According to Microsoft, Sony is the “industry leader,” which means that the company has given up and lost the console battles.
Microsoft has provided this response as part of its ongoing effort to persuade regulatory agencies that its proposed acquisition of Activision Blizzard is both in the company’s and the industry’s best interests. In light of this, Microsoft has detailed the potential advantages that might accrue to the company if it were to acquire Activision Blizzard and its many successful titles, including, but not limited to, Diablo and Call of Duty, amongst others.
— Tom Warren (@tomwarren) November 8, 2022
The European Commission has expressed its concern that the acquisition of Microsoft could throw off the equilibrium of the market, which would lead to a reduction in the amount of competition.
The Commission’s preliminary investigation shows that the transaction may significantly reduce competition on the markets for the distribution of console and PC video games, including multi-game subscription services and/or cloud game streaming services, and for PC operating systems.
In particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access to Activision Blizzard’s console and PC video games, especially to high-profile and highly successful games (so-called ‘AAA’ games) such as ‘Call of Duty’.”
Microsoft has sought to use an underdog approach since it first ran into trouble with European authorities. This strategy’s goal is to discredit Sony’s reasons for the acquisition. As a reaction to the inquiry announced today, Microsoft admitted that Sony is the industry leader in hammering home the importance of this talking point.
The possibility of Microsoft acquiring Activision Blizzard is still up for discussion. In addition to the European Union, several regulatory authorities from across the globe, including the Competition and Markets Authority (CMA) in the United Kingdom, are conducting their investigations.
Microsoft’s acquisition of Activision Blizzard has been met with far more opposition and scrutiny than the company most likely anticipated. Even if the CEO of Microsoft has voiced his optimism that the purchase will go through, there is still a possibility that it will only go through once all of the dust has been adequately cleared.