Microsoft and the CMA Concur: Cloud Gaming is the Future | Opinion

The real issue at hand is not about Call of Duty or the console wars, but rather the burgeoning cloud gaming industry and the potential for Microsoft to monopolize it. The UK's Competition and Markets Authority (CMA) has blocked the acquisition, citing concerns over Microsoft's potential to stifle competition and innovation in the cloud gaming space. This decision is not about the console market, where Microsoft trails behind Sony and Nintendo, but about the future of gaming, which both Microsoft and the CMA believe will be dominated by cloud gaming and subscription-based services. The CMA's ruling is a response to Microsoft's own assertions about the importance of cloud gaming, and the company's attempts to acquire Activision Blizzard would have given it an unparalleled advantage in this nascent market. While some may argue that the deal would have promoted competition in the console market, the CMA's concerns about cloud gaming and subscription services are valid, given Microsoft's dominance in this area. The company's proposed remedies, which focused on cloud streaming rather than subscription models, were seen as insufficient, and the CMA's decision reflects its desire to protect consumers and promote innovation in the cloud gaming industry. Ultimately, the fate of the deal will depend on whether the benefits of increased competition in the console market outweigh the potential risks to the cloud gaming industry.