Jun 23, 2023 12:30:00

Microsoft admits defeat in home game console war

The US Federal Trade Commission (FTC) filed

a lawsuit against the proposed merger between Microsoft and Activision Blizzard, a video game development company that produces and releases games such as `` Diablo '' and `` Overwatch '' as `` leading to suppression of competitors '' I am filing. In response to the FTC, which claims that ``the merger may increase Microsoft's dominance'' in this lawsuit, Microsoft acknowledged that its game machine was ``defeated'' and said, ``Microsoft is significantly behind its competitors.'' I brought up counterargument materials.

Microsoft says Xbox has 'lost the console wars.'
https://www.theverge.com/2023/6/22/23769761/microsoft-says-xbox-has-lost-the-console-wars

Xbox admits defeat in 'console wars | Windows Central
https://www.windowscentral.com/gaming/xbox-admits-defeat-in-console-wars

In addition to selling the Xbox series and capturing the layer that plays games on home game consoles, Microsoft has developed `` Xbox Game Pass '', a service that allows you to play various games at a fixed price, and cloud-based game streaming. We provide services. Since these businesses have allowed Microsoft to secure a certain number of customers, the FTC argued that 'a merger with Activision Blizzard will enable Microsoft to suppress competitors in the Xbox and flat-rate game businesses.' We have applied for a preliminary injunction to postpone the closing of the acquisition.

Federal Trade Commission applies for injunction to block Microsoft's acquisition of Activision Blizzard - GIGAZINE

As the situation at the time of writing the article, Microsoft is about to acquire Activision Blizzard for $ 69 billion (about 9.86 trillion yen), while the FTC has issued an interim injunction to temporarily block Microsoft's acquisition. It's an idea I want to acquire.

The FTC vs. Microsoft legal battle began on June 22, 2023, in which Microsoft said, ``Xbox has lost the home game console war, and rivals will continue to dominate.'' ``Xbox sales always ranks third out of the three companies, following PlayStation (Sony) and Nintendo,' he claimed in the submitted documents. Sharing information that Xbox had a 16% market share in 2021 and only 21% of console sales, he claimed that Microsoft was lagging behind Sony and Nintendo.

Gaming media Gameranx pointed out, ``It's rare for these game publishers to admit defeat.'' He commented, ``It's a strange way,'' especially because it happened right after the news that Phil Spencer, the head of Microsoft's Xbox division, praised the current state of Xbox. Similarly, gaming media Windows Central pointed out that ``it is definitely a good idea to present data that shows that Microsoft's financial situation is unfavorable in order to alleviate the concerns of regulators.''

Microsoft has been blocked from acquisition not only by the FTC but also by the UK Competition and Market Authority (CMA), and it seems that it will take a little more time to conclude the acquisition. On the other hand, we know that there are organizations that allow acquisitions, such as the EU and Japan's Fair Trade Commission.

Japan's Fair Trade Commission ended the review as Microsoft's acquisition of Activision Blizzard 'does not hinder competition', why? -GIGAZINE

by Prachatai