MICROSOFT’S “CALL OF DUTY” RETENTION PUTS ACTIVISION BLIZZARD DEAL IN QUESTION
The UK’s regulatory agency said that dropping Call of Duty may be a way for the purchase to go through, but it appears that Microsoft is not interested in the possibility.
We have been attentively watching the latest news regarding the Activision Blizzard merger and Microsoft’s prospective role in the divestiture of Call of Duty as specialists in the field of technology. According to recent speculations, Microsoft may decide against selling Call of Duty in order to support the Activision Blizzard merger. We will present a thorough examination of this issue and look at any possible repercussions for both Microsoft and Activision Blizzard in this post.
First, it’s critical to comprehend the context of this event. Activision Blizzard is presently dealing with a variety of moral and legal problems that have seriously harmed its reputation. The company’s stock prices have therefore decreased, and there has been talk that it would be bought out by another business. There have been suggestions that Microsoft may be involved in the sale of Call of Duty after it was identified as a prospective bidder.
Recent rumors, however, have suggested that Microsoft is unlikely to sell Call of Duty in order to support the Activision Blizzard merger. This choice was probably made for a variety of reasons. For off, Microsoft would stand to make a sizable profit by keeping control of the Call of Duty franchise, which is a very successful property. Furthermore, Microsoft could be reluctant to become engaged in the continuing legal and moral disputes involving Activision Blizzard since doing so might compromise the company’s standing.
What then may this choice mean for Activision Blizzard as well as Microsoft? Microsoft’s gaming sector would receive a major boost if it continued to hold Call of Duty. The series has a track record of profitability and might provide Microsoft an edge over other key companies in the gaming sector. Microsoft runs the danger of being associated with the ongoing problems at Activision Blizzard, which might harm its own reputation.
Losing control of Call of Duty would be a serious setback for Activision Blizzard. One of its most valuable assets is the franchise, and losing it might have a significant negative effect on the business’s financial success. Activision Blizzard does, however, have a number of other well-known titles, like World of Warcraft and Overwatch, which may help lessen the effect of losing Call of Duty.
As a result, Microsoft’s choice to keep ownership of Call of Duty is a big one that might have effects on both Microsoft and Activision Blizzard. The gaming industry is clearly in transition, and big corporations like Microsoft and Activision Blizzard will need to adjust to these shifting conditions if they want to stay competitive. How this situation will finally play out remains to be seen.
Three significant regulatory organizations in the US, UK, and EU are still looking into Microsoft’s Activision Purchase. The US Federal Trade Commission filed a lawsuit against Microsoft, and the matter is still continuing. Microsoft will need to resolve issues raised in a provisional report published by the UK’s Competition & Markets Authority.
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