Bethesda Exclusivity Strengthens Anti-Takeover Argument

The ongoing Microsoft-Activision Blizzard merger has faced scrutiny from various regulatory bodies, including the Federal Trade Commission (FTC), which recently filed a complaint to block the merger. A key point in the FTC’s argument against the merger is Microsoft’s track record of acquiring game developers and making some of their games exclusive to their consoles.

Bethesda Acquisition

One of Microsoft’s most significant acquisitions was ZeniMax Media, the parent company of game developer Bethesda Softworks. Several of Bethesda’s game titles, such as the upcoming Starfield and Redfall, were made exclusive to Microsoft’s Xbox consoles despite earlier assurances to European antitrust authorities that they had no intention of withholding games from rival consoles.

FTC’s Argument

The FTC’s argument is that Microsoft’s exclusivity practices in the past show that they will use their acquisition of Activision Blizzard to harm competition in the gaming industry and suppress competitors to their Xbox gaming consoles and subscription content and cloud gaming business.

Bethesda Exclusivity Strengthens Anti-Takeover Argument

The exclusivity of Bethesda titles is a significant factor in strengthening the argument against Microsoft’s takeover of Activision Blizzard.

Rising Criticism from Gamers

Microsoft’s practice of making games exclusive to their consoles, instead of making them available on multiple platforms, has come under increasing criticism from gamers and industry experts. Gamers have become increasingly vocal about their displeasure with being forced to buy an Xbox console to play certain games, and industry experts have argued that exclusivity is ultimately harmful to the gaming industry as a whole.

The Case Against Microsoft

Questionable Impact on Competition

The FTC’s complaint focuses on Microsoft’s dominance in the gaming market and how the acquisition of Activision Blizzard would create a significant barrier to entry, making it incredibly challenging for competitors to thrive in the industry.

Monopoly on Gaming Content

The acquisition of Activision Blizzard would give Microsoft access to some of the most popular and lucrative game franchises, such as Call of Duty and World of Warcraft. This would allow Microsoft to maintain a monopoly on gaming content and give them even more power to make games exclusive to their consoles.

Impact on Employees

The acquisition would also have a significant impact on the employees of Activision Blizzard. Microsoft has a history of cutting jobs after acquisitions, which would be detrimental to the thousands of people who work for Activision Blizzard.

Conclusion

Microsoft’s plan to acquire Activision Blizzard has faced fierce resistance from various regulatory bodies, particularly from the FTC. The exclusivity of Bethesda titles shows that Microsoft will use its acquisition of Activision Blizzard to create a monopoly on gaming content, harm competition, and suppress competitors to their Xbox gaming consoles and subscription content and cloud-gaming business. The industry has already seen the harmful effects of exclusivity, and this takeover would only serve to exacerbate the problem.

FAQs

What games would Microsoft have exclusive access to with the Activision Blizzard merger?

Microsoft would gain access to some of the most popular and lucrative game franchises, such as Call of Duty and World of Warcraft.

How has Microsoft’s exclusivity practice impacted the gaming industry?

While it benefits Microsoft, the practice of exclusivity has come under increasing criticism from gamers and industry experts. Gamers have become increasingly vocal about their displeasure with being forced to buy an Xbox console to play certain games, and industry experts have argued that exclusivity is ultimately harmful to the gaming industry as a whole.

What is the FTC’s argument against the Activision Blizzard merger?

The FTC’s argument is that Microsoft’s exclusivity practices in the past show that they will use their acquisition of Activision Blizzard to harm competition in the gaming industry and suppress competitors to their Xbox gaming consoles and subscription content and cloud gaming business.

How would the Activision Blizzard merger impact employees?

Microsoft has a history of cutting jobs after acquisitions, which would be detrimental to the thousands of people who work for Activision Blizzard.

What is Microsoft’s response to the FTC’s complaint?

Microsoft is likely to challenge the FTC’s decision. Microsoft’s president, Brad Smith, said the company has complete confidence in its case and welcomed the opportunity to present its case in court.