The novel about Microsoft purchase of Activision Blizzard It will take longer than budgeted, apparently. Being the largest acquisition in the history of Redmond, and also the largest in the video game industry, regulators are inspecting the proposal with a magnifying glass. However, those led by by Satya Nadella they had not faced such a complex obstacle like the one revealed by Financial Times.
According to the aforementioned medium, UK and European Union regulators are going to take as much time as necessary before giving the green light to the purchase. This is due, first of all, to its size and its impact on the video game industry. And, on the other hand, to the concerns expressed by some of Microsoft’s competitors, mainly Sony.
Thus, two complex situations arise. The first one is that the European Union will launch an in-depth investigation of the case in the coming weeks; one that involves analyzing whether Microsoft is not in breach of antitrust rules. The other is that, unlike other research on previous purchases in the sector Big Techthe body will be stricter this time —and those to come later—. Why? Because they consider that in the past they did not act adequately to curb the excessive growth of some companies.
The UK Competition and Markets Authority (CMA), meanwhile, has moved on to a more complex phase of its investigation. This after Microsoft did not present the commitments that could have dispelled the concerns of the British body. What is that concern? As you probably guess, it has to do with Call of Duty.
Microsoft has a problem called Call of Duty
Over the last few weeks, an unexpected statement crossing between those of Redmond and Sony. Initially – during February 2022, to be exact – Microsoft reported that its intention was to keep Call of Duty on PlayStation consoles. However, the narrative changed slightly in early September, when Phil Spencer, head of Xbox, promised that the availability of the franchise on Sony’s platform would be extended “for several years”.
Shortly after, Jim Ryan, head of Sony Interactive Entertainment (PlayStation), revealed that Microsoft’s proposed deal was only for three years.
“I did not intend to comment on what I understood to be a private business discussion, but I feel the need to set the record straight because Phil Spencer brought this to the public forum. Microsoft has only offered to keep Call of Duty on PlayStation for three years. after the current deal between Activision and Sony ends.”
Jim Ryan.
This situation, always according to the information of the Financial Times, set off the alarms of European regulators. If it becomes effective, PlayStation users would lose access to the new Call of Duty after the specified period. When we are talking about one of the most successful franchises in the world of entertainment, the subject becomes more serious.
Sony’s huge demands
The report also indicates that Sony wants “the commission to force Microsoft to offer guarantees that they will be able to access all games ‘on equal terms and in perpetuity'”. It is a great requirement, obviously. However, opting for this promise could be a way out for Microsoft should regulatory pressure focus on this issue.
Although the path looks convoluted for Microsoft, it is far from the end of its intentions to take over Activision Blizzard. yes, now the regulatory process is more likely to take longer. His intention was to close the acquisition in June 2023, a goal that could be postponed for several months. The last word, of course, will have the regulators.