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VGC: UK competition watchdog says it could expand Xbox Activision merger inquiry over competition concerns

“Following our Phase 1 investigation, we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming,” said Sorcha O’Carroll, senior director of mergers at the CMA.

“If our current concerns are not addressed, we plan to explore this deal in an in-depth Phase 2 investigation to reach a decision that works in the interests of UK gamers and businesses.”
The CMA said Microsoft and Activision Blizzard now have five working days to submit proposals addressing its concerns, and that if suitable proposals are not submitted, the deal will be referred for further investigation.

Phase 2 investigations see the CMA appoint an independent panel to scrutinise the deal in further detail and evaluate if it is more likely than not to result in a substantial lessening of competition.

VGC Source
 

Schmick

Member
Great so in five days the deal is done and I can get on with playing through the COD campaigns... right?! Right!!??
 

reksveks

Member
Info here: https://www.gov.uk/cma-cases/microsoft-slash-activision-blizzard-merger-inquiry

Random quotes
The CMA believes the gaming industry is in a transitional phase. Over the past several years, gamers have typically accessed games by paying an up-front fee and downloading the relevant games from a digital storefront (such as the Xbox Store) to their console or device (such as a PC or mobile). For consoles this ‘buy-to-play’ model, whereby the gamer pays for the game in full and then accesses the software locally on their device, remains the primary mode of delivering games.
Although the console gaming market is highly concentrated, the CMA believes that the shift to cloud gaming services and multi-game subscription services is opening a window of opportunity for new entrants. To succeed, these new entrants will need to offer a strong gaming catalogue that will attract users. Cloud gaming service providers will also need access to cloud infrastructure and an operating system (OS) license (especially Windows OS, which is the operating system for which most PC games are designed).
Acquiring ABK would significantly expand Microsoft’s own gaming library, adding some of the world’s best-selling and most recognisable franchises, including Call of Duty, World of Warcraft, and Candy Crush. The CMA is concerned that having full control over this powerful catalogue, especially in light of Microsoft’s already strong position in gaming consoles, operating systems, and cloud infrastructure, could result in Microsoft harming consumers by impairing Sony’s—Microsoft’s closest gaming rival—ability to compete as well as that of other existing rivals and potential new entrants who could otherwise bring healthy competition through innovative multi-game subscriptions and cloud gaming services.
The CMA believes that in the short- to medium-term, the main rival that could be affected by this conduct would be Sony. Evidence suggests that Microsoft and Sony compete closely with each other in terms of content, target audience, and console technology. Nintendo, on the other hand, competes less closely with either of Sony or Microsoft, generally offering games that focus more on ‘family fun’ and innovative ways of playing (eg the Wii Fit board) and does not currently offer any Call of Duty games on the Nintendo Switch.
As the market for multi-game subscription gaming services grows, Microsoft could use its control over ABK content to foreclose rivals, including recent and future entrants into gaming as well as more established players such as Sony. Absent the Merger, ABK games would in principle be available to any multi-game subscription service. The CMA recognises that ABK’s newest games are not currently available on any subscription service on the day of release but considers that this may change as subscription services continue to grow. After the Merger, Microsoft would gain control of this important input and could use it to harm the competitiveness of its rivals. As the multi-game subscription market is still in its infancy, the effect of the Merger could be to tip or significantly increase concentration in the market in Microsoft’s favour before future rivals have a chance to develop. The CMA therefore believes that the Merger gives rise to significant competition concerns in multi-game subscription services (including cloud gaming services, to the extent these are distributed through multi-game subscription services).
 
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//DEVIL//

Member
Well, I guess a lot of people were right - nobody buys Sony for exclusives but only for COD :messenger_tears_of_joy:
You are laughing but you really not far from the truth either.

Yes Sony exclusives are awesome for the most part. But it's where I used to buy all my cod games as well. Mainly for the bigger user base in the past and not wanting to play with pc players .so it was the obvious place to buy the game.

People here joke about it. But even in its worst entries like vanguard, it's still top selling series every year since modern warfare 1 on PS3
 
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reksveks

Member
Those comments are a very fair assessment.
Think the CMA have read the situation perfectly, I am wondering what concessions Microsoft/Xbox are willing to make.

We already know that multiplatform access is one but I am actually wondering about inclusion of subscription services and how that looks now.

Edit I do want to add they are reaching on the importance of azure and Windows os licensing to cloud gaming services providers. I am sure steam would be happy to give you steamos for your cloud service.
 
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Spitfire098

Member
You know, I always liked the British. Good ol people they are.
images
 
The UK is full of morons. Don't listen to anything they say.
Mostly I want MS to take over Activision to avoid Blizzard botching D4 with micro transactions. They said they wouldn't but they say many things.
Diablo 4 is out next year. The game is basically done at this point. Microsoft aren't going to change anything. Maybe Diablo 5.
 
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adamsapple

Or is it just one of Phil's balls in my throat?
Microsoft and Activision Blizzard now have 5 working days to submit proposals to address the CMA’s concerns. If suitable proposals are not submitted, the deal will be referred for a Phase 2 investigation.


Time to razzle dazzle with a power point presentation, Phil.

yes, feeling better now?


Didn't you say you were gonna ignore these threads from now on ?



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Begleiter

Member
Even if it's just for appearances (all UK regulators are very pro-business), at least they're going through the motions instead of rubber stamping like Saudi.
 

GHG

Gold Member
All very reasonable arguments and concerns. Concerns that should be being raised by the US and EU regulators.

I mean, if a single market player gaining control of one of the single largest properties of the market doesn't raise competition concerns, then really nothing ever will.

No chance the US regulators will bring any of that stuff up, they have a vested interest in protecting their own. It would surprise me if the EU didn't ultimately end up taking a similar stance to the UK.

I'd be interested in seeing how they respond to this if it ever comes to light. It's pretty blatant what they are attempting to do in the long run.
 

Saber

Gold Member
Mostly I want MS to take over Activision to avoid Blizzard botching D4 with micro transactions. They said they wouldn't but they say many things.

I think its already announced that will have full microtransactions and its a GaS.
 

Neofire

Member
Looking at the thread alot of folks in here big mad the MS buy out of Activision/developer monopolization campaign isn't going as smooth as they wanted in the UK. I'm sure they will grease the wheel enough to get it green lit in the end. This just goes to show you not every countries regulations sector can be paid for so easily as it is here in the US lol.
 

nikolino840

Member
Looking at the thread alot of folks in here big mad the MS buy out of Activision/developer monopolization campaign isn't going as smooth as they wanted in the UK. I'm sure they will grease the wheel enough to get it green lit in the end. This just goes to show you not every countries regulations sector can be paid for so easily as it is here in the US lol.


PlayStation as a brand is so big in Europe,more strong then microsoft
 
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DaGwaphics

Member
And then they wonder what has happened to industry in the UK. :messenger_tears_of_joy:

Sony and Nintendo already own and control properties that sell 20 and 30m copies, and they have full control of those properties. LOL Heaven forbid there be real competition in the space, Sony probably lobbying hard here.
 

NeonDelta

Member
Tell them all future call of duty games will be multi platform then change the name of call of duty and make it exclusive
 

Leyasu

Banned
Looking at the thread alot of folks in here big mad the MS buy out of Activision/developer monopolization campaign isn't going as smooth as they wanted in the UK. I'm sure they will grease the wheel enough to get it green lit in the end. This just goes to show you not every countries regulations sector can be paid for so easily as it is here in the US lol.
It’s all posturing at the end of the day. This deal will go through.
 
And then they wonder what has happened to industry in the UK. :messenger_tears_of_joy:

Sony and Nintendo already own and control properties that sell 20 and 30m copies, and they have full control of those properties. LOL Heaven forbid there be real competition in the space, Sony probably lobbying hard here.
Yeah ... that's kinda been my take this whole time. If we have a strong MS then it honestly will increase competition and ultimately help consumers in that sense. MS wasn't even competitive last gen. Sony started this gen making decisions as a market leader not feeling any pressure, and consumers were already feeling the negative effects of that.

So far with GP becoming more attractive, we've seen Sony pushed to start a rival service that people are enjoying. They're now making multiple FPS GAAS games of their own. I'm not really seeing any substantial impediment to competition in the future from this deal. It looks like it's actually improving competition.
 
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Banjo64

cumsessed

What a god damn sycophant :messenger_tears_of_joy:

How does Apex or Counter Strike compete with 25m people buying CoD annually at full price and then spending bucket loads of cash on MTX? Not that hard is it Tom? They don’t.

And yeah, Xbox One sold 60m units, that makes them a big player in the console gaming industry.

What a fucking muppet. At least try to pretend you are natural, even though you are on MS’s payroll.
 

NickFire

Member
Yeah ... that's kinda been my take this whole time. If we have a strong MS then it honestly will increase competition and ultimately help consumers in that sense. MS wasn't even competitive last gen. Sony started this gen making decisions as a market leader not feeling any pressure, and consumers were already feeling the negative effects of that.

So far with GP becoming more attractive, we've seen Sony pushed to start a rival service that people are enjoying. They're now making multiple FPS GAAS games of their own. I'm not really seeing any substantial impediment to competition in the future from this deal. It looks like it's actually improving competition.
It’s not just Sony they’re worried about. It’s gaming as a whole, almost certainly with an eye towards past practices MS employed. From the excerpts:

“After the Merger, Microsoft would gain control of this important input and could use it to harm the competitiveness of its rivals. As the multi-game subscription market is still in its infancy, the effect of the Merger could be to tip or significantly increase concentration in the market in Microsoft’s favour before future rivals have a chance to develop. The CMA therefore believes that the Merger gives rise to significant competition concerns in multi-game subscription services (including cloud gaming services, to the extent these are distributed through multi-game subscription services).”

They‘re clearly worried the merger could block rivals from even developing. They aren’t beholden to Sony staying competitive. They’re thinking about the entire audience having options In the future.
 

Banjo64

cumsessed
And then they wonder what has happened to industry in the UK. :messenger_tears_of_joy:

Sony and Nintendo already own and control properties that sell 20 and 30m copies, and they have full control of those properties. LOL Heaven forbid there be real competition in the space, Sony probably lobbying hard here.
Lobbying hard in the UK? Whatever you’ve read on Reddit about the torries, we aren’t the US of A. Prepare your anus because you better believe the EU is also going to ask hard questions about this acquisition.

Sony and Nintendo have a franchise that could sell 20-30m copies EVERY YEAR? Let me know which ones please.
 

DaGwaphics

Member
Lobbying hard in the UK? Whatever you’ve read on Reddit about the torries, we aren’t the US of A. Prepare your anus because you better believe the EU is also going to ask hard questions about this acquisition.

Sony and Nintendo have a franchise that could sell 20-30m copies EVERY YEAR? Let me know which ones please.

Both Nintendo and Sony release games almost every year with that potential. Good try though.
 
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