Microsoft Secures Activision for $68.7 Billion, Overcoming Regulatory Challenges

13 October, 2023 - 9:40 am (49 days ago)
1 min read

Microsoft‘s acquisition of Activision Blizzard, one of the gaming industry’s leading giants, has drawn significant attention worldwide. This $68.7 billion transaction is set to conclude on Friday, October 13. Following this merger, Activision’s vast assortment of games is projected to join Xbox Game Studios, offering Microsoft a significant edge in the gaming sector.

Yet, even amidst this upbeat atmosphere, some unexpected revelations have surfaced. Notably, Activision confirmed that two of its most awaited 2023 releases, ‘Call of Duty: Modern Warfare III’ and ‘Diablo IV’, will remain absent from the Xbox Game Pass this year. This decision stems from exclusivity agreements and the ongoing regulatory approval intricacies. Nonetheless, the gaming community can anticipate the inclusion of these titles by 2024, as reiterated by Activision.

Regulatory Challenges: A UK Perspective

Over the past months, the acquisition faced stiff resistance, particularly from the UK’s Competition and Markets Authority (CMA). The main concern? Potential monopolization of the burgeoning cloud gaming market by Microsoft. Previously, in April, the CMA voiced worries over Microsoft obtaining excessive control, possibly hindering competition and creating an overwhelmingly dominant entity in the cloud gaming arena.

Nevertheless, Microsoft’s negotiations, including a notable agreement to divest cloud streaming rights for current and future Activision games to Ubisoft for 15 years, tipped the scales in their favor. Such concessions mollified the CMA’s apprehensions, culminating in the recent approval.

Implications for the Future

The deal’s magnitude cannot be understated. Microsoft’s enhanced foothold, particularly in cloud gaming, challenges other industry giants, potentially reshaping the gaming landscape. This union brings Microsoft at par with leaders like Tencent and Sony, enriching its portfolio with franchises like ‘World of Warcraft‘ and ‘Call of Duty‘.

Despite potential benefits to players and the broader gaming community, several aspects need observation. The impact on game accessibility across platforms, possible changes in gaming service pricing, and the ripple effects on competitors are just the tip of the iceberg.

A New Gaming Era Emerges

The Microsoft-Activision union heralds a transformative phase for the global gaming sector. As game enthusiasts, industry stakeholders, and competitors keenly observe the merger’s unfolding aftermath, one thing remains certain: the world of gaming is poised for a dramatic evolution. Only time will reveal the ultimate outcome of this monumental transaction.

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Bilgesu Erdem

tech and internet savvy, cat lover.

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