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Microsoft wins against FTC to buy Activision Blizzard

By - | Views: 29,519

Well, the results are here. In the USA the FTC was trying to block Microsoft from acquiring Activision Blizzard but Microsoft has won the fight. Now Microsoft are one big step closer to actually properly closing the deal, and a rather big consolidation of the gaming industry given how big Activision Blizzard are.

As per the decision:

Microsoft’s acquisition of Activision has been described as the largest in tech history. It deserves scrutiny. That scrutiny has paid off: Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox. It made an agreement with Nintendo to bring Call of Duty to Switch. And it entered several agreements to for the first time bring Activision’s content to several cloud gaming services.

This Court’s responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED.

This means the temporary restraining order against the acquisition will be removed on July 14th, unless the FTC obtains a "stay pending appeal from the Ninth Circuit Court of Appeals".

Microsoft still have a fight ahead in the UK though, since the CMA (Competition and Markets Authority) blocked the deal but naturally Microsoft is appealing the decision with a hearing set to begin on July 28th. So they're not completely out of the woods yet but it's probable Microsoft will end up winning there too. Update 16:21 UTC - Brad Smith, Vice Chair and President Microsoft, put a statement on Twitter:

After today's court decision in the U.S., our focus now turns back to the UK. While we ultimately disagree with the CMA’s concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA. In order to prioritize work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest and the parties have made a joint submission to the Competition Appeal Tribunal to this effect.

What do you think to this outcome?

Article taken from GamingOnLinux.com.
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I am the owner of GamingOnLinux. After discovering Linux back in the days of Mandrake in 2003, I constantly came back to check on the progress of Linux until Ubuntu appeared on the scene and it helped me to really love it. You can reach me easily by emailing GamingOnLinux directly. Find me on Mastodon.
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64 comments
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ShabbyX Jul 19, 2023
Quoting: slaapliedje
Quoting: boltronics
Quoting: ShabbyXSo why go through the trouble? Because it's *users* microsoft is buying.
A agree, at least to a point. It's not the only reason, since Activition gave them a very strong incentive.

Activision was threatening to pull CoD from Xbox unless they were cut a better deal. MS would have been getting a worse deal than Sony for the same rights because they have a worse bargaining position, being 3rd place in the console war. By buying Activision, they no longer need to worry about competing on uneven ground, and turn a great disadvantage into an advantage going forward.

Anyway, that's just another aspect to it, although a smaller point in the grand scheme of things (as I'll point out in a moment).

Quoting: ShabbyXAnd with users microsoft can keep its other businesses alive. More users on microsoft platforms == fewer users on other platforms == worse software support for other platforms.
This is incorrect.

In the end, the primary reason Microsoft purchased Activision was not because of CoD. It wasn't even about cloud gaming.

It was primarily about King.

Microsoft is desperate to compete in the mobile space, which dwarfs all of console gaming in potential revenue. These mobile games will not be on fewer platforms. Definitely not. If anything, they'll be on more platforms than ever.

As for CoD, it's is still going to be on PlayStation. It's going to end up being basically everywhere. Sure, this and the other games in the Blizzard/Activision catalogue will help GamePass (and many of the smaller console/PC games will likely remain exclusive to MS and Steam, no argument there), but it hardly means that there will be fewer users on other platforms.

Why is this? Did you watch the Kinda Funny interview? Phil Spencer himself said that Microsoft could release the best games possible on Xbox today, and it still won't stop people buying a PlayStation. At best, people might play games from both ecosystems. PlayStation is too far ahead when it comes to the average gamer's digital library, and unless Sony make some really anti-consumer moves that drive people away (similar to what MS tried to do in the previous console generation), it's going to take a long time before we see that change.
You mention mobile gaming being so huge... ha, the only way I could ever see myself getting into mobile gaming is if Valve makes a phone that runs SteamOS that can physically morph into a Z Fold style phone. We may need Nanites or something... granted, then we'll probably have to go to war with them like in Stargate SG-1...

You and I may not like it, and mobile games may generally be garbage, but mobile gaming *is* huge, much bigger than desktop and console gaming (in terms of revenue).

Not saying I'm agreeing with boltronics on it being the reason though.
slaapliedje Jul 20, 2023
Quoting: ShabbyX
Quoting: slaapliedje
Quoting: boltronics
Quoting: ShabbyXSo why go through the trouble? Because it's *users* microsoft is buying.
A agree, at least to a point. It's not the only reason, since Activition gave them a very strong incentive.

Activision was threatening to pull CoD from Xbox unless they were cut a better deal. MS would have been getting a worse deal than Sony for the same rights because they have a worse bargaining position, being 3rd place in the console war. By buying Activision, they no longer need to worry about competing on uneven ground, and turn a great disadvantage into an advantage going forward.

Anyway, that's just another aspect to it, although a smaller point in the grand scheme of things (as I'll point out in a moment).

Quoting: ShabbyXAnd with users microsoft can keep its other businesses alive. More users on microsoft platforms == fewer users on other platforms == worse software support for other platforms.
This is incorrect.

In the end, the primary reason Microsoft purchased Activision was not because of CoD. It wasn't even about cloud gaming.

It was primarily about King.

Microsoft is desperate to compete in the mobile space, which dwarfs all of console gaming in potential revenue. These mobile games will not be on fewer platforms. Definitely not. If anything, they'll be on more platforms than ever.

As for CoD, it's is still going to be on PlayStation. It's going to end up being basically everywhere. Sure, this and the other games in the Blizzard/Activision catalogue will help GamePass (and many of the smaller console/PC games will likely remain exclusive to MS and Steam, no argument there), but it hardly means that there will be fewer users on other platforms.

Why is this? Did you watch the Kinda Funny interview? Phil Spencer himself said that Microsoft could release the best games possible on Xbox today, and it still won't stop people buying a PlayStation. At best, people might play games from both ecosystems. PlayStation is too far ahead when it comes to the average gamer's digital library, and unless Sony make some really anti-consumer moves that drive people away (similar to what MS tried to do in the previous console generation), it's going to take a long time before we see that change.
You mention mobile gaming being so huge... ha, the only way I could ever see myself getting into mobile gaming is if Valve makes a phone that runs SteamOS that can physically morph into a Z Fold style phone. We may need Nanites or something... granted, then we'll probably have to go to war with them like in Stargate SG-1...

You and I may not like it, and mobile games may generally be garbage, but mobile gaming *is* huge, much bigger than desktop and console gaming (in terms of revenue).

Not saying I'm agreeing with boltronics on it being the reason though.
The one thing I could see myself being happy playing around on if it could be tweaked to work would be computer emulators on my Z Fold phone. Fold it so that it's in an L shape and have the keyboard on one side, and the screen on the other... would be fantastic! I thought about this after getting it and... ended up buying a 3DS for that!
boltronics Jul 21, 2023
I've just got an S22 Ultra — I just get whatever hand-me-down phone my spouse gives me since I'm not really into phones except for educational apps like Duolingo and Anki — but this phone can do split screen, and you can break an app out into a window. I'm sure you can get the size to be the way you want, with a bit of messing around.

There are also all kinds of custom keyboards you can get. I used to always use the Hackers Keyboard, which supports various sizes and keyboard layouts and is great for things like SSH (but eventually had to switch away for Japanese input support).

I wouldn't be surprised if there's a way to make it work, although I personally just can't imagine the experience being great for anything more than turn-based strategy games and the like. You can't feel for the keys/buttons, and don't want to be looking at a virtual keyboard when trying to focus on reaction times in an action game.

I miss the days of my N900. I hate that Microsoft screwed that up... but it was Nokia's choice to go along with it.
slaapliedje Jul 23, 2023
Quoting: boltronicsI miss the days of my N900. I hate that Microsoft screwed that up... but it was Nokia's choice to go along with it.
Loved the N900... and with the N9, you could really see where the platform was going and was going to be amazing... Microsoft is always ruining things I enjoy...
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