Microsoft acquired Activision Blizzard King for $69 Billion on 2023-10-13

[Nesh]

https://ustr.gov/sites/default/files/files/agreements/japan/Agreement_between_the_United_States_and_Japan_concerning_Digital_Trade.pdf

Again, I think it's a bit of a stretch that this agreement applies to exclusivity in the console space, but the agreement does exist, and is the once cited by US lawmakers as the one Japan/Sony are in violation of. Regardless, a trade agreement does give all parties involved the ability to decide and interpret how companies compete in their home region if there are provisions for it. This one does, as most do.

The agreement in relation to the console space suggests creative and selective interpretation of the US government. The US interprets how Sony and Nintendo compete with each other within Japanese territory to make a case for MS.
The agreement on the other hand is regading relations between US and Japanese trade.

edit: Also it is very ironic how all of a sudden the console gaming specifically became such a huge concern for the US government. The US digital industry very likely owns most of the global economy's market share.
MS obviously contacted the US government through lobbying after they got Sony's documents to make a case.
They are using the agreement to make a case to weaken Sony's ability to make deals with japanese companies which weaken's also its future ability to compete against MS's mergers and acquisitions in the global market. They are basically assisting through loopholes such as local agreements they can find, MS to get a hold of the global market.

 

[see colon]

Yeah, I think it's a stretch in this case as well.

 

[Silent_Buddha]

The agreement in relation to the console space suggests creative and selective interpretation of the US government. The US interprets how Sony and Nintendo compete with each other within Japanese territory to make a case for MS.
The agreement on the other hand is regading relations between US and Japanese trade.

edit: Also it is very ironic how all of a sudden the console gaming specifically became such a huge concern for the US government. The US digital industry very likely owns most of the global economy's market share.
MS obviously contacted the US government through lobbying after they got Sony's documents to make a case.
They are using the agreement to make a case to weaken Sony's ability to make deals with japanese companies which weaken's also its future ability to compete against MS's mergers and acquisitions in the global market. They are basically assisting through loopholes such as local agreements they can find, MS to get a hold of the global market.

You say that as if Sony haven't been lobbying this whole time as well. Sony have spent a lot of time, effort and money lobbying various world governments to move against the acquisition. So, you're saying that Microsoft shouldn't also be lobbying?

Regards,
SB

 

[BRiT]

LOL #Sony may have its outside counsel ghostwrite (parts of) the class-action lawyers' pleadings, but can't do the electronic filings for them because then their involvement would be on full display. And the court just advised those class-action lawyers of a clerical filing error

https://twitter.com/x/status/1650880263516291072

 

[Nesh]

You say that as if Sony haven't been lobbying this whole time as well. Sony have spent a lot of time, effort and money lobbying various world governments to move against the acquisition. So, you're saying that Microsoft shouldn't also be lobbying?

Regards,
SB

Sony went through the processes requested by the regulations to perform an investigation and failed in their efforts like a hard rock falling on concrete.
Lobbying involves behind door favouritism and government collusion to promote a company's interests which apparently MS has with the US government and Sony doesn't as all governments including Japan favored the deal.
And yes MS shouldnt be lobbying.

 

[Silenti]

Microsoft preparing to close Activision deal despite FTC suit: sources

Microsoft is making plans to complete its $69 billion acquisition of Activision Blizzard — despite the Federal Trade Commission’s December move to block the deal over antitrust concerns, The …

nypost.com

We knew it was coming. Still going to be interesting to see.

 

[chris1515]

https://twitter.com/x/status/1651179527249248256

The deal is blocked

EDIT:

https://assets.publishing.service.gov.uk/media/6448f377814c66000c8d067f/Microsoft-Activision_FR_Summary.pdf

Final summary from CMA

 

[snc]

Quite funny, all this battle and reason for blocking has nothing to do with Sony ;d

 

[Shifty Geezer]

Quite funny, all this battle and reason for blocking has nothing to do with Sony ;d

Good. Keeps the highly prejudiced console-wars narrative out of the result and discussion about the block on Cloud Gaming, not silly market definitions and COD!

What exactly does this block do to MS and Acti and what are MS's choices? Given the UK is presently standing alone here, is there anything MS can do to change it?

Couple of highlights:

In relation to cloud gaming services, we found that Microsoft already has a strong position. It owns a popular gaming platform (Xbox and a large portfolio of games), the leading PC operating system (Windows), and a global cloud computing infrastructure (Azure and Xbox Cloud Gaming), giving it important advantages in running a cloud gaming service. With an estimated 60-70% market share in global cloud gaming services, it is already much stronger than its rivals.

Microsoft offered a behavioural remedy to address our concerns in cloud gaming services (the Microsoft Cloud Remedy)...

We found that the Microsoft Cloud Remedy had several shortcomings connected with the growing and fast-moving nature of cloud gaming services. In particular, the scope of the remedy was limited to cloud gaming providers with specific business models. As a result, Microsoft would not have to supply Activision’s full range of games to providers that, absent the Merger, may have entered into a different type of commercial relationship with Activision (eg, through exclusive content, joint marketing arrangements, or a multi-game subscription service like Game Pass) or to cloud gaming providers that may decide to operate using a non-Windows PC operating system (eg Linux).

I'm guessing MS may be able to argue alternative Cloud-market arrangements to appease the CMA?

 

[SmooTh]

Curious to see how AVTI and Sony will continue after all the fuss.
(Ofc nobody will drop the other one)

https://twitter.com/x/status/1651182266406584320

 

[iroboto]

https://twitter.com/x/status/1651179527249248256

The deal is blocked

EDIT:

https://assets.publishing.service.gov.uk/media/6448f377814c66000c8d067f/Microsoft-Activision_FR_Summary.pdf

Final summary from CMA

wow. didn't expect that

 

[Nesh]

Curious to see how AVTI and Sony will continue after all the fuss.
(Ofc nobody will drop the other one)

https://twitter.com/x/status/1651182266406584320

It is a strange situation indeed.
I think it would have been even more awkward how things would have worked with Sony trying to collaborate with a Microsoft owned Activision, or an Activision whose acquisition was blocked because of Sony.

 

[Nesh]

https://twitter.com/x/status/1651179527249248256

The deal is blocked

EDIT:

https://assets.publishing.service.gov.uk/media/6448f377814c66000c8d067f/Microsoft-Activision_FR_Summary.pdf

Final summary from CMA

Totally unexpected. Quite curious how other countries did not see this as an issue and the UK did.

 

[B-Nice]

https://twitter.com/x/status/1651179527249248256

The deal is blocked

EDIT:

https://assets.publishing.service.gov.uk/media/6448f377814c66000c8d067f/Microsoft-Activision_FR_Summary.pdf

Final summary from CMA

Well now!

Who to blame next?

 

[Shifty Geezer]

Curious to see how AVTI and Sony will continue after all the fuss.
(Ofc nobody will drop the other one)

https://twitter.com/x/status/1651182266406584320

MS's counterargument here is bringing games to more devices, but that misses the point of cloud gaming, that other providers can also bring gaming to lots of devices. By MS bringing more games to cloud gaming, they have the 'most content' advantage for the growth of cloud gaming, which is part and parcel of their whole long-term strategy, be the biggest player in streamed and subscription gaming.

I don't understand their point about a "flawed understanding of how this tech works."

 

[iroboto]

MS's counterargument here is bringing games to more devices, but that misses the point of cloud gaming, that other providers

It means they sign with more cloud providers access to ABK content. So they are being blocked on the basis on not providing the whole category of ABK titles or they didn’t sign enough agreements with enough service providers (ie Sony, Amazon, Google, FB)

 

[fehu]

UK you had only one job...

Now what if they go on with the purchase and they lost even in appeal?

 

[Lurkmass]

Well now!

Who to blame next?

No one really, I think many even thought (myself included) that it was initially going to pass by regulators ...

The CMA believes that Microsoft would gain more power to coerce other players out of competition. The only major providers of cloud gaming left that doesn't rely on Windows functionality is Sony just after the recent closure Google's Stadia. The CMA understands that Windows is preferred infrastructure for game developers to build their applications so in retaliation they blocked them from acquiring the means to produce content ...

UK you had only one job...

Now what if they go on with the purchase and they lost even in appeal?

Well then they have to pay a fine or leave the UK market altogether, who really knows ? I don't imagine anyone would want to find out either way since a state usually holds a monopoly on violence ...

Note: I guess this means that the "acquisition race" is officially coming to an end for now ...

 

[fehu]

I don't remember who the UK's PM is this month, but didn't he say that it was all fine?

 

[see colon]

MS's counterargument here is bringing games to more devices, but that misses the point of cloud gaming, that other providers can also bring gaming to lots of devices. By MS bringing more games to cloud gaming, they have the 'most content' advantage for the growth of cloud gaming, which is part and parcel of their whole long-term strategy, be the biggest player in streamed and subscription gaming.

Yes, but they also signed agreements that would have brought Activision titles to competing cloud services. Nvidia and Boosteroid were two such deals, and IIRC there was a 3rd. The deal offered to Sony also included streaming rights, although that wasn't signed.

It's interesting that they cite the deals lacking streaming to PC OS other than Windows. What PC OS are there other than Windows are there that don't support streaming? Microsoft's own streaming platform can be run through a web browser on Mac, Linux and ChromeOS, as well as Android. Geforce Now does as well. There's certainly not a requirement that games be streamed only to Windows.