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To report this morning that Microsoft has won over the UK regulator and can complete its acquisition of Activision Blizzard was a relief.
It was interesting, to begin with. It was even a bit fun being able to speak to all these interesting legal types and business leaders, on all sides, about the whole process.
But the protracted saga quickly turned unsavoury (to say the least) once PlayStation objected to the deal and the regulators started to raise serious concerns on its impact on the video games business as a whole.
And it was not just with the console fanboys, who have made the commercial success of their platform part of their identity. Even within the industry there’s been more than its fair share of nasty hyperbole. Some of it public, some of it behind-the-scenes, ranging from exaggerated statements around the fact the UK being ‘closed for business’, to memes from games executives making fun of their peers.
But this part of the story is thankfully over now. And in the end, both the EU and the UK regulator the CMA have forced Microsoft into some pretty strong concessions around streaming (versus the US regulator, which has so far achieved nothing).
In the end, the debate around the impact on PlayStation faded away. PS5 is the dominant player in console (alongside Nintendo) and that appears unlikely to change. You can see this when looking at the latest sales charts, with PS5 extending its lead over Xbox over the past year.
Microsoft’s release slate just hasn’t been able to compete with what its rivals (which yes, does include Nintendo) have been offering. Last month’s Starfield caused an expected improvement in sales and a lot of engaged players, but early console figures suggest that September still belonged to PlayStation in many territories.
As for the long-term impact of this deal on the console space, I actually feel it will be positive, and I don’t mean in terms of which box is going to sell the best.
The deal will create more competition, not just in console hardware, but within the shooter genre, too
Most of Activision Blizzard’s big games are largely centred around the PC platform (and mobile) – games like Warcraft, Diablo and Candy Crush. The really big console title of note is Call of Duty, but even if Microsoft does decide to stop making the game for Sony’s consoles in 2033/2034 (when the deal between the two will end), that’s a good ten years in which to build a competitor – whether that’s a first-party or third-party one. I know some companies who have designs on Call of Duty’s market share will view this as a great opportunity to team-up with PlayStation and its huge audience.
In other words, the
Game Industry source