“The acquisition of Activision Blizzard provides Microsoft with capabilities and content on mobile, while creating new distribution options for game developers outside of mobile app stores,” Microsoft said in a response to CMA. The regulatory body is of the view that “Microsoft may foreclose competition in console gaming platforms or multi-game subscription services by withholding Activision Blizzard content – in particular Call of Duty – from PlayStation.”
Additionally, the CMA has concerns that “Microsoft may use Activision Blizzard content either alone or in combination with its wider ‘ecosystem’ to out-compete rivals such as Google, Amazon and Nvidia.”
However, Microsoft says that the acquisition will improve its ability to create a next-generation game store that will operate across a range of devices, including mobile, thanks to the addition of Activision Blizzard’s content. Xbox also seeks to scale the Xbox Store to mobile, attracting gamers to a new Xbox Mobile Platform.
King was acquired by Activision Blizzard in February 2016 and operates as a key part of the group. With Microsoft’s acquisition of Activision Blizzard, Microsoft can leverage Call of Duty: Mobile (Activision Blizzard) and Candy Crush Saga (King) popular mobile games to scale a game store to compete with Google Play and the App Store.
The Windows-maker understands that “shifting consumers away from the Google Play Store and App Store on mobile devices will, however, require a major shift in consumer behaviour” but it is hoping to take on the rivals by offering well-known and popular content so that they “can be more inclined to try something new.”
Recent reports suggest that Microsoft is pushing its gaming business and has been doing efforts for the same. Microsoft has already announced support of Xbox Cloud Gaming on Valve’s Steam Deck. It has also partnered with Logitech and Razer for their cloud gaming-focused handheld consoles.