The acquisition of Activision Blizzard is still validated at present. Even if Microsoft is confident, a serious obstacle jeopardizes this merger with Xbox.
Update of June 14, 2023 :
It’s now confirmed, the FTC has won its case to temporarily block Microsoft’s purchase with an order. And this at least until June 22, when a new hearing is scheduled. For society, this is a rather good sign. “We are delighted to be able to defend our case in federal court. We believe that speeding up the legal process in the United States will provide more choice and competition in the market” says Brad Smith, president of Microsoft (via Eurogamer).
Will you take back some drama from the takeover of Activision Blizzard by Microsoft? While Xbox shows great confidence in the outcome of this acquisition, not everyone is on the same wavelength. The Redmond firm, which is looking to force through, is facing a new major difficulty.
FTC continues to block Microsoft takeover of Activision Blizzard
In episode 259 of season 40 of the takeover of Activision Blizzard, the case experienced an upturn. The European Commission has in fact given its approval for the acquisition to take place. For the institution, Microsoft was able to respond to the concerns generated by such a merger. Both in the classic video game market and in the cloud gaming market. ” The commitments fully address the competition concerns identified by the Commission and represent a significant improvement for cloud gaming compared to the current situation “.
Great news, but it’s not over. Two major competition regulators, the FTC in the United States and the CMA in the United Kingdom, are still fiercely opposed to the acquisition of Activision Blizzard. The CMA has already blocked the merger and the FTC has taken Microsoft to court.
Faced with these obstructions, the Redmond firm maintained that it would go all the way. Leave to force through without waiting for the green light from the two authorities. Behind the scenes, the company is also preparing such a scenario and studying its feasibility. After learning this, the Federal Trade Commission sees red and filed for a restraining order to prevent the sale of Activision Blizzard to Microsoft.
“A temporary restraining order and a preliminary injunction are necessary. Microsoft and Activision said they could finalize the acquisition at any time. In light of this, and public reports that Microsoft and Activision Blizzard are planning to complete their deal very soon, we have filed for an interim injunction to stop them from doing so, while the review of the case is still in progress”.
The Call of Duty franchise exclusively on Xbox Series X|S and beyond?
After the Xbox Showcase, Phil Spencer, head of the video game branch of Microsoft, said he was confident about the takeover of Activision Blizzard. “I have to admit, it’s quite an experience and a lesson. We’ve been on it for 18 months and it’s a long way. We remain confident in its outcome, we are working a lot on that and we continue to get our message across. (via Twitter). For now, it’s still playing and everyone is trying to move forward as best they can.
If the acquisition were validated, what would be the consequences? Would the Call of Duty license only be available on Xbox platforms? No. At least not for the next 10 years. To show off, Microsoft has sealed deals to release Activision’s FPS games for 10 years on Nintendo Switch. For its part, Nvidia has also signed a contract for the flagship saga and cloud gaming. Under this agreement, CoD and other Activision Blizzard titles will be released on GeForce Now. The green brand platform that allows you to stream games. No need to have crazy gear, but on the other hand, you need a concrete Internet connection. As for the contract with PlayStation, the discussions seem more broken than ever.
See you soon for a new episode and maybe yet another twist…