13 votes

Microsoft's $68.7bn (£55bn) deal to buy US video game company Activision Blizzard has been blocked in the UK by the Competition and Markets Authority

Posted by cfabbro
Tags: united kingdom, microsoft, activision, blizzard, acquisitions, regulators, competition and markets authority, business, gaming.cloud, author.steffan powell, source.bbc
https://www.bbc.com/news/entertainment-arts-65378617

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Title
Microsoft's Activision takeover blocked in UK
Published
Apr 26 2023

4 comments

  1. vord
    Link
    I would like to know, in what sane world should trillion-dollar companies be permitted to aquire billion-dollar companies to facilitate even greater growth. A dedicated dude alone in their...

    I would like to know, in what sane world should trillion-dollar companies be permitted to aquire billion-dollar companies to facilitate even greater growth.

    A dedicated dude alone in their basement can put out a quality game inside of 5 years. If one of the largest companies on the planet can't do it....maybe they should get out of the games business and focus on their core competancies instead of hurling us to the Wall-E dystopian future of Buy-N-Large.

    8 votes
  2. cfabbro
    Link

    To go through, the deal has to be approved by regulatory bodies in the UK, United States and European Union.

    The CMA is the first of the three regulators to rule, meaning its decision could scupper the whole takeover - which is why today's decision is a particularly significant part of the process.

    The UK body said it was not concerned that the deal would distort competition in the console gaming market.

    But Martin Coleman, who chaired an independent panel that investigated the proposal for the regulator, said it was vital to protect competition in the "emerging and exciting market" of cloud gaming.

    The remedies offered so far by Microsoft to try to persuade the CMA that this deal would not have a negative impact on the future of cloud gaming have clearly not worked - unlike their arguments around console gaming, which were accepted by the CMA.

    Microsoft has signed agreements with some of the current key players in cloud gaming, like tech company Nvidia, but further concessions will be needed if they are to have any hope of reversing this decision.

    Without agreement here, the whole process grinds to a halt.

    There's a sense of shock among the UK games industry at this decision, because the general expectation was that it would be approved.

    Sony bosses, however, will be pleased. They have consistently opposed the deal, arguing its Playstation would have restricted access to some of the world's most popular titles, which would be bad for gamers.

    2 votes
  3. [2]
    moocow1452
    Link
    So, how does Microsoft appeal this one? Cloud Gaming hasn't really proven to be the future, and as long as the speed of light is a thing, it's going to be an issue for twitch happy games where...

    So, how does Microsoft appeal this one? Cloud Gaming hasn't really proven to be the future, and as long as the speed of light is a thing, it's going to be an issue for twitch happy games where reaction is important. While you can't prove a negative, you can't deny that Microsoft is building an advantage in this space in the event it does take off.

    1 vote
    1. vord
      Link Parent
      There's a tri-opoly between Microsoft/Sony/Nintendo in the console market. New entrants could have a chance if those three weren't allowed to aquisition their way to quality. And Sony/MS basically...

      There's a tri-opoly between Microsoft/Sony/Nintendo in the console market. New entrants could have a chance if those three weren't allowed to aquisition their way to quality. And Sony/MS basically just sell locked down PCs these days.

      The PC market is open, but Microsoft currently has a defacto monopoly for OS there, and the ability to shut down competiton because of it. They are also uniquely positioned to be able to bridge between console and PC in a way to further exploit it.

      2 votes