Microsoft is pushing for Activision to be bought, maker of Call of Duty and other games


Activision Blizzard and Microsoft, a gaming company known for events such as Call of Duty, objected at the Federal Trade Commission’s challenge to their proposal. A merger of $68.7 billionOn Thursday, he wrote in a lawsuit that US Regulators are concerned that the deal will undermine fair competition in gaming.

This appeal signals a legal battle between tech giant Microsoft It largely avoided close regulatory scrutiny The Federal Trade Commission, which he presided over, is the most recent federal authority. Lina KhanA well-known big tech skeptic.

The dual complaints point to a new FTC strategy to rein in the tech industry

Microsoft is the manufacturer of the Xbox console. January was the month that Activision Blizzard announced its plans to purchase it. The company is responsible for successful franchises like Call of Duty, Diablo, and Diablo. After examining a possible merger, the Federal Trade Commission announced it would block the deal. It stated that the move could encourage Microsoft to block access Activision games on rival consoles Sony and Nintendo.

The FTC stated that Microsoft already has an incentive to promote its products, and fully understands how Activision’s flagship games content can increase its competitive power.

If it is approved, it could be the biggest acquisition in the history the gaming industry has ever made. According to the Federal Trade CommissionIt was agreed The Washington Post reported that the deal was approved by regulators from Brazil and Saudi Arabia. The deal was also approved by the Serbian regulator. According to Reuters. The authorities in Britain, the European Union and elsewhere are ReviewPotential merger

Microsoft’s lawyers stated that they were willing to go to court and said the FTC’s concerns weren’t realistic. Microsoft’s primary goal of increasing revenue could be hindered by Activision games being removed from other consoles. They said.

They stated in a court filing that Activision’s games are available for wide distribution. This was in response to the FTC complaint. They stated that Activision’s financial worth comes from the continued sales of popular games like Call of Duty on Sony PlayStation. “Paying $68.7B for Activision makes no financial sense if that revenue stream ceases to exist.”

Activision’s lawyers also expressed disapproval at the FTC’s concern about Microsoft’s incentivizing Microsoft’s withdrawal of Call of Duty access on PlayStation. They claimed that such a move could immediately cost billions in revenue and would damage the game’s appeal by allowing players to play with each other in any part the world at any given time.

They said that blocking or impairing Call of Duty on PlayStation could eliminate cross-play and destroy the massive Call of Duty community which drives the game’s success. “The player backlash against making Call of Duty exclusive to Xbox will prove devastating.”

Sony has been vocal in its criticism of the deal. It’s a worried Microsoft’s acquisition of Call of Duty maker will allow Microsoft lower prices for users who have played the game on Sony PlayStation. Sony is offering Call of Duty gamers on PlayStation exclusive perks such as early access to in-game gear. However, Sony believes that lower prices might be enough to attract users to Xbox, The Post previously reported.

The Federal Trade Commission states that Microsoft’s recent $7.5 Billion purchase was also illegal. ObsessionZeniMax Media, which is the parent company to Bethesda Softworks and another game publishing giant, points out Microsoft’s growing dominance within the gaming industry.

The Federal Trade Commission stated that Microsoft made Starfield and other Bethesda games exclusive to Microsoft despite European antitrust authorities’ assurances that it had no incentive to withhold games from rival consoles.

Microsoft lawyers called the FTC’s account misleading and said that their client “expressly stated it would respect Sony’s existing exclusivity rights, and handle exclusivity for new game titles on an individual basis. Which is exactly what it did.”

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