Microsoft responds to lawsuit to prevent its acquisition of Activision Blizzard

Microsoft has filed a response to a lawsuit filed by the US Federal Trade Commission to block the company’s acquisition of Activision Blizzard.


In the 37-page document Microsoft defends its case as to why the $68.7 billion acquisition should proceed – it also defends its acquisition of Bethesda owner ZeniMax, while admitting that it plans to make three future titles from the company exclusive to Xbox and PC.


These games were not named although Microsoft had originally announced that The Elder Scrolls VI would only be available on its platforms, and confirmed that Starfield would be an exclusive, according to theverge report.


Microsoft’s submission generally counters FTC concerns, also addresses the regulator’s specific arguments, and contains much of the trademark self-mutilation Microsoft has become known for in recent months, as it attempts to portray itself as a relatively weak player in the gaming space compared to its competitors.


The FTC argued in its complaint that acquiring Activision Blizzard would enable Microsoft to suppress competitors to its Xbox game consoles, rapidly growing subscription content, and cloud gaming business.


There’s also been a lot of concern about the future of Call of Duty, to the point where Xbox chief Phil Spencer has publicly promised that the franchise will be on PlayStation for as long as PlayStations exist.


In its response to the FTC, Microsoft cites its promise to expand, not limit the availability of Activision’s flagship series by bringing it to the Nintendo Switch.


In a statement to The Verge, Activision Blizzard CEO Bobby Kotick also argued for the deal to close, saying: “There is no reasonable and legitimate reason why our transaction should not be closed.” Our industry has tremendous competition and few barriers to entry, and we’ve seen more hardware than ever before. Going forward giving gamers a wide range of options for playing games, the engines and tools are freely available to developers big and small.


The breadth of distribution options for games has never been more widespread, and we believe we will prevail on the merits of the case.


A direct response came from Microsoft President Brad Smith, who said: We remain committed to creative solutions with regulators that will protect competition, consumers and those working in the technology sector. And as we’ve learned from lawsuits in the past, the door is never closed to the opportunity to find an agreement that can benefit everyone.

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