to say they wouldn’t be able to withstand loosing Call of Duty and that they wouldn’t be able to compete nor take care of themselves is shortsighted. Again, it amazes me that we are only talking about them and no one else in the industry. As though they and Call of Duty is the Industry and yet no one outside of them has put out such dis content.

Sony has shown time and time again why they are number one in the gaming space by flexing their muscles to the detriment of their competitors. Call of Duty seems to be their only concern. They have yet to show or prove how this acquisition would hurt the industry as a whole, only how they will be affected in the market. Last I checked the CMA job isn’t to protect Sony but the industry as a whole. CMA is their to oversee fair competition, protect against monopolies, as well as spurring on new competition by allowing acquisitions to go forward and challenge market leaders.

On top of it Call of Duty will still be on their system and highly likely the PS6 because of their prior arrangements with Activision. For years Sony has knocked out competitors by locking them out of content( Example: Final Fantasy) and now that Xbox has added a new wrinkle with Gamepass (day and date). A very affordable option, especially in todays rising inflation and gas prices. Sony doesn’t want to compete against it unless they have to. Something they have had many years to respond to but until recently let languish along ( their ps online strategy).

Sonys a great company and gaming has benefited from them. But I believe this acquisition will not hurt them because of prior agreements they have with Activision. To put it bluntly, Call of Duty is not going anywhere even if the acquisition goes through.

The public will benefit by this acquisition because this will allow Microsoft to add greater value to Gamepass even without Call of Duty day and date. Giving access to many consumers by providing them with an affordable option to many different type of games (not having to pay $70 per game). Which in todays challenging economic environment is a win for the consumer. I believe this will spur Sony to respond and therefore result in competitive value (cheaper prices, greater variety, easy access to the consumer for the developer) for the consumer.

[Miacosa]

It's good that this mentions the entirety of the deal and focuses on the games industry at large. It was always odd that the conversation just became a fan war involving Sony and Call of Duty when it affects the whole present and future games industry and there are many games involved.

Interesting enough that Microsoft already was guilty of making a developer gimp a game on a competing platform in Psychonauts 2. They made Double Fine shelf a native PS5 version to benefit the Xbox Series X version soon after they purchased the developer. It's not difficult to conclude that Microsoft could limit other platforms either on features or price competitiveness.

[rlow1]

Yet they allow a game like Minecraft to be played on Sony’s system.

[SonyStyled]

Minecraft was on PlayStation before MS purchased mojang. Did you think Microsoft would order a seize and desist of PlayStation copies breaking down peoples doors?

[rlow1]

@SonyStyled
I really think it depends on the type of game. A Minecraft game benefits because of its community style of play. The more the merrier but if they wanted to shut people out, all they have to do is lock them out of the servers. So it could be easily done.

[ActualEngineer]

Truth be told is that they could have made 700 new AAA games with that 70 billion. 100million each.

[rlow1]

Interesting point, but do you get lucky and replicate the success of something like a Call of Duty? I can understand with the current tech in hand, that to create something that people would just play year after year, would be a huge challenge and risk.