Nvidia and Google Throw a Wrench into Microsoft’s FTC Problem
Microsoft’s purchase of Activision Blizzard runs into yet another issue.
Microsoft announced it would purchase Activision Blizzard for $68.7 billion back in January 2022. The acquisition was one hell of a surprise. Microsoft had already bought a large number of studios like Double Fine and Bethesda. This came just after the Xbox One was criticized for not having any games for their console compared to the PS4’s first-party lineup. The main difference between this sale and the others? Activision Blizzard controls some of the heaviest mainstream hitters in gaming, including Call of Duty and Candy Crush.
Sony, the loudest opponent against the merger of the companies, is arguing that Call of Duty is too big a franchise to be controlled by its competitor. It would give Microsoft, Sony’s competitor, an unfair advantage if they ever decided to make it exclusive to Xbox and PC. Microsoft responded to these claims, saying that Call of Duty is actually not all that unique when it comes to games. And in a strange confession, Microsoft also said that Sony has way better games than Xbox does, and therefore doesn’t need Call of Duty.
Phil Spencer, CEO of Microsoft Gaming, has gone on record saying that the company has no plans to restrict Call of Duty to Xbox consoles. Microsoft has even offered Sony the same 10-year deal it forged with Nintendo. He also explained that Call of Duty isn’t even the main reason for the purchase – it’s Activision Blizzard’s mobile division that Microsoft was after.
Unfortunately for Microsoft, the purchase has caused some upset with more companies than just Sony.
Here Come Some New Challengers!
Microsoft has been trying to get approval for the purchase from the UK’s Competition and Markets Authority and the European Union Commission. But its biggest hurdle comes from the U.S. Federal Trade Commission (FTC). The FTC is seeking to block the merger on grounds similar to Sony’s complaints of unfair advantages.
Several previous acquisitions made by Microsoft and Sony have gone through without issue. Some have speculated that the FTC is using this merger to set an example for “Big Tech”. Microsoft has been trying to convince the FTC that the merger should go on without issue. The company’s first filing involved calling the FTC unconstitutional.
Making matters worse for Microsoft, Bloomberg reported that both Google and Nvidia also oppose the merger. Nvidia is known as the biggest seller of graphic cards used in PC gaming, but they also have a PC gaming streaming service called GeForce Now. Meanwhile, Google tried its hand at cloud gaming with Google Stadia, but that’s shutting down soon. The company still has major control over mobile gaming thanks to Android’s Play Store and its game library.
Both companies have told the FTC that they think Microsoft could gain an unfair advantage in cloud, subscription, and mobile-based gaming. Nvidia has stated that it’s not directly opposed to the merger. But it “stressed the need for equal and open access to game titles.”
via Microsoft
Microsoft has an uphill battle with the FTC to get this merger through. It’s hard to really pick a side. We won’t really know what effect it will have on the gaming landscape until it goes through.
Let us know in the comments what your thoughts are on the Microsoft-Activision Blizzard merger.
“In order for this merger to stay attractive to our friends at Kabletown we have to seem like a sexy and profitable company and we’re almost pulling it off.” – Jack Donaghy
