Tag: Microsoft

UK regulator thinks Call of Duty on Switch is an empty promise

Microsoft promised Call of Duty on Switch for 10 years if the Activision Blizzard deal goes through, but U.K. regulators aren’t convinced

Microsoft promised Call of Duty on Switch for 10 years if the Activision Blizzard deal goes through, but the U.K. Competition and Markets Authority (CMA) isn’t convinced. Microsoft originally made the promise after concerns over the deal’s impact on competition in the games space arose, and company president Brad Smith said, during a recent meeting with European Union representatives in Brussels, that Nintendo agreed to the deal.

GamesRadar recently looked back through the CMA’s initial report from February on the deal and found the CMA already expressed doubt that such a deal would matter. Late in the report, the CMA said technical disparities between Nintendo hardware and other game consoles make it unlikely that the Switch could run Call of Duty games adequately. Even if it could, it would require additional, costly work to get the games running.

“We have… seen evidence that large shooter games do not run as well on Nintendo’s consoles due to its technical differentiation,” the CMA said in its report. “One third party [publisher] submitted that graphically intensive shooters may often be targeted originally at PlayStation and Xbox due to the specific characteristics of their console performance and that porting to the Nintendo Switch may require financial investment and compromises on graphical quality”.

There are possible alternatives that might satisfy everyone involved, though. Nintendo may be releasing a new, more powerful console in the near future, and Microsoft may be aware of the company’s plans. The company may also release cloud versions of the games instead, as Capcom did with Resident Evil Village and IO Interactive with Hitman 3.

The CMA will issue its full report on April 26. The European anti-competition agency is expected to issue its objections to the deal soon as well, and the U.S. Federal Trade Commission’s lawsuit against Microsoft, intended to block the deal, remains ongoing.

Written by Josh Broadwell on behalf of GLHF

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Microsoft refuses to sell Call of Duty or parts of Activision Blizzard

Microsoft president Brad Smith said it isn’t feasible for Xbox to sell Call of Duty or parts of Activision in response to UK regulators

Microsoft president Brad Smith said it isn’t feasible for Xbox to sell Call of Duty or parts of Activision Blizzard. Bloomberg reports that Smith’s comments come after U.K. regulators presented that option as a possible condition for allowing the $69 billion Microsoft-Activision deal to go through. 

Following a closed-door meeting with European Union commissioners in Brussels, he told reporters it isn’t “feasible or realistic to think that one game or one slice of this company can be carved out and separated from the rest.”

During the hearing, Microsoft reaffirmed its commitment to making Activision Blizzard games available to broader audiences. The same day, Xbox and Nintendo signed a 10-year contract to make Call of Duty available on Nintendo Switch if the deal goes through – though what form of the Switch and whether it would be cloud-based or a full install remains unclear. Microsoft also announced an agreement with NVIDIA to make all Xbox Cloud Gaming games available on NVIDIA’s GeForce platform, but only if the deal goes through.

Cloud gaming has been one of the main sticking points in regulators in the U.S., U.K., and Europe allowing the deal to move forward. Their concern is that Xbox, which they believe already has a head start in cloud gaming technology and a broad selection of available titles, would hamper competition on other cloud platforms if they also added Activision Blizzard games, namely Call of Duty, to their service.

Microsoft has yet to issue an official response to the U.K. commission, which is expected to file its full report in April. Meanwhile, the U.S. Federal Trade Commission’s lawsuit against the company to block the merger remains ongoing.

Written by Josh Broadwell on behalf of GLHF

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Microsoft forms deal with Nvidia, bringing Xbox’s PC games to GeForce Now

Phil Spencer says Xbox remains ” committed to bringing more games to more people” no matter how they play.

Microsoft will bring Xbox’s PC titles and Activision Blizzard games like Call of Duty to Nvidia’s GeForce Now cloud streaming service.

The deal will allow anyone with an Nvidia Geforce Now membership to stream Microsoft’s games on PC, Chromebooks, mac OS, and other devices.

“Xbox remains committed to giving people more choice and finding ways to expand how people play,” Phil Spencer, Microsoft Gaming CEO, said in a press release. “This partnership will help grow Nvidia’s catalog of titles to include games like Call of Duty while giving developers more ways to offer streaming games. We are excited to offer gamers more ways to play the games they love.”

“Combining the incredibly rich catalog of Xbox first-party games with GeForce Now’s high-performance streaming capabilities will propel cloud gaming into a mainstream offering that appeals to gamers at all levels of interest and experience,” Jeff Fisher, senior VP for GeForce at Nvidia, added. “Through this partnership, more of the world’s most popular titles will now be available from the cloud with just a click, playable by millions more gamers.”

This announcement comes mere hours after Microsoft’s new deal with Nintendo, which will bring Call of Duty to the publisher’s consoles. Both deals are part of an ongoing effort by Microsoft to ensure its $68.7 billion acquisition of Activision Blizzard gets approved by regulatory bodies.

Written by Kyle Campbell on behalf of GLHF.

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UK regulator wants Microsoft to sell Activision or Call of Duty

The UK’s Competition and Markets Authority said the Microsoft Activision deal could hamper innovation in cloud gaming and raise prices

The UK’s Competition and Markets Authority (CMA) said the Microsoft-Activision deal could hamper innovation in cloud gaming and raise prices. The 16-page report comes after the CMA said their investigative team conducted extensive research into Microsoft, Sony, Nintendo, and the games industry in general, along with email interviews with over 2,000 consumers.

The CMA recommended a few possible remedies to the problems they found in a separate report. Three involve divestiture, or the selling off of parts of the business. The CMA suggested Microsoft could sell the Call of Duty brand, Activision, or Blizzard, or barring those, the agency recommended the merger simply be blocked.

Chief among the concerns that led the CMA to these conclusions is the prospect of Microsoft limiting access to Call of Duty to the Xbox ecosystem. Microsoft has repeatedly said that it plans to provide “content parity” for the FPS franchise across all platforms, even the Nintendo Switch. The CMA noted that Nintendo consoles likely can’t run Call of Duty now and said there’s no evidence to suggest that will change anytime soon. 

Their research also showed that a sizeable segment of consumers surveyed would leave PlayStation behind if Call of Duty became exclusive to Xbox, as they spend the majority of their time playing Call of Duty on PlayStation. The CMA didn’t disclose their sample demographics and data, so it’s unclear how representative of UK consumer behavior these findings are.

On the cloud front, where Microsoft has made no promises of parity or easy access, the CMA expressed concerns that adding Activision Blizzard’s portfolio to Xbox’s already sizeable cloud gaming library would hamper others seeking to enter the space. Their research showed that the key factor in starting a cloud gaming enterprise is having a large, desirable selection of games, which the CMA believes will be increasingly difficult for new entrants in the sector should the Microsoft-Activision deal go through.

The CMA will issue its full report on April 26, 2023. The European anti-competition agency is expected to issue its objections to the deal soon as well, and the U.S. Federal Trade Commission’s lawsuit against Microsoft, intended to block the deal, remains ongoing.

Written by Josh Broadwell on behalf of GLHF

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The FTC reportedly sued Microsoft to stop European bargaining

A new report says the FTC lawsuit against the Microsoft Activision deal happened to try and preempt the European commission’s decision

A new report from Bloomberg says the FTC lawsuit against the Microsoft-Activision deal happened to try and preempt the European Competition Commission’s decision to discuss remedies – solutions to the objections the commission raised about the acquisition. People familiar with the FTC’s decision, but unauthorized to speak publicly, told Bloomberg the lawsuit came as a surprise, since no one expected the FTC to act until later in spring.

These sources say that FTC Chair Lina Khan filed the suit after a call with European commissioners, who said they intended to start talks with Microsoft about ways the tech company could resolve the issues raised against the acquisition. Despite the topic of remedies coming up in the call, Bloomberg’s sources say the European Competition Commission didn’t intend to start these talks with Microsoft until later in spring 2023.

The reason was reportedly to “send a strong message” to the European Commission about the FTC’s stance on the matter, a stance in line with Khan’s previous commitment to scrutinizing significant mergers in the tech space more closely. 

Both agencies are set to issue a ruling in April, after formally submitting a statement of objections that outlines their concerns over the acquisition, including the possibility of harming competition in cloud and subscription services and adverse effects on the games industry’s nascent labor movement.

While Activision Blizzard remains embroiled in controversy over its handling of labor issues in Blizzard Albany and Raven Studio, Microsoft recently recognized the first union under its umbrella, after quality assurance workers at ZeniMax voted to organize.

Written by Josh Broadwell on behalf of GLHF

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ZeniMax testers voted to form the first Microsoft union

Hundreds of QA testers at Bethesda parent company ZeniMax formed a new union that Microsoft voluntarily recognized

Over 300 quality assurance testers at Bethesda parent company ZeniMax, a Microsoft-owned company, voted to form a union with the Communication Workers of America (thanks Axios). After a third party confirmed the vote, Microsoft voluntarily recognized the union and will not seek to overturn the vote, unlike Activision Blizzard, which recently said it would attempt to challenge the newly-formed Blizzard Albany union. 

The new union includes DOOM maker iD Software, Skyrim and Starfield developer Bethesda, and Arkane, the team behind Deathloop and Redfall.

Microsoft is currently attempting to convince the U.S. Federal Trade Commission that its pending purchase of Activision Blizzard would pose no harm to the budding labor movement in the games industry. Previously, the Xbox maker said it would honor all decisions workers made to organize.

Microsoft told Axios that the company looks forward to engaging in “good faith negotiations” as they work toward a collective bargaining agreement.

“We’re thrilled to kick off 2023 in a workplace that’s stronger and more equitable than it was last year,” ZeniMax tester Skylar Hinnant told Axios in an email.

“We want to put an end to sudden periods of crunch, unfair pay, and lack of growth opportunities within the company,” another said in a separate email.

Written by Josh Broadwell on behalf of GLHF

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Microsoft says the FTC’s Xbox lawsuit violates the U.S. Constitution

Microsoft issued its response to the FTC’s lawsuit against the Activision Blizzard deal and called the Commission’s actions unconstitutional

Microsoft filed its response to the FTC’s lawsuit and accused the FTC of unconstitutional behavior for, among other things, violating Microsoft’s Fifth Amendment rights to a neutral arbitrator, since the Commission is responsible for initiating the complaint. The response also accuses the FTC of violating Article 3 of the U.S. Constitution by having an administrative judge – a member of the executive branch – involved in proceedings. Their role in the case is collecting information, among other activities authorized by a separate section of U.S. legal code that approves the appointment of administrative judges in the executive branch to carry out these same activities.

Elsewhere in the 37-page-long response, Microsoft denied the claims that the Xbox maker’s $69 billion acquisition of Activision Blizzard will stymie competition in the games sector. The response frames the deal as beneficial for Activision Blizzard and consumers alike by offering more people the chance to play Activision Blizzard’s games and at lower prices. It also refuted allegations that the deal would hamper growth in any sector of the games industry, as Microsoft says the FTC has no supporting evidence to suggest there would be any harm to competition after the deal closes.

“The acquisition of a single game by the third-place console manufacturer cannot upend a highly competitive industry,” Microsoft said in its response. “That is particularly so when the manufacturer has made clear it will not withhold the game. The fact that Xbox’s dominant competitor [emphasis in the original] has thus far refused to accept Xbox’s proposal does not justify blocking a transaction that will benefit consumers.”

“Even with confidence in our case, we remain committed to creative solutions with regulators that will protect competition, consumers, and workers in the tech sector,” Microsoft vice president Brad Smith said in a separate statement provided to GLHF. 

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While Smith narrowed the focus to Call of Duty and the console market, Microsoft’s response suggests the primary reason for purchasing Activision Blizzard is to gain a foothold in the mobile market, presumably thanks to Call of Duty Warzone Mobile and the lucrative portfolio of Activision subsidiary King, makers of Candy Crush Saga. Providing more players access to games was a secondary reason.

Activision Blizzard CEO Bobby Kotick also made a statement, echoing Microsoft’s official response and says many more avenues to compete with Xbox are open to all developers and publishers.

“Our industry has enormous competition and few barriers to entry,” Kotick said. “We have seen more devices than ever before enabling players a wide range of choices to play games. Engines and tools are freely available to developers large and small. The breadth of distribution options for games has never been more widespread.” 

Microsoft’s response also alleges that Xbox’s success in the cloud and subscription sectors – which generates several billion dollars in revenue and is built on Xbox’s network of studios and deals with other game publishers – would have no bearing on competitors developing their own services. 

Neither executive commented on the FTC’s additional concerns about effects on the games industry’s burgeoning labor movement, nor did Microsoft’s response address it directly.

Meanwhile, the FTC successfully wrapped up a case against Epic Games, where the Commission accused the Fortnite maker of unethical practices targeting children. 10 gamers also sued Microsoft to stop the Activision Blizzard deal from proceeding, though Microsoft didn’t address that case.

Written by Josh Broadwell on behalf of GLHF

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Microsoft CEO is ‘very confident’ that the Activision Blizzard merger will be approved

Satya Nadella says, ‘if this is about competition, let us have competition’ regarding the acquisition.

Microsoft CEO Satya Nadella is confident that the company’s proposed acquisition of Activision Blizzard will gain approval from regulators.

During an interview with Bloomberg, Nadella spoke about the potential merger and any scrutiny it’s receiving.

“Of course, any acquisition of this size will go through scrutiny, but we feel very, very confident that we’ll come out,” Nadella said.

Most of the criticism pertains to Call of Duty’s potential exclusivity on Microsoft platforms, which Xbox boss Phil Spencer recently claimed wouldn’t happen anytime soon, if ever. Shortly afterward, PlayStation CEO Jim Ryan publicly responded, claiming that Microsoft’s offers thus far have been ‘inadequate on many levels’ for Sony.

Convincing regulatory bodies is the biggest hurdle Microsoft needs to overcome. Recently, the UK’s Competition and Markets Authority (CMA) claimed Call of Duty Xbox exclusivity could ‘harm’ PlayStation. Sony also argued that Call of Duty can ‘influence someone’s console of choice’ when Brazil’s Administrative Council for Economic Defense (CADE) asked about the acquisition. 

“So if this is about competition, let us have competition,” Nadella continues – noting that Microsoft is the No. 4 or No. 5 competitor within the games industry, while Sony is No. 1.

It’ll likely be a long time before this whole mess has any sort of resolution.

Written by Kyle Campbell on behalf of GLHF.

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Microsoft’s acquisition of Activision Blizzard might be approved next month

The FTC is still investigating, but an official ruling likely isn’t far off.

The Federal Trade Commission (FTC) could be close to approving Microsoft’s massive $68.7 billion buyout of Activision Blizzard.

In mergers this large, the FTC requests that both buyer and seller provide extensive data about both companies. Once that is complete, the FTC has 30 days to review a deal before it can be approved or denied. A report by Seeking Alpha shows that Microsoft has recently provided the FTC with information regarding its planned acquisition of Activision Blizzard. 

As of right now, it’s unclear if Activision Blizzard has complied with the request. However, once that information is supplied, the 30-day countdown will begin. Afterward, the FTC can either approve, deny, or temporarily pause the deal.

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However, several other regulatory bodies in other countries could also impact Microsoft and Activision Blizzard’s merger. The UK’s Competition and Markets Authority (CMA) is also investigating the deal, with a deadline of Sept. 1, 2022, to make its decision. There are many moving parts here, and both companies are undoubtedly trying to avoid any potential antitrust issues that could arise.

Earlier this year, 98 percent of Activision Blizzard stockholders voted for the acquisition. So thus far, it’s looking like the deal will go through. Of course, that could change fast should any of the aforementioned regulatory bodies find anything wrong.

Written by Kyle Campbell on behalf of GLHF.

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Activision Blizzard stockholders approve Microsoft buyout

Wall Street reportedly bets the deal will fail, though.

Everything is coming together for Microsoft’s purchase of Activision Blizzard, but not everyone believes the deal will finalize.

On Thursday, more than 98 percent of Activision Blizzard stockholders voted in favor of the proposed acquisition. It still has to pass an investigation by the Federal Trade Commission (FTC), but if things work out, then the transaction should finalize on June 30, 2023.

“Today’s overwhelmingly supportive vote by our stockholders confirms our shared belief that, combined with Microsoft, we will be even better positioned to create great value for our players, even greater opportunities for our employees, and to continue our focus on becoming an inspiring example of a welcoming, respectful, and inclusive workplace,” Bobby Kotick, CEO of Activision Blizzard, said in a press release.

Not everyone fancies Microsoft’s proposal, as it might be a golden parachute for Kotick and others on Activision Blizzard’s board following months of turmoil at the company. Even now, new lawsuits and alleged case meddling from external parties are still rolling in.

However, Bloomberg reports that Wall Street is betting that the Biden administration’s antitrust enforcers could stop the buyout. The FTC’s investigation is led by Lina Khan, who’s been a staunch advocate of more thorough reviews of deals like this. Under Khan’s leadership, neither Nvidia’s acquisition of Arm Ltd. nor Lockheed Martin Corp.’s buyout of Aerojet Rocketdyne Holdings Inc went through.

Some analysts have been predicting this for months, especially since Activision Blizzard owns several massive multiplatform titles like Call of Duty: Modern Warfare 2, Diablo Immortal, and Overwatch 2. Though Xbox boss Phil Spencer said the company isn’t planning on making Call of Duty an exclusive.

Written by Kyle Campbell on behalf of GLHF.

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