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Microsoft United Kingdom Games

Microsoft's $69 Billion Activision Deal Could Harm UK Gamers, Watchdog Finds (bloomberg.com) 37

Microsoft's $69 billion acquisition of Activision Blizzard will harm competition in the UK gaming market, Britain's antitrust watchdog provisionally warned, saying it could force the selloff of the blockbuster Call of Duty franchise. From a report: The Competition and Markets Authority said it took an initial view that the deal could result in a substantial lessening in competition, higher prices, fewer choices or less innovation for UK gamers, according to a statement published Wednesday. Microsoft first announced the Activision deal last year, looking to add games like Call of Duty to a business that already includes the Xbox console, the Halo franchise and Minecraft world-building software.

But the tie-up has fallen foul of global regulators who fear that Microsoft could make it harder for rival platforms to get unfettered access to Activision's most popular titles. The British agency has suggested a number of structural remedies that include the divestiture of the business associated with Call of Duty, the Activision part of the business or blocking the merger altogether. The CMA also said it would consider a behavioral remedies that would promise rivals can access to Call of Duty, although it flagged concerns about its ability to manage these.

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Microsoft's $69 Billion Activision Deal Could Harm UK Gamers, Watchdog Finds

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  • by AutoTrix ( 8918325 ) on Wednesday February 08, 2023 @11:11AM (#63275355)
    They have been allowing Sony to purchase and control way more of the gaming industry for a decade now. With this ruling, they are admitting to having allowed Sony to harm gamers for years now and must take immediate action to prevent further harm.
    • So you do not see the difference between Sony's largest acquisition of Bungie at $3.6B with Microsoft’s latest attempt of $69B? Sony has been buying relatively small studios for the last decade while MS buys large studios. That is a key difference. I would bet you the ZeniMax purchase by MS acquired more developers in a single purchase than Sony did over a decade.
      • Microsoft has a stake in 23 studios. Sony is currently sitting around 30 something. But this isn't the issue.
        • And? The problem that you equate every single studio as the same even though they are not. MS acquiring Activision is a scale larger than all of Sony's acquisitions in a decade.
      • by muh_freeze_peach ( 9622152 ) on Wednesday February 08, 2023 @11:59AM (#63275479)

        . I would bet you the ZeniMax purchase by MS acquired more developers in a single purchase than Sony did over a decade.

        I'll take you on that bet. Sony aquired 13 game studios in the last decade. The Zenimax deal got Microsoft 8 studios.

        • And how many developers did Sony acquire in a decade? Do the math. You seem intent to equate every single studio as the same even though Sony's acquisitions of small studios of maybe a few hundred people each with the same as MS acquiring thousands of people.
          • by Luthair ( 847766 )

            I think from a consumer perspective the IP is actually the more important part of the equation. While I don't play Call of Duty I think its pretty hard to argue that in North America & Europe its probably the most important IP in gaming and if Microsoft were to make it an Xbox exclusive it would certainly harm console & streaming competition.

            .

            Generally though with the consolidation across Microsoft, Sony and Embracer there are concerns that should also be considered for employees who will have few

            • My point was you can't equate Sony acquiring smaller studios which generally have less IP with MS acquiring Activision Blizzard or Zenimax and all their IP.
            • by tlhIngan ( 30335 )

              I think from a consumer perspective the IP is actually the more important part of the equation. While I don't play Call of Duty I think its pretty hard to argue that in North America & Europe its probably the most important IP in gaming and if Microsoft were to make it an Xbox exclusive it would certainly harm console & streaming competition.

              It would also harm Microsoft's acquisition.

              Xbox is THIRD on Call of Duty's platform list. First is PlayStation, then comes PC. To make Call of Duty Xbox exclusi

              • by Luthair ( 847766 )
                You could make the same argument about Bethseda, and yet Starfield is not coming to PS5. (Both Microsoft and Sony also release their games on PC, so its only really a problem for the other console)
        • Sony's acquisitions since 2012 with head count:
          • Insomniac Games: 400
          • House Marque Games: 80
          • Nixxes Software: 55
          • Firepsrite and Fabrik: 265
          • Bluepoint Games: 70
          • Valkyrie Entertainment: est 45
          • Lasengle: unknown
          • Haven Studios: unknown
          • Bungie: 800
          • Savage Game Studios: 10-50?

          I could not find the size of Lasengle nor Haven Studios but I doubt they are 600+

          Microsoft's acquisition of Zenimax alone: 2300

          Care to bet now?

    • by Anonymous Coward

      Yeah, this does seem a bit nonsensical, it's the higher prices claim that got me especially.

      Microsoft's first party titles have for years been at least £5 cheaper, sometimes as much as £15 in the UK than other publishers like Activision and Sony. By definition, allowing the status quo to maintain where CoD goes up by £5 every year then not letting the deal go ahead will result in higher prices because, well, that's exactly what's been happening over the last decade.

      We've

      • So tell me again how giving Microsoft a bigger share of the market will increase prices when they're the fairest priced major publisher in the console world?

        But your assessment is that of old MS that did not have a large share of the market with the new MS that will have a substantial share. In other words, MS had to compete on pricing when they were a smaller player. And that is just pricing. The other thing that could be harmed are the products. As far as I know Doom Eternal does not have a 6v6 multiplayer deathmatch mode. Well that competes with CoD so Id under the direction of MS will never develop one now. While Overwatch coexists right now with CoD in som

  • by Zak3056 ( 69287 ) on Wednesday February 08, 2023 @11:55AM (#63275457) Journal

    substantial lessening in competition, higher prices, fewer choices or less innovation for UK gamers

    Let's look at those, in order:

    substantial lessening in competition

    What's the market that will allegedly be "less competitive" here? Are there going to be fewer shooters on the market as a result of this? Fewer consoles?

    higher prices

    This doesn't pass the smell test in a world where every new game on every platform from every publisher has had the same price (whatever the current "new title" price of the time was) for, what, at least thirty years at this point? Forty?

    fewer choices

    Fewer choices of what? Are there going to be fewer shooters, fewer consoles, fewer MMOs?

    less innovation

    Now they're just taking the piss. This is a brand that slaps a new coat of paint on the same properties and rereleases them every year, what "innovation" is going on here in the first place?

    • Fewer choices of what? Are there going to be fewer shooters, fewer consoles, fewer MMOs?

      This doesn't pass the smell test in a world where every new game on every platform from every publisher has had the same price (whatever the current "new title" price of the time was) for, what, at least thirty years at this point? Forty?

      The issue being raised here is that with fewer AAA publishers like Activision there is more control of that pricing. Bethesda charges too much for a game? Buy a game from Activision then. . . . oh wait they are the same company now and have the same pricing.

      Fewer choices of what? Are there going to be fewer shooters, fewer consoles, fewer MMOs?

      Fewer choice of everything. That is the whole point.

      Now they're just taking the piss. This is a brand that slaps a new coat of paint on the same properties and rereleases them every year, what "innovation" is going on here in the first place?

      You do understand that when Bethesda's Doom had to compete against Activision's Call of Duty they had to come o

      • You do understand that when Bethesda's Doom had to compete against Activision's Call of Duty they had to come out with new features? That is just one example. Now those two no longer have to compete, there will be even less innovation.

        Oh, come on. There is no innovation from Activision - that hasn't been their raison d'etre for decades; they pump out reheated swill and the kids and normies lap it up. They're just EA with fewer sports licenses.

        Call of Duty: Purple Member 7 and Doom Doublejump aren't in direct competition any more than ANY two games are. Doom didn't steal players away from CoD as they're only broadly in the same category ("FPS with multiplayer") as each other. To say that Doom 2016 only gained features compared to prior Do

        • Oh, come on. There is no innovation from Activision - that hasn't been their raison d'etre for decades; they pump out reheated swill and the kids and normies lap it up. They're just EA with fewer sports licenses.

          So your point is that since Activision does not innovate at all, MS should be allowed to reduce innovation further by reducing the number of AAA publishers? Is that your point?

          Call of Duty: Purple Member 7 and Doom Doublejump aren't in direct competition any more than ANY two games are. Doom didn't steal players away from CoD as they're only broadly in the same category ("FPS with multiplayer") as each other. To say that Doom 2016 only gained features compared to prior Doom games because CoD exists is laughable. You think without CoD they'd just have remade Doom 3 and called it a day?

          In the world I live in, people have limits on time and money. A player who wants to play a FPS may have to choose whether they want to spend their time and money on one game or another. I think that if then next CoD or Doom is terrible, players will buy the competitor's product. That won't be much of a choice if they are the same comp

          • So your point is that since Activision does not innovate at all, MS should be allowed to reduce innovation further by reducing the number of AAA publishers? Is that your point?

            My point was the "less innovation" argument is spurious in this case.

            In the world I live in, people have limits on time and money. A player who wants to play a FPS may have to choose whether they want to spend their time and money on one game or another. I think that if then next CoD or Doom is terrible, players will buy the competitor's product. That won't be much of a choice if they are the same company.

            You're not arguing my point; these games are not interchangable simply because you slap the "FPS" label on them. The CoD series has a diehard fanbase that play online competitively and often play little else. Doom's strength is its single-player campaign and the multiplayer is not nearly as popular as CoD. It's milk vs Coke, not Coke vs Pepsi. Whether they're published by one company or two is not the distinguisher here, and neither is whe

            • You're not arguing my point; these games are not interchangable simply because you slap the "FPS" label on them. The CoD series has a diehard fanbase that play online competitively and often play little else. Doom's strength is its single-player campaign and the multiplayer is not nearly as popular as CoD. It's milk vs Coke, not Coke vs Pepsi. Whether they're published by one company or two is not the distinguisher here, and neither is whether they're considered good or bad.

              Are you asserting that if the next CoD is terrible, no CoD player will ever play another FPS again? Or are they more likely to play another FPS like Doom than a Metroidvania style game? Think about that for a second. Also you seem to ignore the problem that if MS owns both id software and Activision, id software will NEVER make a military style FPS competitor to Call of Duty now.

      • by Zak3056 ( 69287 )

        The issue being raised here is that with fewer AAA publishers like Activision there is more control of that pricing. Bethesda charges too much for a game? Buy a game from Activision then. . . . oh wait they are the same company now and have the same pricing.

        My point is that this is fictional, it just plain doesn't happen. You can't even go to a different console to get different prices. New games all cost the same, regardless of platform, regardless of studio, regardless of publisher, and have for almost as long as video games have been a thing at all. Everyone moves in lockstep, no one competes on price, so "there will be less price pressure" is provably false.

        Fewer choice of everything. That is the whole point.

        [citation needed]. I gave "fewer shooters" and "fewer consoles" and "fewer MMOs" as examples, so

        • My point is that this is fictional, it just plain doesn't happen. You can't even go to a different console to get different prices. New games all cost the same, regardless of platform, regardless of studio, regardless of publisher, and have for almost as long as video games have been a thing at all. Everyone moves in lockstep, no one competes on price, so "there will be less price pressure" is provably false.

          It may not happen with every developer and game but it happens. For example, Cyber Punk 2077 had a disastrous launch especially on consoles as the game was poorly optimized for them. Thus the game prices on Xbox and PS5 dropped but not the price on PC where the game performed better if the consumer had a better GPU. And that says nothing about more independent games or the yearly sales on Steam.

          [citation needed]. I gave "fewer shooters" and "fewer consoles" and "fewer MMOs" as examples, so I assume "everything" would include those. Is EA going to stop making Battlefield sequels now or something? Are MMO timesinks other than WOW going to disappear? Nintendo going to stop making consoles? Oh, I know, maybe as a result of this merger Bethesda won't release an Elder Scrolls sequel for over a decade or something, and will just rerelease Skyrim over and over again, right? :rolleyes:

          Yes. That is the whole point. The point is not that EA which is a current competitor to Activision will stop relea

          • The point is not that EA which is a current competitor to Activision will stop releasing Battlefield. The point is that Bethesda which is a part of MS will never release a competitor to Call of Duty.

            Do you have evidence besthesda was planning such a title? If so please present it.

            Almost all of your responses on this article have been hypotheticals. Mostly from the position of "it's great for sony to do this but how dare microsoft". Chill dude, microsoft aren't the greatest of companies but neither is sony. We can at least try to be consistent with them though.

            • Almost all of your responses on this article have been hypotheticals.

              The ENTIRE article is about hypotheticals as the MS purchase of Activision has not happened yet. And?

              Mostly from the position of "it's great for sony to do this but how dare microsoft".

              And when did I say that? In this thread I said you cannot compare Sony's purchases of small studios over a decade with MS buying one of the largest publishers. The scale of purchases are not remotely close.

              Chill dude, microsoft aren't the greatest of companies but neither is sony. We can at least try to be consistent with them though.

              I am being consistent. If it was the other way around and Sony was buying Activision, my points would be EXACTLY the same.

              • Sony's exclusivity contracts are well known. To excuse their behaviour while condemning Microsoft's is hypocritical. Sony have actively stopped games coming to other platforms. Microsoft might, but have yet to do so. For example see minecraft.

                From a "I want to play games" perspective, sony has been more cancerous.

  • Harm UK gamers, like in beat the tar out of them? I like this idea!

  • So what if the game isn't available? Sony can invest in building a better FPS and competing using entrepreneurism rather than using politics to get economic gain. This is a good thing for gaming.

  • I'm Truly a Nerd and this Truly Doesn't Matter

  • Also, MS basically harms everybody whenever it acquires something and then "improves" it.

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