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Microsoft buys Activision Blizzard

deuxhero

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But people who made these games are still working at Raven?
Surprisingly, yes.
https://www.mobygames.com/game/windows/star-wars-jedi-knight-jedi-academy/credits

Of the nine lead designers+designers+project lead on Jedi Academy, over half were still at Raven as of 2020, with only Steve Raffel (who was there as late as 2015), Robert Bettenberg, Ford Dye (now at Ubisoft), and Scott McNutt not credited on that 2020 project.
 

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https://nypost.com/2022/12/04/rift-at-ftc-stirs-hope-for-microsofts-69b-activision-merger/

Rift at FTC stirs hope for Microsoft’s $69B Activision merger: sources​


A rift has emerged at the Federal Trade Commission over Microsoft’s $69 billion deal to acquire Activision — potentially paving the way for the controversial mega-merger to get approved, The Post has learned.

At least one Democrat on the four-member panel has recently taken a sympathetic view of the merger, according to a source close to the situation. That, in turn, could create a difficult path for FTC Chair Lina Khan — who according to insiders has eyed Microsoft’s deal as a major target as she looks to burnish her credentials as a trustbuster of Big Tech.
A rift has emerged at the Federal Trade Commission over Microsoft’s $69 billion deal to acquire Activision — potentially paving the way for the controversial mega-merger to get approved, The Post has learned.

At least one Democrat on the four-member panel has recently taken a sympathetic view of the merger, according to a source close to the situation. That, in turn, could create a difficult path for FTC Chair Lina Khan — who according to insiders has eyed Microsoft’s deal as a major target as she looks to burnish her credentials as a trustbuster of Big Tech.

Sources said Khan — who said publicly in June the agency was scrutinizing the deal’s impact on workers — was in recent weeks still pushing to sue to block the merger, which would pair Microsoft’s Xbox with hit Activision games like “Call of Duty” and “Candy Crush.” Late last month, Politico reported that an FTC lawsuit against the deal was “likely,” noting that the agency’s staff are “skeptical of the companies’ arguments.”

The FTC’s sole Republican commissioner, Christine Wilson, has signaled support of the deal. But sources say at least one of the four-member panel’s three Democratic commissioners — which in addition to Khan include Rebecca Slaughter and Alvaro Bedoya — also has recently appeared to lean toward the Microsoft camp, according to a source close to the situation.

Sources said Khan — who said publicly in June the agency was scrutinizing the deal’s impact on workers — was in recent weeks still pushing to sue to block the merger, which would pair Microsoft’s Xbox with hit Activision games like “Call of Duty” and “Candy Crush.” Late last month, Politico reported that an FTC lawsuit against the deal was “likely,” noting that the agency’s staff are “skeptical of the companies’ arguments.”

The FTC’s sole Republican commissioner, Christine Wilson, has signaled support of the deal. But sources say at least one of the four-member panel’s three Democratic commissioners — which in addition to Khan include Rebecca Slaughter and Alvaro Bedoya — also has recently appeared to lean toward the Microsoft camp, according to a source close to the situation.

“Some of the Democrats might be more comfortable with a settlement,” approving the deal with concessions from the companies instead of trying to block it altogether, an FTC insider told The Post.

While the identity of the dissenting Democrat couldn’t immediately be confirmed, DC sources following the situation pointed to Slaughter, who was acting FTC Chair until last year, when President Joe Biden installed 33-year-old Khan at the helm of the powerful regulatory agency.

A Democratic defection would leave Khan with a 2-2 tie in any vote to clamp down on the merger — a result that would not only effectively OK the deal but also throw Khan’s authority over the agency into question. That, accordingly, is a vote that Khan isn’t likely to risk, according to DC insiders.

“Lina would probably not put things in a position for that to take place, so instead of having that vote she would make the motion to approve the settlement,” said William Kovacic, a former FTC Chairman. “The way out is to say, ‘We got a great deal and only got it because we’ve been badasses.'”

Microsoft has a history of courting Democrats. In the 2020 election cycle, Microsoft donated $13.8 million to Democrats and only $1.72 million to Republicans. In 2022, it gave $4.1 million to Dems and $1 million to Republicans, according to Open Secrets.

Senate Majority Leader Chuck Schumer in July reportedly went to Washington state to meet Microsoft President Brad Smith and discuss, among other things, the pending Activision merger and its potential impact on New York. They also reportedly met in February.

Insiders note that Slaughter was Schumer’s chief counsel from June 2014 to May 2018 before leaving to become an FTC Commissioner.

“This is when Schumer calls his old protege and says, ‘What’s up?” according to Kovacic.

Meanwhile, reports surfaced in recent days that Microsoft has signaled it’s willing to make significant concessions to get the deal done. Last week, Reuters reported that Microsoft was likely to offer a 10-year licensing deal for its blockbuster “Call of Duty” franchise to Playstation owner Sony, citing unnamed sources.

As reported by The Post early last month, Microsoft’s stubborn refusal to offer concrete concessions to regulators and rivals in exchange for winning the deal has been a major sticking point. If Microsoft is finally showing a willingness to budge, that weakens any case by the FTC to block the merger — and emboldens dissenters, according to experts.

“What makes it difficult is when Microsoft goes to their friends in blue and says, ‘We have provided a package of solutions for all the perceived problems, and the folks at the FTC are being very unreasonable if they don’t take it,'” Kovacic said.

If Microsoft does indeed offer a significant remedy, President Biden would likely want the deal cleared and ask someone such as his antitrust advisor Tim Wu to push Khan to accept the proposal, the ex-FTC chairman said. The pitch would be that Microsoft can be trusted to keep its promises because of its past history of responsible behavior, sources said.

“It does become hard to say, ‘This is not good enough,'” said Kovacic, who now puts the chances of the merger getting approved at 70%. “It becomes more difficult for the Commission to push this aside.”

Doubts about the deal on Wall Street persist. While Microsoft has agreed to pay Activision $95 a share in cash, the target’s stock closed on Friday at $75.76.

FTC staff is expected to make a recommendation on the Microsoft deal by mid-December. Microsoft can then meet with individual commissioners to press its case before the final vote, which could happen later this month, according to sources close to the agency.

“As we have said before, we are prepared to address the concerns of regulators, including the FTC, and Sony to ensure the deal closes with confidence,” a Microsoft spokesman said in a statement. “We’ll still trail Sony and Tencent in the market after the deal closes, and together Activision and Xbox will benefit gamers and developers and make the industry more competitive.”

An FTC spokesperson declined to comment, saying the agency doesn’t speak on specific transactions that it is reviewing.

he Communications Workers of America wrote in a June 30 letter that it supported the deal and has been lobbying Congress, an FTC insider noted. CWA said it believes the merger would give Activision Blizzard workers a clear path to collective bargaining and unionization. That’s a message that lawmakers, in turn, may be inclined to pass to the FTC, sources said.

“All the Commissioners are attuned to the Hill,” one DC insider told The Post.
 

Morgoth

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It's not over yet.

https://www.ftc.gov/news-events/new...oft-corps-acquisition-activision-blizzard-inc

Activision Blizzard Deal Hits a Major Roadblock as the FTC Officially Sues Microsoft


Nathan Birch • Dec 8, 2022 02:43 PM EST
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Microsoft Activision Blizzard deal CMA Call of Duty

Last month we heard reports that Microsoft’s proposed acquisition of Activision Blizzard could potentially face a major roadblock in the form of an antitrust lawsuit from the US Federal Trade Commission, and now, that’s exactly what’s happened. The FTC is looking to block the proposed $69 billion Microsoft-Activision deal, alleging that it would “enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.” In their press release, the FTC cites Microsoft’s treatment of Bethesda and its franchises, which have become Xbox exclusives, as one of the main reasons they’re moving to block the Activision deal. Here’s the FTC’s full rationale for bringing the antitrust suit…

“The Federal Trade Commission is seeking to block technology giant Microsoft Corp. from acquiring leading video game developer Activision Blizzard, Inc. and its blockbuster gaming franchises such as Call of Duty, alleging that the $69 billion deal, Microsoft’s largest ever and the largest ever in the video gaming industry, would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.

n a complaint issued today, the FTC pointed to Microsoft’s record of acquiring and using valuable gaming content to suppress competition from rival consoles, including its acquisition of ZeniMax, parent company of Bethesda Softworks (a well-known game developer). Microsoft decided to make several of Bethesda's titles including Starfield and Redfall Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles.

Microsoft’s Xbox Series S and Series X are one of only two types of high-performance video game consoles. Importantly, Microsoft also offers a leading video game content subscription service called Xbox Game Pass, as well as a cutting-edge cloud-based video game streaming service, according to the complaint.

Activision is one of only a very small number of top video game developers in the world that create and publish high-quality video games for multiple devices, including video game consoles, PCs, and mobile devices. It produces some of the most iconic and popular video game titles, including Call of Duty, World of Warcraft, Diablo, and Overwatch, and has a combined 154 million monthly active users around the world, according to the FTC’s complaint. Activision currently has a strategy of offering its games on many devices regardless of producer.

But that could change if the deal is allowed to proceed. With control over Activision’s blockbuster franchises, Microsoft would have both the means and motive to harm competition by manipulating Activision’s pricing, degrading Activision’s game quality or player experience on rival consoles and gaming services, changing the terms and timing of access to Activision’s content, or withholding content from competitors entirely, resulting in harm to consumers.”

While Microsoft has yet to officially respond to the FTC’s lawsuit, Activision Blizzard COO Lulu Cheng Meservey had the following to say.



Activision Blizzard has faced a series of lawsuits and other legal action on the heels of a suit filed by California’s Department of Fair Employment and Housing (DFEH) alleging widespread gender-based discrimination and sexual harassment at the Call of Duty publisher. You can get more details on that unfolding story here.
 

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https://www.wsj.com/articles/ftc-sues-microsoft-to-block-activision-purchase-11670527080

FTC Sues to Block Microsoft’s Acquisition of Activision Blizzard​

Antitrust enforcer seeks to stop $75 billion deal, saying it will harm competition​


The Federal Trade Commission Thursday sued Microsoft Corp. MSFT 1.24% to block its planned $75 billion acquisition of Activision Blizzard Inc., ATVI -1.54% taking one of its biggest shots under the Biden administration at halting a merger of technology giants.

The lawsuit sets the stage for a court challenge over the deal as Microsoft agreed as part of negotiations with the “Call of Duty” publisher to defend the acquisition against a government lawsuit.

The law enforcement agency said the deal is illegal because it would give Microsoft the ability to control how consumers beyond users of its own Xbox consoles and subscription services access Activision’s games. The company could raise prices for people who don’t use Microsoft’s hardware to access the games, or even cut off access entirely, the FTC said.
“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said Holly Vedova, director of the FTC’s bureau of competition, in a statement. “Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”

Microsoft said it continues to believe the deal, which it values at $68.7 billion after adjusting for Activision’s net cash, would expand competition and signaled it plans to litigate with the federal agency.

“We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC,” Brad Smith, Microsoft vice chair and president, said. “While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court.”

In its complaint, the FTC said Microsoft previously suppressed competition from rivals through its 2021 acquisition of ZeniMax Media Inc., the owner of game developer Bethesda Softworks. The agency said Microsoft made several of Bethesda’s games, including “Starfield” and “Redfall,” exclusive to its own platforms, despite giving assurances to European antitrust authorities that it would do otherwise.

The commission vote was three to one in favor of authorizing the suit, with Republican Commissioner Christine S. Wilson voting against it. The FTC filed the case in its administrative court because it didn’t need an emergency federal court order to stop the deal from closing. Microsoft and Activision can’t wrap up the transaction because it is still being reviewed by European competition authorities.

The merger agreement between the companies says the deal can be extended until July. The FTC’s staff is authorized to go to federal court to seek an injunction preventing the closing if the companies seek to finish the deal before the administrative law process is complete, according to an FTC official.

“This is a somewhat meaningful setback for Microsoft,” Stifel Nicolaus analyst Brad Reback said. “Over the last two decades they’ve worked very hard to stay on the right side of government agencies.” Mr. Reback added that if Microsoft litigates and loses, the company could become limited in its ability to do large deals in the future.

Microsoft’s deal for Activision, which would be its biggest-ever acquisition, is also under investigation by antitrust regulators in the U.K and the European Union. The companies first announced their merger agreement in January and said they expected the deal to close in June 2023.

Microsoft makes Xbox videogame consoles and competes against Sony Group Corp. and Nintendo Co. , which are known for their PlayStation and Switch consoles, respectively. All three companies also develop and publish their own games.

Antitrust experts initially expected the deal would clear government scrutiny. But allegations that workplace misconduct was rampant in the past at Activision created trouble for the company in Washington—including with progressive senators who called on the FTC to thoroughly investigate the deal, along with its potential impact on workers.

The SEC has been separately investigating Activision Chief Executive Bobby Kotick and other executives over how they handled and disclosed the allegations, The Wall Street Journal has reported, citing documents and people familiar with the investigation. Activision has said it is working to become “the videogame industry’s most welcoming and inclusive workplace.”

“The allegation that this deal is anti-competitive doesn’t align with the facts, and we believe we’ll win this challenge,” Mr. Kotick said in a letter to employees posted on Activision’s website.

Microsoft’s shares closed up about 1%, while Activision’s shares were down by about 1.5%.

The combined company would control about 11% of the global digital game publication business, according to Bloomberg Intelligence analysts.

The FTC initiated a review of the Activision deal in February, the Journal reported at the time. Since assuming office in 2021, Chairwoman Lina Khan has moved to investigate more mergers, particularly those involving the largest technology companies.

Ms. Khan and other so-called progressive antitrust enforcers say competition law hasn’t kept up with the evolution of the digital economy. Antitrust law historically focuses on whether mergers that combine competitors—resulting in greater market concentration—would likely drive up prices for consumers. Under the Biden administration, appointees such as Ms. Khan have pushed for focusing less on price effects and examining more vertical mergers, in which companies acquire key suppliers or partners and integrate those firms into their operations.

Backers of the status quo say the courts have correctly focused on objective criteria such as price levels, reduced output or diminished opportunities for innovation. Vertical deals were historically thought to result in lower prices because companies could better control their input costs.

Vertical deals are harder for the government to block, said Jennifer Rie, a senior litigation analyst at Bloomberg Intelligence. The lawsuit will also be hard for the FTC to win because enforcers will have to show that withholding “Call of Duty” or similar games would be profitable for Microsoft, which pledged to allow rivals to continue accessing that blockbuster game.

Ms. Khan “is trying hard to develop case law that pushes things in a different direction than they have been going in the past 30 years, in which has been more and more difficult to challenge mergers,” Ms. Rie said. “This suit falls right into her wheelhouse in terms of what she’s trying to do.”

They have also gone after deals that don’t fit easily into the horizontal or vertical categories. Ms. Khan’s agency this year challenged Meta Platforms Inc.’s deal for a virtual-reality exercise game developer, Within Unlimited Inc. Meta doesn’t have its own VR fitness game, but makes one of the most popular VR headsets and has an app store through which consumers purchase VR apps. The FTC’s litigation over that kicked off Thursday in federal court in San Jose, Calif.

Sony has been the loudest of the critics of the planned Activision deal, arguing that it could hurt competition if Microsoft restricts access to Activision games, especially “Call of Duty,” due to the franchise’s exceptional popularity. The FTC’s lawsuit defines one of the markets that might be impacted as games played on “high-performance consoles,” which it defines as just Microsoft’s Xbox and Sony’s PlayStation. Microsoft doesn’t disclose Xbox sales but has said it would still be the third-largest videogame console maker after Sony and Nintendo after merging with Activision.

Microsoft has repeatedly said it doesn’t plan to deny Sony and others access to Activision games and that its deal for the company wouldn’t hurt competition. The company has publicly pledged to give Sony and Nintendo access to new “Call of Duty” games on their respective current hardware the same day they launch on Xbox consoles for the next 10 years.

The FTC’s complaint, however, points out that Activision’s library of games includes more hits than just “Call of Duty” and that consoles may not play as big a role in the future of videogaming as they do today. New technologies and the growing popularity of subscriptions could meaningfully change that landscape, the agency said.

Microsoft is one of the world’s largest cloud-computing service providers and has been a leader in the cloud-gaming market through its Game Pass subscription service. Sony offers cloud gaming through its PlayStation Plus subscription. Cloud gaming makes it possible for people to play games on just about any internet-connected device. Though the technology is in its infancy, industry analysts and executives have said it could one day make consoles obsolete.

Progressive groups have put pressure on the FTC to block the deal, saying it would create industry stovepipes in which technology companies own lucrative content and user data, and have the ability to make money from advertising as well.

“Microsoft’s recent promises not to abuse that power by making preemptive concessions to Sony and Nintendo reinforce the underlying illegality of the original deal,” the American Economic Liberties Project’s Sarah Miller said in a statement.

“The FTC showed its cards,” Wedbush Securities analyst Michael Pachter said. “Microsoft can address all of the FTC’s concerns and the case becomes moot.”
 

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Just one more piece of evidence that the Wokist movement is utilized by US competitors to undermine US businesses and US power in genral.

:murica:

GXXj2tC.gif
 

ferratilis

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Microsoft didn't show anything at the Game Awards. That should be enough evidence that they won't have monopoly in the gaming market. They wear their incompetence as a badge of honor.
:troll:
 

AwesomeButton

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Seriously what the fuck is this:

Antitrust experts initially expected the deal would clear government scrutiny. But allegations that workplace misconduct was rampant in the past at Activision created trouble for the company in Washington—including with progressive senators who called on the FTC to thoroughly investigate the deal, along with its potential impact on workers.

Vertical deals are harder for the government to block, said Jennifer Rie, a senior litigation analyst at Bloomberg Intelligence. The lawsuit will also be hard for the FTC to win because enforcers will have to show that withholding “Call of Duty” or similar games would be profitable for Microsoft, which pledged to allow rivals to continue accessing that blockbuster game.

Sony has been the loudest of the critics of the planned Activision deal, arguing that it could hurt competition if Microsoft restricts access to Activision games, especially “Call of Duty,” due to the franchise’s exceptional popularity.

So, the main reason for the lawsuit isn't a well-founded assumption that the merger would harm consumers, but "trouble... with progresssive senators who called on the FTC to thoroughly investigate the deal" :lol:

Also, Sony, who pretty much invented exclusive games, thinks it would be hurting competition if MS has its own exclusives, which MS denies it will do, because it's projected to hurt games' sales.

MS will win this lawsuit like nothing's the matter, just wait and see.
 

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NOT SO FAST REDMONDIANS!

Microsoft Sued by Gamers Over $69 Billion Activision Deal (2)

Dec. 20, 2022, 6:48 PM; Updated: Dec. 20, 2022, 10:08 PM

  • COURT: N.D. Cal.
  • TRACK DOCKET: No. 22-cv-8991 (Bloomberg Law Subscription)
  • COMPANY INFO: Microsoft Corp. (Bloomberg Law Subscription)

Microsoft Corp.'s planned $68.7 billion acquisition of Activision Blizzard Inc. hit another hurdle Tuesday, when a group of gamers challenged the deal in court.

The federal antitrust lawsuit, filed in San Francisco, comes less than two weeks after the Federal Trade Commission sued to block the merger between one of the world’s top video game publishers and the manufacturer of the Xbox console. The new suit names Microsoft, but not Activision, as a defendant.

Like the FTC, the gamers are seeking a court order prohibiting the companies from consummating the transaction. Their complaint cites concerns that the merger would give Microsoft enough clout over multiple levels of the gaming industry “to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”

“Microsoft already controls one of the industry’s most popular and largest video game ecosystems,” the suit says. “The proposed acquisition would give Microsoft an unrivaled position in the gaming industry, leaving it with the greatest number of must-have games and iconic franchises.”

A Microsoft spokesperson defended the transaction Tuesday in a statement to Bloomberg Law.

“This deal will expand competition and create more opportunities for gamers and game developers as we seek to bring more games to more people,” the statement said.

According to the complaint, the planned merger would give Microsoft outsized power in the industry’s overlapping product markets, such as console, PC, cloud-based, and mobile gaming. The tech giant would also allegedly gain an edge in markets covering top-tier “AAA” games, subscription services, and consoles themselves.

The gaming divisions at both companies are already the result of past major mergers reflecting “a dramatic wave of consolidation” following a “long history of concentration” in gaming markets that continues to threaten the sector’s competitive landscape, the suit says.

The merger would also allegedly combine two of the few large companies currently competing for workers with the “specialized talent” to make video games. That would reduce employee mobility and leverage at exactly the wrong time, when Activision is “engulfed in lawsuits” over its toxic culture of gender discrimination and sexual harassment, according to the complaint.

That allegation echoes an unrelated shareholder case challenging the deal from a different angle. The investor lawsuit—filed by a Swedish state-run pension fund holding Activision shares—accuses the companies of engineering an underpriced merger to exploit Activision’s workplace scandals and protect its embattled CEO.

The antitrust lawsuit was filed in the US District Court for the Northern District of California.
 
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“The proposed acquisition would give Microsoft an unrivaled position in the gaming industry, leaving it with the greatest number of must-have games and iconic franchises.”

What are those must-have games?
 
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“The proposed acquisition would give Microsoft an unrivaled position in the gaming industry, leaving it with the greatest number of must-have games and iconic franchises.”

What are those must-have games?
There's also the claim that somehow the weakest major console manufacturer will somehow have an unfair advantage with this deal.
 

Caim

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Again this hinges on the idea that Microsoft would not put its games on the Playstation, which would cost MS a lot of money for no real reason. Sure they could use this to price Playstation out of the market, but that would only cause them more problems in the long term given that it'd leave them with no competition and would leave them open to all sorts of other lawsuits.
 
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HereticGuy

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Not even Isabela's juicy boobs can save that piece of shit :lol:

There's also the claim that somehow the weakest major console manufacturer will somehow have an unfair advantage with this deal.
Hahah, you're right. I don't know much about consoles, but I can't count a few exclusive game to bolster X-Box's strength. A decade ago I could say Gears of War, Halo and Forza. But as far as I know they fucked up Gears of War and Halo. Really, is there any X-Box exclusive game that make anyone to buy a console?
 

J1M

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Not even Isabela's juicy boobs can save that piece of shit :lol:

There's also the claim that somehow the weakest major console manufacturer will somehow have an unfair advantage with this deal.
Hahah, you're right. I don't know much about consoles, but I can't count a few exclusive game to bolster X-Box's strength. A decade ago I could say Gears of War, Halo and Forza. But as far as I know they fucked up Gears of War and Halo. Really, is there any X-Box exclusive game that make anyone to buy a console?
Call of Duty. :smug:
 

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Dragon Age II
Not even Isabela's juicy boobs can save that piece of shit :lol:

There's also the claim that somehow the weakest major console manufacturer will somehow have an unfair advantage with this deal.
Hahah, you're right. I don't know much about consoles, but I can't count a few exclusive game to bolster X-Box's strength. A decade ago I could say Gears of War, Halo and Forza. But as far as I know they fucked up Gears of War and Halo. Really, is there any X-Box exclusive game that make anyone to buy a console?
Call of Duty. :smug:
Didn't Microsoft said they'll keep releasing Call of Duty on Sony's consoles, likely in an attempt to get their deal approved?
 

J1M

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Dragon Age II
Not even Isabela's juicy boobs can save that piece of shit :lol:

There's also the claim that somehow the weakest major console manufacturer will somehow have an unfair advantage with this deal.
Hahah, you're right. I don't know much about consoles, but I can't count a few exclusive game to bolster X-Box's strength. A decade ago I could say Gears of War, Halo and Forza. But as far as I know they fucked up Gears of War and Halo. Really, is there any X-Box exclusive game that make anyone to buy a console?
Call of Duty. :smug:
Didn't Microsoft said they'll keep releasing Call of Duty on Sony's consoles, likely in an attempt to get their deal approved?
Yes. And Sony rejected the notion. Gloves are off.
 

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Corporate war! https://www.bloomberg.com/news/arti...erns-to-ftc-about-microsoft-s-activision-deal

Google, Nvidia Express Concerns to FTC About Microsoft’s Activision Deal​

The two companies joined Sony in raising issues with the $69 billion transaction, which the FTC has sued to block

Alphabet Inc.’s Google and Nvidia Corp. have expressed concerns to the Federal Trade Commission about Microsoft Corp.’s acquisition of Activision Blizzard Inc., adding fuel to the government’s case against the $69 billion deal, according to people familiar with the matter.

The companies joined Sony Group Corp. in raising issues with the transaction, which the FTC sued to block in December. The commission has argued that the deal would hinder competition in the video-game industry and has scheduled an in-house trial for August. Either company could be called to testify as part of the FTC trial.

Google and Nvidia provided information that backs a key FTC contention — that Microsoft could gain an unfair advantage in the market for cloud, subscription and mobile gaming — according to the people, who asked not to be identified because the process is confidential. In its remarks to the FTC, Nvidia stressed the need for equal and open access to game titles but didn’t directly oppose the acquisition, according to one of the people.

Microsoft first announced the Activision deal almost a year ago, looking to add blockbuster games such as Call of Duty and World of Warcraft to a business that already includes the Xbox console, the Halo franchise and Minecraft world-building software. But regulators fear that Microsoft could make it harder for rival platforms to get unfettered access to Activision’s most popular titles.

Shares of Activision dipped to session lows after Bloomberg reported the news. The stock is currently trading at $76.75 in New York, well below the $95-a-share bid, suggesting that investors see closing the deal as an uphill fight. Microsoft rose less than 1% to $237.88.

Nvidia and Google are both major forces in the industry. Nvidia leads the market for graphics cards prized by gamers and operates a streaming service called GeForce Now. Google competes with Microsoft in cloud-computing services and offered an unsuccessful game service called Stadia that is shutting down this month.

Google’s Android mobile operating system also is central to how millions of people play video games. Sony, whose PlayStation console competes with Microsoft’s Xbox, has previously argued that it sees the Activision deal as anti-competitive.

Representatives for Google and Nvidia declined to comment.

Microsoft said it’s open to addressing concerns about the deal. It reached a 10-year pact to bring Activision’s Call of Duty to Nintendo Co. gaming platforms and agreed to release future versions of the game on Valve Corp.’s Steam platform at the same time as they debut on Xbox.

“We are prepared to address and have been proactively addressing issues raised by regulators or competitors to ensure that the deal closes with confidence,” Microsoft spokesman David Cuddy said. “We want people to have more access to games, not less.”

Still, the feedback adds heft to the argument that Microsoft could tie more exclusive content to its Xbox Game Pass service, which already leads the market for gaming subscriptions. In its defense, Microsoft has said that regulators are giving too much weight to concerns raised by Sony. In addition to publicly decrying the transaction, Sony has said in filings with Brazilian and UK regulators that the deal will harm competition and give Microsoft an insurmountable edge in the nascent cloud gaming industry.

In its own filings, Microsoft has said that Sony’s concerns are “self-serving” and overstate the importance of Activision’s catalog. The software giant also has attempted to make concessions. It offered Sony a 10-year deal that would give the PlayStation console access to Call of Duty. A person familiar with those discussions said the offer also included the right to place the games on Sony’s subscription services.

Google’s Stadia spotlighted the challenges of competing in cloud gaming. It was launched in 2019 with original content, and the company hired hundreds of game developers to work on the project. But Stadia never caught on with gamers, and Google announced plans in September to close the platform. It’s set to wind down on Jan. 18.

Politico reported in November, prior to the FTC’s lawsuit, that Google had concerns about the Activision deal.

Nvidia, meanwhile, opened its GeForce Now service to the public in 2020, providing access to high-end gaming hardware over the internet. The company allows subscribers to play games they already own, streamed from its servers.

Last August, Nvidia said it had 20 million subscribers. More recently, the company said it’s able to support more than 1,400 titles, allowing consumers to use basic devices such as Chromebooks and handhelds to play the most demanding games.

But Microsoft’s Xbox Game Pass, which includes cloud gaming in its Ultimate package, remains the leading service — with more than 25 million subscribers. In part, that’s because Microsoft’s dozens of game studios provide a direct channel of content. Activision is expected to make the subscription service even more compelling.
 

lukaszek

the determinator
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nvidia got blocked recently over arm so now they forbid others who want to have some fun
 

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