As the gaming industry continues to evolve and expand, technology giants Google and Nvidia have reportedly expressed concerns about Microsoft’s proposed buyout of Activision Blizzard. According to a recent report, the Federal Trade Commission (FTC) has sued Microsoft in an effort to stop the deal, with a pre-trial hearing taking place earlier this month.
The report from Bloomberg claims that Google and Nvidia have provided information that supports the FTC’s contention that Microsoft would gain an unfair advantage in the areas of mobile gaming, subscriptions, and the cloud. Nvidia, a company that specializes in making graphics processing units (GPUs) and operates its own streaming service, GeForce Now, reportedly told the FTC that there is a “need for equal and open access” to games. However, the company has not directly opposed the deal. Google, which runs the popular Google Play store for mobile games, has also expressed concerns.
This comes as Sony, a direct competitor to Microsoft’s Xbox division, has raised concerns about the possibility of Activision’s Call of Duty series becoming exclusive to Xbox. Microsoft has reassured that this will not happen and has even offered Sony a 10-year deal for Call of Duty.
Microsoft’s buyout of Activision Blizzard has already been approved in other countries such as Brazil, Saudi Arabia, and Serbia. However, it has faced more challenges in getting the deal finalized in the US and UK.
The acquisition of Activision Blizzard would provide Microsoft with a significant foothold in the mobile gaming space, an area where they currently lack a significant presence. The deal would give Microsoft ownership of popular mobile games such as Candy Crush, Call of Duty Mobile, and Diablo Immortal.
This is not the first time that technology companies have raised concerns about the potential impact of a major merger or acquisition in the gaming industry. In 2019, the FTC filed a lawsuit against mobile game developer Epic Games, claiming that the company had used its dominant market position to stifle competition. The case is still ongoing.
The gaming industry is a highly competitive and rapidly evolving market, with new technology and trends emerging all the time. As such, it is important for companies to have equal and open access to the market in order to compete and innovate. The FTC’s lawsuit against Microsoft and the concerns raised by Google and Nvidia highlight the need for careful consideration of the potential impact of major deals in the gaming industry.
It remains to be seen how the case will play out and whether the deal will ultimately be approved or denied. As the gaming industry continues to grow and evolve, it will be crucial for companies to have equal and open access to the market in order to compete and innovate.
