UK Regulator Warns Microsoft's Acquisition of Activision Blizzard May Harm Gamers

A provisional report by the UK's Competitions and Markets Authority suggests that Microsoft's acquisition of Activision Blizzard may reduce competition in the console and cloud gaming markets. The regulator believes that Microsoft may make popular titles like Call of Duty exclusive to Xbox or its cloud service, resulting in higher prices, fewer game options, lower quality, and reduced innovation. The CMA is concerned that this could harm current and future gamers. Microsoft and other parties have been invited to respond to these findings by March 1st, 2023. The regulator is open to possible remedies, including divesting parts of the business or imposing licensing agreements. Microsoft has offered to grant long-term equal access to Call of Duty to other companies, including Sony, Nintendo, and Steam, but the CMA remains concerned about the potential impact on competition. The investigation found that 24% of Call of Duty PlayStation gamers would switch to Xbox if the franchise became exclusive, highlighting the potential risks to Sony's console business. The CMA's findings follow similar concerns raised by regulators in the US and Europe, and Microsoft will need to address these concerns to reassure regulators and complete the acquisition.