British Antitrust Agency Offer to sell popular Call of Duty franchise Leave before Microsoft Acquires Activision Blizzard Fear of the deal will affect the gaming market Harming gamers on a large scale
On February 9, 2023, the UK Competition & Markets Authority told Microsoft Corp. on Wednesday: Due to concerns that Microsoft is working on acquiring Activision Blizzard, it will create a competitive monopoly. affects a wide range of gamers That worry will go away if Microsoft “sells” or “diversifies” the Call of Duty franchise.
By Activision Blizzard, the publisher and publisher of many famous game franchises such as Call of Duty, World of WarCraft, StarCraft, Diablo, etc.
Previously, the giant deal between Microsoft Corp and Activision Blizzard was worth $69 billion. This was prevented by Sony, which has complained to regulators in several countries that if Microsoft buys the company, it will force the game to be sold only on its console or platform (Xbox, PC Xbox pass), which will affect Play players. Station, as well as affecting gamers who are forced to use Microsoft platforms only.
Sony also emphasizes that The game that will make a big impact is Call of Duty, one of the most played game franchises in the world. and the most profitable in the world.
Microsoft has responded that it intends to complete the $69 billion deal, but withdrawing Call of Duty, one of the world’s most profitable gaming franchises. This raises questions about the economic value of the transaction.
Call of Duty is a treasure trove of the gaming industry.
Call of Duty is a first-person shooter action game (first-person shooter game) set against the backdrop of one of the most important wars in history. With a weapon simulation system, shooting and spectacular effects, it has been a popular game for many sectors.
The games in the Call of Duty series are 20 years old, releasing new games every year. Over the course of the franchise, Call of Duty sold more than 425 million copies and grossed more than $30 billion.
Bloomberg cited a Washington Post report that the game’s revenue It is a stable source of income and has long been popular with players. It is the most important part of the Activision Blizzard company and is also a great revenue attraction for Microsoft as it owns the game unit serving dozens of studios. and the Game Pass subscription service and Xbox consoles, which benefit from gamers liking the game and subscribing to Xbox Game Pass to play on PC, as well as purchase to play on Xbox.
The latest installment in the Call of Duty series, Modern Warfare II, launched last October, surpassed $1 billion in sales in 10 days and became the best-selling game of 2022, according to research firm NPD Group. industry
As video game sales across the industry slowed in 2022, Modern Warfare II led Activision’s 2022 fourth quarter results, delivering a 43% increase in company revenue growth. most in nine quarters
The big deal will drive up prices, worse service on game consoles.
A report by the UK Competition & Markets Authority (CMA) raised concerns about the viability of the deal. That would jeopardize competition in the console gaming market between Sony Group Corp.’s Xbox and PlayStation if Call of Duty became exclusive to the Xbox ecosystem, which also includes the Xbox app on PC. It would greatly undermine the appeal of PlayStation that consumers have.
“In CMA’s survey of PlayStation users who play Call of Duty, 24% of players will switch consoles if a Call of Duty game becomes Xbox exclusive, which reduces the competition between Microsoft and Sony, which could have an effect. Let all gamers experience higher service fees. lower quality and deteriorating service on game consoles over time,” the CMA said in a statement.
The CMA proposes several “deal structure” amendments that can help get the deal through. But none of them are likely to be liked by Microsoft.
Editing the Deal Structure Including proposing that Activision Blizzard sell its Call of Duty-related businesses first, since Activision Blizzard operates as three separate studios working on the Call of Duty franchise, as well as a number of affiliates. support this game
Other possible restructurings include the spin-off of Activision, a division of Activision Blizzard Inc., which accounts for one-third of the company’s operating income, and Blizzard, the other division that created it. behind World of Warcraft and Diablo (Activision merged with Blizzard in 2008 in a deal with Vivendi SA, which owned Blizzard).