It doesn’t help that the CMA already sees Microsoft as holding a dominant position in the emerging cloud gaming to begin with, thanks to its ownership of Windows OS, significant cloud infrastructure, and its already-robust content library. With these content powerhouses in its pocket, the CMA says, Microsoft could effectively control elements of the market such as subscription pricing and structure without significant opposition from other services that were missing these enormous games. We’ve covered what exactly the CMA’s objections are to the acquisition regarding cloud gaming in detail elsewhere, but to summarize, the CMA is concerned that if Xbox purchased Activision Blizzard, it would be able to dominate the cloud gaming market by making games like Call of Duty and World of Warcraft not console-exclusive, but exclusive to its own cloud gaming platforms. In the end, what convinced the CMA to fire back was not Call of Duty, but cloud gaming.
While much of the public debate has centered around the possibility of Call of Duty console exclusivity to Xbox, the CMA determined back in February that this was not actually a serious concern. What Happened and Why?Īfter a lengthy review, the CMA has moved to prevent Microsoft from acquiring Activision-Blizzard, but not for the reason many expected.
We spoke to lawyers and analysts to help unpack the rocky road Microsoft has ahead of it if it wants to pursue Activision-Blizzard, what possible outcomes remain, and why we’re likely going to be hearing about this deal for months and potentially years to come. The answer is of course complicated, dependent on multiple regulatory bodies, time consuming, and above all, expensive.
Thus with further legal challenges looming globally and Microsoft set to appeal the CMA’s decision, many are now wondering what’s next for Microsoft and Activision-Blizzard both in the UK and abroad. While the deal has seen challenges in numerous other regions including the US and the EU, many expected the CMA to approve it, especially after its March statement that Call of Duty console exclusivity was no longer a concern.
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