Microsoft's acquisition of Activision Blizzard earlier this year shocked the world of gaming as a whole, but Microsoft's CEO is confident the acquisition will provide healthy competition to the video game industry. Amidst the fallout of the sexual harassment allegations that have plagued Blizzard Entertainment, and following a string of attempts of the years to purchase the video game company, Microsoft finally managed to do so on January 18th, 2022.

Though the company is yet to be incorporated into Microsoft, the process has been well underway with an estimate date of acquisition being June 2023. Many influential voices both within and without the gaming industry have voiced concern that the acquisition might stifle competition and establish a monopoly under Microsoft, which had previously acquired and incorporated Zenimax Media just a year prior, but Microsoft CEO Satya Nadella believes the opposite.

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Speaking to Bloomberg, Nadella said the decision to buy Activision Blizzard is not only justified, but very much in parallel to Sony stocking up on its own share of video game development studios. It's a vicious arms race between the two console giants, and Satya Nadella believes Microsoft will come out standing in a confident position after the Activision Blizzard acquisition pushes through. "[...] we feel very, very confident that we'll come out."

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The biggest opponents on the road ahead seem to be the Federal Trade Commission, as well as UK authorities who are concerned Microsoft's acquisition will leave smaller competitors in unfavorable spots on the United Kingdom market. This comes as little surprise – given that a deal of this unprecedented scale would be subject to a tremendous amount of scrutiny, no matter the circumstances.

Though Xbox's Phil Spencer was quick to claim that Call of Duty would remain a multi-platform experience for the foreseeable future, Playstation's Jim Ryan found the offer of extending Call of Duty's availability on the Playstation for only three years after the expiration of current contracts as inadequate. It is becoming very plain that the next console generation will become even more divided than the preceding ones, and very much defined by this string of acquisitions made my Microsoft and Sony.

In a polarized scene such as this, it is the neutral companies such as Electronic Arts that stand to benefit at no cost of their own. With Call of Duty potentially becoming an Xbox-exclusive franchise in the future, it would allow Battlefield to remain multi-platform. The acquisition is still under investigation in several countries, and will not be able to push through until the investigation is concluded.

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Source: Bloomberg