It appears there are still some hurdlesMicrosoftstill needs to get over to complete Xbox’s acquisition of Activision Blizzard, courtesy of the European Union, and the tech giant could now be willing to concede ground in order to close the deal. The tech giant has been working to complete the deal for nearly a year after announcing its intent to acquire the video game publisher, significantly growing Xbox Game Studios after acquiring multiple big-name studios,chief among them being Bethesda. While these acquisitions grew the library of Xbox exclusives, it seems Microsoft will need to give up some potential exclusivity to get the stamp of approval.
Microsoftoriginally announced its intent to acquire Activision Blizzard in January 2022 for over $68 billion, potentially giving Microsoft ownership over some of gaming’s biggest properties includingCall of Duty. It would also make Microsoft the biggest video game company in North America and the third biggest in the world behind Chinese tech conglomerate Tencent and Japanese giant Sony. It has faced its fair share of criticism, though, from U.S. Senators such as Bernie Sanders and across the games industry given the amount of power it would give Microsoft in the space. It has also faced heavy scrutiny from antitrust regulators in the U.S. and Europe investigating the proposed acquisition.
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As mentioned above, though, Microsoft appears ready “to offer remedies to EU antitrust regulators” to resolve any concerns theEuropean Commissionmay have about the acquisition in a report from Reuters. The outlet said one of the potential “remedies” it was told of could see Microsoft sign a 10-year licensing deal to keepCall of Dutyon PlayStation consoles, assuaging any fears over the shooter franchise becoming an Xbox exclusive. Microsoft then reassured its commitment to making futureCall of Dutygames available on both consoles and that it wants “people to have more access to games, not less.”
Call of Dutyremaining a multi-platform title has been an ongoing point of contention for Sony due, largely, to the significant sales the franchise generates every year. 2022’sModern Warfare 2was already outpacingVanguard’s sales after only a few days and crossed over $1 billion in sales after ten days. While Sony has not commented on a potential 10-year deal, it was reportedly offered a three-year deal in September 2022 thatSony Interactive Entertainment President and CEO Jim Ryanwas extremely critical of.
It remains to be seen if any proposed “remedies” will lead to the acquisition’s approval, especially as several European nations have become more aggressive in both investing in and monitoring the economics of the video game industry. The EU, itself, voted in November 2022 to encourage further investments into the growing Esports scene and larger industry while preserving games considered “culturally significant.” On the other hand, nations such asEngland and Belgium have taken more aggressive stances with loot boxesfor concern it is a predatory practice aimed at children.
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