Microsoft has won, A new era in Gaming has begun

in Hive Gaming10 months ago

Just when gamers couldn't seem to get any more freebies this year it seems that the golden age of gaming seems to be just beginning.

This year we've seen Playstation and Nintendo break through in movies and TV in a big way, some great releases in the first quarter of the year and now comes the big one.

Microsoft's purchase of Activision-Blizzard has always held a halo (wink wink) of fascination for me, it's the biggest acquisition of one studio by another studio and I think it's one of the biggest purchases of any company in history, just the thought of a video game company being on one side of the equation already stirs up some feelings in me.

The obstacle in the way was the Federal Trade Commission (FTC), which in one of those moves typical of state governmental bodies, temporarily blocked the purchase and sued Microsoft to exterminate the intentions of acquiring Activision-Blizzard.

The FTC believed that this acquisition would give Microsoft (Xbox) too much power in the videogame market, with special attention to the possibility of making exclusive a part of Activision's IPs.

Just so you can measure it, Activision-Blizzard owns some of the biggest names in gaming, billions (yes, with a b) wait for releases of titles like Call Of Duty or play titles like Warcraft or Overwatch, those are just a few of the big pie that this studio has.

The point is, they're massive.

And that's why the FTC went ahead with a lawsuit to keep Microsoft out of it, also the UK CMA was keeping an eye on this lawsuit because it has its own concerns about it, the hearings went on for months but a week ago both gave their final arguments and it was only a few hours ago that the judge has given a verdict.


Microsoft's purchase of Activision has been described as the largest deal in the history of the technology sector. It deserves investigation, and this scrutiny has paid off: Microsoft has committed in writing, in public and in court to keep Call of Duty on PlayStation for 10 years at parity with Xbox. It has reached an agreement with Nintendo to bring Call of Duty to Nintendo Switch. And partnered with different companies to bring Activision content to various cloud gaming services for the first time. This Court's liability in this case is limited. It is to decide whether, despite these present circumstances, the merger should be halted, perhaps even rescinded, pending resolution of the FTC's administrative action. For the reasons explained, the Court finds that the Commission has not demonstrated a likelihood of prevailing on its claim that this particular vertical merger in this specific industry may substantially lessen competition. On the contrary, the evidence in the file points to increased consumer access to Call of Duty and other Activision content. Accordingly, there will be no injunctive relief. "


There is still some leverage the FTC can use to extend the stay a little longer, they can appeal the case and start an extra measure to try again in another court, but it looks like for the time being Microsoft has caught a break on one front and is closer than ever to completing the purchase.

There was also the risk that Microsoft would have to pay a billion-dollar clause (3,000 billion!!) if the purchase did not go through by July 18, so the Redmond offices must be having a party.

There is no information on Activision-Blizzard's role in the coming months, although there is some speculation that we could be seeing a Call Of Duty very soon, most of Microsoft's plans for the studio remain a mystery at the moment.

There's not much comment yet from Microsoft's top management but I think it's pretty clear that today marks the beginning of a new era in gaming, for better or worse.


All yours, @slashint - Gamer, Video Game Analyst.

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What Microsoft has to do to save itself, to buy a company to create a monopoly, unbelievable.