Microsoft Gains Allies in Dispute With Sony and Plans no Concessions
The tug-of-war between Microsoft and Sony continues. The Americans are determined to put the finishing touches on the deal, so they started looking for allies. The results became visible soon.
The dispute between Microsoft and Sony continues, and there seems to be no end in sight. The Americans are showing great determination to bring the Activision Blizzard acquisition process to a happy end. In a tough fight with the Japanese from Sony Microsoft is bolstering allied ranks. Nvidia and Nintendo have acceded to the Redmond giant's plans, signing a relevant 10-year agreement.
Cooperation with other companies, however, is unlikely to make Sony change its approach to the deal. Microsoft, on the other hand, does not want to make concessions and does not intend to give up any parts of Activision Blizzard, including most notably Call Of Duty, which is the thorn in Sony's side.
Unexpected cooperation
The news of the agreement with Nvidia was delivered by Microsoft Vice President Brad Smith. He made the announcement shortly after yesterday's in camera hearing held at the European Commission offices. The deal is expected to enable the Redmond-based company's portfolio of Xbox games (specifically, those offered for streaming via xCloud) to be available on GeForce Now. Although Nvidia has so far been opposed to Microsoft's actions, its management has decided to cooperate, certainly encouraged by Activision Blizzard's library of titles. After the eventual OK to Microsoft's acquisition of Activision Blizzard, the publisher's games will be available on the GeForce Now service. A similar deal was signed yesterday by Nintendo (albeit focused mainly on CoD), which was boasted by, among others, Brad Smith, claiming that Call Of Duty will be able to appear on millions more devices.
Mutual benefits
Microsoft's cooperation with other companies on game availability matters to both Americans and new allies. In this way the Redmond giant gains in the eyes of officials reviewing the Activision Blizzard acquisition deal, giving the impression of a more competitive and honest entity. In turn, Nvidia and Nintendo secure access to popular game series. A similar deal was proposed by Microsoft to Sony, but the company declined.
A difficult legal battle
The Japanese stand firmly by their side and refuse to agree to a settlement with Microsoft. Sony continues to believe, that Microsoft's conduct is uncompetitive and unfair. In turn Americans respond by calling Sony the loudest opponent of the deal, accuse them of long-standing domination of the market (you'll read more about this in the next news item).
At the same time, Microsoft is quashing any conjecture and discussion about their giving up a share of the lucrative pie that is Activision Blizzard. The company points out that it is impossible to exclude certain brands from Microsoft's deal (it is specifically referring to Call of Duty). Admittedly, this may not please the regulators, but the company has decided to make things clear.
Verdict soon
The case of Microsoft's acquisition of Activision Blizzard has been dragging on for months. Currently, the process is being investigated by the European Commission. We are expected to learn the final verdict of the EU bodies on April 11. Later, there's the hearing with the US FTC, or Federal Trade Commission, and other entities. These actions are scheduled for the summer, and are expected to be heavily influenced by, among other things, the decision of the EU bodies.
