The UK competition watchdog says the company’s revised offer Microsoft to buy the Activision Blizzardopens the door for the deal to be closed. But hasn’t it been yet?
In July this year, we reported, with information from the BBC, that the soap opera about the purchase of the Call of Duty was about to have a happy ending, but there was still an offer to block the UK merger on appeal. At the time, the Competition and Markets Authority (CMA), which had initially put the brakes on the acquisition, said it would spend six weeks analyzing Microsoft’s detailed and complex submissions.
In the feedback, the body found that the updated agreement appears to address the concerns raised. Under the new proposal, Microsoft will not buy the rights to cloud gaming owned by Activision Blizzard, agreeing to transfer the broadcasting rights to the French video game publisher. Ubisoft for 15 years. Then, thestreaming in the cloud of games like Call of Duty, Overwatch e World of Warcraft will not be under the control of Microsoft.
In a statement released this Friday (22), CMA chief executive Sarah Cardell said the CMA’s position has been consistent throughout, and this merger could only proceed if competition, innovation and choice in gaming in the cloud were preserved. However, a consultation will still be opened before the final decision on the deal is made.
Political agreement
This latest update will likely be a huge relief for the bosses at Microsoft and Activision, who have worked hard and risked reputations to make this deal come to fruition.
Microsoft’s plan to buy Activision Blizzard, the largest acquisition in the history of the gaming industry, was originally announced in January last year, but proved controversial and divided opinions among regulatory bodies around the world.
The deal was approved by European Union regulators in May, while the United States competition regulator saw its attempt to suspend the purchase rejected by an appeal court in recent months. If the acquisition seemed unsuccessful at the beginning of this year, the proximity of the happy ending is an achievement.
However, in her latest announcement, Sarah Cardell said that it would have been much better if Microsoft had presented this restructuring during the original CMA investigation.
This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective solution option exists but is not put on the table at the right time, he explained.
A Sony also originally opposed the deal, concerned that Microsoft would prevent important games from being made available for its console: PlayStation.
The CMA said that, with extra protections, the change would mean players would have the opportunity to access Activision games in many different ways, including through cloud-based multi-game subscription services. And he added that, while it still has limited residual concerns, the revised agreement keeps cloud distribution of these important games in the hands of a strong independent vendor, Ubisoft.
The agreement concludes the first test case for the CMA and reveals how competition rules may work in the UK as the country gains additional powers after Brexit.
Microsoft still expects the merger to increase demand for its console, Xboxand for its game subscription business.
We present solutions that we believe fully address the CMA’s remaining concerns related to streaming of cloud gaming, and we will continue to work to obtain approval to close the deal before the October 18th deadline, celebrates Brad Smith, vice president and president of the company.
The CMA is expected to make a final decision on the revised proposal next month, after the consultation closes on October 6. Without their approval, the agreement cannot move forward globally. Meanwhile, Activision stated that the preliminary approval was great news for its future with Microsoft.
We look forward to working with Microsoft to complete the regulatory review process, he added.
The proposed deal includes major franchises such as Call of Duty and Candy Crush. (Photo: Reproduction/Internet)
Never forget to turn off the tap
It serves both the environment and Microsoft. The announcement comes days after an unredacted document, accidentally leaked during Microsoft’s battle with US regulators, appeared to suggest that the company planned to release updated versions of its Xbox Series S and Series X consoles in 2024. slide The presentation included in the leak showed plans for a new next-gen console in 2028, although there were few details.
The leak also included an old memo suggesting that Nintendo was considered a potential purchase for Microsoft, although this had been sent before any offers emerged from Activision, and mentioned information about yet-to-be-announced games, including the remasters of The Elder Scrolls IV: Oblivion e Fallout 3a new entry in the Doom franchise called Doom Year Zero, Dishonored 3, scheduled for 2024, is a sequel to Ghostwire Tokyo. It is important to note that these plans may have changed since the document was written.
And in practice?
It may take players some time to realize what this all means. But with Microsoft taking control of such an important slice of the gamesthe company’s business strategists and game makers are weighing what they can do with access to some of the biggest franchises.
While no major announcements have yet been made about upcoming games or updates, Gareth Sutcliffe, senior games analyst at Enders Analysis, told BBC that the deal put Microsoft in a unique position.
Ultimately, it’s about covering every game imaginable with one subscription. Microsoft can now cover all different platforms: mobile, consoles and PC. It’s all about knowledge transfer [da equipe da Activision]he added.
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