Microsoft’s proposed acquisition of Activision Blizzard has shaken up the gaming industry in a big way. It has brought around a lot of important discussions about consolidation via acquisition. As well as the viability of being an independent studio in the current marketplace. The big question that has been raised by regulators such as the FTC and CMA has been, is Microsoft creating a monopoly with this acquisition? It turns out Nvidia and Google have chimed in with concerns about this massive acquisition.
In a new report from Bloomberg, it appears tech giants Nvidia and Google have raised concerns in regard to Microsoft’s acquisition of Activision Blizzard. Within the report, it claims sources close to the matter have revealed. Both Google and Nvidia share similar concerns about what advantages Microsoft will gain from this acquisition. Citing that the company could gain an unfair advantage in terms of cloud, mobile, and subscription gaming.
Microsoft Leverages For Big Gains With Acquisition
It is detailed that Nvidia isn’t necessarily against the acquisition going through, but they stressed the need for open access to game titles. Essentially Nvidia’s primary concern is focused on their up-and-coming cloud gaming service GeForce Now. A field that Microsoft actively competes in with their current cloud gaming offering via Xbox Game Pass. While Google’s concerns are a little less straightforward, as their cloud gaming division was gutted last year. With the closure of Google Stadia, alongside a massive refund to all customers that purchased games from the service. This is combined with rumors that Google is shopping around the technology they used for Stadia. It is clear that Google is not actively competing in the Cloud gaming space currently. In business cloud services Google is battling toe to toe with Microsoft’s Azure Cloud service for market share.
Google has a much bigger pie of the mobile market which is the untalked potential of the Activision deal for Microsoft. Acquiring King Games as part of the deal will give Microsoft a concrete foothold in the mobile market. This combined with their cloud gaming initiative could make them a staunch competitor in the mobile market space. As well as cracking into the Chinese market which King has had a lot of success over the years.
What Does This Mean For The Deal?
This acquisition is a huge driver for success in the growing mobile and cloud market for Microsoft. While many consumers have been focusing on Call Of Duty as the major driver of this deal. The growth in the mobile and cloud market is a massive reason that Microsoft is fighting so hard for this acquisition. This will give them growth across all aspects of their gaming division. Very few deals could have given them this level of growth across console gaming, cloud gaming, and mobile gaming in one deal.
It is natural that Nvidia and Google will speak out against this deal, as it is in their best interest for it to not pass regulators. It does them no benefit for one of their competitors to grow stronger within these markets. Arguments will be made for and against this deal in the coming months, and it will be interesting to see what tech company speaks out next. Whether its in support or against the biggest merger in gaming history. We will undoubtedly hear more in the coming months from all parties involved and have to wait and see how it all plays out.
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