Microsoft’s chief govt officer Satya Nadella has mentioned that his firm will nonetheless be number three in the games industry even after its acquisition of Activision Blizzard is accomplished, ought to the U.S. Federal Commerce Fee greenlight the deal.
Nadella made his feedback throughout an interview with Monetary Instances, the place he was quizzed concerning the deal being scrutinized by regulators to find out if it harms competitors. Whereas he acknowledges that the acquisition will likely be beneath a microscope, Nadella appears assured that it’ll go forward due to Xbox’s third place within the video games trade.
Sony vs Microsoft: Is Activision Blizzard deal anti-competitive?
It’ll be some time earlier than the FTC makes its choice, however for now, Microsoft appears to be within the clear. Or at the least that’s what analysts and Nadella assume. “On the finish of the day, all of the evaluation right here needs to be achieved via a lens of: ‘what’s the class we’re speaking about, and market construction?’” Nadella advised Monetary Instances. “Even put up this acquisition, we will likely be quantity three with kind of low-teens share [of the video games market]. We will likely be a bit participant in what will likely be a extremely fragmented place.”
Microsoft insists that its acquisition of Activision Blizzard has to do with the event of the metaverse versus pulling video games off of rival platforms. Nevertheless, Nadella has a special tone than Xbox CEO Phil Spencer, who instantly assured Sony that he needs to maintain Call of Duty on PlayStation. Nadella is of the view that given Microsoft’s place out there, it shouldn’t should “make any formal concessions” to have the acquisition authorized.
Opinion: The Xbox Activision acquisition can’t be stopped
Zarmena writes… As I’ve mentioned earlier than, the Xbox Activision deal will irk authorities, nevertheless it’s unlikely that they’ll achieve blocking the acquisition. For starters, Microsoft has achieved its homework and Nadella isn’t improper when he says that Microsoft being third within the video games market makes the case for this deal much more compelling. Secondly, Microsoft is aware of that if this deal is seen as anti-competitive, FTC must apply the identical guidelines to all the tech trade, which it’s unlikely to do. Solely time will inform what’s going to occur in 2023.
[Source: Financial Times]