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UK CMA blocks the Microsoft takeover of Activision

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Last updated: 19 Jul 2023 at 5:50 pm UTC

Here's some industry news for you: the UK's Competition and Markets Authority has announced today they've blocked Microsoft's takeover of Activision.

Interestingly, the main concern of the UK CMA here seems to be around Cloud Gaming specifically. As they said in their statement "Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service." and that "The deal would reinforce Microsoft’s advantage in the market by giving it control over important gaming content such as Call of Duty, Overwatch, and World of Warcraft. The evidence available to the CMA indicates that, absent the merger, Activision would start providing games via cloud platforms in the foreseeable future.".

Quite a big blow to the $68.7 billion deal!

We saw Microsoft attempt to get around these concerns, with various Cloud Gaming deals being announced over the last year but it seems that just hasn't been enough. An interesting part of the CMA announcement was on a proposal submitted by Microsoft, to address some of their concerns, this proposal was to set out "requirements governing what games must be offered by Microsoft to what platforms and on what conditions over a ten-year period" but one of the shortcomings noted was "It was not sufficiently open to providers who might wish to offer versions of games on PC operating systems other than Windows.". Nice to see.

The UK certainly isn't the only country to be concerned by the power this deal would hand to Microsoft with the US FTC also trying to block it and according to Reuters earlier this year there were no substantive settlement talks on it. So now with the UK blocking it, that will likely boost the FTC's argument to block it too. On top of that, there's also the EU regulators decision coming up next month.

Microsoft, naturally, will be attempting to appeal the decision.

What are your thoughts?

Article taken from GamingOnLinux.com.
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tohur 26 Apr 2023
I smell Sony all over this as to be frank from the get go UK did NOT hide their bias towards Sony and PlayStation and fact is Sony is buying up studios. Saying goes "Rules for thee but not for me". to be frank Activision has ALOT of culture issues I mean just look at all the harassment stuff and mistreatment of their employees and such.. this is actually a terrible decision in every way possible. and their arguments about PC operation systems is BS because you JUST posted a story bout grounded and recently they made MCC work and alot of their titles do in FACT work on desktop Linux and they have been actively doing this on their own. sure not native games but at this point proton itself is native thus the games run natively because remember boys and girls Wine is Not an Emulator aka WINE!

Only way to fix the issues at Activision is for them to be bought out and Microsoft is SADLY the only company that can afford them that we should trust to them cause the only other company I foresee doing so is Apple and we don't want their gruby hands on Activision..


Last edited by tohur on 26 Apr 2023 at 5:09 pm UTC
Purple Library Guy 26 Apr 2023
sony fanboys
Do those exist?
damarrin 26 Apr 2023
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This not about Activision or ‘fixing’ it. This is about Microsoft not accumulating any more power in the gaming space. They own the PC OS everyone uses to game, they have a console, they have a shitton of studios.

Sony is not a monopoly in any market, MS is and that’s why they’re scrutinised and treated differently.
MadWolf 26 Apr 2023
hi
yes Microsoft and Activision are not good companies but IMHO Microsoft is the worst company that Activision can get bought out by

when it comes to the desktop for gaming Microsoft has a monopoly and they also have the Xbox do you think they are going to rales games for the PlayStation or any other rival system I do not think so just looking at the List of Microsoft video games Wikipedia page there are just 8 that where relets on the PlayStation and 7 on a Nintendo system there may be more

IMHO I do not trust Microsoft and its data telemetry I know how bad bug reports can be from the average user but I do not think Microsoft sees Windows as a high priority just look at the number of bad updates that have been released that's why I use GNU/Linux as my main os

I have a BIG list of changes that Microsoft needs to change in Windows for me to go back to Windows but that is getting offtopic


Last edited by MadWolf on 26 Apr 2023 at 7:05 pm UTC
Bumadar 26 Apr 2023
wasn't surprise this would happen, Sony corruption is too big, Sony even bought another studio last week and complaining how microsoft will take COD there money Goose lol.

This is what you read so often as a defence for the takeover, I am sorry but there is a huuuuuuge diffrent between Sony buying a small studio which not even has a franchise to Microsoft buying BA for 68 billion dollars which has some of the biggest franchises in the game market not to mention the mobile part.

This is so much bigger then Sony PS vs Microsoft xbox, this is about the long run, 10 or 15 years from now.

Microsoft is a company and has an obligation to its shareholders to maximise profit, so yes on the short run everything will be great, BA games on the gamepass, more people will flock to it. There are several trains of though about the gamepass and if it is really good for (small) developers but that is not what this post is about. It is the long run where the money is, get so many people on windows/xbox/gamepass that it will become unavoidable and even epic or steam won't be able to compete against a gamepass on which almost every game will be included for a crazy cheap amount and that is scary for anybody who wants atleast some competition and an open market.


Last edited by Bumadar on 26 Apr 2023 at 7:25 pm UTC
Purple Library Guy 26 Apr 2023
It is the long run where the money is, get so many people on windows/xbox/gamepass that it will become unavoidable and even epic or steam won't be able to compete against a gamepass on which almost every game will be included for a crazy cheap amount and that is scary for anybody who wants atleast some competition and an open market.
You're actually missing the actual long term end game: And then, after running all competitors out of business with pricing at a loss, once there is no competition the prices get jacked up again and then some.

We're seeing this everywhere these days, so many spaces where there are few enough competitors, that they could all quietly agree to jack up the prices together. That's why groceries are so expensive.
Devastatorius 27 Apr 2023
Oh, thats bad news for me.
Only that tencent keeping me away from those games which companies they owns or got invested...
For me MS is better than those chinese spies.
TheRiddick 27 Apr 2023
Couldn't care less; Activision/Blizzard are one of my least favorite publisher/development companies, Rockstar is the least favorite. Mostly on moral grounds of how they treat workers or exploit the systems set in place to help competition(meant for smaller studios, but exploited so big can take all).
TrainDoc 27 Apr 2023
This is actually bad news. Activision is not a good company at all. They did countless bad things to Blizzard and other companies they own. The acquisition had a potential to change it for the better (and possibly bring Blizzard games to Steam :-)).

This is one of the most absurd corporate suck off lines I've ever heard. All that will change would be ownership since disturbing the structure would lose them money and I think you just don't want to recognize that Microsoft's desperate positioning to try and get anything so they can convince regulators is exactly that.
Arehandoro 27 Apr 2023
I'm happy for this decision, but very sad for the amount of opinions thinking that megacorporations and mergers are a good thing.
const 27 Apr 2023
This not about Activision or ‘fixing’ it. This is about Microsoft not accumulating any more power in the gaming space. They own the PC OS everyone uses to game, they have a console, they have a shitton of studios.

Sony is not a monopoly in any market, MS is and that’s why they’re scrutinised and treated differently.
Don't forget GamePass, a very effective tool to bind users.
omer666 27 Apr 2023
CoD exclusivity on Xbox would actually be a good thing: I'm tired of seeing people playing that poor excuse of a game, and that would be a good opportunity to push more interesting IPs forward.
ssj17vegeta 27 Apr 2023
I really can't understand the people who say it's bad news. I mean sure, Activision is bad and maybe, MAYBE someone from Microsoft could have managed this in a better way.

But come on... How few company takeovers have been actually good for customers ? It's not even a topic about Microsoft, Sony or any other game corporation. It's about the ever-increasing amount of small and innovative game studios bought and buried by big corpos. Hell, Blizz being bought by Activision turned this company into a living hell for people working in it in the first place. Being bought again won't solve anything.

Bullfrog, Obsidian, Blizzard, Westwood, Bitmap Brothers, Psygnosis, Bioware... how many more studios does it take to make people realize ANY takeover is bad : the bigger the company, the more corporate bureaucrats obsessed with short-term profits have power over creative minds. Why do you guys think DLCs, microtransactions and all this toxic stuff is so common nowadays ? It's the result of decades of big corpos buying small studios.


Last edited by ssj17vegeta on 27 Apr 2023 at 1:08 pm UTC
Lanz 27 Apr 2023
This is a major win for gamers. As consolidation increases, mainstream games will increasingly become a regurgitation of the same manufactured corporate garbage over and over. How are we supposed to have diversity in gaming experiences if massive corporations control 95% of the market?

Not to mention the vendor lock-in problem that will rear its ugly head again as soon as there's a business case to do so.
damarrin 27 Apr 2023
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This not about Activision or ‘fixing’ it. This is about Microsoft not accumulating any more power in the gaming space. They own the PC OS everyone uses to game, they have a console, they have a shitton of studios.

Sony is not a monopoly in any market, MS is and that’s why they’re scrutinised and treated differently.
Don't forget GamePass, a very effective tool to bind users.

Well, yes, though I expect it to get much less attractive once MS regains its market share.
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