Nvidia And Google Have Raised Concerns About Xbox’s Activision Purchase: Bloomberg claims that Google and Nvidia have joined Sony in complaining to the FTC against Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
Microsoft would acquire an unfair advantage in the cloud gaming, subscription gaming, and mobile gaming businesses, according to the two companies. One source told Bloom
berg that while Nvidia isn’t necessarily in favor of the acquisition, the company does believe that all gamers should have the same opportunities to enjoy games.
Neither company’s other specific problems are discussed in the report. With Google’s Stadia program having ended last year, Microsoft is now a serious competitor in cloud gaming alongside Nvidia with GeForce Now. However, Microsoft is noticeably absent from the mobile gaming market.
Interesting that Google is expressing concern about Microsoft’s Activision deal on the grounds it would give the company an unfair advantage in mobile and cloud gaming when Google has a duopoly on app stores and tried and miserably failed already at cloud. https://t.co/4NiRkY9KVQ
— Nick Statt (@nickstatt) January 12, 2023
Xbox boss Phil Spencer has already mentioned Activision Blizzard’s mobile King subsidiary as the deal’s central pillar, and documents related to the acquisition suggest that Microsoft intends to use King to build a new “xbox Mobile Platform.”
Sony isn’t the only large company raising concerns with the acquisition’s regulatory bodies; Nvidia and Google have also done so, but their tone has been noticeably more muted than Sony’s. Concerned that Microsoft’s proposed acquisition would hurt competition from rival console makers through exclusivity, the FTC stated late last year that it would file suit to halt the agreement. Similar alarms have been sounded by the UK’s Competition and Markets Authority (CMA).
Turns out both Nvidia and Google expressed concerns to the FTC over Microsoft's acquisition of Activision Blizzard. Makes sense–Nvidia's cloud gaming service competes with Microsoft's. Scoop via @dinabass, @leah_nylen and @ianmking https://t.co/2zKP4UaKMx
— Cecilia D'Anastasio (@cecianasta) January 12, 2023
Over the course of the previous few months, Microsoft has made numerous attempts to allay such fears, including an offer to retain Call of Duty on PlayStation for up to ten years and a promise to bring the series to Nintendo platforms.
Whether or not Nvidia and Google will remain participating in the litigation is unclear at this time, but Bloomberg reports that a trial is scheduled for August of this year.