Microsoft and Ubisoft Address CMA Concerns Over Activision Blizzard Acquisition | Opinion

The future of gaming may involve streaming rather than downloading games, but for now, this remains a speculative concept. A key concern for the CMA is whether Microsoft's potential acquisition of Activision Blizzard would grant the company an unfair advantage in the gaming industry. Currently, there are more questions than answers regarding the potential impact of this acquisition on the gaming landscape. Microsoft is well-positioned to capitalize on the growth of cloud gaming, given its robust global cloud infrastructure, extensive game library, and significant resources devoted to game development. However, it is uncertain whether Microsoft would be able to dominate the market, as the current data is limited and the market itself is still in its infancy. Regulators have been cautious in their approach, recognizing that past decisions have sometimes had unforeseen consequences. To alleviate concerns about potential market dominance, Microsoft has offered to license Activision Blizzard games to other streaming services for a period of 10 years. Despite this, the CMA remains skeptical, citing Microsoft's continued control over the terms and pricing of these licenses. The recent announcement that Microsoft will sell the streaming rights to Activision Blizzard games for the next 15 years is a significant development, as it would transfer control to a trusted company with a history of supporting multiple cloud services. The 15-year timeframe is substantial, covering two console generations and potentially paving the way for significant growth in the cloud gaming market. However, the CMA considers this a new proposal, requiring a fresh review process, which may be undesirable for all parties involved. This development sheds light on Microsoft's perspective on cloud gaming, suggesting that the company may not be prioritizing this aspect of the gaming industry in its acquisition of Activision Blizzard. It is possible that the true motivation behind the acquisition lies in the mobile and PC gaming markets, rather than cloud gaming.