In a new filing before the upcoming showdown over a preliminary injunction, the Federal Trade Commission (FTC) argues that Microsoft’s actions following its acquisition of ZeniMax and Bethesda provide “powerful evidence” against its purchase of Activision Blizzard.
Recently, the FTC requested a restraining order to temporarily block the $68.7 billion deal, and all concerned parties were given the opportunity to submit their opinions on the matter.
The FTC points to Microsoft’s decision to make exclusive Xbox games as evidence against the acquisition. The agency quotes, “Defendants put great stock in Microsoft’s concerns about ‘infuriating gamers’ if it were to foreclose rivals’ access to Activision content… But those same concerns did not stop the ZeniMax decision.”
Microsoft’s acquisition of ZeniMax and Bethesda in 2020 resulted in Xbox exclusive games and cancellations of PlayStation 5 versions. The FTC argues that this sets a precedent for the possibility of Xbox exclusivity for Activision Blizzard games, despite Microsoft’s attempts to secure multi-platform commitments for Call of Duty.
The FTC’s filing also raises concerns about potential competition reduction in both high-performance consoles and all consoles. It specifically addresses the Nintendo Switch, stating that it cannot be compared to Xbox Series X|S and PS5. The document mentions an expert opinion supporting this claim.
Additionally, the FTC disputes Microsoft and Activision Blizzard’s assertion that “most PlayStation gamers do not play [Call of Duty] at all,” citing evidence that contradicts this claim. The specifics of the evidence are redacted in the released document.
Microsoft’s pursuit of the Activision Blizzard deal has faced opposition from the FTC and the UK’s Competition and Markets Authority (CMA) for over a year. Microsoft is currently appealing the CMA’s decision to block the deal.
The deadline to finalize the Microsoft and Activision Blizzard deal is July 18, 2023, after which the parties may need to renegotiate.
Logan Plant is a freelance writer for IGN, specializing in video game and entertainment news. With over seven years of experience in the gaming industry, he has contributed to various publications, including IGN, Nintendo Wire, Switch Player Magazine, and Lifewire. You can find him on Twitter @LoganJPlant.
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