game news Acquisition of the Century: Five powerful consequences of Microsoft’s Activision takeover lawsuit
Since January 18, 2022, the planned acquisition of Activision Blizzard by Microsoft has been acting like a bomb. With a lot of information and reversals of the situation, we have enough to get lost. So here are the five things to remember.
Summary
- 1 – No, the “console war” is not over yet
- 2 – Microsoft wants to be the leader in the video game world
- 3 – Gaming is now coming under more scrutiny from the relevant authorities
- 4 – If confirmed, Microsoft will become the leading publisher of PlayStation consoles in the US
- 5 – Exclusive content remains the focus and Xbox wants to have fun
1 – No, the “console war” is not over yet
The “war” between Sony and Microsoft has not ended for more than 17 months, as the video in the header explains. But things have gotten worse since the lawsuit between the FTC and Microsoft.. In fact, you may have followed the recent, often heated, exchange between the two. Specifically, in the words of PlayStation boss Jim Ryan, who called it “obvious harassment” for Microsoft’s document requests. We also witnessed certain revelations, such as the fact that Jim Ryan didn’t want a deal with Microsoft for Call of Duty. The latter also said that gamers don’t appreciate Game Pass, which for them means devaluing their games.
2 – Microsoft wants to be the leader in the video game world
One of the biggest revelations in the litigation between the FTC and Microsoft is the goal of making Xbox the leader in the video game industry. In fact, a confidential presentation last year said the Redmond-based company aims to become an “industry leader” by “doubling its sales.” They must therefore increase from $16 billion to $32 billion within 7 years. The company could achieve this result by accelerating Game Pass acceptance among PC and mobile gamers and continuing redemptions as well. Watch the video above the article to learn more about how they plan to double sales over the next decade.
3 – Gaming is now coming under more scrutiny from the relevant authorities
Microsoft is currently in the midst of the most expensive takeover in technology history. The amount on the table for the Activision Blizzard acquisition is actually $69 billion. With this amount, it is therefore normal for the American regulatory authority FTC to get involved. This event could lead to more major takeovers in which the FTC (as well as the CMA and the European Commission) will continue to play an important role. And after what’s been happening 17 months now, some questions may arise, the video in the header lists them for you. One more thing: In March 2023, American politicians voiced their concerns to the Joe Biden administration. In fact, Sony and its business practices in its home country (Japan) could prevent American companies from being competitive on Japanese soil. Accordingly, PlayStation would violate clauses of the 2019 digital trade agreement between the United States and the Land of the Rising Sun. After Microsoft was attacked to prevent the takeover, Sony could come under particular scrutiny in the years to come.
4 – If confirmed, Microsoft will become the leading publisher of PlayStation consoles in the US
Should Microsoft manage to confirm the acquisition, the company will own more than thirty first-party studios. Among them we find the teams behind the Call of Duty franchise (Infinity Ward, Sledgehammer or even Treyarch). And that’s no small thing, because according to Jim Ryan, Call of Duty video games make a lot of money, as detailed in the video header. For good reason: Call of Duty: Modern Warfare 2 is the most downloaded game on the PlayStation Store in the US in 2022. The year before, it was Call of Duty: Vanguard that took first place.
5 – Exclusive content remains the focus and Xbox wants to have fun
It has long been said that Microsoft is less focused on exclusive products than other companies. Part of the reason is that Minecraft is still available on all machines despite the acquisition of Mojang in 2014. But once the Bethesda acquisition was confirmed, Phil Spencer promised exclusive offers on a case-by-case basis. And it was only during the 2021 presentation that the company announced the exclusivity of Starfield and Redfall. Numerous other Xbox and PC exclusives from studio Bethesda were leaked during the litigation between the FTC and Microsoft. The video above the article lists the names for you. As a reminder, one of the key points in the litigation between the FTC and Microsoft is Call of Duty exclusivity. And by the way, Phil Spencer has promised to release the famous franchise on almost every platform. Nevertheless, the European Commission stated that “even if Microsoft decided to withdraw Activision’s games from the PlayStation, it would not seriously affect competition in the console market”.
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