{"id":108661,"date":"2023-07-20T11:45:01","date_gmt":"2023-07-20T15:45:01","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=108661"},"modified":"2023-07-20T11:45:03","modified_gmt":"2023-07-20T15:45:03","slug":"microsoft-and-activision-deal","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/microsoft-and-activision-deal\/","title":{"rendered":"What the Microsoft and Activision Deal Means for Gamers"},"content":{"rendered":"\n

Why are some wary of the Microsoft and Activision Blizzard deal? What does it mean for the future of Activision?<\/p>\n\n\n\n

Microsoft can proceed with a $69 billion deal to purchase video game publisher Activision Blizzard\u2014the largest such deal in gaming history. Some members of the gaming community share the FTC\u2019s concerns, while those in favor of the merger say this is an opportunity for Microsoft to improve Activision.<\/p>\n\n\n\n

Below we’ll take a look at the ruling and what it means for the future.<\/p>\n\n\n\n\n\n\n\n

Microsoft Acquires Activision Blizzard<\/h2>\n\n\n\n

Microsoft won a court case<\/a> on July 11, 2023, allowing it to proceed with plans to buy video game publishing giant Activision Blizzard. With this victory, the companies can finalize the $69 billion Microsoft and Activision deal, which was originally announced in January 2022<\/a>.\u00a0<\/p>\n\n\n\n

The Federal Trade Commission (FTC) had tried to block this purchase<\/a>, citing antitrust laws\u2014the agency argued that such a merger would give Microsoft too much influence in the gaming industry, with the potential to reduce competition and harm consumers.\u00a0<\/p>\n\n\n\n

However, District Judge Jacqueline Corley ruled in Microsoft\u2019s favor, saying the FTC had failed to show that this deal would lessen competition in the gaming market. <\/strong>The FTC requested the deal be paused while it appeals the judge\u2019s decision, but that motion was denied<\/a>.\u00a0<\/p>\n\n\n\n

What Does the Ruling Mean for Microsoft?<\/strong><\/h3>\n\n\n\n

According to Microsoft, this merger will make it the world\u2019s third-largest gaming company<\/a>, behind only Tencent and Sony.<\/p>\n\n\n\n

Perhaps the most significant benefit for Microsoft will be in the mobile gaming market<\/strong>. Mobile gaming has gone from a niche market<\/a> to an industry worth over $100 billion<\/a> annually. However, it\u2019s a market that Microsoft has struggled to break into; by acquiring Activision and its subsidiaries, Microsoft will instantly go from a nonentity to a mobile gaming powerhouse.\u00a0<\/p>\n\n\n\n

A Fresh Start for Activision?<\/strong><\/h4>\n\n\n\n

While some gamers share the FTC\u2019s concerns about the upcoming merger, others see it as a chance for Microsoft to fix Activision\u2019s damaged reputation<\/strong> in the video gaming community. <\/p>\n\n\n\n

First and foremost, in the last few years, Activision Blizzard has been slammed with numerous complaints, allegations, and lawsuits<\/a> regarding its company culture<\/a>. The company has been accused of fostering a sexist \u201cfrat boy\u201d environment<\/a>, where female employees regularly suffer discrimination and sexual harassment.<\/strong> Gamers hope that Microsoft\u2014a company with a positive reputation<\/a>\u2014will make some much-needed changes after taking over Activision.\u00a0\u00a0<\/p>\n\n\n\n