Microsoft boss Satya Nadella has been getting a lot of attention over the past few hours courtesy of an interview he recently conducted with CNBC, in which he addressed Microsoft's attempted takeover of Activision Blizzard.
In the interview, which was recorded prior to the European Commission's approval of the acquisition, Nadella admitted that he was "very much" surprised by the UK CMA's decision to block the deal:
"The fundamental logic of this deal bringing more competition, and more opportunity for publishers and gamers, still holds. So, as far as I'm concerned, we keep going... we have a process, we obviously respect the sovereignty of the United Kingdom and the CMA to decide what's good in that country."
Following these comments, Nadella was asked whether there could ever be a situation where Microsoft would essentially skip the UK if the deal was approved in all other regions, which led to an interesting reply:
Host: "Could you ever see an age where you would sell the product in the U.S. if it was approved, sell the products in Europe, and not sell it in the UK if they didn't approve it?"
Nadella: "Let's wait for it all to play out".
Naturally, this response has led to a lot of raised eyebrows, but realistically we can't imagine Microsoft would ever go down this route - it just doesn't seem very plausible to us. Then again, this deal has dished out its fair share of surprises!
For now at least, Microsoft is clearly putting a lot of effort into trying to convince the UK CMA their verdict was wrong, having announced plans to formally appeal the authority's decision to block the Activision Blizzard takeover. That's the big focus right now, and it might take quite a while until we find out if the appeal proves successful.
What do you make of Nadella's comments here? Let us know your thoughts down below.
Comments 52
Spot on from my perspective. MS seems to have this right and if they can continue on this path of games everywhere and use Xbox as the ecosystem, they will gain a ton of users, which in turn is lots of money and that keeps this ecosystem open for the long long term. Cause even if and I doubt it but if consoles just fell off the earth in sales they have the other area’s covered. So this is a short and long term strategy that I think is much much smarter than just trying to out console the PS.
Oh no, not a rude awakening for brexit britain! Could the uk maybe just be an island of the coast of the EU with ideas above its station due to nostalgia for the old british empire? Surely not.
It would be incredibly funny if it came to that, but hopefully not, for the sake of uk gamers, except the ones who voted for brexit.
I said on another site I thought if the FTC and EU were in that the deal could get done and maybe skip those games on GP or something along those lines in the UK. Putting pressure on the CMA from the government and players. I wouldn’t call it strong arming them just we don’t have to not sell to the rest of the world based on your decision.
@BadAtPickingUsername Nothing wrong with independence imo. No matter what country you are in, no doubt in some period of its history, a relative will have fought, or quite possibly died to achieve it.
Does it feel right now, to just sign it willingly away?
I mean if every other market says yes but the uk then why back out and pay 3 billion to activision when even if they say no eventually they’ll say yes if other markets get access
I’m telling you, they are not going to allow the UK to block this globally.
Tea and cucumber sandwiches at the ready, you boot up your beige Solaris computer, fire up GNUMail, and grab your scones. Just another day at the desk in the old UK!
@NEStalgia the UK to me is a bi poplar lead country cause in one way they want to be leaders of tech and innovative and forward thinking and in other ways they want to be relics and stifle growth and commerce to their unliking. I find their remarks of wanting to be the Silicon Valley of Europe funny after getting this so wrong. They need to get this right and I don’t mean just to make our Xboxes better, but to make them seem like a progressive and fair place to do business. Which at the moment outside of Sony, all other tech eyes on them are not liking what they see I am sure.
@NEStalgia one question buddy, how do we or I take over this thread about why Sony controllers are not comfortable and have bad sticks and blame it on the CMA? Or we can go the other way and blame the CMA for not letting MS have GYRO control’s in it’s controllers HAHA
@Green-Bandit it’s bad enough that Microsoft has a monopoly on controller colour variations but to allow them gyros as well is going too far… the CMA should block this…
@NEStalgia I can see UK gamers getting VPN as we speak or you can all move to Canada.
So interesting thing I read earlier today, will have to dig later for sourcing, but it sounds like Microsoft’s entire revenue from the UK is measured in hundreds of millions of dollars a year, not billions.
I doubt MS has any plans to leave the UK, but it’s likely less expensive for MS to leave the UK for 4 years at minimum, than it is for them to pay ABK it’s 3 billion cancelation fee.
I wonder how much ABK makes out of the UK a year, because that (ABK alone leaving the UK entirely) might be more worth it to MS.
@BobCoffee We already are in the age of cloud gaming. Google Stadia was so close but couldn’t get the games. Microsoft watched and started buying up publishers. Did you see the handheld Xbox player released last week? Either TVs will have an interface or project Keystone will get released and no more consoles….
@AlwaysPlaying HAHAHA Bloody right mate!!
@Moonglow well said, I fully agree with that. Even now I believe MS has more active users than PS and that’s with far less sales in consoles. Add in ABK and it will really balloon. So this is the right approach and I know fanboys of PS will say they wouldn’t be doing this if they hadn’t lost the last gen so badly and I disagree with that.I believe they would have, they would just have more consoles in the overall strategy. There’s an old saying of strengthen a strength, and that’s what a successful Xbox One would have done. I could be dead wrong, I have zero ties to any info that would state that case. But I think this would have been the approach all along with the rise in PC gaming, dominant profitable mobile market and a cloud market that while not ready will be a player for more casual minded gamers that might give up on $500 dollar consoles but would still like to casually turn their tv’s on and game a little from time to time.
I really found the comments by the CMA in their original decision about the deal being blocked globally very odd and it looks like it's going to be a mess around and find out situation for them. If you are the only one who blocks it then only the people within your borders get to benefit from your "protection". Clearly MS sees things that way.
They will probably work something out with the UK before it gets that far.
@NEStalgia Does Solaris come with Open Office preinstalled? Or is that a separate download now that Oracle donated it to Apache? Asking for a British friend.
@Tharsman I'm pretty sure the world won't let the UK block it globally. I'm sure India and Africa will really appreciate that their decisions are overruled by the UK just because they said so. CMA rules within their boundaries, at least currently they still do.
Maybe the most efficient strategy for Microsoft is to not publish nor stream ABK games in UK. I can see the CMA changing their mind after 6 months of class actions and complaints. The FTC can't block the acquisition in US, they can only sue Microsoft and likely lose the case, so the only one that can "block" (ban?) the acquisition is CMA in UK, a UK government department not completely backed up by the UK government and with the rest of the world against them.
Their remaining argument is that Cloud is dominated by Microsoft using the Game Pass Ultimate subscribers figure so it's a weak argument, especially when you consider that any company big and small can try to make a cloud subscription service, as have been seen, and that Sony also has a cloud service.
@AlwaysPlaying Hary and Meghan we're in Canada for a bit and just ruined it for the rest of the you folks trying to move here. Move to Oz....they love being called convicts to this day...true story.
@Moonglow 100% right buddy, just wish more people online were smart enough to take the time to understand that. All 3 are doing their own thing and using the strengths they have internally. I like this plan for MS, and getting more and more content for GP is key.
Just watched the video and it's from before the EU decision was announced.... Satya was definitely laughing at one point talking about them trying to justify this as bad for competition and consumers. Going to be a long while still before this isn't the main news cycle isn't it?
@AlwaysPlaying I absolutely love Canada but I've seen the state/price of internet first hand over there ,I'll stay in the UK
@FenIsMightier the UK market is only 18% of European gaming market sales, to put it in perspective. Yes, it's not insignificant, but it is still minor in the grand scheme of things.
To me this might be the best thing MS could offer, abandoning CoD on UK only or abandon CoD on PS UK only.
@AlwaysPlaying
Yankee Doodle went to town,
Hiding from the po-nies,
The VPN has hit it's cap,
It's 'cause of the old cro-nies.
@Green-Bandit I'm sure we can work a "small hands" Brits gag in there somewhere! . Didn't the princeling talk about getting an Xbox around the time the PS2 launched? 😂
@SplooshDmg separate download. Awesome OS though ❤️
@Elussya Sorry, but a single country contributing 18% is not minor. It is a significant contribution and Microsoft would be stupid to pull any of their gaming business out of one of the biggest gaming markets in the world.
Of course he has to say this, he would be fired otherwise, share holders won’t keep any CEO who oversees a failed merger of 69 billion dollars! And it’s up to the share holders vote how this proceeds. They will need to ask them to vote on a new deal if the appeal fails in the UK or US.
I’m just glad he’s a hell of a lot more level headed in his words and speech then Lulu from Activision and Microsoft’s Brad Smith, those two have acted like spoilt entitled American tech giants throwing their toys out the pram they didn’t get their own way!
It is a case of wait and see, he will need to try and get this deal done one way or another as they committed to it. If it fails he most likely will be gone.
@FenIsMightier I read somewhere that the UK market is worth more than the 69 billion the deal is costing annually. Now I’m not sure if that’s in games or everything Microsoft sells and does, either way IF true they’ll have a hard time with share holders accepting them leaving that money out of their profits that’s for sure. If they pull out of one of the major premiere gaming markets on the planet, which the UK is, then share holders will be accepting giving up and handing that market over to your competitors. Would they do that? Not so sure they would.
CMA has certainly thrown a spanner in the works.
@x3King84 You stole my avatar!!! ☹️
As a UK gamer I'd be absolutely gutted if Xbox withdrew from the market or reduced what's available in any way. Hopefully the deal gets pushed through despite the incompetence of the CMA.
@FenIsMightier @BobCoffee Hence why I said ‘IF’ lol, so they were not true, makes sense, I wouldn’t have been surprised if they were giving the prices for MS licenses though haha..
Still rather listen to Nadella as he’s a level chap, doesn’t seem to publicly go off on one like others at Microsoft have. He thinks about what he says. Phil just seemed beaten and battered over it all.
To be fair, @BadAtPickingUsername, this deal and the CMA blocking it has absolutely nothing to do with Brexit, and as for the British Empire, that's not been a thing for more than 50 years (some would say it ended in 1947). I can assure you that the majority of those that live in the UK don't even consider the Empire, and have little understanding of what it is. Also, both Brexit and the Empire were a political ideology, the CMA is independent of the Government, and so is therefore removed from politics.
Is the decision wrong? Yes, in my opinion, and I would suspect that that is something that the majority of a those living in Britain would feel also. Bashing Britain seems to be in vogue right now, but holding it citizens responsible for something that an independent organisation has decided, or something that ended before the vast majority of its population was even born, seems somewhat unreasonable...
I absolutely agree with your comment, @Green-Bandit, except in one regard, and that is that what the Government want (Silicone Valley) and what the CMA has decided are two separate entities because the CMA is an organisation independent of the Government. Were this a Government run organisation, I suspect that the decision would have been different, and it is because the CMA is not, that they were hauled in front of a Select Committee yesterday and questioned on the matter. I suspect that behind the scenes, the UK Government is putting considerable pressure on the CMA because this decision does fly in the face of what they are trying to achieve...
Here's hoping the deal falls flat so Microsoft can focus on their existing studios instead of letting them rot. This actiblizz stuff has gone on long enough.
@NEStalgia Haha, hey you’re right, he did want a xbox.
@Fiendish-Beaver i agree with that. That was my point you can’t have the CMA ruining what you want to become in the future. The whole world is watching this deal. When the CMA comes to a conclusion based on bad math and doubles down on it. This is a bad look for the UK and i can only imagine they are getting heat over it. FTC will avoid court cause they know they will lose there, so i suspect them to approve without looking stupid. Then again!! HAHA
@Green-Bandit Nah, FTC will probably go the court route, that's Kahn's MO, and it's fully about party politics. Damaging the FTC with frivolous suits that gets overturned is worth the political capital of the party making good on promises to be tough on big corporations, while simultaneously being their primary donation beneficiaries and not doing anything that actually can hurt them. It's that other party that just wants the rich to get richer, not our party, the party of the people, the one that MS hands most of their bribe money to... doesn't influence us, we're tough on them with lawsuits that have no standing or legal grounds that we know get overturned before we submit the docket. Biting the hand that feeds them with a good, dramatic bite in front of the cameras that doesn't puncture skin helps Decision 2024!
God comments like this are such a turn off.
Yeah skip the U.K.
Pull your operations from the U.K.
Double dare you…..
(Now read all the comments here and wow. Time to a take a break from here until this is all over)
Removed - flaming/arguing
@NEStalgia unfortunately that does make sense, well sense in their world, in my world they would see the deal as fair and approve it without the need of a judge and lawyers. But i get what you said and that’s probably the course it takes. As long as the FTC and EU approve the deal, it’s as good as done, or as good as done as this deal is going to get. It’s been a bumpy ride.
@BadAtPickingUsername "You people." Wow.
@BadAtPickingUsername
Your takes really are something. Generally speaking, the UK population do not need educating on Brexit. If the vote was to happen today, the result would be different purely on the basis of more young voters and less old voters. I think statistically the vote would have had a different outcome if it took place only 6 months later.
That aside, the UK is not an irrelevant market and is currently the third largest gaming market in Europe or ninth worldwide. That is a considerable market that you seem so keen to dismiss as irrelevant.
On top of that, the UK's gaming industry has made massive contributions worldwide. GTA and Tomb Raider are two very influential games that were born out of the UK and Xbox's favourite child, Playground Games, is UK based and currently produce some of the highest quality Xbox products available.
@BadAtPickingUsername
Being part of the EU means having these major decisions about your country taken away. The UK has the ability to standup to Microsoft and extract further concessions before approval or to outright block it. France, Belgium, Germany and Ireland do not have that oversight - which is why the deal easily passed.
I’m not sure if they will pull out of the UK, if they do they will literally lose the majority of Xbox console users to PlayStation IF it meant no more COD other than on PlayStation. I wouldn’t think twice about changing if it meant it was the only way to play COD and many others would feel the same I’m sure.
@BadAtPickingUsername While your acerbic comment is not without some truth about the UK, there's also no denying that it is a MASSIVE market and growing.
In terms of Console gaming market size the UK is estimated to be #2 globally only behind the US at around $4 billion per year.
In terms of total gaming revenue it is estimated to be #6 globally behind China, US, Japan, S Korea & Germany.
Regardless of any other politics it's a key territory and not easy to treat differently without massively impacting both their bottom line and optics.
I'm in the US and i know this is a UK based blog so forgive me but I kind of wondered this from beginning...if everyone but UK approves, then skip UK?
@CaptainCluck Oh really? Because what it looks like it that UK regulators are irrelevant and in the end if the two main regulatory jurisdictions, the US and the EU, decide to approve something the UK will either be forced to back track in exchange for a symbolic token to keep what’s left of its dignity or risk the company leaving the market if the company thinks the deal is worth it. So much sovereignty! Are toddlers also sovereign? Because that’s all your regulators and politicians seem to be able to do, throw a tantrum and hope a big boy agrees with them.
@themightyant Sure, 2nd if you ignore the EU market, but I guess that’s the crux of the issue isn’t it? You people always do ignore the giant next door, it makes you feel better about your place in the world, you’re not like those darn Europeans are you?
It won’t be too long before 10 years have passed since the 2016 referendum and you people, even those of you who voted remain, still don’t understand how the world works, how the EU works, and the place of a small island state of the coast of the EU in this world.
A lot of projection and assumption there @AcerbicEuropean. I'm also an acerbic European, blood from all over Europe and ROW, so phrases like "it makes you feel better about your place in the world, you’re not like those darn Europeans are you" are so wide of the mark it's laughable... I am a European. LMAO
But it's not ignoring the EU at all, we were looking at this on a country level, comparing country to country NOT country to a continent... who would do that?
Regardless the UK is still part of Europe even if it isn't part of the European Single Market. When looking at European sales statistics the UK is still included in that, at least for now.
@themightyant The EU is not a continent, I guess you’re still confused even about that. It makes complete sense to look at the European Union (or the single market if one would prefer) since the deal was approved by our regulator for the European Union. A gigantic market when compared to you, but no, it’s not the whole continent, it’s really in the name: a Union of European countries.
But again, you people still don’t understand what the European Union even is, for you it’s something far away, run by strange foreigners who dare to not do what little england tells them to.
And no, english people are not European and you people make that very clear every time you speak about something that involves other countries.
Maybe you’re laughing because it’s so sad, but "it makes you feel better about your place in the world, you’re not like those darn Europeans are you" is absolutely correct and it applies to the very large majority of you.
Keep calm and carry on bottoming out as a country, people and culture, I hear once you do hit the bottom it’s mostly an upwards trajectory from there. Have fun.
Leave A Comment
Hold on there, you need to login to post a comment...