Gaming the FTC’s Moves On MSFT and Activision Blizzard
By Greg Kahn
Emerging Tech Exchange
Founder & CEO
Published on June 20, 2023
I was interviewed by The Drum’s Kendra Clark last week about the Federal Trade Commission’s latest court filing to block Microsoft’s $68.7 billion acquisition of Activision Blizzard.
Microsoft has been dogged in surmounting a succession of regulatory hurdles in the U.S. and in the European Union for over a year-and-a-half. But I don’t see the Redmond giant giving up without a few more creative legal maneuvers. The stakes are too high.
Microsoft's pursuit of Activision Blizzard is a pivotal move in its gaming strategy. Activision Blizzard is a prominent global gaming publisher, and if the acquisition goes through, it would expand Microsoft's gaming portfolio, bridging the gap with rivals like Nintendo and Sony. (Microsoft is in third place behind those other two.)
Activision Blizzard's vast library of intellectual property, including renowned franchises like Call of Duty and World of Warcraft, would provide Microsoft with valuable assets and established player communities. This aligns with Microsoft's broader gaming strategy of enhancing its presence across multiple platforms, such as consoles, PC, and cloud gaming.
The deal also presents an opportunity for Microsoft to explore mixed reality and immersive gaming experiences, an area where it currently lags behind. Companies like Roblox have demonstrated the commercial potential of these spaces, and Microsoft would benefit from Activision Blizzard's expertise in this domain.
However, regulatory scrutiny is intensifying, both in the United States and globally, particularly in the tech sector. Antitrust concerns and a focus on fair competition are influencing the evaluation of mergers and acquisitions. Still, my take is that Microsoft will find the concessions it needs to make and the FTC will feel placated without looking like it got played.
No matter what, it’s a good time to take a look at the evolving dynamics of the gaming industry, which is emerging as a significant player in the media landscape. Gaming's influence extends beyond entertainment, as it shapes advertising strategies, loyalty programs, and media consumption habits.
As brands, media companies and startups race to adapt to the #AttentionEconomy, gaming is poised to be a leader as immersive advertising’s appeal becomes more widely accepted and expected by consumers.
Greg Kahn
Emerging Tech Exchange
Founder & CEO
