CMA Says If Microsoft Acquires Activision, Game Pass Gets More Expensive
A recent UK Competition and Market Authority (CMA) report has revealed more details about Microsoft’s decision to halt its acquisition of Activision Blizzard. In addition to an extensive examination of Microsoft’s current business practices and plans, including its dominance in cloud computing, the CMA said the growing library of video game content could make Microsoft more expensive to consumers. also raised concerns about
Detail is 400 page reportThe CMA committee provided a broad and highly detailed overview of Microsoft’s current business plans and how it will affect its competitors. The CMA committee has emphasized its belief that the value of the Xbox Game Pass service will increase following potential additions from the Activision Blizzard library. Give Microsoft an incentive to raise prices.
In the report, the CMA detailed how adding new games to Microsoft’s library isn’t an issue, and how specifically having Activision’s games, such as Call of Duty, affects the catalog.
Activision content on Game Pass is another option to pay for content that is already available for purchase and play on Xbox, and will only be worth more to some consumers than it is today. (in any case, , starts happening some time after the merger is complete). Additionally, we expect Microsoft to have an incentive to increase the price of Game Pass to match the increased value from adding Activision’s valuable content to Game Pass. ).
In its investigation, the CMA Commission explained that the customer benefits (RCB) gains associated with this merger, such as the benefits of being able to access Call of Duty via Game Pass, would not outweigh the losses. An expanded Game Pass not only has the potential to offer a more expensive service for consumers, but it also gives Xbox a big edge over the likes of Sony and Nintendo, which don’t offer as extensive a service as Microsoft’s Game Pass. It also gives you sex. other products.
Making Activision’s content available on Game Pass is an attractive prospect for some customers, and based on the comments received from the public during this survey, the merger is likely to continue by those who support it. I am aware that this seems to explain much of the support for Overall, even with this new option to pay for content already available for purchase and play on Xbox, the overall impact on competition (and ultimately consumers) that this merger will create. I’ve found that it doesn’t outweigh the damage. The rapidly expanding market for cloud gaming services.
For now, Microsoft is seeking an appeal against the CMA’s decision to call off the merger, which has been steadily gaining momentum since its announcement in February 2022. In addition to detailing Game Pass’s potential, the CMA’s report also included mentions of: With the current state of Nintendo’s hardware, it’s likely that it won’t be able to play the current-gen Call of Duty games that Activision Blizzard representatives claimed it could do.
For a current detailed breakdown of the recent demise of the merger between Microsoft and Activision Blizzard, check out IGN’s explanation detailing everything you need to know.