Microsoft has just achieved two significant victories in the pursuit of Activision Blizzard. The long-running court case against the FTC has been completed, with Judge Corley ruling in favor of Microsoft.
The CMA has also agreed to hold discussions with Microsoft again, potentially hinting at a negotiation for the deal in the UK. While many have argued the transaction is anti-consumer, Judge Corley appears to disagree.
According to her report, the deal could harm Sony but will only benefit Call of Duty fans and gamers.
Why it matters: The harm to Sony was a massive argument of the FTC in the court hearings. However, the judge disagrees with the deal harming consumers, likely becoming a reason for the recent approval.
Nintendo and Sony are currently the market leaders in the gaming industry.
Both gaming giants have performed extremely well, producing several strong first-party titles and selling millions of consoles. On the other hand, Xbox has struggled in both departments.
Recently, it was reported that Microsoft sold over 21 million Xbox Series X|S consoles. In comparison, the PS5 had sold nearly 40 million units by April. Similarly, PlayStation is also leading in terms of first-party games.
Microsoft claims PlayStation and Nintendo have over four times as many exclusives as Xbox. This is likely why the Judge believes the acquisition is not too problematic, even if it harms Sony in the long run.
On the other hand, Phil Spencer has promised to use the Activision Blizzard merger to bring games to more people. Following the merger’s announcement, Microsoft signed deals with Nintendo, GeForce Now, Boosteroid, and more.
This is part of the gaming giant’s promise for easier access to Activision games, leading to the judge’s conclusion that it benefits consumers. It should be noted Microsoft also plans to continue releasing Call of Duty on PlayStation consoles.
Previously, Microsoft and Activision set a closing date of July 18 for the deal. With the recent victory and upcoming discussion with the CMA, Microsoft could be looking to close the acquisition before July 18.
Thank you! Please share your positive feedback. 🔋
How could we improve this post? Please Help us. 😔