Exploring Microsoft’s Possibility of Purchasing Activision Blizzard

Microsoft received a favorable ruling from Judge Jacqueline Corley on 11 July in its legal battle against the United States Federal Trade Commission (FTC) regarding the acquisition of Activision Blizzard, a major video game developer. The FTC’s appeal to temporarily halt the deal was rejected by an appellate court last week.

With these decisions, the technology giant is now one step closer to completing the $69 billion acquisition contract announced in January 2022.

The court decision removes the FTC’s hurdle, but across the pond Microsoft still faces opposition from UK regulators who argue the deal could stifle competition in the cloud gaming market. And Microsoft is reportedly in talks to extend the deal, which ends today, July 18, so that no one else scoops up Activision Blizzard during negotiations.

But with all of this legal back-and-forth, it can be easy to lose sight of the segment of the population most affected by Activision Blizzard’s potential acquisition: gamers.

Here’s a look at what video game players can expect from a potential purchase.

How the contract affects players

In theory, the biggest beneficiaries of Microsoft’s purchase of Activision are the players who use the Xbox console. Xbox Game Pass subscribers will likely be able to enjoy the entire catalog of video games created by Activision Blizzard, similar to Microsoft when it acquired the rights to video game publisher Bethesda in 2020.

On the other hand, those who do not own an Xbox, such as fans of Sony PlayStation, Nintendo Switch, and smartphone gamers, may also feel the negative effects of a potential deal. For example, popular titles like Starfield and Redfall may not come to PlayStation.

Perhaps the most interesting story to emerge from this potential deal is the future of Activision’s Call of Duty franchise. According to the decision, measures were taken so that the video game does not have exclusive rights for at least 10 years. This means that PlayStation 5 gamers can continue to enjoy this video game without restriction for the time being, but when the time comes, it will likely cease to be available for Sony consoles.

In addition, Microsoft has signed several deals to bring other video games such as Crash Bandicoot, Diablo, and Overwatch to other platforms outside of PlayStation.

All of this plays against Sony, which has struggled for several years to position its PlayStation Plus service, which is a far cry from what Xbox Game Pass could potentially offer following a potential Activision acquisition. Such a move could also pressure Sony to accept third-party services in its subscription program, leaving out its gamers.

In fact, last year a group of 10 gamers sued Microsoft. The lawsuit alleges that the acquisition gives the tech giant enough influence at multiple levels of the video game industry to, among other things, “lock out competitors, limit production, reduce consumer choice, raise prices and further prevent competition.” “Microsoft already controls one of the most popular and largest video game ecosystems in the industry,” according to the lawsuit.

Indeed, a potential acquisition could put Microsoft at the pinnacle of video gaming, with few (if any) rivals, having brought the largest collection of must-have titles under its control.

As expected, Microsoft and Activision Blizzard representatives claim that a possible merger would benefit video game consumers.

After Judge Corley’s ruling last week, Activision Blizzard CEO Bobby Kotick said, “Our merger will benefit consumers and employees. It will allow for competition rather than incumbents perpetuating our fast-growing industry.”

And Microsoft Gaming CEO Phil Spencer said: “The evidence showed that the Activision Blizzard deal is good for the industry…”

Of course, the FTC and competitors like Sony strongly disagree.

“We are disappointed in this outcome because this merger poses a clear threat to open competition in cloud gaming, subscription services and consoles,” FTC spokesman Douglas Farrar told Vox after the court’s decision. As of Monday, the FTC is reportedly still exploring possible legal avenues to stop the deal, and Microsoft is seeking to extend the July 18 deadline for the deal.