In the largest-ever gaming industry deal, Microsoft has successfully closed its $69 billion acquisition of Activision Blizzard, the company responsible for the popular Call of Duty franchise. This milestone was reached after receiving approval from UK regulators. The Competition and Markets Authority (CMA) greenlit the deal, addressing previous concerns that led to its initial rejection.
Phil Spencer, the head of Microsoft Gaming, expressed his excitement at securing Activision, while Activision Blizzard’s CEO, Bobby Kotick, confirmed that he would step down at the end of 2023 and work alongside Phil Spencer to ensure a smooth transition for teams and players.
Despite concerns from competitors like Sony and regulatory bodies regarding competition in the gaming industry, Phil Spencer assured gamers that the acquisition wouldn’t hinder their gaming experiences, stating, “Whether you play on Xbox, PlayStation, Nintendo, PC, or mobile, you are welcome here, and will remain welcome, even if Xbox isn’t where you play your favorite franchise.”
The revised deal includes Microsoft granting the distribution rights of Activision’s games on consoles and PCs through cloud gaming to the French video game publisher Ubisoft. However, Microsoft will maintain control over games like Call of Duty, World of Warcraft, and Candy Crush, which will contribute significantly to the company’s revenues.
The CMA approved the modified deal, emphasizing that it would “preserve competitive prices” in the gaming industry and provide more options and improved services for gamers. Nonetheless, the regulatory body criticized Microsoft’s conduct throughout the lengthy process.
This acquisition has been a subject of controversy, drawing mixed responses from global regulators. While the European Union approved it, the US competition watchdog’s attempt to halt the purchase was rejected by the courts. The CMA defended its decision, stating that the sale of Activision’s cloud streaming rights to Ubisoft ensured that Microsoft wouldn’t have an undue influence over this evolving market.
Microsoft expressed gratitude for the CMA’s thorough review and decision. The deal has positioned Microsoft as a formidable player in the gaming industry, potentially elevating it to the third-largest entity in the sector, trailing only Sony and Tencent.
This acquisition is expected to boost demand for Microsoft’s Xbox console and expand its Xbox Game Pass service. Microsoft also gains control of a mobile gaming studio, with plans to build on the success of titles like Candy Crush.
For gamers and the gaming industry, this deal promises more choices, innovation, better value, and improved gaming experiences, ultimately fostering a competitive market. Nicky Stewart, a consultant and former commercial director of a cloud services provider, views the approval of the acquisition as a positive development, especially for the burgeoning gaming industry in the UK.
