Watchdog Urges Deeper Probe Into Microsoft Activision Merger The Register

Away from the world of Windows, Azure and other more enterprise products, Microsoft takes gaming just as seriously under the banner of the Xbox console and its developer subsidiary Xbox Game Studios. But recent studio acquisitions, particularly that of Bethesda owner Zenimax (home of hot properties like The Elder Scrolls series), have sent ripples through the industry – intensifying with Microsoft’s plan to spend $68.7 billion on the famously toxic Activision Blizzard, which owns some of the highest-grossing titles of all time, including World of Warcraft and the Call of Duty series. With Activision Blizzard independent from home console companies, its properties appear on PC, Xbox, PlayStation and Nintendo Switch. However, there is legitimate concern from gamers and the industry that Microsoft’s moves could lead to these titles being pulled from competing systems. There’s also the technology power behind Microsoft that Sony and Nintendo simply don’t have – dominance of the Windows desktop environment and one of the big three cloud computing infrastructures, Azure, under its belt. Microsoft has already used this know-how to its advantage, launching the killer Xbox Game Pass app, a games-as-a-service subscription on both Xbox and Windows, as well as Xbox Cloud Gaming, which allows users to play Xbox titles on their phone or old PC or console. While Sony has PlayStation Now, the strictly cloud-based service has struggled to compete in terms of performance, eventually being lumped into the PlayStation Plus subscription earlier this year. Nintendo, on the other hand, is Nintendo. He tends to stay out of Microsoft and Sony moves, playing family-friendly games to great success, and keeps his IP under wraps (never Mario on Xbox or PC). These factors have not been lost on the CMA. Sorcha O’Carroll, Senior Director of Mergers, said: “Following our investigation into Phase 1, we are concerned that Microsoft could use its control of popular games such as Call of Duty and World of Warcraft post-merger to harm competitors, including current and future competitors in multi-game subscription services and cloud gaming; “If our current concerns are not addressed, we intend to explore this deal in an in-depth Phase 2 investigation to reach a decision that works in the best interests of UK players and businesses.” Specifically, the CMA is concerned that the merger could “harm competitors, including recent and future entrants to gaming, by denying access to Activision Blizzard games or providing access on much worse terms.” It’s also wary of Activision Blizzard’s “combination with the broader Microsoft ecosystem,” as described above. For just one example, bringing World of Warcraft, which requires a monthly fee to play, into the Xbox Game Pass subscription could be a shocking development considering the zeal of its hopelessly addicted player base. The mind gets confused. Microsoft and Activision Blizzard now have five business days to submit proposals to address the CMA’s concerns. If these solutions are not satisfactory, the competition watchdog will move the investigation to Phase 2, where an independent panel will examine the deal in more depth, “assessing whether it is more likely that a significant lessening of competition will result from the merger”, work with third parties and investigate the internal bureaucracy of the merging companies. Microsoft president and vice president Brad Smith told The Register via email: “We stand ready to work with the CMA on next steps and to address any of its concerns. Sony, as an industry leader, says it is concerned about Call of Duty, but we’ve said we’re committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.” Likewise, a spokesperson pointed to a blog post published yesterday by Microsoft Gaming CEO Phil Spencer, where he emphasized the importance of choice, the development of smartphones as gaming systems, and echoed Smith’s claims. “We will continue to work with regulators in a spirit of openness and transparency as they review this acquisition. We respect and welcome the tough questions being asked,” Smith wrote. “Today’s gaming industry is strong and dynamic. Industry leaders, including Tencent and Sony, continue to expand their deep and extensive game libraries, as well as other entertainment brands and franchises, that are enjoyed by gamers everywhere. We believe a A thorough evaluation will show that the combination of Microsoft and Activision Blizzard will benefit the industry and players.” Interestingly, it mentions Tencent and Sony, which this week took a 30% stake in Japan’s FromSoftware, developer of 2022’s biggest game, Elden Ring, as well as the cult Dark Souls series – perhaps in direct response to Microsoft’s tentacles. Meanwhile, Diablo Immortal, Activision Blizzard’s free-to-play mobile-based action game, has raked in more than $100 million through in-game purchases in just a few weeks. ®

title: “Watchdog Urges Deeper Probe Into Microsoft Activision Merger The Register Klmat” ShowToc: true date: “2022-11-08” author: “Roy Oreily”

Away from the world of Windows, Azure and other more enterprise products, Microsoft takes gaming just as seriously under the banner of the Xbox console and its developer subsidiary Xbox Game Studios. But recent studio acquisitions, particularly that of Bethesda owner Zenimax (home of hot properties like The Elder Scrolls series), have sent ripples through the industry – intensifying with Microsoft’s plan to spend $68.7 billion on the famously toxic Activision Blizzard, which owns some of the highest-grossing titles of all time, including World of Warcraft and the Call of Duty series. With Activision Blizzard independent from home console companies, its properties appear on PC, Xbox, PlayStation and Nintendo Switch. However, there is legitimate concern from gamers and the industry that Microsoft’s moves could lead to these titles being pulled from competing systems. There’s also the technology power behind Microsoft that Sony and Nintendo simply don’t have – dominance of the Windows desktop environment and one of the big three cloud computing infrastructures, Azure, under its belt. Microsoft has already used this know-how to its advantage, launching the killer Xbox Game Pass app, a games-as-a-service subscription on both Xbox and Windows, as well as Xbox Cloud Gaming, which allows users to play Xbox titles on their phone or old PC or console. While Sony has PlayStation Now, the strictly cloud-based service has struggled to compete in terms of performance, eventually being lumped into the PlayStation Plus subscription earlier this year. Nintendo, on the other hand, is Nintendo. He tends to stay out of Microsoft and Sony moves, playing family-friendly games to great success, and keeps his IP under wraps (never Mario on Xbox or PC). These factors have not been lost on the CMA. Sorcha O’Carroll, Senior Director of Mergers, said: “Following our investigation into Phase 1, we are concerned that Microsoft could use its control of popular games such as Call of Duty and World of Warcraft post-merger to harm competitors, including current and future competitors in multi-game subscription services and cloud gaming; “If our current concerns are not addressed, we intend to explore this deal in an in-depth Phase 2 investigation to reach a decision that works in the best interests of UK players and businesses.” Specifically, the CMA is concerned that the merger could “harm competitors, including recent and future entrants to gaming, by denying access to Activision Blizzard games or providing access on much worse terms.” It’s also wary of Activision Blizzard’s “combination with the broader Microsoft ecosystem,” as described above. For just one example, bringing World of Warcraft, which requires a monthly fee to play, into the Xbox Game Pass subscription could be a shocking development considering the zeal of its hopelessly addicted player base. The mind gets confused. Microsoft and Activision Blizzard now have five business days to submit proposals to address the CMA’s concerns. If these solutions are not satisfactory, the competition watchdog will move the investigation to Phase 2, where an independent panel will examine the deal in more depth, “assessing whether it is more likely that a significant lessening of competition will result from the merger”, work with third parties and investigate the internal bureaucracy of the merging companies. Microsoft president and vice president Brad Smith told The Register via email: “We stand ready to work with the CMA on next steps and to address any of its concerns. Sony, as an industry leader, says it is concerned about Call of Duty, but we’ve said we’re committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.” Likewise, a spokesperson pointed to a blog post published yesterday by Microsoft Gaming CEO Phil Spencer, where he emphasized the importance of choice, the development of smartphones as gaming systems, and echoed Smith’s claims. “We will continue to work with regulators in a spirit of openness and transparency as they review this acquisition. We respect and welcome the tough questions being asked,” Smith wrote. “Today’s gaming industry is strong and dynamic. Industry leaders, including Tencent and Sony, continue to expand their deep and extensive game libraries, as well as other entertainment brands and franchises, that are enjoyed by gamers everywhere. We believe a A thorough evaluation will show that the combination of Microsoft and Activision Blizzard will benefit the industry and players.” Interestingly, it mentions Tencent and Sony, which this week took a 30% stake in Japan’s FromSoftware, developer of 2022’s biggest game, Elden Ring, as well as the cult Dark Souls series – perhaps in direct response to Microsoft’s tentacles. Meanwhile, Diablo Immortal, Activision Blizzard’s free-to-play mobile-based action game, has raked in more than $100 million through in-game purchases in just a few weeks. ®

title: “Watchdog Urges Deeper Probe Into Microsoft Activision Merger The Register Klmat” ShowToc: true date: “2022-12-01” author: “Patsy Cooper”

Away from the world of Windows, Azure and other more enterprise products, Microsoft takes gaming just as seriously under the banner of the Xbox console and its developer subsidiary Xbox Game Studios. But recent studio acquisitions, particularly that of Bethesda owner Zenimax (home of hot properties like The Elder Scrolls series), have sent ripples through the industry – intensifying with Microsoft’s plan to spend $68.7 billion on the famously toxic Activision Blizzard, which owns some of the highest-grossing titles of all time, including World of Warcraft and the Call of Duty series. With Activision Blizzard independent from home console companies, its properties appear on PC, Xbox, PlayStation and Nintendo Switch. However, there is legitimate concern from gamers and the industry that Microsoft’s moves could lead to these titles being pulled from competing systems. There’s also the technology power behind Microsoft that Sony and Nintendo simply don’t have – dominance of the Windows desktop environment and one of the big three cloud computing infrastructures, Azure, under its belt. Microsoft has already used this know-how to its advantage, launching the killer Xbox Game Pass app, a games-as-a-service subscription on both Xbox and Windows, as well as Xbox Cloud Gaming, which allows users to play Xbox titles on their phone or old PC or console. While Sony has PlayStation Now, the strictly cloud-based service has struggled to compete in terms of performance, eventually being lumped into the PlayStation Plus subscription earlier this year. Nintendo, on the other hand, is Nintendo. He tends to stay out of Microsoft and Sony moves, playing family-friendly games to great success, and keeps his IP under wraps (never Mario on Xbox or PC). These factors have not been lost on the CMA. Sorcha O’Carroll, Senior Director of Mergers, said: “Following our investigation into Phase 1, we are concerned that Microsoft could use its control of popular games such as Call of Duty and World of Warcraft post-merger to harm competitors, including current and future competitors in multi-game subscription services and cloud gaming; “If our current concerns are not addressed, we intend to explore this deal in an in-depth Phase 2 investigation to reach a decision that works in the best interests of UK players and businesses.” Specifically, the CMA is concerned that the merger could “harm competitors, including recent and future entrants to gaming, by denying access to Activision Blizzard games or providing access on much worse terms.” It’s also wary of Activision Blizzard’s “combination with the broader Microsoft ecosystem,” as described above. For just one example, bringing World of Warcraft, which requires a monthly fee to play, into the Xbox Game Pass subscription could be a shocking development considering the zeal of its hopelessly addicted player base. The mind gets confused. Microsoft and Activision Blizzard now have five business days to submit proposals to address the CMA’s concerns. If these solutions are not satisfactory, the competition watchdog will move the investigation to Phase 2, where an independent panel will examine the deal in more depth, “assessing whether it is more likely that a significant lessening of competition will result from the merger”, work with third parties and investigate the internal bureaucracy of the merging companies. Microsoft president and vice president Brad Smith told The Register via email: “We stand ready to work with the CMA on next steps and to address any of its concerns. Sony, as an industry leader, says it is concerned about Call of Duty, but we’ve said we’re committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.” Likewise, a spokesperson pointed to a blog post published yesterday by Microsoft Gaming CEO Phil Spencer, where he emphasized the importance of choice, the development of smartphones as gaming systems, and echoed Smith’s claims. “We will continue to work with regulators in a spirit of openness and transparency as they review this acquisition. We respect and welcome the tough questions being asked,” Smith wrote. “Today’s gaming industry is strong and dynamic. Industry leaders, including Tencent and Sony, continue to expand their deep and extensive game libraries, as well as other entertainment brands and franchises, that are enjoyed by gamers everywhere. We believe a A thorough evaluation will show that the combination of Microsoft and Activision Blizzard will benefit the industry and players.” Interestingly, it mentions Tencent and Sony, which this week took a 30% stake in Japan’s FromSoftware, developer of 2022’s biggest game, Elden Ring, as well as the cult Dark Souls series – perhaps in direct response to Microsoft’s tentacles. Meanwhile, Diablo Immortal, Activision Blizzard’s free-to-play mobile-based action game, has raked in more than $100 million through in-game purchases in just a few weeks. ®

title: “Watchdog Urges Deeper Probe Into Microsoft Activision Merger The Register Klmat” ShowToc: true date: “2022-11-29” author: “Adrian Mcbride”

Away from the world of Windows, Azure and other more enterprise products, Microsoft takes gaming just as seriously under the banner of the Xbox console and its developer subsidiary Xbox Game Studios. But recent studio acquisitions, particularly that of Bethesda owner Zenimax (home of hot properties like The Elder Scrolls series), have sent ripples through the industry – intensifying with Microsoft’s plan to spend $68.7 billion on the famously toxic Activision Blizzard, which owns some of the highest-grossing titles of all time, including World of Warcraft and the Call of Duty series. With Activision Blizzard independent from home console companies, its properties appear on PC, Xbox, PlayStation and Nintendo Switch. However, there is legitimate concern from gamers and the industry that Microsoft’s moves could lead to these titles being pulled from competing systems. There’s also the technology power behind Microsoft that Sony and Nintendo simply don’t have – dominance of the Windows desktop environment and one of the big three cloud computing infrastructures, Azure, under its belt. Microsoft has already used this know-how to its advantage, launching the killer Xbox Game Pass app, a games-as-a-service subscription on both Xbox and Windows, as well as Xbox Cloud Gaming, which allows users to play Xbox titles on their phone or old PC or console. While Sony has PlayStation Now, the strictly cloud-based service has struggled to compete in terms of performance, eventually being lumped into the PlayStation Plus subscription earlier this year. Nintendo, on the other hand, is Nintendo. He tends to stay out of Microsoft and Sony moves, playing family-friendly games to great success, and keeps his IP under wraps (never Mario on Xbox or PC). These factors have not been lost on the CMA. Sorcha O’Carroll, Senior Director of Mergers, said: “Following our investigation into Phase 1, we are concerned that Microsoft could use its control of popular games such as Call of Duty and World of Warcraft post-merger to harm competitors, including current and future competitors in multi-game subscription services and cloud gaming; “If our current concerns are not addressed, we intend to explore this deal in an in-depth Phase 2 investigation to reach a decision that works in the best interests of UK players and businesses.” Specifically, the CMA is concerned that the merger could “harm competitors, including recent and future entrants to gaming, by denying access to Activision Blizzard games or providing access on much worse terms.” It’s also wary of Activision Blizzard’s “combination with the broader Microsoft ecosystem,” as described above. For just one example, bringing World of Warcraft, which requires a monthly fee to play, into the Xbox Game Pass subscription could be a shocking development considering the zeal of its hopelessly addicted player base. The mind gets confused. Microsoft and Activision Blizzard now have five business days to submit proposals to address the CMA’s concerns. If these solutions are not satisfactory, the competition watchdog will move the investigation to Phase 2, where an independent panel will examine the deal in more depth, “assessing whether it is more likely that a significant lessening of competition will result from the merger”, work with third parties and investigate the internal bureaucracy of the merging companies. Microsoft president and vice president Brad Smith told The Register via email: “We stand ready to work with the CMA on next steps and to address any of its concerns. Sony, as an industry leader, says it is concerned about Call of Duty, but we’ve said we’re committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.” Likewise, a spokesperson pointed to a blog post published yesterday by Microsoft Gaming CEO Phil Spencer, where he emphasized the importance of choice, the development of smartphones as gaming systems, and echoed Smith’s claims. “We will continue to work with regulators in a spirit of openness and transparency as they review this acquisition. We respect and welcome the tough questions being asked,” Smith wrote. “Today’s gaming industry is strong and dynamic. Industry leaders, including Tencent and Sony, continue to expand their deep and extensive game libraries, as well as other entertainment brands and franchises, that are enjoyed by gamers everywhere. We believe a A thorough evaluation will show that the combination of Microsoft and Activision Blizzard will benefit the industry and players.” Interestingly, it mentions Tencent and Sony, which this week took a 30% stake in Japan’s FromSoftware, developer of 2022’s biggest game, Elden Ring, as well as the cult Dark Souls series – perhaps in direct response to Microsoft’s tentacles. Meanwhile, Diablo Immortal, Activision Blizzard’s free-to-play mobile-based action game, has raked in more than $100 million through in-game purchases in just a few weeks. ®