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The blocking of Microsoft’s plan to buy Activision Blizzard King has been the talk of the town this week. The British regulator’s reasons for halting Microsoft’s plan have quickly caused a lot of controversy.
From a broad point of view, the problem is known to be the new cloud gaming industry, but there is more to it than that.
After the UK’s Competition and Markets Authority (CMA) made it clear that Microsoft could not buy Activision, the documents came to light and have been scrutinized to find out why the regulator made this decision. Months ago, Microsoft tried to win over regulators by offering 10-year deals for Call of Duty and other Activision titles on platforms from companies like Nintendo and Nvidia. However, the CMA said that this was not enough and explained why.
Stephen Totilo, a reporter for Axios, said the CMA thought Microsoft’s plan and proposed solutions were not enough because the company would get a special position that would give it control over how it is treated and how its business is run. with Activision’s Blizzard King. In this case, the regulator says that if Microsoft controlled the publisher, cloud gaming companies would not be able to access the video game library and would not be able to generate their own business ideas. In this way, he believes that the gaming industry and his business are dynamic, so rivals’ models and strategies change rapidly. In this case, Microsoft would be a wall to develop those possibilities.
The full UK decision on the Microsoft-Activision deal helps explain why Microsoft’s 10-year cloud commitments to other companies failed to persuade regulators, who found them:
– too narrow – too focused on having to buy the games – too Windows focused – too short pic.twitter.com/E2notE5Wwc
— Esteban Totilo (@stephentotilo) April 27, 2023
On the other hand, the CMA is concerned that there is too much reliance on Windows, noting that there is a possibility that Microsoft will use its power and presence in the cloud to favor versions of Activision Blizzard games that run from the cloud on its OS. systems, giving them an advantage over others like Linux.
Finally, the CMA concluded that the 10-year contracts that Microsoft signed with the companies to guarantee Activision Blizzard’s game releases are a “weak” solution because they show prima facie that there are no conditions to guarantee that this relationship and commitment work. Well. Also, people are concerned that the company will give its cloud gaming platforms an advantage, which could cause problems with rivals. Both ideas are based on the idea that Microsoft won’t take stuff away from its competitors, but instead will find ways to make everything work better on its own platforms.
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Categories: Technology
Source: vtt.edu.vn