Microsoft Fights for $69B Activision Blizzard Merger

As Microsoft fights to complete its purchase of Activision Blizzard, it is shedding light on the gaming industry as a whole.

The tech giant filed a response to the Federal Trade Commission’s lawsuit seeking to block the $68.7 billion merger, arguing that Microsoft currently has a minimal presence in the mobile gaming market, and that blocking the transaction would be unconstitutional.

• Microsoft said that its Xbox consoles accounted for 16% of that market in 2021, with Nintendo (50%) and PlayStation (34%) covering the rest.
• The company said it held a mere 0.3% of the mobile gaming market by 2021 revenue, with Activision Blizzard holding 4%.
• The company added that it wants to make Activision’s games available on more platforms, including Nintendo and Xbox Game Pass.

“A substantial portion of Activision’s financial value to Xbox comes from business as usual, including the continued sale of ‘Call of Duty’ — its most popular game — on Sony PlayStation,” Microsoft wrote. 

“Paying $68.7 billion for Activision makes no financial sense if that revenue stream goes away. Nor would it make sense to degrade the game experience and alienate the millions of ‘Call of Duty’ players who play together using different types of consoles.”

Law

| by Owen Poindexter

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State of the Union

On Tuesday, Boston-based Proletariat became the third Activision company to unionize, joining the Communications Workers of America. Blizzard Entertainment acquired the 57-employee maker of “Spellbreak” in July.

Raven Software unionized in January, following Blizzard Albany, which did so the previous month.