
It's not all doom and gloom for Microsoft when it comes to the ongoing ActiBlizz deal! The Ukrainian government has announced this week that it is happy for Xbox's acquisition of the company to go ahead.
Yep, despite hitting a major stumbling block here in the UK, the Eastern European nation seems satisfied with Xbox's pitch for buying the Call of Duty maker. The country's Antimonopoly Committee authorised the deal on April 27th, 2023.
In the committee's statement, the CMA verdict was indeed mentioned, along with the UK authority's concerns about the cloud gaming market. However, Ukraine said that Microsoft and Activision Blizzard currently do not provide cloud gaming services in the region, so that isn't a concern for the country's Antimonopoly Committee.
Speaking of cloud gaming, Microsoft is already pressing on with more 10-year ActiBlizz agreements. Earlier today, the Xbox owner announced a deal with Spanish cloud streaming provider Nware in the hopes of strengthening its position in enabling fair market conditions for cloud gaming.
Do you think this deal will eventually go ahead? Let us know your predictions down in the comments section.
Comments 39
The UK f*ing things up as usual, we’ll probably deliberate over this now for months if not years, drag the whole thing out and then say it’s actually good to be passed! Classic UK!
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Microsoft helped defend Ukraine against a wave of Russian cyberattacks in the first few days of the war, so to be honest I'd have been surprised if they did rule against them.
Ignoring all that though, I'm kind of hoping something can be done and this deal goes through as I suspect MS really have put all their eggs in this basket - as even if Xbox start to play Sony's tactics I imagine most games for the next year or two are locked down already both platform and marketing wise.
So we could be well over halfway through this generation before we really start to see proper competition - either from this takeover (given Sony still have some marketing time left with Activision) or from Xbox's fightback - and that might be too late particularly given the latest PlayStation 5 sales when Xbox appears to be struggling with stock.
Sony spent $15m on adverts ahead of the PS5 launch, Xbox spent around $5m - I know marketing isn't everything as Xbox spent more ahead of the PS4 / Xbox One launches, but that time was to try and correct a major screw-up.
Once this takeover completes or dies completely, which we'll hopefully know within the month once we get the EU ruling (as the UK will likely follow them as Sunak will hate it if the EU seem more competitive), Xbox come out hard with marketing as it just seems to be Sony wall-to-wall at the moment
So far, its ONLY the UK that is 'blocking' the deal so I don't think they alone can prevent the deal completing and is more likely to affect the 'service' MS can provide in the UK.
It's much more likely that the deal will 'complete' everywhere. However, in the UK, ABK may well 'exist' as a 'shell' company and provide 'ABK' games in the UK, but maybe cannot bring their games to those Cloud based companies and Nintendo in the UK until they appeal and win their case.
I don't think the CMA can block a US based Company from buying another US based company and if the rest of the world supports the deal going through, that does reflect badly on the UK...
@BBB You should perhaps clarify that to UK Xbox gamers as I can assure you that there are plenty of people in the UK that think the CMA have come to the correct decision.
@Kaloudz Lol us Brits have always had a bit of a tendency to think we can set the rules for the whole world - can't think when it came from!
In seriousness, I do think if the EU rules in favour the UK government will negotiate - get a sticking plaster "extra remedy" which gives them a fig leaf to overrule the CMA and show the UK is competitive and "better than the EU for business".
Particularly given we had the head of Unipart saying the USA has great green subsidies and the EU is about to have some, and the UK is quoted as saying "we're waiting to see what the EU does"
Kaloudz wrote:
I'd happily take the discount
Well, the UK alone certainly cannot stop this deal from going through. So, the UK and Sony can go have a beer and celebrate Sony's antiquated business model of focusing on console sales.
I could just see Russia, next week, saying that they don't accept the deal, because of the fact Microsoft is a puppet of America, and that the Ukraine have no say on the future of gaming in the area.
@BBB You are expecting far too much common sense and not enough toys-out-the-pram gamer drama here
@Kevw2006 Yes I am one, and an Xbox gamer too. Thought I think they have come to the right decision for the wrong reasons.
There's such an irony in Microsoft's response. One of the CMA's main concerns is that Microsoft would be in such a dominant position that they could bully the market. What has their response been to not getting what they want? Effectively 'we'll use our market position to punish the UK and withdraw future business from you, and scare away others too'. Seems the CMA had their point proven.
@Sebatrox you're absolutely correct because, let's face it, 80-90% of the population simply don't care.
Man, the UK has become a real joke of a country.
@ShadowofTwilight30 Games "here." Do you mean in the UK? I hope so because that's all they can do. Lol. Let's not turn this around on Microsoft. Sony's business practices are trash and if you're going to start with the fanboy stuff, take it to another site. But not on an Xbox site. You don't understand how a business runs because you're probably not old enough to understand. And don't bother to respond.
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They have their priorities in order. Call of Duty on Game Pass first. WWIII later.
I am just confused by the logic of the CMA's decision. Clearly Microsoft is willing to put its games on other cloud platforms.
All these cloud companies have to do is go to Microsoft and say "let's make a deal" and I am sure Microsoft will make a deal. There is already precedent with the deals it's made with 4 different cloud companies.
My point: I just don't see how the acquisition stifles the ability for another to compete, when Microsoft is willing to add its games to other platforms.
I could see the CMA's point if Microsoft were trying to buy a Cloud Streaming technology company, not a video game publisher.
The real battle with Cloud gaming is streaming quality, platform reliability, and input latency - not the games themselves as that is a matter of licensing.
This deal isn't about the technology behind Azure or buying out Cloud Streaming companies to prevent competing with Xbox Cloud Streaming, but the library of games that Microsoft is clearly willing to provide.
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@ValentineMeikin well maybe but then again I don’t know what Russia will do
So UK thinks they're the superior ones in gaming. Absurd.
@GamingFan4Lyf I've said this and I will say it again. CMA is AFRAID Xbox game pass will destroy the gaming innovation. And CMA is scared MS will finally DOMINATE the gaming industry.
@themightyant Why would MS want to invest more in the UK and be stifled by unknowledgeable and self-interested regulators? The CMA may have cost MS billions come this July. They are not the only tech company that will take note and invest elsewhere.
@GamingFan4Lyf The reason is that the CMA's nonsensical argument still hinges on Call of Duty.
They let go of the "console-harm" angle after being led to realize how much money MS would potentially forfeit through exclusivity. However, they still think MS could take CoD and all ABK games exclusive to their XCloud after 10 years. That and XCloud would become so popular that no one could compete. As the CMA alleges, those games are so in demand for streaming that no other cloud gaming service could compete.
I don't think they realize that these are streaming services with low monthly subscription fees. Or that Nvidia's service serse a different purpose from that of Game Pass. Maybe they don't have Netflix, Hulu, Disney+, Prime, Paramount+, Peacock, or Shudder over there.
MS/Xbox putting forth great effort for cloud adoption. The CMA is saying great, you proved it has potential, now we'll hinder you with regulations so that our nation might catch up.
The CMA's verdict feels like them taking a set of flash cards and picking a random one to focus on publically while not changing their actual case one bit since Sony wrote it for them.
The fact they trotted out that the Switch 'cannot support' CoD again, when I played MK11 on Switch and on XBOX. The Switch isn't powerful enough to do 4K at 60 FPS, but it doesn't have a 4K screen.
Seriously, CMA, tell me which broken mess you found that shows the Switch can't run CoD.
And then show me which cloud provider you interviewed that wasn't pretty much crying that their cloud solution failed to be the market leader when the market was saturated by cloud startups.
@theduckofdeath I mean, that's probably correct, but I doubt even Microsoft's lawyers would allow Microsoft to simply hand out "lifetime" commitments to anyone.
Heck, not even an independent Activision would hand out a "lifetime" contract. That's legal suicide!
Perhaps Microsoft should just come out and say "we own ABK but we're letting it maintain independence and stay multi-platform" in the same way Sony said when it acquired Bungie.
Microsoft could have collected all the cash without the hassle.
I kind of surprised ukraine can still working on this matter considering they have better things to do, like aren't they're still at war now
@LordFunkalot Doesn't make any difference. If everywhere else is approving it and the useless UK are not, it'll still go ahead. Pissed me off when Rishi Sunak was commenting on it in the press, WTF would he know about any of it!? #ToryScumOut
As a UK citizen and primarily an Xbox gamer I'm not happy with the CMA ruling at all.
Gamepass has done wonders for me and my family and as a father of two saved me a lot of money over the years since it launched, and having the whole back catalog and future COD titles on gamepass would have benefited me greatly.
So no, it ain't all "us" brits
@wiiware to be fair, a couple months ago Zelensky did a photoshoot for a magazine.
Not surprised tbh, he is a actor/comedian.
To all those on here who say the UK alone can't block this deal and prevent it happening and that Microsoft can push on with it regardless - sorry but the UK can. The deal has to have the approval of the US, the UK and the EU. Research it
@Romans12 the UK can totally block this deal from happening- it has to be approved by the US, UK and the EU
@anoyonmus is that you Vladimir ??
@Alex79uk the UK can block the deal. It has to be approved by the US, UK and the EU
@GamingFan4Lyf I don't think MS should have to agree to any of this. It is in everyone's best interest to kept CoD multi-platform, but that is the end of it. And yes, an 10-year agreement is bad enough. Twenty years or lifetime is absurd. ABK has never agreed to anything like that.
MS isn't paying $70 billion for a corporation that is going to stay independent. That is nuts. Nobody would agree to that. If this deal doesn't get closed by the end of July, MS will be on the hook to ABK for over $3 billion. That was about enough to buy Bungie.
@Green-Bandit joke of a country coming from someone from a country where an 18 year old can buy an assault rifle and ammo an only needs id!??? And then they wonder why schools keep getting shot up!??? Yeah, ok!! 🤦♂️🤦♂️🤦♂️
@Alex79uk ya wrong. The UK can block it. It needs approval from USA, UK an Europe.
@TheArtfulDodger just maybe it ain’t the gun and it’s the broken homes and mental illness of a person. Not so sure this is a site for talking about that tho. At the end of the day the UK made their choice and many agree with it and many don’t, i don’t.
@Kaloudz I was just about to say it seems like the EU decision is going to weigh more heavily than the UK's decision. I think with all the countries in south America that have approved the deal on top of a major swatch of countries across Europe leaning towards approving the deal I think this is more important than the UK decision. I honestly also believe that the UK may reverse their position down the line especially since we know that decision has been appealed and I suspect their position to change as more companies and countries continue to back the acquisition. Long Live Xbox lol happy gaming ✌️
@Green-Bandit we get broken homes an mental illness here in England. Don’t get people shooting schools up tho!
I’ve been quite apathetic to this whole Activision-Blizzard takeover deal up until now, but after reading all these anti-UK hate comments here and on Reddit I now want the EU to block it. Then the bile and toxic vitriol will be spread out amongst many nations and not just solely focused on mine.
@KingPev lmao no. I have my own reasons to not like Ukrainian government.
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