The CMA (Competition and Market Authority) British fears that theacquisition of Activision Blizzard from Microsoft could cause the value of X to grow too muchGame Pass boxto the point of creating a monopoly on similar services and reducing competition.
According to the report published today by the CMA, the Game Pass has a predominant position in the panorama of subscription services and its own rivals are significantly smaller in terms of subscribers and earnings, as well as having a lower popularity and a lower catalog. The British agency’s concern is that with the acquisition of Activision Blizzard, the service could grow to such an extent that it “creates barriers to entry for rivals, reduces competition and significantly increases Microsoft’s market power.”
“Game Pass holds a strong position in multi-game subscription services prior to the acquisition and most of its competitors are significantly smaller in terms of users and revenues,” the CMA document reads.
“Most Game Pass rivals lack the popularity and range of content that Game Pass may possess after acquisition. Given the importance of Activision’s content, current and future rivals could be impacted by any foreclosure strategies. using such content. ”
“Multi-game subscription services are a nascent market that shows both direct and indirect effects. Combining Game Pass with Activision’s major game catalog could substantially reduce competition following a full or partial foreclosure, or a combination of both. This could increase barriers to entry, reduce the number of competitors to one or only a few providers, and significantly increase Microsoft’s power in the market. The acquisition can have this effect, or at least accelerate the process, thus depriving consumers of a longer period of competition between platforms. ”
In another section of the document, the CMA states that even according to the third partsthe acquisition would greatly increase the value of the Game Pass.
“Microsoft’s first-party games are not available in any subscription service other than Xbox Game Pass, even when these titles are available for purchase on rival consoles. Microsoft’s internal documents further highlight its incentives to foreclose. rivals in game subscription services “.
“Third parties told CMA that Microsoft would benefit from making Activision’s content exclusive to Game Pass, and this would be in line with Microsoft’s attitude towards past acquisitions, including that of ZeniMax Media.”
It must be said, however, that what the CMA said is not entirely true. For example, Deathloop has been available for a few weeks in the PlayStation Plus Extra catalog while Fallout 4 is included in the PlayStation Plus Collection. On the other hand, it must also be considered that the inclusion of Bethesda titles in Sony’s services comes from agreements entered into prior to the acquisition by Microsoft.
Not only the only doubts of the CMA regarding the acquisition of Activision Blizzard by Microsoft. UK antitrust fears that Call of Duty could become an exclusive.
