UK Authorities Think Microsoft x Activision Blizzard Deal Might “Harm” Rivals PlayStation

For many months now, the deal between Microsoft and Activision Blizzard had been a heated topic in the industry. With a console giant buying a gaming giant, the deal was meant to be an iconic merge for the industry.

Unfortunately though, the deal is currently seeing some huge back-steps and now UK authorities have shown concern about the deal, making it even more difficult for Microsoft to make a decision for the Activision Blizzard takeover.

CMA thinks the Microsoft x Activision deal is harmful

Competition and Markets Authority, aka CMA, is a UK-based regulator that makes sure that no one tries to build a monopoly in any industry. And according to recent reports, they fear that the Activision Blizzard takeover by Microsoft can be a harmful decision to rivals.

According to them, “The CMA is concerned that having full control over this powerful catalogue, especially in light of Microsoft’s already strong position in gaming consoles, operating systems, and cloud infrastructure, could result in Microsoft harming consumers by impairing Sony’s – Microsoft’s closest gaming rival – ability to compete as well as that of other existing rivals and potential new entrants who could otherwise bring healthy competition through innovative multi-game subscriptions and cloud gaming services.”

READ MORE: Microsoft Takes Over $68.7 Billion Deal With Activision Blizzard By Giving It A New Look On Combining with Xbox

This decision is also based on the fact that Microsoft already has a huge portion of the market under its control via several hardware and software means. This means that if the deal becomes successful, the software giant might engulf the rival companies’ profits, making a one-sided notion in the market.

What’s at stake here?

According to reports from 2019, an average person plays video games for 7 hours and 7 minutes a week. This means an average person at least plays video games an hour a day. Now suppose games like Call of Duty, which averages gameplay of 170 hours yearly by average players, are only available to PC and Xbox gamers.

Although, in this case, PlayStation still has an upper hand because of the type of games Sony produces, slowly and steadily it will affect the market that only some can predict.

Notably, Microsoft President and Vice Chair Brad Smith released a statement, saying, “We’re ready to work with the CMA on next steps and address any of its concerns. Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.”

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Let us see what the outcome of all this comes out. Till then tell us your thoughts on the matter in the comments below.