Microsoft's Bid to Acquire Activision Blizzard: Has the Company Done Enough to Win Over Europe?

This article has been revised for clarity and accuracy, including a correction regarding the timing of a tweet from an Activision Blizzard executive. During a press briefing, Microsoft's Brad Smith produced a contract from an envelope, stating he was ready to sign it at any time. This gesture was part of a series of carefully planned PR moves designed to bolster Microsoft's argument for acquiring Activision Blizzard. The company's strategy included statements from the US trade union, Communication Workers of America, and announcements about Nintendo and Nvidia signing contracts to bring Call of Duty to their platforms for ten years. Two key announcements stood out: the Nintendo contract and Microsoft's commitment to making Xbox games, including Call of Duty, available on Nvidia GeForce Now. These moves aim to alleviate concerns that Microsoft might make Call of Duty exclusive to Xbox, hindering PlayStation's ability to compete. By bringing its games to Nvidia GeForce Now, a streaming service, Microsoft hopes to counter concerns about its potential dominance in the gaming industry, particularly in the emerging market of game streaming. The company claims that 150 million more devices will be able to access Call of Duty if the deal is approved, increasing the game's availability to a broader audience. Microsoft also emphasized its position as a smaller player in the 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 challenging to make, given Microsoft's status as a large corporation. The company's presentation was coherent and measured, but Activision Blizzard's statement and subsequent tweets were less so, potentially damaging their case. The situation is further complicated by Activision Blizzard's complex relationships with its partners, including PlayStation. As the acquisition saga continues, Microsoft faces significant hurdles, particularly in the UK, where the regulator has requested 'structural remedies' that Microsoft has rejected. With only two weeks to convince the UK regulator, the outcome remains uncertain.