Since last year the Microsoft-Activision $68.7B deal has been under scrutiny, and top tech companies Google and Nvidia have joined Sony in raising their concerns to the FTC.
After Microsoft and Activision filed their 37-page response to the FTC’s attempt at blocking the merger back in December, even more companies have thrown their hat into the ring regarding the acquisition. This time Google and Nvidia have raised concerns over the impending deal. According to Bloomberg, they’ve provided information that backs the FTC on the ‘unfair advantage’ Microsoft would obtain were the merger actually to go through—citing advantages specifically in cloud, subscription and mobile gaming.
In the Bloomberg report, one source says Nvidia doesn’t necessarily oppose the deal as long as ‘equal access’ to games happens on most platforms. This almost echoes the sentiment given by Nintendo and Valve when they reached 10-year deals with Microsoft in early December as well.
The 37-page response back in December included the statement, “Xbox also has next to no presence in mobile gaming, the fastest-growing segment of gaming and the place where 94% of gamers spend their
time today,” which is one of the prime reasons for Google and Nvidia’s concerns to the FTC. Interestingly enough, the document also states, “Its vision for the transaction is simple: Xbox wants to grow its presence in mobile gaming, and three-quarters of Activision’s gamers and more than a third of its revenues come from mobile offerings,” in relation to King, the mobile developer responsible for Candy Crush included in the deal.
Microsoft Xbox already has a solid foothold in the Subscription and Cloud gaming space with Xbox Game Pass, so it remains to be seen as to whether the latest in this FTC vs Microsoft-Activision saga will end up hindering the overall acquisition, as well as Sony’s attempt to sideline the merger. Fans will just have to wait and see how this situation continues to unfold.