Google and Nvidia Also Fear Microsoft's Merger With Activision
The finalization of a record-breaking gaming industry deal between Microsoft and Activision Blizzard could mean a „reshuffling” of the market and a time of great change. Google and Nvidia join the group of companies companies that voice concerns.
Microsoft's acquisition of Activision Blizzard has made waves throughout the digital entertainment industry and raised concerns with Sony and many other companies. Google and Nvidia are also looking at the issue and have made no secret of their concerns.
Google and Nvidia full of concerns
Both Google and Nvidia have, in a way, joined the ongoing FTC lawsuit against Microsoft's buyout of Activision Blizzard. Both companies have provided information that supports FTC's argument against the acquisition (via: Bloomberg). According to the companies Microsoft will gain an unfair advantage in the cloud, subscription and mobile gaming markets through the deal. Moreover, Nvidia reiterated the need for equal and open access to video games (on an oligopoly basis, when the market is divided by the largest developers in similar proportions). The court's verdict is expected to be known in August 2023.
Both companies are driving forces in the tech industry. Nvidia is the leader in the GPU market and a major provider of cloud gaming services. Google is an American company with the indispensable Google search engine, as well as the Chrome browser and YouTube (the latter through the Alphabet Inc. conglomerate, owned by the aforementioned company).
Record deal faces growing opposition
Recall that this month marks an equal year since the revelation on the high-profile acquisition (on a holding company basis) of Activision Blizzard by Microsoft. Of course, Microsoft's policy of buying outside studios is nothing new (back in 2011, the company actively was acquiring companies), but in this case the deal for the not inconsiderable sum of $68.7 billion heralded a record in the game industry. Such a major "reshuffle" in the market will undoubtedly have an impact on the entire industry.
For this reason, the matter is thoroughly investigated by the major trade commissions in the world (including by the US FTC, the European Union and the UK CMA). Companies are also joining the protest, commenting on Microsoft's move or deciding to file a lawsuit. The loudest opposition is voiced by Sony - Microsoft's biggest rival in the home console market - which is concerned Phil Spencer failing to fulfill his assurances regarding the release of Call of Duty games on PlayStation consoles for the next 10 years.
Also the gamers are mostly not happy - recently an American group of gamers sued Microsoft. It is worth recalling that later in January we are to learn the players' opinion about the deal, which anyone willing could submit on the official website of the British government. Time will tell if Microsoft manages to convince Sony and the entire gaming world.
