Google and Nvidia have recently become the latest companies to challenge Microsoft’s proposed takeover of Activision Blizzard by releasing a statement to halt it.
According to Bloomberg, Sony and two other firms have voiced their doubts about Microsoft’s attempt at acquiring Activision Blizzard. Microsoft is currently in the midst of a legal battle with the Federal Trade Commission which seeks to block this transaction from happening. Nevertheless, Microsoft remains persistent in its efforts of making this deal a reality despite mounting opposition.
The report reveals that Google and Nvidia have presented evidence to the FTC backing a major claim of theirs—that the acquisition could cause substantial harm to competitors in the gaming industry.
Google and Nvidia presented evidence that lent credence to the Federal Trade Commission’s contention that Microsoft may be attaining an unfair advantage in the market for cloud, subscription and mobile gaming – according to sources who wished their identities remain anonymous as this process is confidential.
Nvidia highlighted the importance of open and free access to gaming titles in their FTC statement but did not vocalize any objections against the acquisition, according to one individual.
In January 2022, Microsoft announced its shocking plan to acquire Activision Blizzard for a whopping $68.7 billion – gaining rights to popular titles such as Call of Duty, World of Warcraft, Diablo, Overwatch, Starcraft and Candy Crush. Months later in December 2022 the FTC stepped in by filing a lawsuit against Microsoft with attempts to block this proposed deal from going through.
While Sony has aggressively denounced this potential purchase, they have mainly focused on how Microsoft may be taking away the Call of Duty franchise from Playstation consoles, which undoubtedly hold a large portion of their market. Nonetheless, it is clear that such an acquisition could significantly lessen competition and dampen innovation in the gaming industry.
Microsoft has restated their ambition to bring Call of Duty to the PlayStation, regardless of how long it stays on the market. Furthermore, they have vowed that Nintendo and Steam will also enjoy COD too – should their purchase be successful.
Google and Nvidia’s involvement brings more clout to the FTC’s claims that Microsoft’s proposal could be detrimental to competition. It will now be up to the federal agency to decide if this purchase is fair or not. Certainly, this story is far from over. We’ll keep you updated with any news about Microsoft’s attempted acquisition of Activision Blizzard.
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.