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

[iroboto]

Interesting approach on getting approved.

This is the ideal remedy.
Because it basically means, if I own or subscribe a game on platform X, I can also stream said game on platform X.
it's simple and effective, and basically stops the whole event that happened with GFN.

Effectively, streaming is an extension of ownership, and they treat streaming as just an access point for the content they already pay for. They are not being forced to double dip for streaming rights.

This is also a spotlight at what Sony has been doing to MS here with marketing deals, which is that they allow games to be on MS, but they don't allow them to be on gamepass which in turns blocks them from being on xcloud.

Effectively, they're saying MS cannot return the favour ie: you can have COD on PS5 and PS6 etc, but you cannot stream it.
Ideally if this is the practice moving forward, that type of marketing deal will stop.

 

[BRiT]

The European Commission has required Microsoft to license popular Activision Blizzard games automatically to competing cloud gaming services. This will apply globally and will empower millions of consumers worldwide to play these games on any device they choose.

https://twitter.com/x/status/1658126474543607808

 

[iroboto]

I mean, I was going to say that they don't have a chance to appeal with CMA.

But I think they've certainly got a chance bigger than 0 now.

 

[chris1515]

https://twitter.com/x/status/1658131203000614916

https://twitter.com/x/status/1658131206007844867

https://twitter.com/x/status/1658131211967971328

 

[BRiT]

Approval in Europe: an update on the Microsoft deal

Regulators in Europe approved the Microsoft merger. "We achieved an important milestone," Activision Blizzard CEO Bobby Kotick writes.

newsroom.activisionblizzard.com

---

Activision Blizzard CEO Bobby Kotick sent the following email to employees on Monday:

Today, we achieved an important milestone: the European Commission (EC), one of the world’s most thorough and respected regulators , approved our merger with Microsoft. This decision underscores the benefits our transaction provides to players and to competition.

Careful regulators in numerous other countries have already approved the merger. By joining them today, the EC has once again demonstrated their rigorous, fair and sensible approach with the creation of appropriate regulatory guardrails that ensure competition in important growth industries .

Microsoft has agreed to conditions as part of the EC’s approval, including licenses for legitimate cloud gaming providers to stream Activision Blizzard games and enforcement mechanisms to ensure these regulatory commitments are upheld.

This important step provides a proper roadmap for regulators around the world to consider when determining how best to encourage and promote competition in the gaming industry.

There is still work to be accomplished before our merger can be finalized but it is encouraging that regulators like the European Commission understand and appreciate the considerable growth opportunities provided by our industry.

Thank you for your patience as we work to promote fair, free trade, healthy competition and broader recognition for the extraordinary work our people do each day to entertain hundreds of millions of people around the world.

Bobby

 

[Shortbread]

I mean, I was going to say that they don't have a chance to appeal with CMA.

But I think they've certainly got a chance bigger than 0 now.

If they offered these same remedies to the CMA, I still don't see them changing their minds now just because the EC/EU accepted them. If they didn't offer these remedies in the beginning to the CMA, then that's not going to help them now with their CAT appeal. CAT can't accept anything "new" relating to remedies or any other information that wasn't presented during the original CMA acquisition process. Microsoft can argue that the formula or data used by the CMA was invalid or riddled with errors, but that's about it. As I stated, CAT can only oversee what was original provided during the approval process by Microsoft and the CMA.

 

[Shortbread]

https://twitter.com/x/status/1658131203000614916

https://twitter.com/x/status/1658131206007844867

https://twitter.com/x/status/1658131211967971328

Dead, as far as the CMA/UK are concerned.

 

[iroboto]

https://twitter.com/x/status/1658131203000614916

https://twitter.com/x/status/1658131206007844867

https://twitter.com/x/status/1658131211967971328

unfortunate response.

The EU/EC deal shows how this remedy drives innovation and puts consumers at the center. Effectively this enables Geforce Now and other providers to leverage stores of other platforms like Steam, Battle.Net, Windows, Epic, etc, that are not their own and just charge for the access piece. This will drive a lot more start ups in the pure streaming space.

This also means, that platforms are not required to build out entire streaming service hardware platforms to every part of the world. Just move their store onto those providers for areas you cannot justify a build for.

 

[Shortbread]

unfortunate response.

The EU/EC deal shows how this remedy drives innovation and puts consumers at the center. Effectively this enables Geforce Now and other providers to leverage stores of other platforms like Steam, Battle.Net, Windows, Epic, etc, that are not their own and just charge for the access piece. This will drive a lot more start ups in the pure streaming space.

For at least 10yrs it does. After that, it will be business as usual.

 

[cheapchips]

For at least 10yrs it does. After that, it will be business as usual.

I'd like to think it sets a legal precedent that the licence for the game you've bought is yours. You can play it how you damned well please. Barriers to streaming certain publisher's titles on hosted PCs will fall like flies. Probably not though!

 

[iroboto]

For at least 10yrs it does. After that, it will be business as usual.

Business plans change in 10 years too, whole companies can grow and die in 10 years.
Streaming services need a boost now to be useful later. 10 years is 10 call of duties. The next one is a remake of MW3. These guys are seriously out of gas imo as it is. I can't imagine the next 9 Call of Duties following: Ghosts, Advance War, back to WWII and WW1, and back to MW again? It's really a sad imo.

Separation of ecosystem content and streaming access makes for competition in the streaming space.
If this continues to become the norm, then streaming hardware becomes the next 'hardware' battleground.

As per cheapchips comments - it sets a legal precedent around ownership of that license and being able to play it on the platforms you want to.

 

[Shortbread]

https://twitter.com/x/status/1658131203000614916

https://twitter.com/x/status/1658131206007844867

https://twitter.com/x/status/1658131211967971328

This is why I stated earlier, the EC/EU decision actually strengths CMA's position and decision (right or wrong) on protecting their market.

 

[eastmen]

So how does this work ? The cloud companies don't have to pay MS for streaming an ABK game but the user has had to have bought it already ?

 

[BRiT]

So how does this work ? The cloud companies don't have to pay MS for streaming an ABK game but the user has had to have bought it already ?

AFAIK -- None of those cloud companies have actual store-fronts. None of them operate as Stadia did. They operation as GeForce Now does. So you have to purchase your games through an existing store-front and then subscribe to the streaming service.

 

[iroboto]

So how does this work ? The cloud companies don't have to pay MS for streaming an ABK game but the user has had to have bought it already ?

That's correct, the license to stream COD is free as long as the end user has paid for the license to play/own the ABK game.

This opens a very large door for Nintendo, because they signed with them to be on their storefront.
That means Nintendo as it pivots into streaming services, can stream AAA titles onto their handheld devices, so even if they continue to be too weak to play certain games, with cloud streaming (some of their titles today) continues to improve, they can run stream them in instead of local play. This is a major win for them. A partnership with GFN and the Nintendo store would be a pretty neat and desirable imo.

 

[Shortbread]

https://twitter.com/x/status/1658127498520023042

This is very telling. If Microsoft said no, EC/EU would have blocked the acquisition as well.

 

[Nesh]

https://twitter.com/x/status/1658127498520023042

This is very telling. If Microsoft said no, EC/EU would have blocked the acquisition as well.

which shows MS's true strategy. 10 years for one or two games is insufficient both in time and amount of games

 

[iroboto]

https://twitter.com/x/status/1658127498520023042

This is very telling. If Microsoft said no, EC/EU would have blocked the acquisition as well.

Sounds like the right move by the EC/EU then. Maneuver MS to force growth in the space or block it. This is how regulators should be thinking in a nascent market.

 

[eastmen]

AFAIK -- None of those cloud companies have actual store-fronts. None of them operate as Stadia did. They operation as GeForce Now does. So you have to purchase your games through an existing store-front and then subscribe to the streaming service.

So for instance I'd have to buy on steam or windows gaming store /xbox in order to stream it on Geforce Now or another service. So MS can just keep the Blizzard stuff in battle.net and keep a 100% of the profit on the sale and battle pass and then those companies would have to support Battle.net in order to get it.

But how does it work for a competitor like sony ?

That's correct, the license to stream COD is free as long as the end user has paid for the license to play/own the ABK game.

This opens a very large door for Nintendo, because they signed with them to be on their storefront.
That means Nintendo as it pivots into streaming services, can stream AAA titles onto their handheld devices, so even if they continue to be too weak to play certain games, with cloud streaming (some of their titles today) continues to improve, they can run stream them in instead of local play. This is a major win for them. A partnership with GFN and the Nintendo store would be a pretty neat and desirable imo.

Well for Nintendo I always figured COD would simply be a launcher for the xcloud version of it , at least on the current switch. Targeting 720p or 900p the xbox series x cloud servers could likely power 4-6 instances of each game



I think this is a good compromise for the industry but ultimately it really was a waste of time for MS since it wont move the needle much in terms of xbox install base and the EU is really handing the console market over to sony and nintendo in order to keep the cloud market open which makes little sense. I guess at the end of the day MS will use beta , battle passes , free dlc and other stuff to keep people coming to their platforms and services vs going over to geforce now or whatever the other ones are. Also we will have to see what MS has to offer to other companies in terms of native ports. Could still be a decent win if the only place to play upcoming ABK game natively is on xbox and pc

 

[iroboto]

I think this is a good compromise for the industry but ultimately it really was a waste of time for MS since it wont move the needle much in terms of xbox install base and the EU is really handing the console market over to sony and nintendo in order to keep the cloud market open which makes little sense.

The point of regulation is for the benefit of consumers ultimately. EU saw an opportunity to take something cough "valuable" and instead gave it to everyone. UK decided to block it and leave it to chance in hopes that more consumers benefit from it. I think the prior is the right move and it shows that they are trying to grow the gaming industry in doing and leveraged this opportunity to do so, at Microsoft's cost.

And that's fine. I don't see an issue with it, except as a MS shareholder, I hope this merger plays out for them. I don't agree that they are worth 70B, but I also didn't think Minecraft was worth 2B either and they were indeed correct. So I hope I'm wrong, but we will see.