Game Over for Microsoft?
The attempt to acquire Activision Blizzard has been blocked by the Competition and Markets Authority.
Even those with a cursory knowledge of the gaming industry will likely have heard of Microsoft and Activision Blizzard.
Microsoft is behind the Xbox console and also owns a number of other gaming studios such as 343 Industries (the developer of the Halo franchise) and Bethesda (Fallout and Elder Scrolls). Meanwhile Activision Blizzard is a massive gaming company that is responsible for hits such as Call of Duty, Warcraft, and even the addictive mobile game, Candy Crush.
Thus when Microsoft announced plans to acquire Activision Blizzard, eyebrows were raised by government bodies concerned about the potentially anti-competitive nature of the deal. After all, it is not difficult to imagine a hugely popular series like Call of Duty becoming an Xbox exclusive and minimising the market share of competitors like Sony’s PlayStation.
Now the Competition and Markets Authority (CMA) has come to the conclusion that the agreement, worth $68.7 billion (£55 billion), would be bad for gamers in the UK and stifle innovation in the industry.