Has Microsoft Successfully Addressed European Concerns Over Its Acquisition of Activision Blizzard?

Microsoft recently held a press briefing where the company's Brad Smith showcased a contract ready to be signed with Sony, emphasizing the firm's commitment to keeping Call of Duty accessible on various platforms. This move was part of a series of strategic PR maneuvers, including the announcement of Nintendo and Nvidia's agreements to bring Call of Duty to their platforms for the next decade. The goal was to alleviate concerns that Microsoft might make the game exclusive to Xbox, thereby undermining PlayStation's ability to compete. Although creating contracts that account for the gaming industry's unpredictable nature over the next ten years will be challenging, Microsoft hopes these efforts will be sufficient to address regulatory concerns. Another crucial announcement was Microsoft's decision to make its Xbox games, including Call of Duty, available on Nvidia GeForce Now, a streaming service. This move aims to counter concerns that the acquisition could lead to Microsoft dominating the gaming industry, particularly in the emerging market of game streaming. By bringing its games to Nvidia GeForce Now, Microsoft seeks to demonstrate its commitment to fair competition and accessibility. The company highlighted that this deal would enable 150 million more devices to access Call of Duty, increasing its availability to a broader audience. Microsoft also emphasized its position as a relatively small player in the gaming market, citing PlayStation's significant market share in Europe and the presence of other major players like Google, Apple, and Tencent. However, this argument may be difficult to sell, given Microsoft's status as a large corporation. The presentation by Microsoft was deemed coherent and measured, with Brad Smith showcasing his ability to navigate complex discussions. In contrast, Activision Blizzard's statements, including a tweet from EVP Corporate Affairs and CCO Lulu Cheng Meservey, were seen as less respectful and more divisive. The company's approach to managing its relationship with PlayStation, a crucial partner, has been called into question. Additionally, comments made by Bobby Kotick about the UK regulator's potential decision have been perceived as misinformed and unlikely to sway the regulator's opinion. As the acquisition saga continues, Microsoft may have made progress with the European Commission, but the true challenge lies in convincing the UK regulator, the CMA. With only two weeks to address the CMA's concerns, Microsoft must present a compelling case to avoid the need for 'structural remedies,' such as selling off parts of the business. The outcome remains uncertain, with the CMA's decision potentially determining the fate of the deal.