My god the CMA-highlighted views against the deal are so lame
(a) Microsoft is already dominant in PC operating systems, and this Merger is an attempt to gain a similar position in gaming;
- Meanwhile, their OS has lost 15% market share over the last 10 years and has healthier competition than ever since windows is a thing.
- You were lucky Sony, by that logics, when your walkman just trashed the competition you weren't supposed to be able to acquire anything even for other divisions.
(b) Microsoft has the resources to create an offering that competes with PlayStation exclusives without acquiring Activision;
- And it has the resource to create an offering that competes with PlayStation by acquiring Activision so what's the point??
- This is trying to portray acquisition as an evil tool rather than simply a tool.
- There's no difference to a monopolistic position whether it is achieved through organic growth vs merger acquisition except the latter allows acting in prevention.
(c ) the Merger would lead to consolidation and would set a harmful precedent in the gaming industry of acquiring large publishers rather than encouraging organic growth;
- The precedent already exists, the size of the acquisition is meaningless, and only the resulting position is important.
(d) this would be the largest merger in gaming history, paving the way for a potential string of future acquisitions of publishers such as Take Two, EA, Ubisoft, thereby increasing concentration in the market;
- Such an obvious slippery slope fallacy
- This deal cannot be blocked because another entity might do one on its own or because MS might intend to do another. Every deal should be reviewed by the same standard and judged on likely outcomes and effects.
(e) Microsoft will make Call of Duty exclusive to Xbox, just as it did with Bethesda after it acquired ZeniMax Media;
- demonstrably false with the legally binding deal made with Nintendo and offered to Sony and Steam
- Demonstrably false with the more adequate Minecraft example.
- Also, not all Zenimax franchises have been announced as exclusive for their next entry (ex: Fallout may still see a new entry on PS)
(f) Microsoft will have the incentive to make Call of Duty exclusive to Xbox post-Merger. This will adversely affect gamers who cannot afford an additional console and they would therefore switch to Xbox at the launch of the next console generation;
- again demonstrably false with the legally binding deal made with Nintendo also offered to Sony and Steam
- Demonstrably false with Minecraft.
(g) Microsoft would be able to deteriorate the quality of Call of Duty games on PlayStation post-Merger, which could cause consumers to switch to Xbox;
- MS could not do this without harming the value of the franchise.
- Demonstrably false with Minecraft.
(h) Microsoft can capture the multi-game subscription market after the Merger because it can afford to add games to Game Pass at a loss;
- Lol Sony and Nintendo have the same capacity in that regards
- GamePass is already profitable, so there's no at a loss title on it, at least no planned ones.
(i) Microsoft is already dominant in cloud gaming, and the Merger could affect the future of new entrants into that space;
- And before MS was dominant in this, Sony was by being the only one of importance to have such a service with PS now.
- already 4 currently competing serious platforms exist (Xcloud, PS Now, Luna, and Geforce now) which make the sector already more competitive than traditional console. or the so-called High-performance console market with only 2 actors.
(j ) the Merger will raise barriers to entry for smaller studios and independent developers; and
- There doesn't seem to be a sound causality here, you would have to explain how.
- Ms with ID@Xbox and GamePass is proving to be a remarkable tool that makes it easier for indie and small studios.
(k ) the Merger will lead to an increase in Microsoft’s bargaining power in relation to game publishers.
- There doesn't seem to be a sound causality here, you would have to explain how.
- if it's true is it a bad thing? Isn't it just competition at work?
- Isn't Sony enjoying this exact benefice right now.
