After almost 3 years and a half of legal battles, the U.S. Federal Trade Commission (FTC) has officially dropped its case against Microsoft’s acquisition of Activision Blizzard, marking the end of one of the most significant regulatory challenges in gaming history.
The deal, valued at $69 billion, was finalized in October 2023, but the FTC continued to push back, arguing that Microsoft’s control over Activision Blizzard could harm competition in the gaming industry.
A Long Legal Battle Comes to an End
The FTC initially sought to block the acquisition, fearing that Microsoft would use its ownership of Activision Blizzard to limit access to major franchises like Call of Duty for rival platforms. However, courts repeatedly ruled against the FTC, with the latest appeal being rejected earlier this month. With no legal avenues left, the FTC officially dismissed its complaint, stating that continuing the fight was not in the public interest.
Microsoft President Brad Smith welcomed the decision, calling it a victory for players and common sense in Washington, D.C.. Since acquiring Activision Blizzard, Microsoft has continued to release Call of Duty titles on PlayStation and has even expanded its portfolio by bringing former Xbox exclusives to Sony’s platform. This move suggests that Microsoft is prioritizing accessibility and revenue over exclusivity.
Despite the acquisition boosting Microsoft’s earnings, it has also led to significant layoffs within Activision Blizzard, raising concerns about corporate restructuring and job security in the gaming industry. Additionally, Microsoft has made changes to its Game Pass subscription service, including price increases, which some critics argue could be a consequence of the massive acquisition.
What’s Next for Microsoft and Activision Blizzard?
With the FTC officially stepping aside, Microsoft can now fully integrate Activision Blizzard into its gaming ecosystem. This could mean:
- More Activision Blizzard titles appearing on Xbox Game Pass.
- Potential new exclusive content for Xbox and PC.
- Further expansion into cloud gaming, leveraging Activision Blizzard’s franchises.
While the regulatory battle is over, the gaming industry will be watching closely to see how Microsoft handles its newfound power. Will it continue to support multi-platform releases, or will it eventually shift towards exclusivity? Only time will tell.
About The Author
