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The United Kingdom’s Competition and Markets Authority (CMA) has proposed to exclude the popular video game, Call of Duty, from the recent Xbox Activision Blizzard deal. This proposal comes after the CMA’s investigation into the £130bn merger between Microsoft, the parent company of Xbox, and Activision Blizzard, a leading video game publisher. The authority believes that the inclusion of Call of Duty in the deal would result in a reduction of competition in the UK video game market, leading to higher prices and fewer choices for consumers.
Call of Duty is one of the most popular video game franchises in the world, with millions of fans worldwide. The series has been around for over a decade and has seen numerous sequels, each of which has been met with great success. However, the CMA believes that the inclusion of Call of Duty in the Xbox Activision Blizzard deal would give Microsoft a monopoly in the market for first-person shooter video games in the UK.
The CMA’s investigation into the deal found that Microsoft and Activision Blizzard would have the ability to control the distribution and pricing of Call of Duty, and that they would also be able to limit the availability of competing games. This would result in a reduction of competition in the UK video game market and could lead to higher prices and fewer choices for consumers.
In response to the CMA’s findings, Microsoft has proposed to exclude Call of Duty from the Xbox Activision Blizzard deal, which would ensure that the franchise remains competitive and available to consumers through multiple platforms. This proposal has been welcomed by the CMA, which has stated that it will consider it as part of its ongoing investigation into the deal.
While the exclusion of Call of Duty from the deal would address the CMA’s concerns about reduced competition, it would also have significant implications for Activision Blizzard. Call of Duty is one of the company’s most profitable franchises and generates a large portion of its revenue. Excluding the franchise from the deal would mean that Activision Blizzard would need to find alternative ways to monetize the franchise, such as through licensing agreements or partnerships with other companies.
The CMA’s proposal to exclude Call of Duty from the Xbox Activision Blizzard deal has been met with mixed reactions from the video game industry. Some industry experts believe that the exclusion of Call of Duty would be a positive move, as it would ensure that the franchise remains competitive and accessible to consumers through multiple platforms. On the other hand, others believe that the exclusion of Call of Duty would be a negative move, as it would limit Activision Blizzard’s ability to monetize one of its most profitable franchises.
In conclusion, the CMA’s proposal to exclude Call of Duty from the Xbox Activision Blizzard deal highlights the importance of ensuring that mergers and acquisitions in the video game industry do not result in a reduction of competition and choice for consumers. The exclusion of Call of Duty from the deal would address the CMA’s concerns about reduced competition, but would also have significant implications for Activision Blizzard. Ultimately, it will be up to the CMA to decide whether the exclusion of Call of Duty from the deal is in the best interests of UK consumers.
