Microsoft CEO Satya Nadella has come out in support of the company’s proposed acquisition of Activision Blizzard, arguing that the move will actually increase competition in the gaming industry. Nadella talked about Microsoft’s plans to buy Activision Blizzard at the World Economic Forum in Switzerland. He said that Microsoft wants to do this so it can compete better with bigger companies like Sony and Tencent.
In the US, the Federal Trade Commission is trying to stop the deal by filing a lawsuit against Microsoft. Microsoft claims it previously offered a peaceful resolution an opportunity before deciding to defend itself in court. At the same time, reports indicate that the European Union is getting ready to issue an antitrust warning regarding the proposed sale.
According to Microsoft, Call of Duty would still be available on PlayStation consoles if its acquisition by Activision Blizzard goes through. Microsoft has stated that it would be “disastrous” for business if Call of Duty were to become Xbox-exclusive.
The mobile gaming market is one of the largest and fastest-growing sectors of the gaming industry. But Microsoft does not currently have a significant foothold there. This is one reason why Microsoft is pursuing the Activision Blizzard acquisition with such vigor.
Microsoft CEO Satya Nadella stated at the World Economic Forum that the company plans to integrate artificial intelligence systems into all of its future products. When it comes to artificial intelligence (AI), “some of the same AI capabilities will completely transform the product,” Nadella said. According to reports, Microsoft is planning to announce a $10 billion investment in the startup OpenAI. It has received a lot of attention for its ChatGPT product.
Reuters reports that the European Commission (EU) plans to publicly object to Microsoft’s proposed acquisition of video game publisher Activision Blizzard in the coming weeks, throwing a wrench into the software giant’s expansion plans.
Microsoft needs the approval of a number of regulatory bodies around the world in order to complete the purchase. It is already in a lawsuit with the US Federal Trade Commission (FTC), which is against the sale. Microsoft can make suggestions to appease the bodies, but the process has already turned bitter, which doesn’t help.
Microsoft said, “We’re continuing to work with the European Commission to address any marketplace concerns.” The commission did not respond to Reuters. This deal will help us bring more games to more people.”
The comment backs up Microsoft’s claim that it doesn’t want to create a monopoly by buying Activision Blizzard. This is Microsoft’s mantra in the face of worries that multibillion-dollar franchises like Call of Duty could become Xbox-only games in the future. Microsoft has struggled to address these concerns recently.
Both parties can appeal the Microsoft/FTC lawsuit’s summer trial. Microsoft will then have to appease the EU Commission and other groups in a similar way. This will make the Activision Blizzard purchase, which I don’t think MS will back out of, take a very long time.