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[Draugoth]

 

[reinking]

So here is one thing I am not understanding from the Cloud gaming portion.

This could alter the future of gaming, potentially harming UK gamers, particularly those who cannot afford or do not want to buy an expensive gaming console or gaming PC.

I could see this being relevant in any other part of the document but the whole idea of cloud gaming is people would not have to buy an expensive gaming console or PC.

Still.. ..pretty much a nothing burger but I found it odd.

Never mind, I read it before I was fully awake.

 

[Aguero9320]

I’d caution holding back on your glee here

I’m not sure this means what you think it means…

 

[Draugoth]

Via VGC:

Breaking: UK's CMA investigation has provisionally concluded that "Microsoft’s proposed acquisition of Activision could result in higher prices, fewer choices, or less innovation for UK gamers." "The CMA provisionally found that weakening competition by restricting the access that other platforms have to Activision’s games could substantially reduce the competition between Xbox and PlayStation in the UK, in turn harming UK gamers." Our job is to make sure that UK gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation. We have provisionally found that this may be the case here." We have also today sent the companies an explanation of how our concerns might be resolved, inviting their views and any alternative proposals they wish to submit." Microsoft statement: "We are committed to offering effective and easily enforceable solutions that address the CMA's concerns." (1/3) (2/3) "Our commitment to grant long term 100% equal access to  Call of Duty to Sony, Nintendo, Steam and others preserves the deal’s benefits to gamers and developers and increases competition in the market." (3/3) "When we say equal, we mean equal. 10 years of parity. On content. On pricing. On features. On quality. On playability."

 

[Heisenberg007]

I’d caution holding back on your glee here

I’m not sure this means what you think it means…

What does it mean?

 

[Pelta88]

It's a wrap for Phil Spencer.

No not today, next month, or even this quarter. But his days are numbered as the head of XBOX. Phil went around hyping himself up talking about "This is the biggest thing I've done" with his presumptive ass. If this deal is blocked, essentially he has to keep the exact same energy and take responsibility for the 3 Billion payment to Activision that Activision wrote into the agreement.

Phil Spencer says Activision deal is ‘well beyond anything I’ve ever done’ | VGC

Head of Microsoft Gaming Phil Spencer has called the acquisition of Activision Blizzard “well beyond anything I’ve ever done” in a new interview.

www.videogameschronicle.com

 

[The_Mike]

Whats most ironic is Microsoft were the last to up their prices to 70 dollars, and the last one to up their hardware prices.
They haven't even done that in my country yet.

 

[Varteras]

What does it mean?

Not what you think it does! Duh!

 

[Eimran]

 

[Dick Jones]

Whats most ironic is Microsoft were the last to up their prices to 70 dollars, and the last one to up their hardware prices.
They haven't even done that in my country yet.

So Nintendo announced it before Xbox. Interesting

 

[banjo5150]

I don't really care what happens with this deal. It just seems like some hidden agenda with them saying "10 years" so what does that mean? What happens after the 10 years is up?

 

[Tiago Rodrigues]

Man this year is starting out weird for MS.
Did the EU say anything yet?

I feel like this deal is dead.

Even if COD doesn’t get to be a part of this deal most of Activisions studios are working on cod games…like would this deal even make sense anymore? 70b for what exactly?

 

[Ronin_7]

It's dead as Dead as it gets.

 

[Skifi28]

 

[Spitfire098]

Great news to wake up to.

 

[Heisenberg007]

Whats most ironic is Microsoft were the last to up their prices to 70 dollars, and the last one to up their hardware prices.
They haven't even done that in my country yet.

To be fair, Microsoft didn't have any new next-gen only come to release between Nov 2020 to Dec 2022.

$70 is for next-gen games. If there is no next-gen game, what would they charge $70 for? Now that those next-gen games are scheduled the release, they have upped the price to $70.

 

[The_Mike]

Man this year is starting out weird for MS.
Did the EU say anything yet?

I feel like this deal is dead.

Even if COD doesn’t get to be a part of this deal most of Activisions studios are working on cod games…like would this deal even make sense anymore? 70b for what exactly?

Seems like you're forgetting that Blizzard is a part of Activision as well.

 

[acm2000]

higher prices? wasnt it sony that raised the current gen prices?

 

[Shambala]

 

[Aguero9320]

What does it mean?

Negotiations.

“Microsoft has, however, informed us of existing and potential contractual arrangements with third-party platforms relating to access to Call of Duty. Accordingly, while none of the circumstances in which the CMA would select a behavioural remedy as the primary source of remedial action in a merger investigation (as summarised in paragraph 15 above) appear to be present, the CMA will also consider a behavioural access remedy as a possible remedy.”

 

[Lucifers Beard]

So in 10 years everything falls apart? It’s like they’re hoping nobody sees that part.

I don’t think this deal is good for the industry and the part about innovation was interesting. The AAA gaming industry has almost no innovation as it is, this deal going through will mean even less I imagine from MS as they’ll have all their bases covered with regard to genres. They will basically just become even more of a sequel machine.

 

[Dane]

Per Idas:

There is still a bit of hope for MS:

18. Microsoft has, however, informed us of existing and potential contractual arrangements with third-party platforms relating to access to Call of Duty. Accordingly, while none of the circumstances in which the CMA would select a behavioural remedy as the primary source of remedial action in a merger investigation (as summarised in paragraph 15 above) appear to be present, the CMA will also consider a behavioural access remedy as a possible remedy.

19. Access remedies are a form of behavioural remedy which seek to maintain or restore competition by enabling competitors to have access on appropriate terms to the products and facilities of a merger entity that they require to remain competitive. Access remedies normally require an access commitment which is set out in significant detail so that both customers and monitoring agencies can enforce compliance effectively. In this case, an access remedy would look to ensure third party access to Activision Blizzard, Inc's content that is necessary to remedy the provisional SLCs.

20. We consider in further detail below each of the possible remedies on which views are sought. More generally, the CMA will consider any other practicable remedies that the Parties, or any interested third parties, may propose that could be effective in addressing the SLCs and/or any resulting adverse effects.

 

[Unknown?]

higher prices? wasnt it sony that raised the current gen prices?

No. But this is interesting. Ideally Activision would be broke up and sold in pieces if they really want to sell.

 

[Lasha]

I don't really care what happens with this deal. It just seems like some hidden agenda with them saying "10 years" so what does that mean? What happens after the 10 years is up?

Ten years would be over an entire console generation. If Sony can't come up with a way to offset the potential loss of revenue from losing COD in ten years then it deserves to take the impact. The market doesn't exist to prop up Sony's business model.

 

[Pelta88]

Jez, Colt, and Destin right now

 

[Heisenberg007]

 

[.Pennywise]

Provisionally

 

[BlvckFox]

So what happens now?

 

[GHG]

Now Microsoft and Kotick's recent interviews make sense.

higher prices? wasnt it sony that raised the current gen prices?

Try again, this time sourcing something that isn't twitter.

 

[Sony]

To be fair, Microsoft didn't have any new next-gen only come to release between Nov 2020 to Dec 2022.

$70 is for next-gen games. If there is no next-gen game, what would they charge $70 for? Now that those next-gen games are scheduled the release, they have upped the price to $70.

Yeah this is a BS take. How do you explain the pricing differences between PS4 and PS5 versions of the same game while there was no price difference between XBO and Series X|S games.

 

[The_Mike]

To be fair, Microsoft didn't have any new next-gen only come to release between Nov 2020 to Dec 2022.

$70 is for next-gen games. If there is no next-gen game, what would they charge $70 for? Now that those next-gen games are scheduled the release, they have upped the price to $70.

I don't really understand why you or anyone else would be a corporate rider like this and defend a company upping their prices with the argument that the reason someone else hasnt is because they dont have exclusive next gen games.

Also, didn't God of War Ragnarok cost 70 usd on PS5, or was it 60 bucks? Tried to google it without any luck.

Ragnarok isnt a next gen game either, that didnt hinder Sony for upping it to 70 bucks.

 

[Fake]

More and more this deal is proving to be a no go.

 

[TheRedRiders]

Common sense has prevailed here in the U.K it seems.

 

[Tiago Rodrigues]

Seems like you're forgetting that Blizzard is a part of Activision as well.

lmao ain't no way Blizzard is worth 70b dude

 

[Ronin_7]

CMA might kill the Deal today or ask for Structural Remedies which would be a pain for everyone involved.

CMA has taken the FTC route, no meetings & shit like that apparently.

EC has been more open about the deal than FTC & CMA.

CMA doesn't give a flying shit about Behavioral Remedies.

Aged like a fine wine.

 

[harry mason 1989]

So that's why the ms shills were all having a meltdown on twitter in the past few days

 

[Pelta88]

Per Idas:

Idas and Hoe Law are crisis actors.

 

[Varteras]

The hopium and copium are both reaching critically low levels here. Hurry! Call in more trucks!

 

[The_Mike]

lmao ain't no way Blizzard is worth 70b dude

Neither is Activision without Blizzard.

And I would still say, even with both of the companies in the deal, is not worth 70 billion.

 

[GHG]

ATVI tanking.

SenjutsuSage report for comment.

 

[Tiago Rodrigues]

Neither is Activision without Blizzard.

Exactly...so spending 70b on something that's not nearly of what MS expected at first may not make any sense for them anymore. Some decisions will have to be made. That's my point.

 

[feynoob]

What does this mean in general?
Is the deal dead?

 

[skit_data]

 

[Heisenberg007]

I don't really understand why you or anyone else would be a corporate rider like this and defend a company upping their prices with the argument that the reason someone else hasnt is because they dont have exclusive next gen games.

Except I did not defend Sony's pricing in my comment? I explained why Microsoft wasn't the first one to raise their prices.

Also, didn't God of War Ragnarok cost 70 usd on PS5, or was it 60 bucks? Tried to google it without any luck.

God of War is $60 on the PS4 (old gen) and $70 for PS5 (next-gen).

That is what I was trying to explain. Sony's old-gen games are still $60. Only next-gen games are $70. Microsoft didn't release any next-gen game, so they continued charging $60 for their old-gen games (Sony also charged $60, so it's the same thing).

Now Xbox is going to have its first new next-gen game, Redfall, so they have upped the price to $70 before it.

 

[.Pennywise]

Ok guys, less innovation for UK gamers.
Pack it up boys and go and play the 567th edition of CoD.

Now THAT is innovation.

Also, go pay 70 each game instead of an affordable subscription.

Now THAT is lower prices.

And don't forget, wait for the game you want one year or two to be available in PC and Xbox.

Now THAT is power of choice.

 

[Jaybe]

Sorry Activision, OpenAI is new friend

 

[Jadsey]

Per Idas:

There is still a bit of hope for MS:

18. Microsoft has, however, informed us of existing and potential contractual arrangements with third-party platforms relating to access to Call of Duty. Accordingly, while none of the circumstances in which the CMA would select a behavioural remedy as the primary source of remedial action in a merger investigation (as summarised in paragraph 15 above) appear to be present, the CMA will also consider a behavioural access remedy as a possible remedy.

19. Access remedies are a form of behavioural remedy which seek to maintain or restore competition by enabling competitors to have access on appropriate terms to the products and facilities of a merger entity that they require to remain competitive. Access remedies normally require an access commitment which is set out in significant detail so that both customers and monitoring agencies can enforce compliance effectively. In this case, an access remedy would look to ensure third party access to Activision Blizzard, Inc's content that is necessary to remedy the provisional SLCs.

20. We consider in further detail below each of the possible remedies on which views are sought. More generally, the CMA will consider any other practicable remedies that the Parties, or any interested third parties, may propose that could be effective in addressing the SLCs and/or any resulting adverse effects.

It goes on to say:

44. As noted above, the circumstances in which the CMA might select a behavioural remedy as the primary source of remedial action are not present in this case. The two markets in which the CMA has provisionally found SLCs are multi-faceted and continue to develop. This is particularly the case in cloud gaming, where the customer offerings and business models of market participants are evolving rapidly. We are of the initial view that any behavioural remedy in this case is likely to present material effectiveness risks. We invite the Parties to provide evidence on how these risks could be appropriately managed to ensure that any behavioural remedy is effective.

They are more or less saying, 'well you can offer up remedies, but they are not going to persuade us'.

Legally, the CMA needs to be seen to offer MS the chance offer up remedies without having any intention of listening to them

 

[Trickster]

Doesn't Playstation massively dominate the console market in the UK?

 

[Edmund]

Per Idas:

There is still a bit of hope for MS:

18. Microsoft has, however, informed us of existing and potential contractual arrangements with third-party platforms relating to access to Call of Duty. Accordingly, while none of the circumstances in which the CMA would select a behavioural remedy as the primary source of remedial action in a merger investigation (as summarised in paragraph 15 above) appear to be present, the CMA will also consider a behavioural access remedy as a possible remedy.

19. Access remedies are a form of behavioural remedy which seek to maintain or restore competition by enabling competitors to have access on appropriate terms to the products and facilities of a merger entity that they require to remain competitive. Access remedies normally require an access commitment which is set out in significant detail so that both customers and monitoring agencies can enforce compliance effectively. In this case, an access remedy would look to ensure third party access to Activision Blizzard, Inc's content that is necessary to remedy the provisional SLCs.

20. We consider in further detail below each of the possible remedies on which views are sought. More generally, the CMA will consider any other practicable remedies that the Parties, or any interested third parties, may propose that could be effective in addressing the SLCs and/or any resulting adverse effects.

Idas is a clown.

 

[Aguero9320]

There is always a danger reading between the lines, but it sounds to me like they would accept Microsoft’s 10 year commitment, it just doesn’t exist officially yet. Which makes perfect sense - it completely assuages any concerns (or can, perhaps if extended to include cloud somehow).

Seems to open the door for Microsoft providing an iron clad, legally enforceable guarantee on COD parity (stupid concept). CMA gets to look strong, Microsoft does what it had already agreed to. Politics wins.

That deal with Nintendo wasn’t as stupid as people made out. Anyone would think (probably) the best corporate lawyers in the world knew something about what they were doing…