UK regulator posts six studios’ responses to Microsoft-Activision deal, all saying it should go ahead

John Elden Ring

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The UK’s Competition and Markets Authority (CMA) has posted the opinions of six development studios who all think Microsoft‘s proposed acquisition of Activision Blizzard should go ahead.

Only one of the six studios who provided responses was named – 4J Studios, the Scottish developer responsible for the console versions of Minecraft.

4J’s chairman and co-founder Chris van der Kuyl noted that the studio was in the unique position of working not only as a partner of Microsoft, but also as a partner of Mojang, since before it was acquired by Microsoft.

“During that period, which lasted several years, Microsoft has honoured every element of the agreements that they inherited and also extended our relationship significantly to cover new formats, like Nintendo Switch, as well as many other content enhancements
 

AshHunter216

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I disagree with the argument one dev makes that Tencent will buy Activision if the deal is blocked. Pretty crazy how strongly in favor of the deal these particular devs are though. Another one seems to want to it to go through because their games have been doing better on Xbox over Playstation and Playstation doesn't promote their games enough.
 

Yurinka

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If Tencent would buy ABK wouldn't be an issue for the consumers because it would mean CoD and the other ABK IPs would remain multiplatform.

I think it would have better to ask instead to studios not owned by MS, but I agree that the acquisition wouldn't have any major effect other than helping MS to reduce the gap they have under Sony, and that it would positive to give Sony, the clear market leader, some extra competition. I also think that the acquisition wouldn't affect 3rd parties publishers and developers at all.

If something, it would mean that the deals that MS or Sony had with ABK now will be made with other publishers, who will get benefited from it.
 
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AshHunter216

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I'm curious though, are these studios the CMA asked opinions of or are they all devs that specifically wanted to speak?
 

Puff

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I don’t want to drop names but I can already imagine who that is :ROFLMAO:
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I'm still firmly in the camp that Microsoft want ABK for cloud and not the games
 
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Satoru

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I think it would have better to ask instead to studios not owned by MS, but I agree that the acquisition wouldn't have any major effect other than helping MS to reduce the gap they have under Sony, and that it would positive to give Sony, the clear market leader, some extra competition. I also think that the acquisition wouldn't affect 3rd parties publishers and developers at all.

Competition is not achieved by acquisitions. It's achieved by producing a product people want to buy, which Microsoft doesn't. It's that simple, and no amount of cheerleading you do will change that fact.

Edit: Xbox + Bethesda + ABK will surpass more or less equal Playstation in revenue. They are essentially buying the joint top spot in revenue without producing an enticing product.
 
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Bryank75

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If Tencent would buy ABK wouldn't be an issue for the consumers because it would mean CoD and the other ABK IPs would remain multiplatform.

I think it would have better to ask instead to studios not owned by MS, but I agree that the acquisition wouldn't have any major effect other than helping MS to reduce the gap they have under Sony, and that it would positive to give Sony, the clear market leader, some extra competition. I also think that the acquisition wouldn't affect 3rd parties publishers and developers at all.

If something, it would mean that the deals that MS or Sony had with ABK now will be made with other publishers, who will get benefited from it.

COD really only has an effect in western english speaking markets... namely North America and UK.

PlayStation may have a lead of 10-15% in the US and that may diminish with this acquisition but it will have little to no effect on most of Europe, Asia, Middle East and other markets and actually helps drive a wedge between the english speaking gaming world and the international gaming scene....

I think overall it hurts gaming, it gives MSFT too much possible leverage over other companies and it sends a signal that all acquisitions are allowed, it is open season.....

So if this goes through I definitely want to see Sony buy TakeTwo and remove GTA and RDR from Xbox...and I dont want to hear one complaint.
 
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If Tencent would buy ABK wouldn't be an issue for the consumers because it would mean CoD and the other ABK IPs would remain multiplatform.

Tencent still has a bit of an image issue when it comes to applying certain censorship standards on games, standards that at least for a while were in lockstep with some rather backwards perspectives of the CCP. Whether that has now changed or not I wouldn't know. However I still remember stupid stuff like when a Rainbow Six update to remove ghosts for the Chinese version was applied to the global versions of the game, despite the differences in perception of ghostly apparitions among different cultures.

I don't need more of that in games, thank you.

I think it would have better to ask instead to studios not owned by MS, but I agree that the acquisition wouldn't have any major effect other than helping MS to reduce the gap they have under Sony, and that it would positive to give Sony, the clear market leader, some extra competition. I also think that the acquisition wouldn't affect 3rd parties publishers and developers at all.

This is such a terrible argument. You are basically condoning mass consolidation and also are foolishly under the belief that companies need artificially boosted external competition to innovate or stay honest. Did you ever think that maybe the current position Sony & Microsoft are in within the market is the result of competition itself, and that Sony have been rewarded for successfully answering the needs of most of the industry and customers?

Why do you think a $2 trillion company should be allowed to buy a $69 billion 3P games publisher just to provide more competition to significantly smaller rival? You're basically admitting that Microsoft can only throw money at problems (meaning this is eventually $69 billion wasted). You're also being a bit short-sighted in terms of how other 3P pubs and devs could be affected; we actually had some indie devs last year come out and say why they were concerned with the acquisition. MS essentially shoring up huge stables of 3P talent and internal developers & content providers lessens Microsoft's reliance on securing indie content for services like Game Pass. Even somewhat larger 3P devs and pubs who do not have special arrangements with Microsoft (such as the one MS and Sega have), could be negatively impacted.

Also you're undershooting the ABK acquisition in terms of the value it brings to Xbox's revenue. It won't just "reduce the gap"; it'll literally put them within a hair's distance of PlayStation's (so far) peak FY revenue. Buying their way within a hair's distance (and if ABK generate more than $8.8 billion in annual revenue, exceeding PlayStation revenue with it & Xbox revenue combined potentially), and you're okay with that? Does it create more competition? Maybe. But we both know it's not from organic growth (i.e increasing product desireability to end customers); it's from buying another company and rolling their revenue into Xbox's. And in that scenario, it's very likely that the combined offerings further increase combined revenue and now you're in a timeline where Xbox could be doing $30 billion in annual revenue, maybe even more.

Unless your answer for companies like Sony to "compete" in that scenario is to similarly buy publishers and absorb their revenue into PlayStation's to artificially boost revenue there, then I have to say this outlook is pretty flawed. Even if that is something you would be okay with having happen, it's flawed regardless because it IMO just further encourages the market to "compete" via consolidation.

If something, it would mean that the deals that MS or Sony had with ABK now will be made with other publishers, who will get benefited from it.

That is probably one reason why certain other 3P publishers have little issue with the deal; it creates more room for them to get sweetheart deals that previously would've gone just to ABK. And that does present a lot of potential offers for Sony in particular.

Though there is still a risk. It depends on how specifically the ABK deal is approved. If it's with kids gloves behavioral remedies, and Microsoft gets the message they can buy other publishers, they WILL buy other publishers. Other Big Tech companies will get the message as well, so the scenario you paint here that Sony could theoretically benefit from, may not be in play as much as you think. What good does it do Sony to make a sweetheart deal with EA for Battlefield if Microsoft can sweep in and buy EA a couple years from now?

That's where I think you are vastly underestimating the impacts of this current acquisition, or at least should show more consideration for how it is improved under certain conditions.
 

Gods&Monsters

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I'm changing sides. I think the deal will go through.
Sony is fighting alone because they're the only ones affected by this. The rest are too dumb to see the damage it will do for the industry in the long run.

On paper CMA agrees with Sony 100% but after all this non-stop propaganda I'm worried they give up. There's not enough opposition.
 
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AshHunter216

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Sony is fighting alone because they're the only ones affected by this. The rest are too dumb to see the damage it will do for the industry in the long run.

On paper CMA agrees with Sony 100% but after all this non-stop propaganda I'm worried they give up. There's not enough opposition.
The FTC opposes as well, and the devs listed might just be the ones who cared enough to make a response, hard to tell.
 
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