Xbox has been hot on the path of attempting to acquire the multi-billion dollar company Activision-Blizzard for the past year now. Aiming to open up the world of gaming to everyone possible. This includes making 10-year deals with companies like Nintendo, and even cloud-based companies like Boosteroid. However, while their deal has all but been solidified, the UK has voted on the acquisition and blocked it from going through.
UK’s Government Blocked Microsoft’s Acquisition
The UK government has opted to block the acquisition of Activision-Blizzard by Xbox due to the implications of cloud gaming. They state on their website that “Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service.”
In layman’s terms, they believe that the only one capable of starting the cloud gaming market is Microsoft. And, thus, this would make them the first option for players to choose. This, in turn, would dissuade competition from stepping into the ring. The argument is that Xbox would have not only the strongest platform, but the games of Activision-Blizzard to line up their catalog.
They state again “Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming and this deal would strengthen that advantage giving it the ability to undermine new and innovative competitors.”
Despite the roadblock, Activision CEO Bobby Kotick made a post about the closing of the merger on Activision’s website. “Today, the Competition and Markets Authority (CMA), a regulatory agency in the UK, decided not to approve our merger with Microsoft. This isn’t the news we wanted – but it is far from the final word on this deal. ”
Perhaps Microsoft’s and Xbox’s appeal will allow the merger to go through. Perhaps it won’t. It seems only time will tell how things will play out for Xbox and Activision. Until the appeal is either accepted or rejected, the deal remains up in the air.