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Cloudy Skies Ahead: UK Regulators Halt Microsoft's Activision Blizzard Acquisition

By WOM

April 28, 2023

SUMMARY

  • Microsoft's $68.7 billion acquisition of Activision Blizzard blocked by UK regulators
  • Concerns about Microsoft dominating the growing cloud gaming market
  • Potential for stifled innovation and restricted access to blockbuster games on other platforms

Dude, let me tell you about this mega-deal that went down between Microsoft and Activision Blizzard. I mean, this was one of the biggest video game acquisitions EVER, with Microsoft dropping a whopping $68.7 billion on the table. But guess what? UK regulators slammed the brakes on the whole thing, and it's all because of cloud gaming.

So, what's the big deal about cloud gaming? Well, think Netflix, but for video games. You can play all sorts of games from anywhere with an internet connection. It's a game-changer, especially for peeps in developing countries who can't afford pricey consoles or PCs. Microsoft's all in on this cloud gaming thing, and they've even added it to their Xbox Game Pass subscription.

Microsoft's been lagging behind Sony when it comes to console sales, so they had their eyes on Activision's sweet game franchises like Call of Duty, World of Warcraft, and Candy Crush Saga. But the UK's Competition and Markets Authority (CMA) got all worried about Microsoft dominating the cloud gaming scene and potentially stifling innovation and competition.

The CMA's also concerned that Microsoft could play dirty by keeping Activision's blockbuster games away from other cloud gaming platforms. That'd be like Nintendo buying EA and only letting you play FIFA on their subscription service. Not cool, right?

But hey, cloud gaming's still a pretty small market compared to console gaming. It's growing fast, though, and the CMA's keeping an eye on where it's headed. So buckle up, gamers, because this ride's just getting started.


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