It’s been more than six months since Microsoft announced its plans to acquire Activision Blizzard, kicking off the long process of getting approvals from antitrust organizations around the world. Most of the time these investigations are highly classified, but we do know that they involve seeking opinions from competing companies in the industry. Now, thanks to recent filings in Brazil, documents containing those opinions have been published online, giving us an idea of what the likes of Sony, Ubisoft, WB and others think about the deal.
Brazil’s administration recently sought feedback on the deal and published documents online, giving us a glimpse into what the industry’s major publishers think about the upcoming merger. The list of companies involved includes the main console competitor, Sony, as well as game publishers such as Ubisoft, WB and Riot Games. They also contacted technology companies with an interest in the gaming market, such as Google and Apple. Resetera user Idas found the documents on the Brazilian government website, and while much of the documents contain redacted information, we get a good idea of where the industry stands on the deal.
Sony naturally has the most to say as it competes with Microsoft in both console hardware and software. As we all know, great software can give one hardware platform an advantage over another. Sony points out that while it’s possible for almost anyone to make and release a game these days, there are only a handful of developers capable of producing AAA titles. Sony also adds that it would be very difficult for another company to create a franchise to rival Call of Duty and that the IP is powerful enough to influence consumer console choice.
Sony also estimates that Xbox Game Pass has captured up to 70 percent of the global subscription service market, and that it will take several years and a lot of investment to create a real competitor. There are concerns that the lower subscription price will undermine pre-sales for games and create a tough competitive environment for developers who choose to release their game for an up-front fee rather than package it in a subscription.
WB, which has been toying with the idea of selling its games division, believes the industry has a lot of competition and adds that the industry does not have a high barrier to entry for developers to release software. Ubisoft is in a similar boat, saying there are alternatives to Activision Blizzard games and arguing that there is plenty of competition in the industry.
Riot Games and Bandai Namco also responded with responses suggesting that both companies believe there are alternatives to Activision Blizzard titles and plenty of competition in the market.
Big tech companies like Apple, Amazon, Meta and Google didn’t respond much and most of their responses were redacted. After all, none of them seem interested in stopping the acquisition and acknowledging the gap between the mobile and console/PC gaming market. However, Apple seems to think that Apple Arcade is a competitor in the wider gaming market.
KitGuru Says: It doesn’t sound like there’s much resistance to the acquisition among established publishers. Still, regulators like the FTC and the European Commission may have concerns and still need to finalize their own investigations into the acquisition.
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