Microsoft’s settlements with Nintendo and NVIDIA do not convince the FTC

Microsoft will have to do more to convince regulators that the Activision purchase will not hurt competition in the video game industry. Although those from Redmond recently closed deals with Nintendo and NVIDIA to bring call of Duty to their platforms, the FTC, the US regulator, He still disapproves of the acquisition.

The FTC claims that Microsoft has taken these steps to have an item that justifies the purchase in the face of regulators. However, they believe that the company did not disclose relevant details on each agreement.

Of course, in the past few days, doubts have arisen about Microsoft’s commitment to these companies, mainly to Nintendo. Because? It is well known that Switch is inferior to other platforms in terms of technical characteristics, where call of Duty is already present. Therefore, some want to know how Microsoft will get around the hardware limitations to achieve its goal.

For this and other reasons, FTC authorities want to know more details. Not only about agreements with Nintendo and NVIDIA, but also about Microsoft’s specific plan with the rest of Activision’s franchises.

Despite expressly intent to use these agreements in its defense, Microsoft has refused to provide internal documents related to these agreements or communications to third parties other than Nvidia, Nintendo, and Sony. Microsoft should not be allowed to represent or trust these agreements without providing the requested basic elements.”

FTC.

And be careful because request for information has been extended to ZeniMax contenta Bethesda-owned company that Microsoft bought for $7.5 billion in 2020. “The FTC is looking for all documents regarding the exclusivity of content that Microsoft has acquired from ZeniMax and that it offers to purchase from Activision,” they mention.

What do ZeniMax and Betsheda have to do with all this? Well, regulators believe that Microsoft, having received intellectual property from Activision, will be able to manage it in the same way as ZeniMax. That is, make some games exclusive, as is the case with Starfield or red waterfall.

Sony uses doubts in ZeniMax management to try to stop Microsoft

Sony, in fact, also relied on Microsoft running the ZeniMax franchises to show itself against the Activision acquisition. “While Microsoft’s behavior in connection with the acquisition of ZeniMax is not a breach of obligation, it provides additional evidence why this should be approached with caution,” the CMA, a UK regulator, said in a document. The Japanese continued their intervention by saying:

When Microsoft offered to acquire ZeniMax, it told the European Commission that it did not intend to discontinue or limit the availability of ZeniMax games on competing consoles. Microsoft also publicly told investors, “We’re committed to cross-platform gaming because if it’s good for the gaming ecosystem, it’s good for us.” We have no intention of removing all Bethesda content from competing platforms.”

Sony.

As previously mentioned by Sony, Microsoft has not violated this obligation. By stating “We’re not going to remove ALL content from Bethesda”, they manage to cover themselves after being converted to StarfieldAnd red waterfall in exclusives. Despite this, on PlayStation fear that those from Redmond will do the same with some Activision games..

However, at least as far as call of Duty, Microsoft is already tired of promising that they intend not to limit the availability of the popular franchise, but to expand it to platforms that do not have it today. That’s why they have joined forces with Nintendo and NVIDIA.