It seems like the tides might be turning for Microsoft and its recent acquisition of Activision Blizzard now that it’s been put under more intense scrutiny by several regulator agencies and antitrust authorities in the UK, US, and European Union. Some insiders have begun to worry about the fact that this deal could very well blow up and not happen to begin with.
Now, Microsoft’s been painting a very rough picture of itself and Xbox while trying to make its case regarding the acquisition of the Call of Duty company. The company has revealed that Cloud gaming isn’t the way of the future, that Xbox consoles still are sold at a loss, and other trivia that makes them look like the underdog against its competitor and most vocal opposition: Sony and PlayStation.
According to insiders that talked with the New York Post, Microsoft certainly didn’t expect this level of scrutiny from market authorities. In fact, the increasing pressure has left both it and Activision Blizzard at odds behind the scenes despite both companies’ insistence that the deal will go through.
The brass tacks at this point are regarding the exclusivity of the Call of Duty franchise. While Microsoft has stated before that this game series will not be kept from PlayStation, they also wouldn’t be legally obligated to keep the franchise not exclusive, and that is where the dealbreaker begins to set in for the regulators.
So, what now? Well, we still have yet to see what’s going to happen come November 8, when we get to hear more about whether the European Commission will permit the deal to go into its next phase. A Microsoft spokesperson told the Post in a statement that they have worked on taking the necessary steps to make the deal go forward.
It also is worth reminding our readers that there is a fee that Microsoft will have to pay should the deal fall through in the coming days. If the European Commission, UK’s Competition and Markets Authority, or American Federal Trade Commission squash the deal, Microsoft will have to pay Activision Blizzard $3 billion as per the conditions of the deal.
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