Microsoft one step closer to acquiring Activision Blizzard in $100b deal

Brazil approved the nearly $100b deal despite Sony’s protests, stating that if Nintendo can compete without Activision Blizzard, so can Sony.

Brazil’s Administrative Council for Economic Defense (CADE) approved the massive, nearly A$100 billion ($US69 billion) merger between Microsoft and Activision-Blizzard with no restrictions.

As reported by Video Games Chronicle, CADE’s belief is that post-merger, Sony will remain competitive.

“Considering the huge popularity of Call of Duty, it is reasonable to infer that if Activision Blizzard games were no longer available on Sony consoles, PlayStation users could decide to migrate to Xbox, or even a PC, to continue having access to franchise games.

“On the other hand, it’s also reasonable to assume that if upcoming Call of Duty games became exclusive to the Microsoft ecosystem, players loyal to the PlayStation brand could simply abandon the series, migrating their demand to other games available on their favourite console.”

Call of Duty is the largest shooter by user numbers in the world, making it a big prize for Microsoft. Picture: Activision Blizzard

The statement continues, acknowledging the possibility of Microsoft making Call of Duty console exclusive, referencing specifically the power of Microsoft’s Xbox Game Pass system, where customers pay a monthly fee and have access to a wide library of games.

The statement ended by referencing another competitor to Sony — Nintendo. “As already seen, Nintendo does not currently rely on any content from Activision Blizzard to compete in the market.”

Microsoft’s planned purchase of Activision Blizzard is a step closer to completion.

“In turn, Sony has several predicates – strength of the world’s leading brand for more than 20 years, extensive experience in the sector, largest user base, largest installed base of consoles, robust catalogue of exclusive games, partnerships with multiple publishers, brand loyal consumers, etc. – which should contribute to maintaining the competitiveness of PlayStation in a possible post-Operation scenario, even in the face of possible loss of access to Activision Blizzard content.”

Brazil is the second regulatory agency to approve the Microsoft deal, following Saudi Arabia’s approval where the country stated it had “no objection.”

Microsoft and Activision Blizzard are still awaiting approval from regulatory agencies worldwide, including FTC, European Commission, and UK Competition and Markets Authority.

— written by Junior Miyai on behalf of GLHF