UK's CMA sides with Microsoft in latest update to Activision-Blizzard acquisition

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Microsoft continues its campaign in trying to finalize its buyout of Activision-Blizzard. The UK's Competition & Markets Authority, after investigating the Microsoft-Activision deal, has made a provisional ruling in favor of Microsoft, claiming that the acquisition "will not result in a substantial lessening of competition in relation to console gaming in the UK". Both Blizzard and Microsoft have made statements praising the CMA's analysis. It should be noted that this isn't a final ruling, as that will take place on April 26th. This overturns the CMA's initial claims prior to the investigation, which sided with PlayStation's opposing stance, claiming that Microsoft would have an unfair market advantage, and would eventually remove major Activision games from PlayStation systems.

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osaka35

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I still don't see how this buyout would be bad for us, and when I ask people they fail to convince me, but I'm still willing to hear how this would hurt us. Sony was already hurting consumers before this buyout. How is Microsoft shaking things up and make Sony leave their place of comfort be bad for us ? It's not like Microsoft is going to go Shinra-mode if they get ABK, they probably would if they could but we're far from it

Gamepass is great, but the push to change games from a product to a service is most definitely not.

So the thing people are concerned about is once microsoft beefs up gamepass enough they can stop selling physical games, and maybe even digital games further down the road, they 100% absolutely will. they are also trying to make any other netflix-style game service less viable than theirs by slowly making established multi-platforms microsoft exclusives. This is their plan, with room to pivot if they need to. If you don't care about physical ownership, healthy competition, or game preservation, then this doesn't matter to you. but it should.

as a slight side-note, gamepass is similar to netflix in most ways, except in this case, microsoft is trying to own the rights to everything rather than work out distribution agreements. Also, rather than coming up with compelling new franchises to support the service, they'd rather just buy entire companies with popular franchises. not great for consumers as the consildation of power ramps up and up. Again, gamepass is a good service, but the push to make the gaming industry about games-as-a-service, rather than products, is incredibly anti-consumer. Remember what sony did with P.T. and removing it from people's consoles without consent? we're trying to avoid the industry from having that kind power over every aspect of gaming.

There are other concerns, which are more game-specific rather than gaming in general. in this specific case, they can say they won't do something, but unless it's in a legal contract, their word means less than nothing. even contracts will be quickly broken if the benefits outweight the costs. Let me put it this way: would you see any issues with this game becoming a Gamepass exclusive in the future?

microsoft, sony, nintendo, etc. really don't care about games. the developers do, sure, but not those actually in charge. they just care about profits. that's just what companies do. if they can screw over gamers to make a buck, and maybe won't hurt profits in the long-run, they will in a heart-beat. it's important to pay attention to the long-play moves to consolidate power and push out competition, and how it affects consumers and the gaming industry in the end.

tl;dr: consolidation of power by those who are trying to corner a market is not something that will benefit consumer rights, in a variety of ways. consumer ease would improve, potentially, but that is not the same thing as consumer rights.
 
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LightBeam

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Gamepass is great, but the push to change games from a product to a service is most definitely not.

So the thing people are concerned about is once microsoft beefs up gamepass enough they can stop selling physical games, and maybe even digital games further down the road, they 100% absolutely will. they are also trying to make any other netflix-style game service less viable than theirs by slowly making established multi-platforms microsoft exclusives. This is their plan, with room to pivot if they need to. If you don't care about physical ownership, healthy competition, or game preservation, then this doesn't matter to you. but it should.

as a slight side-note, gamepass is similar to netflix in most ways, except in this case, microsoft is trying to own the rights to everything rather than work out distribution agreements. Also, rather than coming up with compelling new franchises to support the service, they'd rather just buy entire companies with popular franchises. not great for consumers as the consildation of power ramps up and up. Again, gamepass is a good service, but the push to make the gaming industry about games-as-a-service, rather than products, is incredibly anti-consumer. Remember what sony did with P.T. and removing it from people's consoles without consent? we're trying to avoid the industry from having that kind power over every aspect of gaming.

There are other concerns, which are more game-specific rather than gaming in general. in this specific case, they can say they won't do something, but unless it's in a legal contract, their word means less than nothing. even contracts will be quickly broken if the benefits outweight the costs. Let me put it this way: would you see any issues with this game becoming a Gamepass exclusive in the future?

microsoft, sony, nintendo, etc. really don't care about games. the developers do, sure, but not those actually in charge. they just care about profits. that's just what companies do. if they can screw over gamers to make a buck, and maybe won't hurt profits in the long-run, they will in a heart-beat. it's important to pay attention to the long-play moves to consolidate power and push out competition, and how it affects consumers and the gaming industry in the end.

tl;dr: consolidation of power by those who are trying to corner a market is not something that will benefit consumer rights, in a variety of ways. consumer ease would improve, potentially, but that is not the same thing as consumer rights.
Alright so I was writing a fleshed out answer for like 20 minutes and I had a bsod so I'm just going « fast » (in the way I'm not trying to synthetise much, sorry about that it might be too damn long) with what I remember :

I don't think they are going to go full digital and full service. If they go full digital then the story of the Xbox One will probably repeat, and it'll make a good reason for people to stick to Playstation. Full gamepass isn't really a solution either I feel because games do get out of the service (especially solo games, and there are some good surprises, originally I thought it would be only services and stuff that have an incentive to keep you playing them but no) and when they do, Xbox tells you can buy them at a discount if you want to keep playing them. So because I'm on PC I have no incentive since I prefer to get my games on Steam for a multitude of reasons, but on Xbox it can be a great deal.

I can see why games being more services than products is bad but it's been here since Fortnite at least and it's not going away soon, so I'd rather have things be more practical. Gamepass allows me to play some games like Sea of Thieves whenever I want, but also discover good solo pieces and indies. If I can have Call of Duty, that I always kinda liked but despised having to buy a full priced game for it to be irrelevant the next year, especially when Sony has been making deals so the Playstation version has more content and modes ? Screw that

I don't think I care if Microsoft is buying companies instead of talking about distribution deals. The end result is the same : the games are exclusive and I can't play them. Well, in the case of Xbox I can because I play on PC and Switch. Sony has been striving on this for decades now, and sometimes they don't even publish the games, they just spend some bucks. The end result seem similar to me.

Sony did not delete PT from people's consoles. Konami delisted the game, therefore if you deleted the game you couldn't download the game. People who kept it could still play it. Tho I've heard some had seen the game disappear and others said it's due to a bug that has been reported some years ago that would sometimes delete games, so it doesn't seem to be targeting PT specifically.

So far, games being exclusive to gamepass doesn't really exist you still have a way to buy them on the store (and physically most of the time, but you don't get the gamepass discount I guess), so Xbox exclusives ? Well it's the same as Playstation or Nintendo exclusives. I would prefer if there were no exclusives but that's not how that works, so gamepass exclusives ? That depends on how the game keeps it's monetization. If a game like Starfield went only gamepass ? That would be very weird to deny people the ability to pay for a single player game and yeah I would have an issue with that, but I find that also very very unlikely to happen since the service is bound to get more expensive, and even if it does not I'm pretty sure some people will be mad they can't get the game on Steam.

I agree, companies like those don't care much about games, that's true. But we do, and when Microsoft does fuck up people are always there to tell them and if they want to exist they still have to cater to us. Which makes me think that's unlikely they'll suddenly turn completely evil and 100% gamepass only in the foreseeable future. Apart from speculation and fears, I have no substantial elements to conclude that, but I definitely can say it's not completely unlikely. But we're getting even further in it, doesn't matter if Microsoft gets ABK or not.



I only shill for myself. I need Sony to get hurt a bit, for decades they haven't been taking any risks. Blocked crossplay for a while because they wanted to find a way to monetize it first (did it only when Epic paid them), always the first to increase prices when they can. Following Microsoft years later on PC ports because they just follow. Microsoft has to take risks to grow, Sony is just relying on what they have, and I don't like that. I'd rather have the buyout to conclude, so Sony has to take risks and maybe they'll start using their resources to build an alternative to CoD ? Many people have been calling out CoD for SBMM and stuff. It's the time to build a game that would cater to this. XDefiant is already coming up, the absence of CoD on Playstation might make it even bigger on Playstation. That's why Microsoft taking out CoD of Playstation isn't clear-cut.
People who only play games like Fifa and Call of Duty might get an Xbox instead of a Playstation, but Sony still has exclusives, so people might actually have to make a choice when it comes to their console. So far it's just obvious that Playstation is the thing to get between the two. I want that fight to be more serious than ever.
 
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matpower

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See, the lack of foresight strikes again. Osaka laid out a possible future where Microsoft boils the frog slowly and pulls the rug under you, while you're concerned with now, your whole point right now is "it's okay game pass is good microsoft lets us buy the games discounted", meanwhile you can see the rest of the company moving along to offer everything-as-a-service (Office is already there, Windows might be next) and the damage to game ownership on Xbox due to Game Pass is something that some studios have pointed out.
If Microsoft gains a good amount of marketshare and manages to go all in with their service, you'll see a change in opinion between gamers, moving from "I want to buy it, it is mine!" to "eh, it's in Game Pass why bother" naturally, furthermore they might pull a 180° on all those friendly moves as soon as the direction of the Xbox division changes, you will never know.

And either way, the more neutral studios the merrier, Microsoft has already mismanaged everything they have bought out recently for Xbox and I doubt they'll do better with ActiBliz.
 
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Purple_Shyguy

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I'm sure glad the U.K. doesn't have any pull over American companies like Microsoft and Craptivision/Blizzturd. This buyout doesn't need to happen. Microsoft already owns so much shit, it's absurd. I'm shocked they haven't been hit with more antitrust lawsuits after the Zenimax acquisition, tbh.
They don't own more than Embracer or Tencent though. So why should MS be stopped and the others not?
 

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Nice argument, buddy. Let's all commemorate Big Tech buying a company, paying as much as their main competitor is worth and becoming a gaming conglomerate, we all love Big Corps here, right?
Amazing how shortsighted people are, and how well Microsoft sold this "small fish in big pond" underdog narrative when they are arguably the biggest tech company in the world.
Big Tech Company V. Big Tech Company. Everybody loses. Either way, I'd rather see Sony get knocked down a peg for their bullshit.
 

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The idea that Microsoft would withhold Call of Duty from Sony is idiotic. You know much money they would lose from the fuckin’ rubes who pay $20 for a skin?
Normally I am inclined to agree but Microsoft could take this as an opportunity to cut out a competitor. Large corporations taking losses to snuff out competitors is an old tactic.
I really do hope they don't do that but I can see where some of the anxiety comes from.
This is worth noting that I am not saying Microsoft is going to do that or even that it's likely that they would but that there is a history of this practice being used in the past. This is a method that you see with big box stores and shit.
 

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Yall arguing about exclusivities and Call of Duty here forgetting that both have competed (terribly I might add) in some of the worst exclusivity practices this side of the business all within the last twenty years.

I just want a damn remake or remaster of The Simpsons Hit and Run and quite a bit of the back catalog of ActiBlizz see new life breathed into it. There were some amazing and wholesome games that came out over the last 37 years from publishers and developers that have been acquired by Activision.
 

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what about Hi-Fi Rush? Grounded? Sea of Thieves?
that's 3. i am happy you can buy a physical copy of sea of thieves. hadn't heard of the other two, though. I stick to physical usually, so maybe that's why. hopefully they do more like that, rather than just buy out franchises.

They don't own more than Embracer or Tencent though. So why should MS be stopped and the others not?
yes, they're all in a race to acquire all the other money producing game companies. Microsoft's issues come from it being this particular franchise and the rather large purchase price. not sure if there's a law that activates after a certain amount of money is offered for a merger or what. but yes, it is all the same issue. Consolidation of power. it's not too bad at first, especially on the surface and it's about rescuing failing companies, but there is a point where it starts becoming increasingly anti-consumer.
 

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Would allowing Microsoft to buy Activision Blizzard be a monopoly situation? Yes, absolutely.
Would I still want it to happen, knowing the ramifications? Yes, begrudgingly.

Why? Two big things:
  • Even as backwards as the United States has been regarding enforcement of laws against businesses, it has rules in place and a precedent towards dismantling a monopoly. Heck, it's already had a hand in slapping down Microsoft for that very thing before.
  • It gets Bobby Kotick out of the industry.
The last one in particular, makes the acquisition worth it. Just wish they'd also dump Todd Howard, too, while they're at it. Both of those jokers shouldn't be allowed within the same state lines as a game development studio.
 

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Nice argument, buddy. Let's all commemorate Big Tech buying a company, paying as much as their main competitor is worth and becoming a gaming conglomerate, we all love Big Corps here, right?
Amazing how shortsighted people are, and how well Microsoft sold this "small fish in big pond" underdog narrative when they are arguably the biggest tech company in the world.
Sorry man, this just isn't true. Sony Interactive Entertainment is the largest game publisher in the world and if Microsoft acquires Blizzard/Activision, Sony remains the largest. It would merely put MS tied with Tencent for 2nd place.

Ofcourse, I agree with the overall sentiment that acquisitions are bad for consumers, I just needed to correct what I see.

All in all, it bothers me more when small companies are sucked up by major conglomerates. The case here isn't as big a deal in my eyes. Activision was already an evil conglomerate, and arguably won't be more evil under Microsoft.
 

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Sorry man, this just isn't true. Sony Interactive Entertainment is the largest game publisher in the world and if Microsoft acquires Blizzard/Activision, Sony remains the largest. It would merely put MS tied with Tencent for 2nd place.
Sony's net worth should be around $108 billion USD today, meanwhile Microsoft dropped $68.7 billion USB in cash, it was a hyperbolic but neither Nintendo nor Sony could pull off something like that AFAIK.
 

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