Things are heating up as Microsoft continues to push for the completion of the Activision-Blizzard acquisition. Various reports have been shared over the last few weeks, including one report that claims the FTC “is likely” to sue over the deal while other reports say a rift at the FTC may lead to a favorable outcome for Microsoft.
The @FTC blocking our acquisition of @ATVI_AB would make the gaming industry less competitive and gamers worse off. This deal is good for competition, consumers, and thousands of game developers. @Xbox https://t.co/HZpbkRd68o— Brad Smith (@BradSmi) December 5, 2022
Out of all of this comes an opinion piece from Microsoft President Brad Smith in which he shares his thoughts on why this potential deal would lead to a better gaming industry.
Smith goes on to say that “Microsoft faces huge challenges in the gaming industry. Our Xbox remains in third place in console gaming, stuck behind Sony’s dominant PlayStation and the Nintendo Switch. We have no meaningful presence in the mobile game industry. That segment of gaming generates the most revenue and is the fastest-growing, but a significant portion of the revenue goes to Google and Apple through their app-store fees.”
Smith also responds to outcries from Sony, saying “Sony has emerged as the loudest objector. It’s as excited about this deal as Blockbuster was about the rise of Netflix. The main supposed potential anticompetitive risk Sony raises is that Microsoft would stop making “Call of Duty” available on the PlayStation. But that would be economically irrational.”
With this opinion piece it is clear that major developments in the Activision-Blizzard acquisition are quickly approaching. Many of the world’s regulators including the FTC are expected to make decisions on whether to let the deal pass through or take legal action in the coming months.