Google, Nvidia express concerns: Why is everyone against Microsoft’s acquisition of Activision Blizzard?

January 13, 2023  17:40

Google and Nvidia have expressed concerns to the U.S. Federal Trade Commission (FTC) over the takeover of publisher Activision Blizzard by Microsoft Corporation. The companies, which are part of the Alphabet conglomerate, argue that the acquisition could give Microsoft an unfair advantage in the cloud and mobile gaming markets.

Why are many opposed to a merger between Microsoft and Activision Blizzard?

This is not the first time there are fears about this deal: recently Sony was also indignant because of the possible deal between Activision Blizzard and Microsoft, worried that Microsoft could get full control over the game Call of Duty and make it a console exclusive.

Many gamers have also spoken out against this deal: 10 gamers recently attempted to block Microsoft's acquisition of Activision Blizzard through the courts, as they believe this deal will give the corporation too much power and help stifle competition in the video game industry.

The Federal Trade Commission itself is against the deal between Activision Blizzard and Microsoft and has also sued, wanting to block it. Experts from the commission are convinced that Microsoft wants to buy the largest independent game studio in order to harm competitors and further be able to manipulate prices in the market.

What does Microsoft say?

Microsoft is confident that a takeover of Activision Blizzard does not hide all the risks its competitors are talking about, but instead could increase competition and create more opportunities for gamers and developers.

Microsoft spokesman David Cuddy said that the company is ready to solve the problems voiced by regulators and competitors. The company also offered Sony to sign a contract under which games from the Call of Duty series will continue to be released on PlayStation consoles for the next 10 years, even after the takeover of Activision Blizzard.

Microsoft officially announced the deal with Activision Blizzard in January 2022. It is expected that the deal, the total amount of which is estimated at $68.7 billion, can be closed as early as June 2023, if, of course, all authorized regulators approve it. The deal will give Microsoft ownership of a number of popular game franchises, including Call of Duty, Crash Bandicoot, Spyro, Warcraft, StarCraft, Diablo, Overwatch and Candy Crush.

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