2023-07-17 10:50:00
« We are pleased to announce that Microsoft and Playstation have signed a binding agreement to keep “Call of Duty” on Playstation following the acquisition of Activision Blizzard tweeted Phil Spencer, head of Microsoft’s video game division, on Sunday.
The acquisition of Activision Blizzard (Call of Duty, Candy Crush…) by Microsoft is postponed once more
“Call of Duty” is one of the most famous franchises. With more than 300 million copies sold worldwide in 2019, all episodes combined, it is one of the best-selling video game series in history. According to Active Player last year, “Call of Duty: Warzone”, the most popular first-person shooter (FPS) version, had more than 50 million monthly players.
However, the takeover of Activision Blizzard (the studio behind the franchise) by Microsoft in 2022, had caused many players on other platforms (Playstation, Nintendo) to fear that they would no longer be able to access Activision Blizzard games such as “Call of Duty “. Phil Spencer was therefore confident on Sunday: “ We can’t wait for that future where gamers around the world have more choices to play their favorite games. “, he assured.
Regulators remain skeptical
This takeover project nevertheless remains in the crosshairs of the competition authorities in the United States and the United Kingdom. Regulators fear in particular that this operation will allow Microsoft to lock access to Activision Blizzard games (which also include the very lucrative “World of Warcraft” and “Candy Crush”) on the platforms of its competitors.
Last June, the US competition authority, the FTC, asked a federal court in San Francisco to temporarily suspend the operation. It had already launched an administrative procedure to determine the risks associated with this takeover, and a hearing is scheduled for early August. According to the authority, lproposed transaction would allow Microsoft to continue to take control of high-value video games And to add that, ” eBy controlling Activision’s content, Microsoft might and would have an interest in withholding such content, or lowering its quality in a way that weakens competition, including in terms of quality, price and innovation “. Nevertheless, press articles have already circulated “ suggesting that [Microsoft et Activision, ndlr] were seriously considering completing the acquisition ” Nevertheless.
For its part, the Competition and Markets Authority (CMA), the British competition authority, decided in April to block the operation at 69 billion dollars, justifying its decision by the fear of ” fewer choices for UK players in coming years if the mega-merger went through. The European Commission has approved this transaction.
Microsoft is confident
However, once more according to Phil Spencer, the merger would benefit hundreds of millions of players, American employees and shareholders – including people who depend on a pension fund for their retirement. She “ allows two American companies to better compete once morest international rivals that dominate the industry worldwide “, he specified.
« From day one of this acquisition, we have worked to address the concerns of regulators, game platforms and publishers, and consumers “, also said Sunday Brad Smith, president of Microsoft, re-tweeting the message of Phil Spencer.
« Even following we cross the finish line with the approval of this transaction, we will remain focused on ensuring that “Call of Duty” remains available on more platforms and to more consumers than ever before. “, he continued. In December, Phil Spencer had indicated that Microsoft had ” committed to supplying “Call of Duty” to Nintendo for ten years following the Activision integration. He also told the Bloomberg agency that an agreement similar to that concluded with Nintendo had been offered to Sony, the maker of the PlayStation (the best-selling console on the market), which strongly opposed the Microsoft- Activision initially.
Microsoft, 3rd in the video game empire
Microsoft is in fourth place among the largest publishers in the world in terms of turnover, with more than 10 billion dollars in turnover when Activision Blizzard, is installed in 6th place in this ranking with 6 billion dollars in annual sales. This acquisition would therefore make the American giant the world’s third largest video game player in terms of turnover behind Tencent and Sony, thus moving ahead of Apple.
This deal comes in a troubled time for Activision Blizzard. In the summer of 2021, le Wall Street Journal revealed a series of internal scandals, including cases of sexual harassment covered up by management. In response, the company laid off dozens of employees, particularly within its management. In addition, the company shows a chronic delay in the release of its most anticipated video games like “Diablo IV” or “Overwatch 2”. Result: its share price has plunged by 30% over the last 6 months, from more than 90 dollars to less than 60 dollars per share.
However, Microsoft tells Bloomberg that Activision Blizzard CEO Bobby Kotick, who has been in place for 30 years but is extremely controversial for many reasons, will keep his job. Once the transaction is completed, the Activision Blizzard division will be attached to the Microsoft Gaming division led by Phil Spencer. The latter notably manages the economic development of the Xbox ecosystem – one of the three consoles on the market with the PlayStation (Sony) and the Nintendo Switch – and that of the group’s subscription offer, the Game Pass.
(With AFP)
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