Microsoft’s Acquisition of Activision Faces Ongoing Review by US Federal Trade Commission
The US Federal Trade Commission (FTC) is currently reviewing Microsoft’s acquisition of Activision, and during a recent hearing, Xbox head Phil Spencer raised concerns about the deal. Spencer pointed out that Microsoft’s previous acquisition of ZeniMax Media, the parent company of Bethesda Softworks, was primarily driven by fears that the highly anticipated game “Starfield” would be exclusively available on PlayStation.
Spencer’s concerns are not unfounded. Prior to Bethesda’s acquisition, Sony had secured limited-time exclusive agreements for two games: “GhostWire: Tokyo” and “Deathloop.” As a result, these games were unavailable on Xbox for a year after their release.
“When we acquired ZeniMax, one of the reasons was that Sony had reached an agreement with Bethesda to pay and prevent these games from being on Xbox,” Spencer stated. “We can’t afford to be in a position where we fall behind in content ownership when it comes to launching on the internet. We have to secure that content.”
Spencer further revealed that Sony also takes a 30% cut from the revenue generated by Microsoft’s games on their platform. He argued that this money is then used by Sony to fight against competitors and diminish Xbox’s market share. Spencer admitted that Xbox has struggled to effectively compete over the past two decades.
However, when asked about the exclusivity of “The Elder Scrolls 6” on Xbox, Spencer remained vague, stating that it is still difficult to determine.
The case regarding Microsoft’s acquisition of Activision is currently under trial in several countries, including the United States, Australia, and New Zealand. The European Union, Serbia, Ukraine, South Africa, Brazil, Chile, Saudi Arabia, South Korea, Japan, and China have all approved the deal. The United Kingdom is the only country currently voting against it.
The outcome of the ongoing review by the FTC and the decisions made by various countries will ultimately shape the future of Microsoft’s acquisition of Activision and its impact on the gaming industry.
How has Sony’s previous exclusive agreements with Bethesda games affected Microsoft’s decision to acquire ZeniMax Media
Microsoft’s acquisition of Activision is currently being reviewed by the US Federal Trade Commission (FTC), and Xbox head Phil Spencer has expressed concerns about the deal. Spencer highlighted that Microsoft’s previous acquisition of ZeniMax Media was driven by fears that a highly anticipated game, “Starfield,” would become exclusive to PlayStation.
Spencer’s concerns are valid considering that Sony had secured limited-time exclusive agreements for two games, “GhostWire: Tokyo” and “Deathloop,” prior to Bethesda’s acquisition. These games were unavailable on Xbox for a year after their release.
The motivation behind Microsoft’s acquisition of ZeniMax was to prevent Sony from paying for exclusive agreements with Bethesda. Spencer emphasized the importance of content ownership in the digital era and the need for Microsoft to secure that content.
Spencer also revealed that Sony takes a 30% cut from the revenue generated by Microsoft’s games on their platform, which is then used to compete against Xbox and diminish its market share. This has posed a challenge for Xbox in effectively competing over the past two decades.
When questioned about the exclusivity of “The Elder Scrolls 6” on Xbox, Spencer remained evasive, stating that it is still uncertain.
The case regarding Microsoft’s acquisition of Activision is currently being tried in multiple countries, including the United States, Australia, and New Zealand. While countries like the European Union, Serbia, Ukraine, South Africa, Brazil, Chile, Saudi Arabia, South Korea, Japan, and China have approved the deal, the United Kingdom is currently voting against it.
The outcome of the ongoing review by the FTC and the decisions made by various countries will ultimately determine the future of Microsoft’s acquisition of Activision and its impact on the gaming industry. The stakes are high for both Microsoft and the gaming community as a whole.
It’s understandable that Phil Spencer is raising concerns over Sony’s exclusive deals in Microsoft’s acquisition of ZeniMax. While competition is healthy, it’s crucial for Microsoft to ensure that their investment truly benefits the gamers and promotes fair play in the industry. Transparency and collaboration should be prioritized to avoid any negative consequences that could affect the gaming community.