Yesterday one of the biggest news of the year, if not all of history, happened, considering that it talks about a purchase that was already one of the biggest news in the world. history of the video game industry. Indeed, yesterday the purchase has been blocked ActivisionBlizzard from Microsoft, after the CMA, Britain’s trade regulator, repeatedly reviewed the purchase in an effort to prevent Xbox from creating a monopoly that would negatively affect competition. His sentence is indeed blocking of purchases.
This has given rise to a lot of speculation and doubts, especially about what will happen next. Well in this post we are going to look back and we are going to see what could be the real root of blocking the purchase of ActivisionBlizzard from Microsoft. To put some more context, the main reason cited by the CMA for blocking the acquisition is that Xbox had a huge lead in the cloud gaming market, and after this acquisition, this superiority would increase even more and negatively affect the competition.
Is Google Stadia responsible for blocking the deal between Activision and Xbox?
Let’s think back to why the purchase was blocked: Xbox covers a high percentage of the cloud gaming market, and the AMC feared it would go even further.
- Google Stadia was another brand strictly based on the cloud gaming market, so it covered a certain percentage within it
- However, you already know that months ago Google Stadia closed
- And it caused This percentage covered by Stadia would disappear, do this right away Xbox’s share of the cloud gaming market is growing
- In other words, the fact that Google Stadia closed allowed Xbox to have even more superiority in the cloud gaming market, which is why the purchase was blocked. It makes you think!
I leave you below with a tweet from Jason Schreier, a well-known journalist belonging to the portal Bloomberg which says exactly this:
“Something to ponder… UK says it’s blocking Microsoft-Activision deal because of Microsoft’s cloud gaming benefits, which are stronger because Google Stadia failed… other words, the deal is now in jeopardy because of Phil Harrison”
Jason Schreier
What do you think about this? Do you think the CMA shouldn’t have blocked the purchase or is that correct? In all cases, it is not finished yet because Microsoft will appeal the decision.