This under the arguments that the purchase of Activision Blizzard ‘would alter the future of the rapidly growing cloud gaming market’.
Supposedly, this ‘it would reduce innovation and there would be less choice for UK players for years to come’. It is a very significant setback.
But it is not something definitive, and this is how analysts Michael Pachter of Wedbush Securities and Piers Harding-Rolls of Ampere Analysis point out.
We recommend: President of Activision says that the decision of the English regulator will not be the last word.
Patcher noted that the CMA returned the equivalent of ‘a monkey wrench in the process, but the deal ain’t dead’.
He even claimed ‘While successfully appealing a CMA decision is a difficult task for a number of reasons, we believe the CMA is on the wrong side of the law in this ruling and its concerns can be addressed’.
According to Michael Patcher, this ruling against the purchase of Activision Blizzard is based on the CMA’s belief that Microsoft could set prices due to its dominance in the cloud gaming market.
This analyst points out that the company should have taken more care of this but believes that it will give in on this aspect.
He even claims that the CMA will reverse its position if Microsoft makes such an offer. As for Harding-Rolls, he said it’s a big hit.
But he expects Microsoft’s purchase of Activision Blizzard to close in 2023, and he gives his reasons. According to this Ampere Analysis analyst, ‘historically, most CMA appeals have been unsuccessful, but there is still a chance it could be overturned’.
Then he added ‘according to the Competition Appeal Tribunal site, simple cases are meant to be dealt with within nine months, but often take a few’.
Piers Harding-Rolls explained ‘if the appeal is successful, it is sent back to the CMA for review, which will take some time’.
Then he pointed ‘so, we could be looking towards the end of the year if all goes in favor of Microsoft and Activision to close the deal’.
Patcher, for his part, made it clear that if the appeal fails, Microsoft would win CMA approval by excluding Activision Blizzard games from Game Pass only in the UK.
With details of VGC. In addition to Microsoft and Activision Blizzard we have more video game information at EarthGamer. Follow our news on Google news so as not to miss any.
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