Provisional findings published by a UK government agency has ruled that there would be less competition if Microsoft were to acquire publishing giant Activision Blizzard.
The Competition Markets Authority (CMA) agency published a report on Microsoft’s proposed acquisition of the Call of Duty publisher, and it isn’t looking too rosy for the Xbox format holder.
A CMA investigation has provisionally concluded that Microsoft’s proposed acquisition of Activision could result in higher prices, fewer choices, and less innovation for UK gamers.
The statement goes on to say that it follows a “wide-ranging investigation conducted over the last five months to understand the market and potential impact of the deal,” and includes visits to both Microsoft and Activision Blizzard, in addition to a review over three million internal documents that both firms have provided to the agency.
The CMA’s report added that there would be less competition in regards to cloud gaming and console markets if the acquisition would go ahead. Currently, Microsoft holds 60-70% of the world’s cloud gaming services, and the CMA suggested that its acquisition of Activision Blizzard would only reinforce its dominance in this sector.
[Source – CMA via GamesRadar]