An in-depth second phase investigation will now go ahead
Evidence on the potential effects of combining Activision Blizzard’s products with Microsoft’s console, cloud and PC businesses had been provided to the first phase of the CMA’s investigation, which they felt could damage competition in the developing cloud gaming market. Microsoft and Activision Blizzard now have five working days to address the CMA’s concerns. If the companies don’t manage to do that then the deal will be referred for a second phase investigation by an independent panel of experts. They’ll engage more with third-parties and have powers to gather internal documents.
Microsoft Gaming’s CEO Phil Spencer hasresponded publiclyto the CMA’s decision with a statement titled “gaming for everyone, everywhere”. Spencer acknowledged that Microsoft intend to bring Activision Blizzard’s stable of games, includingOverwatch, Diablo and Call Of Duty, to the Game Pass streaming service in the future. He also committed Microsoft to making Call Of Duty available on PlayStation the same day it launches on other platforms, with version parity, pointing to the example of Minecraft as a cross-platform success story.
“We will continue to engage with regulators with a spirit of transparency and openness as they review this acquisition. We respect and welcome the hard questions that are being asked,” Spencer said. “The gaming industry today is robust and dynamic. Industry leaders, including Tencent and Sony, continue to expand their deep and extensive libraries of games as well as other entertainment brands and franchises, which are enjoyed by players everywhere.” Spencer is likely referring to Tencent and Sony’s increased investment inElden Ringdevelopers FromSoftware,revealedyesterday.
You can read the CMA’s full report on their findings from the first stage of investigationhere. This is usually the point where I bring up how the consolidation of the games industry is continuing apace. That might not be the case, this time. I’ll continue to bring you any more developments as the CMA’s investigation into the deal continues.
