purchase of Activision by Microsoft does not escape attention, and the very last chapter of this novel is connected with United Kingdom. The Competition and Markets Authority (CMA) released a report confirming that the acquisition will reduce competition in consoles, subscription services and cloud gaming. The document highlights call of Duty, who, according to the British regulator, can significantly affect the success of competing gaming platforms.
CMA believes Microsoft can convert to Call of Duty in an Xbox exclusive or Game Pass game or reduce access to its competitors (Sony) with a delay in release or an increase in the cost of a license. The regulator stated that few games of this caliber or popularity who owns the Activision Blizzard franchise. Considering this, Microsoft criticized the report and assured that the CMA is based on claims that greatly exaggerate the importance of Call of Duty.
Microsoft commented GamesIndustry.bizthat the CMA proposal is not credible, and that if all players Call of Duty who play on the PlayStation had to move to the Xbox, the remaining player base on the Sony console would be significantly larger than on the Xbox.
The reference decision is erroneously based on self-serving claims by Sony that vastly overstate the importance of Call of Duty and fail to take into account Sony’s apparent ability to respond to competitiveness. While Sony may not welcome increased competition, it has the ability to adapt and compete. Players will ultimately benefit from this increased competition and choice.
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UK regulator wants to protect Sony’s lead, accuses Microsoft
Microsoft accused the CMA of taking Sony’s complaints “without proper critique” and suggested that their report appears to be written in such a way that they aim to defend the PlayStation lead. in branch. In addition, the company mentioned that the removal Call of Duty and other Activision Blizzard games on Sony consoles would not be viable.
Hold Call of Duty on PlayStation is a business imperative for the Xbox business and transaction economy. […] Microsoft has made it clear that it is counting on proceeds from the distribution of Activision Blizzard games on the Sony PlayStation.
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In accordance with edge, microsoft took a more relaxed position describe themselves as a company that currently cannot competeas well as. Technology responded to the CMA that it ranked last on the list of console makers and seventh on the list of PC makers. He also said that does not intend to affect or degrade other cloud gaming servicesas Microsoft is one of those who promote the change in consumer mindset in favor of the adoption of this technology.
Acquisition of Activision by Microsoft already approved by Brazil and Saudi Arabia. Europe is a major hurdle to the deal as, in addition to the CMA report, the EU has announced that it will launch a thorough investigation into the case in the coming weeks.
Call of Duty would be enough win a generation of consoles
The British regulator suggests thatas well as Call of Duty would be enough to win the console generation.
PlayStation currently has a larger share of the console game market than Xbox, but the CMA believes Call of Duty is important enough that losing access (or losing access competitively) could have a significant impact on Sony’s user revenue and market share.
This impact is likely to be especially felt at the launch of next-gen consoles, with players making new decisions about which console to buy. The CMA believes the merger could significantly weaken Microsoft’s nearest competitor, to the detriment of overall competition in console games.
Office of Competition and Markets.
Following the release of the report, the CMA will release the preliminary findings of the second phase of the investigation in January 2023, while the final report will be published on March 1, 2023.. For its part, the European Commission will communicate its provisional ruling on November 8 before a four-month investigation begins. Meanwhile, the US Federal Trade Commission will also review the case before reaching a verdict.
Although FTC unlikely to block Activision purchase, British and European regulators can veto it. There is also the possibility that CMA or European Commission set conditions for deal approval. Given this, Sony is asking the commission to force Microsoft to provide guarantees that they will be able to access all games “on equal terms and indefinitely.”
Despite the presence of several well-known studios, including Bungie – the creator Halo D Fate —, Sony does not consider itself capable of creating a franchise that competes with Call of Duty.
Source: Hiper Textual
