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75% of UK respondents okay with Microsoft-Activision Blizzard merger

The UK Commissions and Markets Authority had in October invited the public to share their thoughts on Microsoft's proposed acquisition of Activision Blizzard

December 22, 2022 / 17:35 IST
(Image Courtesy: Microsoft)

As many as 75 percent of the 2,100 people who responded to the UK’s Competition and Markets Authority (CMA) call for public opinion on Microsoft's proposed acquisition of Call of Duty maker Activision Blizzard are in favour of the merger.

The CMA, which in October called for responses, said, "Three quarters were broadly in favour of the merger and around a quarter were broadly against the merger."

The deal is already being put through scrutiny by the European Union (EU), and more recently, the United States Federal Trade Commission (FTC).

Both of them allege that the acquisition could stifle competition in the space, by blocking off access to Activision's most lucrative game franchise, Call of Duty.

Some of the opinions expressed in emails sent by 2,100 respondents said that Sony and Nintendo were already stronger than Microsoft in the console space and the merger would allow them to compete.

Others sided with Microsoft and their commitment to keeping Call of Duty, Activision Blizzard's marquee series, multi-platform.

They were of the opinion that it was unlikely that Microsoft would lock Call of Duty down to one platform due to its multiplayer nature.

Some even said the merger would push Sony to innovate and get out of its comfort zone such as improving its subscription service or creating rival franchises to Call of Duty. If Microsoft adds Call of Duty to Game Pass, its subscription-based service, it would lower the cost of entry for consumers.

Those against the merger said Microsoft was already dominant in the PC market and the proposed acquisition was an attempt to do the same in the console space.

If the $69-billion deal goes through, it will lead to more buyouts in the industry, which is bad for innovation.

While Microsoft may not make Call of Duty exclusive, it may lower the quality of the experience on PlayStation consoles, forcing gamers to switch to Xbox, they said.

The deal would dramatically increase Microsoft's bargaining power in the market, leading to more pressure on publishers.

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Moneycontrol News
first published: Dec 22, 2022 05:01 pm

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