FTC appeal of Microsoft’s Activision Blizzard acquisition is rejected

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Today, another blow to the U.S. Federal Trade Commission’s efforts to halt Microsoft’s acquisition of Activision Blizzard was delivered. In case you’ve been following gaming news over the past few years, you may have heard about Microsoft’s massive $69 billion purchase of Activision Blizzard, which was approved in October 2023 by a California court. Today’s update arrives as the FTC’s appeal of this 2023 decision has been denied.

FTC appeal to block Microsoft’s purchase of Activision Blizzard blocked

The Federal Trade Commission had expressed worries that Microsoft’s acquisition of Activision Blizzard could potentially stifle competition in gaming, but a court has ruled otherwise. According to Bloomberg, the judges found no evidence that Microsoft would prevent other companies from accessing Activision’s popular game “Call of Duty” or significantly reduce competition in the gaming subscription market. The FTC’s initial concerns about exclusivity on the Xbox platform were also addressed, with the courts stating that all major manufacturers have historically practiced this, and both Nintendo and Sony currently have a higher number of exclusive games on their respective platforms compared to Microsoft. This trend appears to be continuing, as more previously exclusive Xbox titles are being made available on other platforms, such as Gears of War: Reloaded, the first game in the series to come to PlayStation 5 this summer.

It’s likely that this news comes as a shock to many, given that for more than a year, Microsoft has held a significant portion of the gaming market through its acquisitions. The ripples of Xbox’s acquisition spree are evident all around, not to be confused with any intended pun. This is why last year’s Xbox Summer Showcase dedicated a detailed segment to the Activision-owned game, Call of Duty: Black Ops 6.

More recently though, consider when The Elder Scrolls IV: Oblivion Remastered was released just a few weeks back. That certainly felt like an event for the Xbox brand. Indeed, Bethesda and Virtuos took center stage in the announcement video, but it also served as a prime chance for individuals who had stopped playing video games to discover Xbox Game Pass. For quite some time now, there has been talk among gamers that the console wars are over and that Xbox has fallen behind. However, they have been making some remarkable strides lately.

Although sales of Xbox consoles have been gradually decreasing, there’s been a rise in their digital markets. The PC Game Pass has expanded substantially, and Xbox Studio games currently top the PlayStation Store as the leading publisher. Additionally, whispers suggest an upcoming handheld device in partnership with Xbox may be released soon, potentially serving as a trial run for a future Xbox-branded gadget.

Should Xbox persist in offering compelling incentives for Xbox Game Pass subscriptions and successfully attract more users into their platform, they may secure a favorable position in the future. At present, hardware development might not be of primary concern, but this focus could shift significantly after several years have passed.

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2025-05-08 03:37