Microsoft Vs FTC Trial Verdict / Diablo 4 Coming to Game Pass
Judge Jacqueline Scott Corley has ruled in favor of Microsoft, denying the FTC’s preliminary injunction request. The court found that the acquisition of Activision by Microsoft would not substantially lessen competition and would actually increase consumer access to Call of Duty and other Activision content. The decision leaves the door open for Microsoft to complete the buyout, but the company still faces hurdles with regulators such as the UK’s competition markets Authority.
Key Takeaways
- Microsoft has won the trial against the FTC, allowing the company to proceed with its acquisition of Activision.
- Diablo 4 will not be coming to Game Pass, according to Blizzard president Mikey Barra.
Table of Contents
Microsoft Vs FTC Trial Verdict
In the ongoing legal battle between Microsoft and the Federal Trade Commission (FTC), Judge Jacqueline Scott Corley has ruled in favor of Microsoft, denying the FTC’s preliminary injunction request. The ruling allows Microsoft to complete its acquisition of Activision before the July 18th deadline, but the company still faces hurdles with regulators such as the UK’s Competition Markets Authority (CMA), which blocked the deal earlier this year. Microsoft has since appealed the decision, and a hearing is set for July 28th.
In her ruling, Judge Corley stated that Microsoft’s acquisition of Activision, described as the largest in tech history, deserves scrutiny. However, Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox. It has also made an agreement with Nintendo to bring Call of Duty to Switch and entered several agreements to bring Activision’s content to several cloud gaming services. The court found that the FTC had not shown a likelihood it would prevail on its claim, and the motion for a preliminary injunction was denied.
In response to the ruling, FTC spokesperson Douglas Ferrar said, “We are disappointed in this outcome given the clear threat this merger poses to open competition and cloud gaming subscription services and consoles.” However, Microsoft’s Brad Smith said in an updated statement issued to IGN that the company is now considering how the transaction might be modified to address the CMA’s concerns.
As a result, Microsoft, Activision, and the CMA have agreed on a stay of the litigation in the UK, pausing Microsoft’s appeal in the UK as the three parties hash out a satisfactory restructure of the transaction.
The ruling leaves the door open for Microsoft to complete the buyout, but the company still has some hurdles to go through with regulators. There is still an upcoming trial with the FTC in August, but everything seems to be coming up Milhouse for Microsoft and Activision.
Phil Spencer, the head of Xbox, tweeted his response as well:
1/We're grateful to the court for swiftly deciding in our favor. The evidence showed the Activision Blizzard deal is good for the industry and the FTC’s claims about console switching, multi-game subscription services, and cloud don’t reflect the realities of the gaming market.
— Phil Spencer (@XboxP3) July 11, 2023
3/We know that players around the world have been watching this case closely and I’m proud of our efforts to expand player access and choice throughout this journey. END
— Phil Spencer (@XboxP3) July 11, 2023
Microsoft’s Acquisition of Activision (ABK)
Microsoft’s acquisition of Activision has been described as the largest in Tech History. The acquisition has been under scrutiny by regulators, including the UK’s Competition Markets Authority (CMA), which blocked the deal earlier this year. Microsoft has since appealed the decision, and a hearing is set for July 28th and will conclude on August 4th.
However, in a recent ruling, Judge Jacqueline Scott Corley ruled in favor of Microsoft, denying FTC’s preliminary injunction request. Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox. It has made an agreement with Nintendo to bring Call of Duty to Switch and entered several agreements to bring Activision’s content to several cloud gaming services.
The court finds that the FTC has not shown a likelihood it will prevail on its claim. This particular vertical merger in the specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore denied.
The decision leaves the door open for Microsoft to complete the buyout before the July 18th deadline. It could finalize the deal immediately, but the company still has some hurdles to go through with regulators, such as the UK’s Competition Markets Authority or CMA. Microsoft, Activision, and the CMA have agreed on the stay of the litigation in the UK. This means a pause of Microsoft’s appeal in the UK as the three parties hash out a satisfactory restructure of the transaction.
The acquisition of Activision by Microsoft is a significant move that could impact the gaming industry. It remains to be seen how the acquisition will be modified to address the CMA’s concerns and how it will affect the gaming market in the future.
FTC’s Response to the Verdict
Following the verdict of the Microsoft versus FTC trial, the FTC spokesperson Douglas Ferrar issued a statement expressing disappointment. The FTC had requested a preliminary injunction to stop Microsoft’s acquisition of Activision, citing concerns over the potential threat to open competition and cloud gaming subscription services and consoles.
Judge Jacqueline Scott Corley ruled in favor of Microsoft, denying the FTC’s request for a preliminary injunction. In her ruling, Judge Corley stated that Microsoft’s acquisition of Activision deserved scrutiny, but the evidence pointed to more consumer access to Call of Duty and other Activision content.
Despite the ruling, the FTC is not giving up the fight to preserve competition and protect consumers. Ferrar stated that the FTC will be announcing their next step in the coming days.
The decision leaves the door open for Microsoft to complete the buyout before the July 18th deadline. However, Microsoft still has to go through some hurdles with regulators such as the UK’s competition markets Authority (CMA), which blocked the deal earlier this year. Microsoft has since appealed the decision, and a hearing is set for July 28th and will conclude on August 4th.
In an updated statement issued to IGN, Microsoft’s Brad Smith stated that the company is now considering how the transaction might be modified to address the CMA’s concerns. As a result, Microsoft, Activision, and the CMA have agreed on the stay of the litigation in the UK, pausing Microsoft’s appeal in the UK as the three parties work out a satisfactory restructure of the transaction.
Overall, the FTC’s response to the verdict is one of disappointment but determination to continue fighting for competition and consumer protection.
Microsoft’s Future Challenges
Microsoft’s acquisition of Activision has been described as the largest in tech history, and it deserves scrutiny. The recent trial between the FTC and Microsoft ended with Judge Jacqueline Scott Corley ruling in favor of Microsoft, denying the FTC’s preliminary injunction request.
However, Microsoft still has some hurdles to go through with regulators such as the UK’s Competition Markets Authority (CMA), which blocked the deal earlier this year. Microsoft has since appealed the decision, and a hearing is set for July 28th and will conclude on August 4th.
Microsoft, Activision, and the CMA have agreed on the stay of the litigation in the UK, which means a pause of Microsoft’s appeal in the UK as the three parties hash out a satisfactory restructure of the transaction.
Despite the recent positive ruling, the decision leaves the door open for Microsoft to complete the buyout before the July 18th deadline. The company could finalize the deal immediately, but it still has to address the CMA’s concerns.
If the acquisition happens, Microsoft will be stuck with Game Pass, whether it likes it or not. Activision Blizzard boss Bobby Katik admitted he’s not a fan of multi-game subscription services, hence why Activision games have largely failed to appear on them. Microsoft’s proposed $69 billion buyout of Activision Blizzard is seeming more and more likely during the FTC trial.
However, the boss of Blizzard has insisted Diablo 4 will not come to Game Pass amid rumors the action role-playing game is set to hit Microsoft’s subscription service.
Microsoft’s future challenges include addressing the concerns of regulators such as the UK’s CMA and ensuring that it can deliver on its commitments to keep Call of Duty on PlayStation for 10 years on parity with Xbox. The company also needs to find a way to address Bobby Katik’s concerns about multi-game subscription services and ensure that it can continue to grow its gaming business while keeping its fans happy.
Diablo 4 Not Coming to Game Pass
Blizzard president Mikey Barra has confirmed that Diablo 4 will not be coming to Xbox Game Pass. This news comes amid rumors that the action role-playing game is set to hit Microsoft’s subscription service.
Responding to a tweet mentioning Diablo 4’s availability in Xbox Game Pass, Barra said plainly, “This is not happening.” Although this statement seems definitive, some fans are still wondering whether Diablo 4 will eventually come to Game Pass if Microsoft’s proposed $69 billion buyout of Activision Blizzard goes through.
During the FTC trial, Activision Blizzard boss Bobby Kotick admitted he’s not a fan of multi-game subscription services, hence why Activision games have largely failed to appear on them. If the acquisition happens, he acknowledged he’ll be stuck with Game Pass whether he likes it or not. He said, “I don’t agree with the idea of a multi-game subscription service as a business proposition going forwards, but we Activision and Microsoft can agree to disagree.”
It remains to be seen whether Diablo 4 will ever come to Game Pass, but for now, it seems that players will have to purchase the game separately.
Activision Blizzard Boss’s Stance on Subscription Services
During the Microsoft versus FTC trial, Activision Blizzard boss Bobby Kotick admitted that he is not a fan of multi-game subscription services. He explained that Activision games have largely failed to appear on them. If the acquisition happens, he acknowledged that he’ll be stuck with Game Pass whether he likes it or not.
However, he said, “I don’t agree with the idea of a multi-game Subscription Service as a business proposition going forwards, but we Activision and Microsoft can agree to disagree.”
Kotick’s stance on subscription services is not surprising. In the past, Activision has been hesitant to put their games on subscription services. For example, Call of Duty is not available on EA Play or PlayStation Now. The company has instead focused on selling their games as standalone products or through their own subscription service, Call of Duty Elite.
However, with Microsoft’s proposed $69 billion buyout of Activision Blizzard, it remains to be seen whether the company will change its stance on subscription services. If the acquisition goes through, Activision Blizzard will become a part of Xbox, and it is possible that their games will eventually be added to Game Pass.
It is worth noting that Kotick’s comments were made before the buyout was announced. It is possible that his stance on subscription services may have changed since then. Regardless, it will be interesting to see how Microsoft and Activision Blizzard work together if the acquisition is finalized.
Future Expectations from Diablo 4
As Diablo 4 nears the launch of season one, fans are eagerly anticipating the future of the game. While Blizzard President, Mikey Barra, has confirmed that Diablo 4 will not be coming to Xbox Game Pass, there are still plenty of expectations for the game’s future.
One of the most exciting prospects is the potential for new content. Diablo 4 players are already working through the end game, hitting the level cap, and completing some of the game’s toughest challenges. However, with new content on the horizon, players can expect even more challenges and rewards to keep them engaged.
Another area of interest is the game’s damage output. Streamers and YouTubers have been hitting enemies for billions of points of damage, which has led to questions about whether this is expected gameplay or if it requires a nerf or change.
Blizzard will need to consider whether to limit double dip damage or if it is an intentional part of the game’s design. Regardless, players are enjoying the race to 3 billion damage and eagerly anticipating what new builds and strategies will emerge in the future.
Overall, while Diablo 4 may not be heading to Xbox Game Pass, there is still plenty of excitement and anticipation for the game’s future. With new content and evolving gameplay strategies, players can expect to be engaged for a long time to come.
One Comment