Microsoft's Activision Blizzard deal can possibly be blocked by the "stricter" regulators at the US Federal Trade Commission (FTC). But that's not how current Microsoft CEO Satya Nadella sees it.
NEW YORK, NEW YORK - NOVEMBER 07: Satya Nadela speaks on stage at the "A Conversation with Microsoft's Satya Nadella" panel at the on November 07, 2019 in New York City.
In a report by Eurogamer, Nadella claimed that the massive $68.7 billion acquisition of the embattled studio/publisher doesn't even turn his company into a gaming monopoly, as some analysts fear it will.
Instead, the deal is poised only to make Microsoft a "big" player in a so-called "fragmented market." Nadella argues that his company isn't even a big player in the gaming industry as of this moment, despite how Xbox is basically the bitter rival to PlayStation.
He then further says that even if the deal closes, his company would still be placed third behind far more valuable gaming industry titans: Sony and the Chinese conglomerate Tencent.
Despite the Microsoft head honcho's statements, however, some analysts still believe that the Activision Blizzard deal will indeed make the former a gaming monopoly.
According to GGRecon, the answer lies in how the US FTC has already blocked another Big Tech giant, NVIDIA, from pushing through with its $40 billion acquisition of the British chipmaker Arm. Furthermore, there's the reputation of current FTC chair Lina Khan, a well-known, outspoken critic of Big Tech.
For now, the deal is expected to close by 2023. And when it does, it definitely will bring Microsoft and the Xbox brand right up there with Sony and Tencent in terms of overall market value.
Not to mention, they'll also own a lot of big gaming franchises which may or may not be exclusive to Xbox in the foreseeable future. Some of these titles are even notable former PlayStation IPs, like the "Crash Bandicoot" series-the main character of which used to be an iconic PlayStation icon from back in the day.
Read also: Nintendo Will Not Join Microsoft, Sony Bandwagon in Buying Gaming Companies
Microsoft's Activision Blizzard Deal Have The Former Tip-Toeing Around Regulators
If Microsoft is to ensure that the massive merger won't be blocked, they'll have to play their cards the right way. And much of their recent comments regarding the potential exclusivity of numerous ActiBlizz IPs prove they are trying to tip-toe around regulators.
One of the IPs is "Call of Duty." A lot of fans of the franchise were understandably concerned about the Microsoft and Activision Blizzard deal, assuming that COD will potentially become an Xbox and PC exclusive in the near future. But according to Xbox head Phil Spencer, they are working to "honor any existing agreements" to keep the popular shooter franchise on PlayStation consoles, as reported by the BBC.
But whether he and Microsoft aim to keep other existing cross-platform ActiBlizz IPs is still up in the air. It remains a possibility, considering how they made Bethesda's future games already exclusive to Xbox for the foreseeable future. The iconic "Skyrim" maker's new IP, "Starfield," is a perfect example.
The deal is now in the US FTC's hands no matter what happens.
Related: Blizzard Announces Planned Survival Game Set in 'a New World'
Story posted on GameNGuide
Written by RJ Pierce