The largest gaming deal ever to be approved in Britain
Microsoft’s $69 billion purchase of Activision Blizzard has received preliminary approval from Britain’s Competition and Markets Authority (CMA), paving the way for the largest gaming transaction in history to be finalized.
In April, the CMA had vetoed the purchase because of worry that Microsoft would come to dominate the emerging cloud gaming sector. In an effort to win over the regulator, Activision Blizzard has agreed to transfer its streaming rights to Ubisoft Entertainment.
Microsoft’s promises to license Activision’s games to other platforms were sufficient for the European Union Commission to approve the acquisition in May. The United States Federal Trade Commission continues to oppose the purchase, but its efforts to halt the transaction have so far been fruitless.
Since the CMA is one of the final major authorities to decide on the transaction, its temporary clearance is a big win for Microsoft. The transaction may close as early as 2023 if the CMA’s final verdict is likewise favorable.
The Deal’s Possible Consequences
There are several ways in which the purchase of Activision Blizzard might alter the video gaming market.
Creating a new gaming behemoth via this merger has the potential to improve both competition and innovation in the sector. Microsoft and Activision Blizzard have already established themselves as industry leaders, and a merger of their respective resources might pave the way for even more ground-breaking innovations in the future.
Activision Blizzard’s many successful brands have broad appeal, making gaming more welcoming to women and people of many backgrounds.
The merger of Activision Blizzard and Microsoft has the potential to increase diversity and inclusion in the video gaming industry.
The inclusion of Activision Blizzard’s titles would make Microsoft’s Xbox Game Pass, currently the largest cloud gaming service, more appealing to users. This has the potential to increase the popularity of cloud gaming and make it more widely available to players all around the globe.
The transaction may potentially result in alterations to the current state of the gambling industry. Microsoft may reward its Xbox and PC users with special content or early access to updates. Microsoft may start bundling Activision Blizzard’s titles with its Xbox systems and Game Pass service, making it more difficult for players to get these games on other platforms.
In general, the purchase of Activision Blizzard represents a significant development in the gaming business. There is little doubt that the transaction will have far-reaching effects on the market and on gamers, but it is too early to determine with precision what those effects will be.
The purchase of Activision Blizzard may have other repercussions for the video gaming industry beyond those already mentioned. For instance, Microsoft may begin charging more for Activision Blizzard’s games on its own platforms, which might lead to increased retail costs for video games. Microsoft may begin pulling Activision Blizzard’s games off competing platforms, limiting players’ options.
Microsoft’s management of Activision Blizzard’s company will determine the deal’s ultimate effect. Nonetheless, it’s not hard to see how this transaction may radically alter the video game market.