Microsoft's Brussels Presentation: A Masterclass in PR, but Key Concerns Remain

Microsoft's arguments for its acquisition of Activision Blizzard have been bolstered by a slick presentation to the European Commission, complete with a PR blitz and strategic announcements. The company's commitment to multi-platform releases has been re-emphasized, with ten-year commitments to launch Call of Duty titles on Valve's Steam and Nintendo platforms. Additionally, Microsoft president Brad Smith revealed a deal ready for Sony's signature, which would grant the company the same benefits. However, the most significant aspect of Microsoft's strategy may be its carefully timed announcement of a deal with Nvidia, which has cleared up opposition from the chip-maker and left only Sony and Google opposing the deal. This development is likely to have the most impact on the European Commission's decision, as it suggests that Microsoft's negotiations over concessions are providing effective solutions. The agreement to put Xbox titles on the GeForce Now cloud gaming platform may also be seen as a concession on the rapidly growing market of game subscription services. Despite this, Microsoft's concessions do not address the core concerns surrounding the deal, particularly regarding Game Pass' potential dominance in the game subscription market. The company's strategy has been to distract from this issue, and it has achieved this at zero cost to itself, undermining none of the value it was seeking from the deal. If regulators accept these deals as sufficient concessions, Microsoft's negotiators will have pulled off a significant coup, using smart distraction tactics to secure approval for a controversial deal without addressing the reasons for that controversy. However, this may not be a great outcome for the industry at large, as it could lead to a future where Game Pass becomes too established for any challenger to get a toe-hold, leaving publishers with no choice but to accept Microsoft's terms if they want to have access to any kind of sizeable audience.