There’s a new twist in the never-ending saga: “Microsoft wants to buy Activision Blizzard” – Britain stands in the way. The British antitrust authority fears that the gaming market could be damaged if the two giants join forces. One option for agreeing to the deal: Activision could sell Blizzard (WoW, Overwatch, Diablo). A dream for many old Blizzard fans – a nightmare for Activision boss Kotick. He predicts Britain’s economic decline.
What is this endless saga about?
Call of Duty is the big sticking point:
CoD Modern Warfare 2: Important changes explained quickly – with gameplay
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UK believes merger could deteriorate gaming market
What does the UK authority say? In a statement by the UK antitrust authority, it is said that it is feared that such a merger could upset the competitive situation in gaming.
At the moment, Microsoft (Xbox) and Sony (PlayStation) would compete: both would have access to important brands, such as Call of Duty. If this access is lost for one of the parties, it could lead to
One fears the option that Microsoft could step in and take away Sony’s ability to publish Call of Duty or worsen Sony’s access to the shooter series.
Microsoft has issued a statement not to do exactly that and to allow Sony access to Call of Duty, but Sony has also warned of this danger.
Authority names possibility of smashing Activision Blizzard
This is the authority’s proposal: The authority gives 4 options on how to behave now. So you can see the option that Activision Blizzard splits up and only gives part to Sony:
The authority says: The assessment is now provisional. We are waiting for input from the two companies and will continue to deal with the topic.
Activision Blizzard explains why they had to sell themselves instead of buying EA
Why is selling Blizzard a dream for many gamers? Many gamers blame Activision for Blizzard not having as much of a focus on quality since merging with the Call of Duty company as it once did when developing until games were done.
Activision has changed Blizzard for the worse, erased many of Blizzard’s uniqueness with its focus on finance, and also expelled good people from the company.
However, it is difficult to say whether this is really the case. From Blizzard insider reports, it sounds more like Activision only started changing Blizzard’s culture when they just couldn’t launch new games anymore.
Activision bought Blizzard in June 2008 through a merger with Vivendi. They paid about $18.9 billion at the time. The main goal was to get their hands on World of Warcraft, which was extremely successful at the time. In 2013, Activision Blizzard bought its way out of Vivendi for $5.8 billion.
Kotick says regulators have no idea
How did Kotick react? The mastermind behind the sale, Activision Blizzard CEO Bobby Kotick, said in a TV interview that the authorities “have no idea about our business.” They didn’t even know that Japanese and Chinese companies were dominating gaming:
Sony and Nintendo have “great intellectual property freedoms”. Tencent would use the “protected market” in China. And Activision is having trouble gaining a foothold in Japan.
At the end of the interview, he attacked the UK: after Brexit, the UK is likely to be the first country to fall into recession.
The merger, on the other hand, would bring jobs. This is about the future of the technology location. It would be an opportunity for Europe’s “Silicon Valley” to emerge here. If deals like this didn’t go through, it wouldn’t be Silicon Valley, it would be Death Valley. So a hostile desert instead of a technology stronghold.
Kotick himself has repeatedly been heavily criticized:
If Bobby Kotick doesn’t leave now, Activision Blizzard will lose more talent