UK watchdog recommends Xbox Activision deal for ‘in-depth investigation’ amid competition concerns

24 Jun 2022
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The Activision-Blizzard acquisition can't be stopped. It might get delayed another month of two but that's about it.



The CMA knows that as soon as this deal goes through, it's pretty much over for Sony. They can't compete anymore
Jim Ryan knows this. It's the reason why he is preparing SIE/PlayStation to become a 3rd party publisher. Creating games (especially a ton of Live-Service games) for all platforms like PC, Xbox, Mobile and Switch.


More bottom-dollar clownery, I see.

If it does go through I think there might be some contingencies. Like no day one call of duty going day to date. i think if there was any contention, giant brands like call of duty would have a clause by the commission that new titles would have to wait a period of time before coming to a subscription service because of their economic impact to the industry.

.....

But this is just me thinking out my ass.

This is actually a great point to bring up. The government also makes money off software sales through sales taxes. If COD going to GamePass significantly impacts sales of the game, that means less tax revenue from governments where games like COD, Diablo etc. sell tons of copies. They lose even more in tax revenue if MS were to, for example, throw in massive MTX/DLC perks to GamePass subscribers.

I didn't even really consider this POV until seeing this CMA statement; governments are out here trying to look out for their money, too. Another factor is, if ABK does get acquired, then ABK themselves (IIRC) won't have to pay taxes to government entities anymore, since that will now be absorbed by Microsoft. Ultimately meaning, again, less tax revenue flow for government entities.

This web...goes deep...
 
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ethomaz

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21 Jun 2022
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"Not looking bright"? lol
This here won't change anything. The Activision-Blizzard deal will go through early 2023. Just accept it and move on.

Phil Spencer and Microsoft already replied btw.
Good strategy:
That is not an actual reply.
MS needs to reply directly to the regulator in 5 days I believe if not it become a 6 months process.
 

Bryank75

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"Not looking bright"? lol
This here won't change anything. The Activision-Blizzard deal will go through early 2023. Just accept it and move on.

Phil Spencer and Microsoft already replied btw.
Good strategy:

He stated many things that conflict with what the regulator wants to see...

Putting games on gamepass wont be a runner unless they can put it on PSplus too for the same cost.

I dont see how that will work.
 

Heisenberg007

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21 Jun 2022
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More bottom-dollar clownery, I see.



This is actually a great point to bring up. The government also makes money off software sales through sales taxes. If COD going to GamePass significantly impacts sales of the game, that means less tax revenue from governments where games like COD, Diablo etc. sell tons of copies. They lose even more in tax revenue if MS were to, for example, throw in massive MTX/DLC perks to GamePass subscribers.

I didn't even really consider this POV until seeing this CMA statement; governments are out here trying to look out for their money, too. Another factor is, if ABK does get acquired, then ABK themselves (IIRC) won't have to pay taxes to government entities anymore, since that will now be absorbed by Microsoft. Ultimately meaning, again, less tax revenue flow for government entities.

This web...goes deep...
And that's exactly what Sony is trying to block. They don't necessarily want this acquisition to fall through. They just want regulators to make sure that (1) COD remains on PlayStation, and (2) it doesn't launch on Gamepass.

Think about it from Sony's POV. if that happens, nothing changes for Sony.

They still get COD; COD still doesn't launch on a gaming subscription service; PS remains the #1 platform for COD and COD continues to sell the most on PlayStation. PlayStation continues to get the 30% sales cut. They won't care if the rest of the 70% is going to Activision or Microsoft.

The only loss for Sony is that they won't get to market COD after 2025. Big fucking deal.
 

Vertigo

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26 Jun 2022
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Sony is just cockblocking because they can 😂
 

Lord Mittens

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1 Jul 2022
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I think the concern is it being tied to a subscription service, that is to say sony couldnt put it on ps plus.

Oh gotcha, COD should never be exclusive in general so it should be allow to come to those services too, if possible.
 

DynamiteCop

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2 Jul 2022
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It's going to go through lmao, UK regulators don't actually control anything. The most they could accomplish is slowing down the process, it's impossible for them to stop it.
 

Yobo

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A few things I think will have put MS in a bad light with the regulators as far as their arguments go

1) They've now taken multiple multiplatform developers and a publisher that they didn't previously have a working history with into exclusivity arrangements after buying them. Their statements hold little value without guarantees, and it looks like they lied during the Bethesda acquisition
2) The fact Sony have not done the same with a large acquisition in Bungie
3) Understating the value this adds to their business, both in the console market but also in the cloud, subscription and Windows spaces
 

Yobo

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It's going to go through lmao, UK regulators don't actually control anything. The most they could accomplish is slowing down the process, it's impossible for them to stop it.
They can sue Microsoft and they can be sued in other markets too

Their attempts to tie COD to Gamepass is just opening them up to anti trust
 

laynelane

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14 Jul 2022
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Responding to the CMA’s decision, Microsoft president and vice chair Brad Smith said: “We’re ready to work with the CMA on next steps and address any of its concerns. Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.”

I have some doubts on the sincerity of this statement. 🤨
 

Shmunter

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22 Jul 2022
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Microsoft locked out of acquisitions dealing with this, while Sony merrily buys up studios along the way.
 
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Lord Mittens

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Microsoft locked out of acquisitions dealing with this, while Sony merrily buys up studios along the way.

Well it is the mother of all acquisitions.
I am still waiting for the pending Square acquisition and Sony