December 9, 2022

Microsoft document defending Activision Blizzard acquisition appears online

Microsoft is going through a long process of convincing agencies around the world that its nearly $70 billion purchase will not create a monopoly or harm consumers. How will you do this? Well, if you are curious to know, we have some information.

ReseteraIdas user Analyze the document that Microsoft joined New Zealand (we are 81 pages), and while some parts are completely confidential, others are public.

Here are some Microsoft advocacy topics for acquisition approval:

  1. Microsoft claims to have 24 studio From first party games. Until then, ours was 23, but the company included the famous Windows developer “Solitaire”.
  2. The tecent Mentioned 23 times in the document! Remember it’s the company in the gaming world with the highest revenue, so it wouldn’t be any different. In addition to Sony A new PS Plus offering that competes with Xbox Game Pass is also being considered.
  3. Lots of references to beginners in the gaming industry (An appleAnd the NetflixAnd the AmazonAnd the GoalAnd the The GoogleAnd the nvidiaetc.), how easy it is to start a studio nowadays and create a super successful game even with only one developer (for example, Flappy Bird was mentioned).
  4. valve And the epic They are also frequently mentioned as competitors after the deal.
  5. Call of dutyAnd the world of cans And the candy crush It represented 82% of Activision Blizzard’s net revenue in 2021. This may mean that these franchises will be cross-platform, but others may be exclusive.
  6. – Japanese competitors are not many, in fact it is nintendo And the Bandai NamcoThere is no mention of SEGA, Capcom, Konami, Square Enix, etc. In fact, they also include roblox or red cd project as competitors. It makes economic and legal sense because CD Projeckt RED was the most valuable gaming company in Europe in 2020 and Roblox had around 190 million players per month on average in 2021.
  7. Another important topic was online advertising, cloud services and merchandising are also relevant markets for this acquisition, but we don’t think the deal will cause competition issues in these markets.
  8. They say that too There is nothing unique In games developed and published by Activision Blizzard and are “Is mandatoryTo compete with PC and video game distributors. So that the new competitor can do what it does and succeed (it’s true, but not everyone has more than 3,000 developers working on one IP address).

Well, these are some of the arguments Microsoft uses to get approval for the acquisition. Note that the company wants to explain how The market has many competitors This is far from a monopoly with it.

Apparently, it will be in front of the FTC until today August 15 To give her decision with approval or not, but if she is not convinced she can ask for new documents. The UK is expected to respond on 1 September. As such, there is a possibility that some paid content from Overwatch 2 or Call of Duty Modern Warfare 2 will be released directly on Xbox Game Pass in October!

But beware, the deal may not go through, new documents may be needed, and it may end up going to US courts, so this is still cause for celebration. We have to be patient because it may be soon or not.

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