U.K. wants Call of Duty removed from Microsoft’s Activision acquisition

By Tomas Franzese February 8, 2023

Microsoft has hit a major roadblock in its attempt to acquire Activision Blizzard, as the UK’s Competition and Markets Authority (CMA) has determined that the deal “could harm U.K. gamers.” For the deal to go through, the CWA is suggesting some major concessions, like Activision Blizzard divesting in the Call of Duty or Activision segments of its business ahead of the acquisition.

A notice of possible remedies document asks Activision Blizzard to do one of the following three things if it doesn’t want the acquisition to be potentially prohibited.

“Divestiture of the business associated with Call of Duty.”
“Divestiture of the Activision segment of Activision Blizzard, Inc., which would include the business associated with Call of Duty.”
“Divestiture of the Activision segment and the Blizzard segment of Activision Blizzard Inc., which would include the business associated with Call of Duty and World of Warcraft, among other titles.”

Basically, the CMA is very concerned about Microsoft having control of the business behind Call of Duty and wants it to forfeit that altogether. In a press release, the CMA explains that it’d be beneficial for Microsoft to make Activision games like Call of Duty exclusive to its own consoles and cloud services or for it to make versions of the game available on other platforms “materially worse,” despite Microsoft’s assertion that it wouldn’t be the case.

A group of four operators stands together in Call of Duty: Warzone 2.0. — Activision

“Strong competition between Xbox and PlayStation has defined the console gaming market over the last 20 years,” said Martin Coleman, the chair of an independent panel of experts that conducted this CMA investigation. “Exciting new developments in cloud gaming are giving gamers even more choice. Our job is to make sure that U.K. gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation. We have provisionally found that this may be the case here.”

Overall, this is not a positive development for Microsoft, which is already facing lots of scrutiny from regulators in Europe and the U.S. There’s now a greater chance that this acquisition won’t go through or that Microsoft or Activision Blizzard will make some major concessions before it happens.

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Tomas Franzese is a Staff Writer at Digital Trends, where he reports on and reviews the latest releases and exciting…

Gaming

Microsoft’s Activision Blizzard acquisition is about to clear its final hurdle

microsoft activision blizzard acquisition uk preliminary approval mwiii reveal full 006

Microsoft has had a tough time getting its acquisition of Call of Duty-maker Activision Blizzard approved, but it just cleared a major hurdle. The U.K.'s CMA, which previously blocked the acquisition over concerns about its impact on the cloud gaming market, says that it has "provisionally concluded" that Microsoft has addressed its biggest issues with the acquisition.

Namely, it likes that Microsoft will give the cloud gaming rights for Activision Blizzard games to Ubisoft. "The prior sale of the cloud gaming rights will establish Ubisoft as a key supplier of content to cloud gaming services, replicating the role that Activision would have played in the market as an independent player," the CMA explained in a press release. "In contrast to the original deal, Microsoft will no longer control cloud gaming rights for Activision’s content, so would not be in a position to limit access to Activision’s key content to its own cloud gaming service or to withhold those games from rivals."
Its press release also reveals that Ubisoft will have the ability to make "Microsoft to port Activision games to operating systems other than Windows and support game emulators when requested." Essentially, it's pleased that Microsoft no longer has an iron grip on Activision Blizzard games outside of the Xbox ecosystem and is closer to supporting the deal because of it. Of course, both Microsoft and Activision Blizzard are pretty happy about this.
"We are encouraged by this positive development in the CMA’s review process," Microsoft president Brad Smith tweeted. "We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline."
Meanwhile, an Activision Blizzard spokesperson provided Digital Trends with the following statement: "The CMA’s preliminary approval is great news for our future with Microsoft. We’re pleased the CMA has responded positively to the solutions Microsoft has proposed, and we look forward to working with Microsoft toward completing the regulatory review process."
A final decision from the CMA is expected to be made by October 6. As Smith mentioned, Microsoft's Activision Blizzard acquisition is expected to close by October 18.

Gaming

Microsoft gives Activision Blizzard cloud gaming rights to Ubisoft

Microsoft's Xbox Cloud Gaming Service Enters Beta This Week

Microsoft announced its intention to grant Ubisoft, the publisher behind series like Assassin's Creed and Far Cry, the cloud streaming rights for Activision Blizzard titles if Microsoft's acquisition of the Call of Duty publisher goes through.
This deal was made in order to appease the U.K.'s Competition and Markets Authority (CMA). Microsoft has not had an easy time trying to acquire Activision Blizzard as it has run into heavy resistance from regulatory bodies like the U.S. Federal Trade Commission (FTC) and the U.K.'s CMA. The CMA's complaints centered around the potential monopoly Microsoft could have on cloud gaming if the deal were to go through. There was speculation that Microsoft would divest its U.K. cloud gaming efforts to appease the CMA, but it has now presented this new plan that would technically make it give up control of Activision Blizzard game-streaming rights worldwide for the next 15 years.
In a blog post, Microsoft President Brad Smith explainsed that if the Activision Blizzard acquisition happens, Microsoft will give "cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years" in perpetuity following a one-off payment.
Essentially, Ubisoft will be the one deciding which cloud gaming platforms and services to put Activision Blizzard games on, not Microsoft. Smith claims that this means "Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service -- Xbox Cloud Gaming -- or to exclusively control the licensing terms of Activision Blizzard games for rival services," and that Ubisoft will allow them to honor existing agreements with companies like Nvidia.

Ubisoft has been cloud gaming friendly over the past several years, eagerly putting its games on services like Google Stadia and Amazon Luna. With this deal, Ubisoft says it plans to bring Activision Blizzard games to its Ubisoft+ subscription service. Activision Blizzard CEO Bobby Kotick also commented on the deal, saying that he approves of the deal, but that "nothing substantially changes with the addition of this divestiture" for Activision Blizzard and its investors.
The current deadline for Microsoft's Activision Blizzard acquisition is October 18.

Gaming

Call of Duty: Modern Warfare III trailer teases a No Russian reimagining

No Russian's reimagining in Call of Duty: Modern Warfare III

Activision Blizzard has fully pulled back the curtain on Call of Duty: Modern Warfare III following an in-game event in its predecessor. This came alongside new gameplay that concludes by teasing a rebooted version of the series' infamous No Russian mission.
The gameplay trailer focuses on the campaign missions, which got a lot more detail in a post on the game's website. It affirms that the game follows Task Force 141 as they take on Vladimir Makarov and will feature some "Open Combat Missions" that give players multiple ways to complete objectives. The gameplay seems to mainly feature a stealthy run to one of these levels. Of course, the trailer's most shocking moment comes at the end.
Gameplay Reveal Trailer | Call of Duty: Modern Warfare III
We see Makarov text someone "No Russian," before they pull out a gun on a crowded plane. If you don't remember, No Russian was one of the original Modern Warfare II's most infamous missions, as it had players partake in a mass shooting terrorist attack at an airport with Russians. The level has influenced the tone of this rebooted Modern Warfare series, and it now looks like Modern Warfare III is set to reimagine this mission in some way, following up the Modern Warfare II post-credit scene that referenced it.

While the trailer focused on the campaign mainly, that post confirmed a lot of new info on multiplayer and Modern Warfare Zombies too. Its multiplayer features all 16 launch maps from 2009's Modern Warfare II, two larger Battle maps for Ground War and Invasion, and an even bigger War map for the return of the War Mode introduced in Call of Duty: WWII. Map voting returns, so you can have a say in where you want to play a match. Finally, Activision says Modern Warfare Zombies takes place in a new open world where players will fight Dark Aether Zombies, complete missions, and incorporate Extraction game elements.
Call of Duty: Modern Warfare III launches on PC, PlayStation 4, PS5, Xbox One, and Xbox Series X/S on November 10.