"There is nothing unique about the video games developed by Activision Blizzard": Microsoft defends upcoming $68B purchase

Microsoft’s still in the process of purchasing Activision Blizzard, and has to convince a number of governing bodies that it is not creating a monopoly. In a letter to the New Zealand Commerce Commission, the company stated that there are no “must have” titles when it comes to Activision Blizzard.

“Specifically, with respect to Activision Blizzard video games, there is nothing unique about the video games developed and published by Activision Blizzard that is a 'must have' for rival PC and console video game distributors that could give rise to a foreclosure concern.”

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Microsoft insists that none of Activision Blizzard’s games are must-haves

The letter was in response to a report from the New Zealand Commerce Commission in June, and according to the company, none of Activision Blizzards titles would be considered killer apps.

The company also said in the letter that it is not planning to withdraw games like Call of Duty from non-Microsoft platforms. Other popular Activision Blizzard titles on other consoles will not be removed in the near future, according to the letter:

“Microsoft has demonstrated that it is not withdrawing content from other platforms, having made multiple public statements that it will continue to make Call of Duty and other popular Activision Blizzard titles available on PlayStation through the term of any existing agreement and beyond. Microsoft has also publicly stated that it is interested in taking similar steps to support Nintendo’s platform”

Another point made is that they want Call of Duty to be shifted to the Nintendo Switch as well, and they are interested in making that happen. When it comes to Call of Duty, as an example, the franchise has made $27B since 2003, according to an earnings call from 2021.

Activision Blizzard also owns one of the largest MMOs in the world, World of Warcraft. While there are other viable options for the genre's players, it’s the biggest name in among MMO fans and has another expansion coming in the form of Dragonflight.

However, Sony isn’t as optimistic. They are concerned that PlayStation sales will diminish, as will Call of Duty sales for their consoles. This would be due to brand loyalty, and the knowledge that Call of Duty would be owned by Microsoft at that point.

The acquisition is also being questioned by the UK’s Competition and Markets Authority. The group announced back in July that they were investigating the deal, and will have findings ready for publication in early September.

There has been no confirmation as of this writing on the status of the Activision Blizzard acquisition, but the company stands by their business decision and doesn't think it will harm the market.