Microsoft's decision to acquire Activision Blizzard has been an apple of discord for some time between the Xbox giant and its largest competitor on the market, Sony Corporation. Both companies have been engaged in a tug of war in which they have both tried to justify how the deal should proceed, if at all, but the wind seems to be blowing in Microsoft's favor thanks to the recent decision made by the Superintendence-General of the Brazilian competition authority, abbreviated as SG-CADE.

The CADE authority has published a long statement (albeit in Portuguese) to support Microsoft's case and how it doesn't influence or affect the competitive market in any way. After that, Microsoft has taken the liberty to translate the most important points and upload them in an separate file on its news platform. The new document sums up CADE's decision in seven main points, four of which are related to the market situation of gaming itself, and the other three about Microsoft and Activision Blizzard's position in that market.

After an in-depth review of the market, CADE has conculded that the gaming industry is always competitive, at least in Brazil, and its shares in the markets in which the company is trying to compete are low — below 20% of all potential segments. As for the digital distribution of games and the matter of Microsoft holding some games hostage — which is Sony's primary concern — such as Call of Duty, the committee doesn't see any reason for Microsoft to stop publishing its games on other platforms, as there is no incentive for doing so at the moment.



The latter half of the document addresses the elephant in the room, Call of Duty, and how it might affect or rig the competition in Microsoft's favor. In short, CADE doesn't see Call of Duty as an essential game in order for Microsoft to rival game distributors, as Nintendo, for example, is competing well enough in the market without reliance on Activision's catalog. Furthermore, the committee still believes that Sony has a larger and more dedicated fanbase that has been loyal to the brand for more than 20 years, in addition to a robust catalog of games that is sure to stand its ground in the face of such proclaimed fierce competition.

Lastly, the authority declares that its primary objective is to "protect competition in Brazil and the welfare of Brazilian consumers, not the private interests of specific competitors," as per its words. The authority believes that every company has an equal chance in the market, and the acquisition deal currently on the table won't deliver an ultimatum to this competition. Microsoft also believes its decision to be correct and righteous, and therefore, has published it on its website for all to see.



Posted: Oct 11, 2022 8:27 pm
Related Forum: Xbox Forum

Source: https://www.dualshockers.com/microsoft-response-brazil-activision-blizzard-deal-approval/