The UK’s Competition and Markets Authority has updated its provisional findings in the pending acquisition of Activision Blizzard by Microsoft. The changes reduce the areas of concern with regards to the merger case, following the initial wider findings in the first report released last month.
After providing new evidence and statements, including more data about Call of Duty gamers’ activities and how they buy and play, the CMA believes that concerns over reduced competition in console gaming were overstated.
In the update, the CMA now says that:
“The CMA has received a significant amount of new evidence in response to its original provisional findings. Having considered this new evidence carefully, together with the wide range of information gathered before those provisional findings were issued, the CMA inquiry group has updated its provisional findings and reached the provisional conclusion that, overall, the transaction will not result in a substantial lessening of competition in relation to console gaming in the UK.”
What seemingly swung this update included new data showing that while making Call of Duty an Xbox exclusive would still be profitable, “this strategy would be significantly loss-making under any plausible scenario”. Microsoft has signed a number of deals in different regions to keep Call of Duty releases on different platforms for the next 10 years if the deal goes through. Nvidia GeForce NOW, Nintendo, Steam, and Sony have been offered deals, among other platforms, with those mentioned other than Sony having signed on or saying such a deal wasn’t needed.
Activision Blizzard spokesperson Joe Christinat gave an official statement on the new updated report.
“We appreciate the CMA's investment in an industry they helped pioneer, and that will continue to be vital for growth in the UK. That foresight and understanding of our industry is why the UK has been a leading source of innovation in gaming -- we're confident it will remain so in the future. The CMA’s updated provisional findings show their deepened understanding of console gaming and demonstrate a commitment to supporting players and competition.”
The final report from the regulatory agency is due by April 26th, so things might still change further. The subject of competition in cloud gaming is an area that is yet to be decided, but this development is surely a win that moves the deal closer to approval.
