
If you thought we were done with these Activision Blizzard acquisition articles, think again! The deal might have gone through on Microsoft and Xbox's end now, but that isn't stopping the US FTC from continuing to put up a fight.
As reported by Reuters and CNN, the FTC appeared in front of a three-judge court panel in California yesterday to argue its case, with lawyer Imad Abyad continuing to highlight various anti-competitive concerns with the acquisition - as well as disagreements with Judge Jacqueline Scott Corley's ruling on it earlier this year.
Here's one of the quotes from Abyad that was shared by CNN, with the lawyer reportedly suggesting that even despite Xbox making multi-platform promises for the likes of Call of Duty and cloud streaming recently, there's still potential to establish a monopoly in other areas such as gaming subscription services:
"I fail to understand how giving somebody a monopoly of something would be pro-competitive. It may be a benefit to some class of consumers, but that is very different than saying it is pro-competitive."
In response, Microsoft's lawyer said the judge's ruling showed "the world will be better with the merger”.
There's no word on what'll happen next just yet, but with the FTC still feeling aggrieved about this whole situation, it means Microsoft isn't finished in trying to defend the ActiBlizz deal. It's surely a uphill battle for the FTC though!
What are your thoughts on this? Let us know down in the comments section below.
[source reuters.com, via edition.cnn.com]
Comments 61
Because while it's not a great deal for Sony - Nintendo seems to be doing just fine, by the way (as is Sony) - it opens up more options for consumers.
I can't believe my tax dollars are continuing to be wasted on more needless things.
The gaming industry is not like other industries where entire logistics chains can be controlled by single entity.
CoD style games can still be made by the vast amount of developers and publishers out there. Things like Fortnite, Valorant, etc. also put competition on multiplayer shooters. There are tons of other options in gaming. Microsoft owning ABK doesn't prevent any of that. Microsoft doesn't fully control the gaming industry.
That being said, Microsoft should be stopped here on out from acquiring another major publisher.
Their level of ignorance or bias is astonishing. It's a shame how much tax money is wasted protecting... Sony's leadership? I wonder what the next goal of the FTC is. There was also this survey that stated that many of its members disagree with Lina Khan, unsurprisingly.
FTC likes being the proverbial punching bag. The world has moved on, why can't they?
What a waste of taxpayer money. You lost not just once or twice but THREE times. Each time you didn't have a leg to stand on. Stop being a sore looser and wasting government money.
Jesus christ this is just embarrassing at this point. Face it you lost like it or not its over and maybe save your strength for when MS go after Take Two and Ubi next.
Absolutely nothing is stopping the industry leading Sony from expanding their cloud and subscription services. They have both but have no interest in doing so. That is not anywhere close to a monopoly. Even after this merger, Sony will still remain at the top due to console sales and it likely won't change anytime soon. Abyad is a moron and has no idea what a monopoly is...
They need to move on and just accept Lina is a control freak
Maybe the FTC took a look at the console sales data in Europe and thought, this is too close for comfort. Xbox is becoming a monopoly 😂😂...
This lawyer is failing to understand? He doesn't have to understand anything. It's a done deal. Lol.
Insanity is doing the same thing over and over again and expecting different results
@Trmn8r Industry leading? I did believe that at one point, but Sony's response to this acquisition makes things pretty obvious where they are. Sony telling me they're number one is like KISS telling me they're still in their prime. Lol.
Where to start?
Hmm. Let's try the meaning of Monopoly:
*the exclusive possession or control of the supply of or trade in a commodity or service.
So, if you look at it in the strictest possible terms, the Xbox has a monopoly of Game Pass ON the Xbox. Though there is a near identical version of it on the PC too.
However, the that's not what the FTC mean, is it? What they mean is that the Xbox has a monopoly on subscription services i.e: the only subscription service. At least, that is my understanding of what they are saying. However we all know that not to be the case; Sony have their tiered version of Game Pass, and Nintendo have their own. Plus there are versions of it on the PC too.
Do these highly paid lawyers understand what they are talking about? Or is it just a case of earning a fat paycheque at the expense of the American taxpayer?
@Romans12 And Ozzy Osbourne has never done drugs lol
Wait! What, @Vipor007? Are you trying to say that Ozzy Osbourne did drugs? Never. Don't believe it. Not for one moment...
Oh my God just let it go already! Our tax dollars hard at work smh
@Fiendish-Beaver Yep lol he was naughty
@Sakai Which Far Cry is that from
@Fiendish-Beaver Technically Sony had a Game Pass like service first with PS Now (2014).
So, it's not like Microsoft was even the first to do it. Microsoft just ended up doing it better by making it the prominent selling point of the Xbox ecosystem rather than some optional service that was barely mentioned by anyone.
You can't really fault Microsoft for innovating on a good idea that Sony botched up.
@Vipor007 The quote is originally from a book, but most people incorrectly misattribute it to Albert Einstein.
Vaas also quotes it in Farcry 3, with additional swear words
This whole case, from the beginning, is about Sony being worried it can't buy out the competion or shut it down.
If the gaming industry was a Monopoly game, Sony gets a 80% cut of any money made by the Utilities and Railroads, and practically owns the last third of the board, Microsoft has started buying properties on the middle third, stopping Sony buying the back half of the board entirely, and Nintendo own the first quarter of the board, and everything else is still just about independent.
I think if you move away from the Sony vs MS console war as pathetic as that is. You can see MS have consistently bought up and coming companies to alleviate the competition. Activision Blizzard as an entity are doing fine, all the games come to xbox anyway. All this deal does is potentially remove games and franchises from other computers.
If you look at it like that. Then it's different. It's all well and good point scoring in a CoNsOlE wAr. But it's not so great for us the consumer if I have an xbox and your mate has a PlayStation.
If microsoft were putting out top tier games and hadn't started pulling the rug out from under us with paid early access, price increases, microsoft rewards nerfs and getting rid of live. Then I would give them the benefit of the doubt. But my Xbox experience has become compromised on the back of this deal completing and it's shocking yall are happy with it for petty point scoring.
Does the FTC have shares in video game news outlets or something? I thought it was all done now and we could stop hearing about this all day every day. But no, the FTC says we're not done. 🙄
@Vipor007 LOL. Exactly.
Someone tried calling me out in an separate article about how Sony wasn't actively trying to stymie Microsoft that it was just the fans. Well here you go.
@Sol4ris itll go in microsofts favour when after the Xmas sales figures are revealed, theyre gonna get smashed by Sony and Nintendo across the world,so there's always that.
@GamingFan4Lyf innovating? They implemented game pass because xbox is dead in the water without it ,the service costs them billions and they're still getting trounced by Sony and Nintendo,Sony and Nintendo are the underdog here not ms ,the little guys are kicking the big guys ass,makes me laugh how people defend them so much.
Couldn't agree more, @GamingFan4Lyf. It's a fantastic service. Sony's version just seem er,... odd! I don't understand the appeal of the oldest games being locked behind the most expensive tier. You would think that if you are going to have tiers (and technically Xbox does now too) then you would think the games get better as you go up the tiers, with the newest games on the top/best tier. That's not me knocking the old games (though personally I don't tend to play really old games), that's me not understanding the decisions behind the tiers. However, don't get me started on raising the prices without offering anything extra in return. That is a whole other argument... 😂
A monopoly on what, exactly? This is just posturing and quite frankly insulting considering how many other acquisitions and mergers the FTC is turning a blind eye to.
@Mephisto2869 "Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services."
Microsoft probably saw PS Now as a great idea that never took off due to...whatever reason Sony had for not really marketing it...and ran with it.
Sony was also the first to have Cloud Streaming, too! In fact, from what I read, Sony's Cloud Streaming has even surpassed image quality and lag of Xbox Cloud.
I wouldn't necessarily call it a defense at all. Just merely pointing out a fact that if the FTC wants to hammer Microsoft so much about Game Pass being some kind of monopolistic approach, they are completely neglecting that there was/is a comparable service out there.
So, yes, Microsoft innovated off an idea Sony had. Microsoft shouldn't be penalized because it made it successful.
Heck, maybe the FTC should go after Sony next as any of the first-party games that Sony offers for Cloud Streaming are only available through Sony services. Can't really attack one practice without attacking the other.
@Mephisto2869
itll go in microsofts favour when after the Xmas sales figures are revealed, theyre gonna get smashed by Sony and Nintendo across the world,so there's always that
Yep, but that'll be just the normal service continued.
The more interesting thing is to follow if Microsoft, will use it as a pretext for future acquisitions to avoid getting smashed,...errr, to coin a phrase 😅😅.
Still early days but will definitely be interesting to see how it goes.
It is at the point where the American people need to ask why the FTC is continuing to sink so much time and taxpayer money into fighting this deal when they apparently have no issues with far bigger deals that monopolize mass media and communications services, not to mention the big deals with consumer staples that could monopolize those markets, which should be far more concerning for a government agency. I don't think people are going to starve or miss out on vital services because Microsoft bought a video game publisher. This should not be a priority for them.
The FTC are embarrassing themselves. Wasting more money needlessly.
It is truly pathetic .
Could Lina Khan be any more of a phukwit?
What an absolute waste of time. Any commission that exists to prevent monopolies and anti-consumer takeovers that finds itself arguing in favour of protecting the industry leader is bound to fail.
@Mephisto2869 If in today's video game market you're still using the "my plastic box sold more than your plastic box" method as the only metric for success than you're either a fanboy who's still stuck in 1995, or have a very poor understanding of how business actually works.
@Mephisto2869 Remember, Xbox doesn't care if you own an Xbox so long as you're subscribed to Game Pass. You need to step back and realize that it's time to start viewing Xbox as a gaming brand and not just a plastic box. The console is only a small part of their business. I don't even own an Xbox console but I am absolutely in love with utilizing Game Pass on my PC at home and on my tablet when I travel. I stopped looking at Xbox as a console years ago and view them more as a services and software company. Remember, Microsoft is built upon software and services, their Xbox division is no different.
@Kaloudz you are clearly an intelligent and eloquent writer. Which is dumbfounding honestly.
'Course we're happy with it. We get all of ABK content in our Game Pass subs at no extra cost, plus, any upcoming ABK games day one. That's pro-consumer. Doesn't matter how you slice it.'
You have pretty much made all my points in two sentences with added spin.
There has been and will be a price increase.
You aren't getting it day 1.
It's anti consumer as the games will be removed / not released on other systems.
At the end of the day, xbox is my main gaming system. I am not surprised other people avoid the system like the plague. They had enough at Don Mattrick and the games recently are underwhelming. I'm not going to debate word/marketing technicalities as we will be here all night.
In my own xbox experience it's gotten worse post deal (once the UK legislators passed it). I was expecting the situation to improve, not to have xbox live removed as I WILL miss the couple of leftfield games every month, ms rewards has been decimated and pseudo early access bucket jangling.
I came back to xbox for the better looking quieter console, better subscription model with additional games from live. The better online infrastructure and ms games day 1. I've plunged untold hours and money into this hobby. Now most of the reasons I'm here, are evaporating.
@Sifi having short term exclusivity is a problem. I would love to be able to play Final Fantasy 16 on my xbox that's for sure*
I don't think two wrongs make a right though.
*actually is ff16 coming to xbox or are square in Sonys pockets? As that's frustrating af.
Just go away Iman. You're not good at this job.
It's crazy that they continue to throw the word monopoly around when it couldn't be further from the truth.
There will be nothing even remotely close to a microsoft monopoly in any sector of gaming. Not software,hardware, cloud, subscription service, or any other sector they can come up with.
Big changes are needed at the FTC. They are operating at an unprecedented level of ignorance even for the American government.
Possession is 9/10th of the law
So Microsoft is bad because they have decreased the value of Microsoft Rewards, that still is able to give $21 away per month? Because they replaced Gold with Game Pass Core which has better games? Because they acquired Zenimax after Sony paid Zenimax to keep games off Xbox? Because they acquired ABK after Sony paid ABK to keep early access and exclusive Call of Duty content away from Xbox?
Sony didn't need to do any of that, they were ahead of Xbox in gaming revenue, but they have been poking the bear for years because they are extremely proud and greedy. Remember that they said that their devices are "superior than the devices of the competition" in patent descriptions, that they said that the £6 billion mass lawsuit had no chance of being accepted and it was and that they thought that they could stop the acquisition of ABK because they believed that their own interest was a worldwide concern.
How can anyone say that Xbox will keep games away from players when their games are also available on PC and when Sony not only keeps their games exclusive to PS5 but also pays to keep third-party games away from Xbox? Sony even admitted that they offer their own subscribers their games after they have sold enough copies of them, same for PC ports. Nothing that Sony has done in recent years is "for the gamers" and it's their aggressive competitivity what made Xbox jump over the obstacles and be ahead of Sony's mud trail.
@GamingSince84 I dont really care ,I was just proving a point with factual information ,it winds people up and it amuses me 😁
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@Banjo- I know you love xbox bro but work with me here. I just want xbox to be better.
The 1 main driver of why I advocated xbox over the last 2 years was MS Rewards, which has completely tanked. In the UK (where I am). Not only have points been restricted such as edge searches, but the daily tasks are worth like 1 or 2 points. Also the daily searches have bizzaro world cooldowns. It's simply extra frustration and wasted time for fans of the scheme.
I was swapping my time for increased traffic to bing/edge/gamepass etc. Which MS can then use to sell to business for advertising. Admittedly it was a little too rewarding, however to completely nerf the whole scheme is a bit off imo. Without going into detail for double the effort I am receiving less than half the points from last year. It's more likely I will accrue £5 a month. It's not worth it.
But that's their choice. It's their sceme. In my mind, pretty essential to keep people like me onside and buying into the ecosystem. Otherwise I may as well go where the better games are right now.
Gamepass core is arguably better than gold for a new xbox gamer. That's true. However for gamers (like you or I) who have gamepass. It's worse as we miss out on 2 games we used to earn. Again Admittedly they were of usually middling quality, but the odd cracker made up for it.
These aren't life changing issues. But enough to encourage people to go elsewhere.
And for information I'm not happy with PlayStation either. Suffice why I ended up with an xbox. The GaaS focus, the nerfing of its own instant game collection, the lack of variety in its first party (Microsoft does have variety which is a selling point they should focus on), the move away from indies and the absolutely ugly ps5.
I want XBOX to make better games, with the studios they already have under control. I don't want cheap underarm tactics and the removal of small benefits. I want a better service for everyone.
@GamingFan4Lyf i think its more likely they have an issue with ms buying up a major publisher ,and then whose sole purpose is to exclusively put those games on their service ,not the fact Sony offers a similar service ,let's not be facetious.
Omg. Get over it already. Let it ride.
@Banjo- good grief 😂😂
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@themcnoisy I respect you. Now, still having the best loyalty system and replacing Games with Gold with Game Pass Core is enough to encourage people to go elsewhere? Where are the best games? Nintendo has lost most of its magic and Sony is going from their cinematic template for manufacturing video games to testing the games as service waters, hoping that Bungie can make Sony's Fortnite.
I agree with the last part. I love Xbox as a platform but I have criticised how hands-off the management is and some other things. Somebody asked earlier why we complain about Sony doing the opposite but there must be a middle point between hands-off and crunch culture!
343 Industries had an almost infinite budget and they still needed external assistance to make Halo Infinite good. Dead Labs are great but they seem to have inner disagreements regarding development. Rare is stuck on Everwild instead of reviving some of their IPs that would make Xbox more diverse and complete. Microsoft founded The Initiative which was in chaos for years and Crystal Dynamics came to the rescue, but Microsoft didn't acquire them when they were on sale. Many missed opportunities and wasted time and resources.
In spite of the lax management, Xbox still is the best platform for gaming, all things considered: hardware, pricing, game library, online services, customers service, digital rights, backwards compatibility, free remasters... Nothing that Sony and Nintendo do these days is consumer-friendly. They just have some exclusives and Microsoft have some others, but I don't think that Sony or Nintendo's are better. Once upon a time, Nintendo's might be best, but that was looong ago.
@Mephisto2869 I agree with the other users, it's sad that your happiness is being a Sony troll on an Xbox site.
Besides, why do you have a SNES vs. Mega Drive mindset? Xbox gaming revenue will soon be ahead of Sony's because of ABK. Are you ready for that? What would Sony do if they didn't have competition? Scary thought.
@Mephisto2869 this year though it's Sony's butt get kicked for only putting one 1st party game. Next year they will go third party.
@GamingFan4Lyf "Innovation is the practical implementation of ideas". Ps4 in 2014 they came up with game streaming on a tv they partnered with Samsung. But recently abandoned it. MS saw this opportunity and invested on it. Much like Nintendo Wii u, that console failed badly they had come up with another plan and thus the switch is born.
@Banjo- not only that recently MS charts tht was leaked (if those charts were right) was that Xbox out profits PlayStation.
@Belkan Right. Between Game Pass making billions and ABK's revenue, it's not as gloomy for Xbox as some people make it look just because of Sony selling more consoles... Also, they want Xbox consoles to fail, but then Xbox would continue on other platforms and keep making money. The only difference is that Sony would become greedier and eviler if that is even possible. They desperately want their own doom... Not that Microsoft cares about selling fewer consoles than Sony and will give up because of that, but still... food for thought.
To add something to your previous comment, Sony was the first to manufacture TVs with controller support for playing PS games on the cloud, but they also abandoned that and it sucks because those TVs were really expensive and I almost bought one for that.
@Banjo- Sony doesn't put Thier 1st party on PC not until 2 later. Xbox put Thiers day and date. PC has the biggest consumer base there is nevertheless mobile hence gamepass and cloud gaming is born.
They keep saying Xbox is dying is losing I'd say nope. PlayStation right now is in shambles their the ones who needs saving.
@Banjo- thanks for the kind reply. The rewards system as is tonight, is breadcrumbs here in the UK. It doesn't make sense either. To hit your 90 Bing score, I'm clicking on links and sometimes you get +3, other times it's not registering - even with waiting inbetween. It's gone from a great service to perplexing / frustrating pretty much overnight.
I can't see anyone sticking with it honestly. It's definitely not a great rewards system in its current guise here in the UK.
Anyhow, onwards and upwards. Hopefully microsoft don't mess up even more in 2024.
@themcnoisy Same to you. I'm not really worried about Rewards, but I wish for better management of the studios as I explained above.
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Removed - trolling/baiting; user is banned
FTC are talking a lot of nonsense and should just give up at this point. Waste of time and resources.
At the same time I dont know how yet again another article related to the acquisition has triggered yet more plastic box tribalism and tit for tat. Is it not getting old yet?
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