Can Xbox Game Studios acquire more developers?

The European Commission (EC), that approved Microsoft’s acquisition of Activision Blizzard, is one of the regulators who has decided to define game markets by genre. As explained by ResetEra user Idas (via Wccftech), in layman’s terms this means that should Microsoft attempt to acquire another shooter or RPG studio despite having acquired a number of them via ZeniMax and Activision Blizzard, it could face opposition from EC.

It’s worth noting that EC previously refused to define the video game market by genre when approving Microsoft’s acquisition of ZeniMax Media. According to Idas, the Chilean regulator has also adopted similar market definitions.

“The Advisory Committee agrees with the conclusions reached by the Commission in the draft decision in relation to the definition of the relevant product markets for development and publishing of video games segmented by platform (PC, console, mobile), by types of video game (AAA games vs. non-AAA games) and by genre (action and adventure, shooter/battle royale, role-playing games, sports, racing, fighting, and strategy),” reads the document in question from EC dated May 2023.

This move may also have implications for Sony. However, PlayStation has not made an acquisition as big as ZeniMax or Activision Blizzard.

The post Microsoft May Have Trouble Acquiring More Shooter and RPG Studios appeared first on PlayStation LifeStyle.

Activision was previously set to receive $3 billion if the Microsoft deal failed

The previous deadline for Microsoft and Activision Blizzard to complete their merger agreement was yesterday, July 18, 2023. In the previous agreement, if Microsoft had failed to close the merger by that date, Activision Blizzard was set to receive $3 billion in compensation.

Both Activision Blizzard and Microsoft remain confident the deal will be closed before the new deadline of October 18. However, in the unlikely event the deal is terminated before August 29, 2023, Activision Blizzard will still receive $3 billion compensation. If the deal is terminated between August 30 and September 15, the publisher will receive $3.5 billion. If the Microsoft deal is terminated after September 15, Activision Blizzard would be in line to receive $4.5 billion in compensation.

Microsoft is now technically free to close its deal in the United States following Judge Jacqueline Scott Corley’s ruling in favor of the company in its court case against the Federal Trade Commission (FTC). An FTC appeal was not successful and a gamers’ lawsuit against the proposed deal has also been thrown out of court. However, Microsoft still has to negotiate with the Competition and Markets Authority (CMA), which has blocked the deal in the United Kingdom.

The new agreement sees the deadline extended to October 18 so Microsoft can “continue to work with the CMA on the issues raised in the UK”, according to a statement from Microsoft president Brad Smith. The CMA has now extended its own deadline for its new investigation into the deal; this is August 29, although the aim is to reach an agreement before that date.

The post Activision to Get Up to $4.5 Billion If Microsoft Merger Fails appeared first on PlayStation LifeStyle.

Lawmakers urge FTC to drop Microsoft-Activision matter

The gamers’ lawsuit met its end on Tuesday when Justice Elena Kagan denied their request to block the deal. Meanwhile, a group of lawmakers have written to the Federal Trade Commission chair Lina Khan, urging her to drop the matter entirely. Despite having its request for a preliminary injunction denied, the FTC can continue to investigate the deal, seeking legal recourse later. The FTC has not responded or detailed its next steps.

In related news, Microsoft announced this morning that it has reached an agreement with Activision Blizzard to extend the deal’s deadline as it continues to negotiate remedies with U.K. regulator Competition and Markets Authority. The CMA is the only regulator who has blocked the deal outside of the U.S.

The merger is now set to close on October 18, 2023. “We’re optimistic about getting this done, and excited about bringing more games to more players everywhere,” wrote Xbox boss Phil Spencer.

The post Gamers’ Lawsuit Against Microsoft-Activision Deal Chucked Out of the Supreme Court appeared first on PlayStation LifeStyle.

Microsoft isn’t skipping UK to close Activision deal after all

One of the reasons FTC sought a preliminary injunction at the last minute was a report that Microsoft was willing to close the deal despite the CMA blocking it. Following FTC’s defeat, both Microsoft and CMA announced that they had entered negotiations to get the merger over the finish line with remedies that would be acceptable to the U.K. As a result, the tribunal where Microsoft had appealed the CMA’s decision paused the proceedings and granted both parties extra time to negotiate.

In light of those negotiations, it’s highly unlikely that Microsoft will close the merger today. However, according to Reuters, this poses the risk of Activision being swayed by another buyer since it has no legal obligation to merge with Microsoft once the deadline elapses. A Reuters source claims that Microsoft is now seeking an extension of the existing contract to ensure that Activision doesn’t have “a change of heart.”

The post Report: Microsoft Seeking Activision Deal Extension to Deter Other Buyers appeared first on PlayStation LifeStyle.

Microsoft’s original offer to Sony went beyond Call of Duty

Thanks to the recent FTC vs. Microsoft and Activision Blizzard legal showdown, we know that Xbox’s original offer to PlayStation went beyond Call of Duty, but there was a catch. Xbox boss Phil Spencer told Sony’s Jim Ryan that he was prepared to sign an agreement that would grant PlayStation “future versions in the Call of Duty franchise or any other current Activision franchise on Sony through December 31, 2027.” Ryan felt this offer was “inadequate.”

The agreement has since been extended to 10 years, but only for Call of Duty, as reported by The Verge. It’s unclear if this was mutually decided by Sony and Microsoft since Ryan wasn’t happy with the 3-year offer or if this is the contract that Microsoft came up with when its executives went to Brussels and told the press that they were hoping to get Sony on board.

Microsoft’s deals with Nvidia and other platforms go beyond Call of Duty.

The post Microsoft Says Its Activision Deal With Sony Is Only for Call of Duty appeared first on PlayStation LifeStyle.

The Sony and Microsoft Call of Duty deal spans a decade

Xbox CEO Phil Spencer tweeted out the deal, explaining that the two entities have signed a “binding agreement” to keep Call of Duty on PlayStation after the Activision acquisition goes through, which is inching closer to completion with each passing day. Spencer did not specify if this was the same 10-year agreement that Nintendo and other cloud services have signed. Sony, however, confirmed to Axios that the deal was indeed for 10 years.

President of Microsoft Brad Smith also commented on the deal, saying that it has been Microsoft’s commitment since day one to address concerns of “regulators, platform and game developers, and consumers.” He also noted that Microsoft “will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”

This comes after a long public and private squabble between Sony and Microsoft. Sony had said that it feared that Microsoft could purposely tarnish the PlayStation version of Call of Duty. Ryan, as stated previously, also called one of the earlier versions of the deal that wasn’t as specific “inadequate on many levels.”

This was just after he had an email exchange with Spencer, as revealed by emails shown at the trial, after Spencer sent Ryan a list of games that would continue to appear on PlayStation. Ryan said it was “not a meaningful list” since it listed a “particular selection of older titles.” That Call of Duty deal was then extended to 10 years, but Sony didn’t bite. He even said in a previous hearing that he didn’t want a new Call of Duty deal, but just wanted to sink the acquisition.

But one of Ryan’s private emails that came out during the recent trial somewhat went against what he had been saying publicly, as he stated that he was “pretty sure we will continue to see Call of Duty on PlayStation for many years to come.” Spencer also said under oath during the trial Call of Duty would continue to appear on PlayStation, something he had previously said when not under oath.

“I would raise my hand,” said Spencer. “I will do whatever it takes. We have no plan. I’m making a commitment standing here that we will not pull Call of Duty — it is my testimony — from PlayStation. Sony obviously has to allow us to ship the game on their platform. But absent any of that, my commitment is, and my testimony is that we will continue to ship future versions of Call of Duty on Sony’s PlayStation 5.”

The specificity of saying “PlayStation 5” might have been a slip up and not some rug pull where future Call of Duty titles don’t come to PlayStation 6, as the newest Spencer tweet about the deal just generally says “PlayStation.”

It seems very likely that the Activision acquisition will go through, as a United States judge ruled in favor of Microsoft against the Federal Trade Commission, which may have prompted Sony to finally fold and come to an agreement around Call of Duty. However, it still has to contend with the Competition and Markets Authority and its concerns over cloud gaming. Complications from that could delay the deal or alter in some regions.

The post Sony Agrees to Microsoft’s Call of Duty Deal appeared first on PlayStation LifeStyle.

How Everspace 2 PS5 version benefitted from Game Pass funding

Rockfish CEO and co-founder Michael Schade told YouTube channel Xbox Expansion Pass that releasing Everspace 2 on Game Pass did not hurt PC sales. On the contrary, Game Pass contributed to much-needed revenue that enabled extra development time for other platforms. “We have a really good deal with Game Pass,” Schade said. He echoed what many others across the industry have said i.e. Game Pass particularly helps small studios and publishers.

“It gets us more visibility, it gets us extra funding,” Schade continued. “You just make a better game and everybody’s happy. Even the Playstation fans on PS5 are getting a better game because of Game Pass.”

Sony Interactive Entertainment CEO Jim Ryan recently attracted controversy when he claimed that publishers “don’t like” Game Pass. A number of studios took to Twitter to show their support for Game Pass, while others pointed out that Ryan was likely referring to major companies like Activision Blizzard, who aren’t convinced that releasing major AAA games on Game Pass is the way to go.

The post Everspace 2 Is a ‘Better’ Game on PS5 Because of Game Pass, Says Dev appeared first on PlayStation LifeStyle.

What’s next for Microsoft, Activision, and the FTC?

Late last night, the FTC sought an emergency extension to the current restraining order against Microsoft and Activision — which expires tonight — as it appeals Judge Jacqueline Scott Corley’s verdict. Judge Corley understandably denied the motion, paving way for the FTC to seek an emergency order from the 9th Circuit Court of Appeals. The FTC argues that Judge Corley did not correctly apply the law to this case.

Senator Warren, who is one of the few lawmakers who originally urged the FTC to investigate the merger, tweeted that she “applauds” Chair Lina Khan and the agency for staying in the fight to defend consumers.

If the 9th Circuit Court of Appeals fails to issue an order today, or rules in favor of Microsoft and Activision, then both companies can merge as early as this Saturday. Meanwhile, NASDAQ is preparing to pull Activision from the stock market on Monday.

The post FTC’s Microsoft-Activision Merger Appeal Praised by US Senator appeared first on PlayStation LifeStyle.

Starfield and Indiana Jones were originally headed to PS5

Stuart’s testimony was part of the FTC’s legal challenge to the Microsoft-Activision merger, which the FTC recently lost and appealed. The document implies that the 10 million sales forecasts both games’ combined sales on the PS5.

“Microsoft believed it could offset losses incurred from taking ZeniMax games exclusive through upside to Game Pass and increased console sales,” the document reads. “Mr. Stuart testified that Microsoft needed fewer dollars in the short term to make up for the financial impact of exclusivity of ZeniMax games on Microsoft.”

Critics of the Microsoft-Activision deal have said that Microsoft is in a unique position to absorb losses earned by making games exclusive to its ecosystem. The FTC believes that Microsoft has the potential to do the same when it comes to Call of Duty — something other regulators unanimously disagree with.

If the FTC loses its appeal, Microsoft and Activision can close the deal as early as this weekend.

The post Starfield, Indiana Jones PS5 Versions Were Forecasted to Sell Over 10 Million Copies appeared first on PlayStation LifeStyle.

FTC appeals Microsoft Activision deal verdict as console war gets uglier

In a surprise move, the FTC decided to appeal Judge Jacqueline Scott Corley’s decision to deny a preliminary injunction against Microsoft’s acquisition of Activision Blizzard. With the deadline for the merger looming, the FTC is seeking an emergency extension to the existing restraining order from the 9th Circuit Court of Appeals.

The news sparked yet another intense debate on social media, with anti-monopoly activists, politicians, and legal experts jumping into the fray. Gamers blamed the FTC for doing Sony’s bidding, vandalizing its Wikipedia page and listing SIE CEO Jim Ryan as its chair (rest assured, it’s still Lina Khan).

Some legal experts have said that Judge Corley erred in stating that the FTC needs to prove the deal “will” — rather than “may” — harm competition. The law demands the latter.

All eyes are on the 9th Circuit Court of Appeals, which could make a decision on the restraining order as soon as today.

The post FTC Wiki Vandalized to Add PlayStation Logo After Microsoft Activision Appeal appeared first on PlayStation LifeStyle.