Blocking Microsoft from buying Activision Blizzard is as likely to harm consumers as it is to protect them. Regulators should not intervene
two decades video gaming has gone from a nerdy hobby to a blockbuster industry, with revenues over five times bigger than the cinema box office. Today it is home to one of the largest tech mergers in history. In January Microsoft agreed to pay $69bn to buy Activision Blizzard, a game studio. Yet the megadeal may not go ahead. America’s Federal Trade Commission—one of 16 regulators around the world to have taken an interest—will probably say soon that it will sue to block it.
Microsoft says that it does not want to freeze out PlayStation. Its aim is to add titles to Game Pass, its monthly subscription service which, in effect, rents out a bundle of games rather than selling them individually. Herein lies regulators’ second concern. At the moment Game Pass is chiefly an Xbox service, but it could one day have much broader reach as games are streamed from cloud-computing services onto people’s televisions, web browsers and phones.
Neither worry is a reason to block the merger. Take “Call of Duty”. Microsoft is starting from third place in the console market—in which it sells the Xbox at a loss—and Activision Blizzard earns hundreds of millions of dollars a year from selling “Call of Duty” to more numerous PlayStation users. Recent history suggests Microsoft should hesitate to give up those revenues. In 2018, a telecoms company, bought Time Warner, a media giant.
Television also offers a lesson about game streaming. In 2016 Hollywood was rife with fears that Netflix would become a monopoly. Some argued it wielded so much power that fed-up creative types were scared to criticise it. Its advantage did not last. Today its growth is stalling as it faces competition from Amazon and Disney. Games are harder to make and stream than sitcoms.
Danmark Seneste Nyt, Danmark Overskrifter
Similar News:Du kan også læse nyheder, der ligner denne, som vi har indsamlet fra andre nyhedskilder.
Microsoft, Activision-Blizzard and the future of gamingMicrosoft insiders grumble that until a few years ago the Activision deal would have sailed through. Lately, though, trustbusters have turned on big tech companies, alarmed at their rapacious growth
Læs mere »
Blizzard reveals Overwatch 2 Season 2 contentBlizzard has announced more details of the upcoming content in Season 2 of Overwatch 2. At the beginning of the month, …
Læs mere »
Overwatch League viewership rewards on Twitch are on the way, Blizzard saysEven after 30 hours of suffering through Overwatch League, many are yet to receive their viewership rewards.
Læs mere »
Even after 30 hours of suffering through Overwatch League, many are yet to receive their viewership rewardsBlizzard really wanted people to watch its games but has failed to appropriately compensate.
Læs mere »
Staff shortages and bed blocking lead to 'worst ever A&E waits at Glasgow hospital'Staff shortages and delayed discharge is leading to the worst ever waiting times for accident and emergency at a Glasgow hospital, according to…
Læs mere »
Mark Harper hints at talks between train operators and unions to end northern rail miseryMark Harper hints at talks between train operators and unions to end northern rail misery 🔴RichardVaughan1 + singharj
Læs mere »