Gamers are attempting to sue Microsoft to stop its merger with Activision Blizzard. A total of ten players took legal action in US federal courts. However, what could this mean for the multi-billion dollar deal, and why did this happen?
Earlier this year, on January 18, the Xbox makers made an announcement. They made their intent to purchase Activision for $68.7 billion. The deal hit massive roadblocks because of Blizzard’s caution.
If Microsoft were to acquire Activision, it would create a monopoly in the gaming industry. The attempt to sue comes two weeks exactly after regulators filed a case.
What Could This Acquisition Mean?
Microsoft believes that acquiring Activision Blizzard will expand the competition. They hope to create more opportunities in the industry for players and game developers. However, it is worth noting that the purchase could mean a significant loss for Blizzard.
The tech giant already made a successful deal with Nintendo to put Call of Duty on Nintendo devices. The agreement allows players to get and play the game on their consoles for ten years. Yet, Sony warily hesitates to give a response to the offer.
They have also raised concerns to UK’s Competition and Markets Authority (CMA). It is due to Xbox’s Game Pass, which directly competes with the PlayStation Plus. It is worth noting that the Federal Trade Commission (FTC) is not happy with this acquisition.
Now, Microsoft is under tons of pressure. The lawsuit from gamers and the investigation from the FTC and CMA will further delay the acquisition. The business watchdogs stated that Activision is one of the small numbers of developers that produced quality games.
The acquisition would have plenty of opportunities to give Microsoft the means and opportunities to harm the competition. Yet, Microsoft President Brad Smith says they have complete confidence in their case. They welcome all opportunities to present their case in court and for investigation.
What Can Gamers Expect from This Deal?
According to Activision Blizzard’s Chief Executive, Bobby Kotick, the deal being anti-competitive does not alight with the facts. This acquisition is now one of the most high-profile and biggest legal battles in 2022.
If the deal pushes through, we might see more Call of Duty on the Xbox and Nintendo. However, this also means we will see fewer original games developing from Activision Blizzard. Is this acquisition by Microsoft unfair? Ten gamers seemed to think so.
We leave it up to you to decide whether or not Microsoft is in the right. If you want more articles about gaming and esports, go to our website. You can also follow us on social media platforms to stay updated about esports and gaming.