Microsoft announced its intent to acquire Activision Blizzard, the maker of Call of Duty, in January, 2022. The merger is supposed to be worth $68.7 billion. Microsoft is the maker of the Xbox gaming console and Activision Blizzard is one of the largest game developing companies in the world.
The deal has not been taken well by either the government or the gaming community. The Federal Trade Commission had filed a complaint against Microsoft on December 9, 2022. Now the gamers have also lodged a complaint against the tech giant.
According to the complaint, “The proposed acquisition would give Microsoft far-outsized market power in the video game industry.”
After the acquisition Microsoft will be in control of some extremely popular games like World of Warcraft, Overwatch, Candy Crush, and last but not the least, Call of Duty.
The latest version of Call of Duty, Modern Warfare 2, generated $1billion in sales in the first weekend after its launch. Add to that the billions of dollars spent by millions of gamers on in-app purchases and subscription charges. This gives Microsoft an enormous amount of power and could very well lead to a monopoly in the videogame industry.
Microsoft will have the “ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”
This is something that did not sit well with the regulatory authorities of the USA, the UK and the EU. So, now Microsoft is facing multiple lawsuits and serious opposition from Sony, the makers of Play Station.
Play Station is a rival gaming console which has been giving Microsoft a serious run for its money lately. The fact that Sony has been out selling Xbox for a while is one of the key triggers of the deal between Microsoft and Activision Blizzard.
Microsoft president Brad Smith has clearly denied the accusations made against them. According to him, the deal will bring more games to the audience with increased rapidity. Activision spokes person has a similar view.
Despite what’s being told by the merging companies, the gamers feel that Microsoft will now have the power to sabotage the gaming experience of games like COD and World of Warcraft on Play Station. And Microsoft will have to fight to get this deal through.