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Quick Tech News

QuickTechnics

by Alexander Fäh

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Activision Blizzard's CEO Urges Approval of Microsoft Acquisition Amidst Antitrust Concerns

 
  • Activision Blizzard CEO, Bobby Kotick, appeared before a federal judge on Wednesday, urging her to grant approval for the company's acquisition by Microsoft, valued at $69 billion. Kotick emphasized that any exclusivity of the popular game franchise, "Call of Duty," to a single platform would alienate the game's massive player base of approximately 100 million individuals per month.

  • Concerns regarding the removal of "Call of Duty" from Sony's PlayStation, a potential consequence of the acquisition, were highlighted by Kotick. He underscored the potential detrimental impact such a move would have on Activision's business, stressing that it would likely result in negative consequences for the gaming industry as a whole.

 

Bobby Kotick Presents Case for Microsoft's Acquisition of Activision Blizzard, Emphasizing Impact on Gaming Community.

Bobby Kotick, CEO of Activision Blizzard, presenting arguments in favor of the Microsoft acquisition before the federal judge; Image: TechCrunch

Activision Blizzard, one of the leading video game developers, has found itself in the center of a high-stakes legal battle as its Chief Executive Officer, Bobby Kotick, appeared before a federal judge on Wednesday.


Kotick passionately advocated for the approval of Microsoft's proposed $69 billion acquisition of the renowned gaming company. The acquisition has faced scrutiny due to concerns over potential exclusivity deals that could impact the popular game franchise, "Call of Duty," and the wider gaming community.


During his testimony, Kotick underscored the significant repercussions that could arise from making "Call of Duty" exclusive to a single platform. With an estimated 100 million monthly players, any move to restrict the game's availability could trigger a massive backlash among the gaming community.


Kotick emphasized that removing "Call of Duty" from Sony's PlayStation, a prominent gaming console developed by Sony Group, would have severe negative implications for Activision Blizzard's business operations.


While defending the Microsoft acquisition, Kotick acknowledged the growing antitrust concerns raised by the Federal Trade Commission (FTC) and the British Competition and Markets Authority (CMA).


Microsoft's ownership of the Xbox console, coupled with exclusive access to Activision Blizzard's games, could potentially hinder competition and exclude major players like Nintendo and Sony Group from the market.


To address these concerns, Microsoft has proposed licensing "Call of Duty" to competitors as a means of promoting fair competition. The tech giant has argued that a licensing approach would offer financial benefits and ensure widespread accessibility to the popular game franchise.


The ongoing trial has garnered attention not only for its potential impact on the gaming industry but also for the shifting stance of antitrust regulation under the Biden administration. The FTC, known for its more stringent enforcement, has become increasingly cautious about approving mergers and acquisitions, leading to the temporary halt of the Microsoft-Activision deal for further examination.


As the trial continues, Microsoft CEO Satya Nadella is set to testify later today, providing additional insights into the company's intentions and responding to the concerns raised by the federal judge.


The outcome of this legal battle will have far-reaching implications for the gaming landscape, including the future availability of "Call of Duty" on various platforms and the broader balance of power within the industry. Observers eagerly await the judge's decision, which will shape the gaming landscape for years to come.

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