Microsoft continues its fight to complete $69 billion acquisition of game publisher Activision BlizzardBut the US Federal Trade Commission will add another hurdle in an effort to block the deal.
The FTC will issue an injunction Monday to stop Microsoft’s purchase of Activision before the July 18 deadline, according to a report from Microsoft. CNBC. This comes several months after the commission sued Microsoft over the acquisition saying the deal would “enable Microsoft to suppress competitors to its Xbox game consoles and rapidly growing subscription and cloud gaming business.”
Microsoft first announced Plans to acquire Activision Blizzard in January 2022. Closing the deal would turn Xbox manufacturer Microsoft into one of the top three video game publishers, right behind rival Sony. Activision Blizzard is one of the largest third-party publishers, with some major franchises that would give a much-needed boost to Microsoft’s game catalog, including Call of Duty, Candy Crush, and Overwatch.
Although Microsoft has won some merger battles recently, it still has some other hurdles to clear before a deal can be completed.
Who is left to agree to the deal?
Microsoft still has to get approval from US regulators. The lawsuit filed by the FTC from December and the injunction Monday prevented the deal from being approved. A hearing is scheduled for August 2 in the lawsuit.
The UK is another major country that has not yet signed on to the deal. In April, the UK Competition and Markets Authority Bar deal $69 billion, saying it would lead to higher prices and fewer options for players. Microsoft’s appeal for the ruling says that the CMA “made material errors in its calculation and assessment of market share data for cloud gaming services by failing to consider limitations from original games (where players access games installed on their devices through a digital download or a physical disc).”
Microsoft continued to deny that the deal would hinder competition within the video game industry and continues to negotiate with regulators to gain approval.
What does this deal mean for players?
to Xbox Game Pass subscribersThe deal means that Activision Blizzard’s catalog of games will be integrated into the service, likely similar to how Bethesda games were when Microsoft acquired that company in 2020.
How-to for gamers who don’t have an Xbox, and instead are using Sony Playstation or Nintendo Switch console, will be less noticeable affected. Critics of the deal worry that Microsoft may make future games developed by Activision unavailable on competing consoles. (Microsoft only did this for a game developed by Bethesda.) This is especially true for a major Activision title like Call of Duty.
Microsoft has already agreed to a 10-year deal with Nintendo to bring Call of Duty games to its consolesbut Sony reportedly rejected a similar agreement. Sony is still against the deal and It continues to file filings with regulators about its takeover concerns.
What are cloud games?
Cloud gaming Remote video game streaming technology to a device such as a phone, tablet, or smart TV. Although the technology has been around for more than a decade, it has only really taken off in recent years thanks to it being an added advantage of Microsoft Xbox Game Pass And PS Plus from Sony.
Other companies have developed their own cloud gaming services, such as Amazon Luna And GeForce Now. make the former agreement with Microsoft in February to bring more of its games into the service over the next ten years.
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