Microsoft accuses UK regulator of adopting Sony’s complaints over Activision Blizzard deal

[Eternal_Wings]

I guess my question or concern is, will microsofts spin or rebuttals (and threats/bribes) be enough to persuade the CMA or other regulators? If COD was going to stay on PS like they say, why all the talk about competition? What is there to compete agaist if the status quo is fundamentally the same?

It’s simple: Microsoft words cannot be trusted. It’s not the first time, they try to annihilate their competition, little by little. This is Microsoft true intention: being shady like they have been in their entire history.

 

[Darth Vader]

Another bit for the astroturfers to spin, and this one is not about Sony. Something tells me it's about Valve.

Another competitor explained that CoD had an indirect impact on its revenues, as it attracted a larger gamer base, who then purchased other games on their platform. This, in turn, impacted the attractiveness of their platform to other publishers. This competitor explained that successful games, such as CoD, create network effects that draw awareness and traffic to smaller games.

Multiple competitors stressed different aspects of how the deal can impact the industry.

Competitors also noted that very few game franchises can (or could ever) match CoD’s success. [] noted that no other game publisher has come close to
replicating the success of CoD, particularly in shooters. [] also submitted that no other publisher can commit the same level of resources and expertise to game development; and even if they could, CoD is too entrenched for any rival to catch- up.158 Another competitor explained that no game could substitute CoD, and that it would be difficult to pinpoint a game that would be a close alternative.

Both produced data the CMA found not satisfactory on justifying platform impact CoD would have if MS acquired ABK, but the CMA agrees that MSs data is better.

The Parties submitted that their analysis of incentives represents an accurate view of the decisions facing the Merged Entity, as it was prepared using Microsoft’s ordinary course of business data. Sony separately submitted a similar analysis relying on its own data, which suggested that a lower proportion of CoD players on PlayStation would need to switch to Xbox for such a strategy to be profitable. The Parties consider Microsoft’s ordinary course of business data be superior to any data available to Sony for this analysis.

Another interesting finding their report has:

The CMA does not consider it necessary to assess Microsoft’s incentives in every previous acquisition. Rather, the CMA considers that Microsoft’s course of conduct is sufficiently strong evidence of its broad incentives that it may have an incentive to acquire valuable content and make it exclusive. This is because (i) Microsoft has often pursued a strategy of acquiring publishers and making their upcoming games exclusive to Xbox, even when those publishers previously made their content available to all consoles, and (ii) Microsoft has pursued this strategy when acquiring content that is far less valuable than ABK’s games, and hence far less likely to divert customers to its console. As such, the CMA considers that Microsoft may have an even stronger incentive to make ABK’s content exclusive to Xbox post-Merger.

And on the argument our resident astroturfers so preciously used.

When it has been established that there will be harm to competitors this will often directly imply that there will be harm to overall competition, where the foreclosed firms play a sufficiently important role in the competitive process on the downstream market.224 Based on the evidence above, the CMA believes that PlayStation is Xbox’s closest competitor in a highly concentrated market for gaming consoles and, therefore, plays a very important role in the competitive process. The CMA believes that the Merged Entity may have the ability and incentive to engage in total and/or partial foreclosure strategies using ABK’s content, and that this could materially affect Sony’s ability to compete. The CMA therefore believes that a material impact on Sony’s ability to compete would have a detrimental impact on overall competition in the market and ultimately harm consumers.

 

[Darth Vader]

Several competitors who spoke to the CMA referred to Microsoft’s behaviour in relation to past acquisitions, including that of ZeniMax Media, where Microsoft did not uphold its promise to continue making Bethesda content available on multiple stores and platforms.

One of these competitors explained that, in relation to this Merger, Microsoft would have the incentive to withhold ABK games from rival multi-game subscription services, as it would allow Microsoft to drive game distribution through its own services and secure the leading position in multi-game subscription services. This competitor believes that many gamers will switch to Microsoft from other multi-game subscription services, which will generate direct and indirect profits for Microsoft in a variety of ways. In the competitor’s view, the incentives to draw users to the Microsoft console gaming platform will far outweigh any downside from reduced sales of individual games on rival platforms.

Based on this evidence, the CMA believes that the Merged Entity may have the incentive to engage in total or partial foreclosure of rival multi-game subscription services using ABK’s content.

 

[Loy310]

@Dodkrake
Tae Kim shared the full document. 76 sites!



Link to Documents

201-204 is spicy as fuck. After reading that part of the doc there is no way this goes thru without concessions in the uk, no fucking way.

 

[Eternal_Wings]

Loooooool Microsoft is desperate.

 

[Dick Jones]

Loooooool Microsoft is desperate.

They should have acquired a social media company not run by fucking clowns. That tweet is muck

 

[Sircaw]

Loooooool Microsoft is desperate.

What the fuck are they doing over there.

 

[TubzGaming]

Loooooool Microsoft is desperate.

I thought that was fake, Guess not.

 

[Old Gamer]

Loooooool Microsoft is desperate.

Well, that's not petty or pathetic in the slightest.

I already know which OS my next laptop won't be running.

 

[Loy310]

Loooooool Microsoft is desperate.

To be fair they are being trolled and they have kids running their sm accounts so you get this reaction. Im sure Sony and nintendo gets trolled too but they sure as hell are not gonna talk about it.

 

[Loy310]

Well, that's not petty or pathetic in the slightest.

I already know which OS my next laptop won't be running.

been switched over to ios across the board, just cant give ms my money. Been 15 years now since i had to cut them a check, got most of my family to join me too.

 

[Remember_Spinal]

 

[TubzGaming]

 

[Dabaus]

201-204 is spicy as fuck. After reading that part of the doc there is no way this goes thru without concessions in the uk, no fucking way.

Maybe the reason there is so much anger from the xbox camp (I mean what is that candy bar tweet??) is because there isnt a bribe or threat they can give to the CMA because the sudden shift would be too apparent that something persuaded them? IDK just spit balling here.

 

[Lord Mittens]

There is only so much I can facepalm in one day. And its only 7am

 

[Remember_Spinal]

 

[Lord Mittens]

Can we get a WTF? emote? @Bryank75 lol

 

[Loy310]

Maybe the reason there is so much anger from the xbox camp (I mean what is that candy bar tweet??) is because there isnt a bribe or threat they can give to the CMA because the sudden shift would be too apparent that something persuaded them? IDK just spit balling here.

As long as its long and hard process for them im fine. A hard day for MS is a great fucking day for me.

 

[Remember_Spinal]

seeing microsoft speak so lowly of themselves is almost depressing

I know they are only doing it because they want the deal to pass through but ultimately what they are saying and agreeing with is true. They have been very incompetent in building a competitive platform for over 20 years.

It almost makes it hard for me to understand how they even have a passionate fanbase at this point.

 

[Darth Vader]

seeing microsoft speak so lowly of themselves is almost depressing

I know they are only doing it because they want the deal to pass through but ultimately what they are saying and agreeing with is true. They have been very incompetent in building a competitive platform for over 20 years.

It almost makes it hard for me to understand how they even have a passionate fanbase at this point.

Imagine saying with a straight face that your company, valued at like 10 Sony's, can't compete with them in the gaming space, in spite of the massive amount of money you've already poured into it.

And the problem stems from lack of passion and vision, not lack of talent or money.