ReportWire

Tag: Game consoles

  • Microsoft stakes Xbox video game sales on long-awaited space adventure Starfield

    Microsoft stakes Xbox video game sales on long-awaited space adventure Starfield

    One small step for an intrepid crew of 24th century space explorers could be a giant leap — or flop — for Microsoft when the Xbox-maker launches its long-awaited video game Starfield.

    Players must fend off pirates, navigate strange moons, build outposts and fix their own starships in a space epic that is due out on Xbox in September after years of development and delay. Microsoft gave its most detailed glimpse of the upcoming game at a Los Angeles event Sunday.

    The release could be one of the most important in Xbox’s history as it looks to attract gamers with a headliner on par with Nintendo’s latest Zelda game and PlayStation’s upcoming Spider-Man 2, said Mat Piscatella, a game industry analyst for market researcher Circana.

    After months of watching Nintendo’s Switch console and Sony’s PlayStation steal the momentum in a lagging market — with boosts from Hollywood adaptions of Nintendo’s Super Mario and the PlayStation exclusive Last of Us — Microsoft could use a blockbuster to drive sales of its Xbox consoles and its monthly game subscription service.

    “Starfield may have the potential to be as big or bigger than” popular games on rival platforms, especially thanks to the strong track record of the studio that made it, Piscatella said. “But the ‘may’ there is a big one.”

    Much of the anticipation centers on the past commercial successes of Microsoft-owned Bethesda Softworks, the studio behind long-running series such as Doom, Elder Scrolls and Fallout. Bethesda describes Starfield as its “first new universe in over 25 years.”

    Bethesda was already well on its way toward developing it when Microsoft acquired its parent company ZeniMax Media for $7.5 billion in 2021. In fact, Bethesda first sought to trademark the Starfield name a decade ago, and teased the game in a brief trailer five years later in 2018.

    Now Starfield is caught up in another planned Microsoft takeover — of Call of Duty maker Activision Blizzard. Sony has raised antitrust objections to the $69 billion deal over concerns that Microsoft could make some of Activision’s best games exclusive to Xbox.

    PlayStation has its own exclusives — including top-sellers Last of Us, the Marvel Spider-Man games and some Final Fantasy games. But Sony has argued to British and European antitrust regulators that Microsoft’s decision to make ZeniMax games like Starfield and Redfall exclusive to Xbox provides “further compelling evidence of Microsoft’s ability and incentives to foreclose rivals” to games it acquires through acquisitions.

    British and U.S. antitrust authorities have sought to block the Activision deal, though neither has mentioned the Starfield example as a concern. Other countries, including regulators representing the 27-nation European Union, have approved the acquisition.

    Microsoft’s ongoing battle to close the Activision deal and build enthusiasm for its existing stock of games comes at a slow period for game sales after interest soared at the height of the COVID-19 pandemic.

    Consumer spending on video games and hardware in the U.S. was $4.1 billion in April, a 5% drop from a year ago, according to Circana.

    A 6% decline in game revenue was partly offset by 7% growth in hardware sales, particularly for the PlayStation 5 and Switch. It marked the best April for console sales since the pandemic caused a sales spike in 2020.

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  • Some ‘Diablo IV’ players report invalid license error message after early access launch

    Some ‘Diablo IV’ players report invalid license error message after early access launch

    WASHINGTON (AP) — Early access for “Diablo IV” began Thursday night — but the rollout of the highly anticipated action role-playing video game didn’t come without speedbumps, notably for PlayStation users.

    While the early access launch of Blizzard Entertainment’s “Diablo IV” appeared to go smoothly for many players who pre-purchased eligible editions of the game, some PS5 users reported receiving an invalid licensing error message. Blizzard acknowledged the issue, and later said a server-side balance hotfix was rolled out.

    A hotfix is a software upgrade that an target a very specific issue and typically does not interrupt usage.

    “Diablo IV” marks the latest installment of Blizzard “Diablo” series, which began in 1996, and arrives more than a decade after “Diablo III” was released in May 2012. While early access kicked off Thursday, the game’s official launch is slated for next week.

    Rod Fergusson, general manager of Diablo, has described “Diablo IV” as “our most brutal vision of Sanctuary,” the fictional world where Diablo is set. It brings “the darkness of the original game” and builds on key aspects of previous installments of the series, he added.

    In April, Blizzard Entertainment parent company Activision Blizzard reported a net revenue of $2.38 billion for the first quarter of 2023 — up from $1.77 billion for the first three months of 2022. At the time, Activision noted that presales for “Diablo IV” were strong, pointing to successful public testing of the game.

    Here’s what you need to know about Thursday’s early access launch and the coming official release of “Diablo IV.”

    WHAT TIME DOES DIABLO IV RELEASE?

    “Diablo IV” will be officially released on Tuesday or Wednesday of next week, depending on the time zone of where you live. In the U.S., the game will launch at 7 p.m. ET (4 p.m. PT) on Tuesday.

    While the official release of “Diablo IV” is scheduled for next week, early access began a few days earlier — kicking off on Thursday or Friday, also depending on time zones. Early access was set to be available for players who pre-purchased the digital deluxe or ultimate edition of the game.

    Players who have already purchased “Diablo IV” can also pre-load the game on some devices ahead of the launch. Pre-loading any edition is currently available for Windows PC, Xbox and PlayStation, according to Blizzard.

    ‘UNABLE TO FIND LICENSE’ FOR DIABLO IV?

    Again, while early access appeared to launch smoothly for many players, some PS5 users reported receiving a error message — which read “unable to find a valid license for Diablo IV,” according to social media and posts on Blizzard’s community forums. The error seemed to impact PS5 players the most, but some other users reported getting the message on additional devices, including Xbox.

    Blizzard acknowledged the PlayStation users’ reports in a forum post Thursday night. Global community development director Adam Fletcher later said that a server-side balance hotfix for “Diablo IV” was rolled out on all platforms.

    It’s unclear how many early access players have been impacted by the error. As of Friday morning, some frustrated users on Blizzard’s forum said they were still having trouble accessing the game.

    The Associated Press reached out to Blizzard and PlayStation Friday morning for statements.

    WHAT ARE THE DIABLO IV CHARACTER CLASSES?

    According to Blizzard, “Diablo IV” is set decades after the events of “Diablo III: Reaper of Souls.” The demon Lilith and the angel Inarius have become enemies and launched a war against one another.

    Upon the launch of “Diablo IV,” players will be able to enter one of five classes: the Druids, Rogues, Sorceresses, Barbarians or Necromancers.

    “Diablo IV” offers cross-platform play and progression on Windows PC, Xbox Series X’S, Xbox One, PlayStation 5 and PlayStation 4, as well as couch co-op, upon its launch, Blizzard said.

    ACTIVISION FINANCIAL RESULTS FOR 2022, MICROSOFT DEAL

    Activision — which is also the maker of “Call of Duty,” “Candy Crush” and ”World of Warcraft” — reported a net revenue of $7.53 billion for 2022, down from $8.8 billion for 2021.

    In January 2022, Microsoft announced plans to acquire Activision — but, more than a year later, the blockbuster deal is still in jeopardy. While the European Union approved the $69 billion purchase last month, British regulators blocked the deal over competition concerns. U.S. authorities are also trying to thwart the merger.

    The deal has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises. Fierce opposition has been driven by rival Sony, which makes PlayStation.

    Activision and Microsoft are appealing the U.K. decision to a tribunal. If the appeal fails, Microsoft would be forced to either scrap the deal or carve out the U.K. as a separate market, which appeared to be an unfeasible option, Liam Deane, a game industry analyst for tech research and advisory firm Omdia, previously told The Associated Press.

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  • Microsoft’s bid to buy Activision Blizzard clears a key hurdle. But the $69B deal is still at risk

    Microsoft’s bid to buy Activision Blizzard clears a key hurdle. But the $69B deal is still at risk

    LONDON (AP) — The European Union on Monday approved Microsoft’s $69 billion purchase of video game maker Activision Blizzard, deciding the deal won’t stifle competition for popular console titles like Call of Duty and accepting the U.S. tech company’s remedies to boost competition in cloud gaming.

    But the blockbuster deal is still in jeopardy because British regulators have rejected it and U.S. authorities are trying to thwart it.

    The acquisition, sweetened by Microsoft’s promises to automatically license Activision games to cloud gaming platforms, “would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust watchdog.

    The commission’s approval “has removed one potential major roadblock for this deal” but “it doesn’t necessarily mean they’re in a stronger position” to overturn the U.K.’s rejection, said Liam Deane, a game industry analyst for tech research and advisory firm Omdia.

    The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft.

    Fierce opposition has been driven by rival Sony, which makes the PlayStation gaming system.

    Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead.

    Following its review, the European Commission dismissed the possibility that Microsoft would cut off its games from PlayStation, saying that excluding the most popular gaming console would put a big dent in its profits.

    The emerging cloud gaming market received closer scrutiny from Brussels. Cloud gaming frees players from buying expensive consoles and gaming computers by allowing them to stream games they own to tablets, phones and other devices, typically through a cloud platform that may charge a fee.

    The commission approved the deal after accepting Microsoft’s offer to modify its licensing agreements to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.

    The licenses “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose,” Microsoft President Brad Smith said in a statement.

    Microsoft has already announced deals to bring Xbox PC games to cloud gaming platforms operated by chipmaker Nvidia and independent player Boosteroid.

    Activision games aren’t available on cloud services, but the commission noted that the licensing commitments could expand the cloud gaming market “by bringing Activision’s games to new platforms, including smaller EU players, and to more devices than before.”

    The EU decision might help Microsoft’s chances as it faces down regulators in the U.S., where the Federal Trade Commission is taking the company to court to block the deal. A trial before the FTC’s in-house judge set to begin Aug. 2.

    But Brussels’ approval is at odds with the stance taken by British antitrust regulators, who last month upended the biggest tech deal in history over concerns it would hurt competition in the small but rapidly growing cloud gaming market.

    Britain’s Competition and Markets Authority said in a statement Monday that it “stands by its decision,” an unusual move that highlights the more muscular approach London has taken.

    “Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years,” authority chief executive Sarah Cardell said. “They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.”

    The companies are appealing the U.K. decision to a tribunal, but history doesn’t bode well.

    The watchdog previously denied Facebook parent Meta’s purchase of Giphy over concerns it would limit innovation and competition. The social media giant was ultimately forced to sell off the GIF-sharing platform after it lost an appeal.

    If Microsoft’s appeal fails, the company would be forced to either scrap the deal or carve out the U.K. as a separate market, which appeared to be an unfeasible option, said Deane, the game analyst.

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  • Microsoft’s bid to buy Activision Blizzard clears a key hurdle. But the $69B deal is still at risk

    Microsoft’s bid to buy Activision Blizzard clears a key hurdle. But the $69B deal is still at risk

    LONDON — The European Union on Monday approved Microsoft’s $69 billion purchase of video game maker Activision Blizzard, deciding the deal won’t stifle competition for popular console titles like Call of Duty and accepting the U.S. tech company’s remedies to boost competition in cloud gaming.

    But the blockbuster deal is still in jeopardy because British regulators have rejected it and U.S. authorities are trying to thwart it.

    The acquisition, sweetened by Microsoft’s promises to automatically license Activision games to cloud gaming platforms, “would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust watchdog.

    The commission’s approval “has removed one potential major roadblock for this deal” but “it doesn’t necessarily mean they’re in a stronger position” to overturn the U.K.’s rejection, said Liam Deane, a game industry analyst for tech research and advisory firm Omdia.

    The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft.

    Fierce opposition has been driven by rival Sony, which makes the PlayStation gaming system.

    Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead.

    Following its review, the European Commission dismissed the possibility that Microsoft would cut off its games from PlayStation, saying that excluding the most popular gaming console would put a big dent in its profits.

    The emerging cloud gaming market received closer scrutiny from Brussels. Cloud gaming frees players from buying expensive consoles and gaming computers by allowing them to stream games they own to tablets, phones and other devices, typically through a cloud platform that may charge a fee.

    The commission approved the deal after accepting Microsoft’s offer to modify its licensing agreements to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.

    The licenses “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose,” Microsoft President Brad Smith said in a statement.

    Microsoft has already announced deals to bring Xbox PC games to cloud gaming platforms operated by chipmaker Nvidia and independent player Boosteroid.

    Activision games aren’t available on cloud services, but the commission noted that the licensing commitments could expand the cloud gaming market “by bringing Activision’s games to new platforms, including smaller EU players, and to more devices than before.”

    The EU decision might help Microsoft’s chances as it faces down regulators in the U.S., where the Federal Trade Commission is taking the company to court to block the deal. A trial before the FTC’s in-house judge set to begin Aug. 2.

    But Brussels’ approval is at odds with the stance taken by British antitrust regulators, who last month upended the biggest tech deal in history over concerns it would hurt competition in the small but rapidly growing cloud gaming market.

    Britain’s Competition and Markets Authority said in a statement Monday that it “stands by its decision,” an unusual move that highlights the more muscular approach London has taken.

    “Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years,” authority chief executive Sarah Cardell said. “They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.”

    The companies are appealing the U.K. decision to a tribunal, but history doesn’t bode well.

    The watchdog previously denied Facebook parent Meta’s purchase of Giphy over concerns it would limit innovation and competition. The social media giant was ultimately forced to sell off the GIF-sharing platform after it lost an appeal.

    If Microsoft’s appeal fails, the company would be forced to either scrap the deal or carve out the U.K. as a separate market, which appeared to be an unfeasible option, said Deane, the game analyst.

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  • EU backs Microsoft buying Call of Duty maker Activision Blizzard. But the $69B deal is still at risk

    EU backs Microsoft buying Call of Duty maker Activision Blizzard. But the $69B deal is still at risk

    LONDON — The European Union on Monday approved Microsoft’s $69 billion purchase of video game maker Activision Blizzard, deciding the deal won’t stifle competition for popular console titles like Call of Duty and accepting the U.S. tech company’s remedies to boost competition in cloud gaming.

    But the blockbuster deal is still in jeopardy because British regulators have rejected it and U.S. authorities are trying to thwart it.

    The acquisition, sweetened by Microsoft’s promises to automatically license Activision games to cloud gaming platforms, “would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust watchdog.

    The commission’s approval “has removed one potential major roadblock for this deal” but “it doesn’t necessarily mean they’re in a stronger position” to overturn the U.K.’s rejection, said Liam Deane, a game industry analyst for tech research and advisory firm Omdia.

    The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft.

    Fierce opposition has been driven by rival Sony, which makes the PlayStation gaming system.

    Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead.

    Following its review, the European Commission dismissed the possibility that Microsoft would cut off its games from PlayStation, saying that excluding the most popular gaming console would put a big dent in its profits.

    The emerging cloud gaming market received closer scrutiny from Brussels. Cloud gaming frees players from buying expensive consoles and gaming computers by allowing them to stream games they own to tablets, phones and other devices, typically through a cloud platform that may charge a fee.

    The commission approved the deal after accepting Microsoft’s offer to modify its licensing agreements to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.

    The licenses “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose,” Microsoft President Brad Smith said in a statement.

    Microsoft has already announced deals to bring Xbox PC games to cloud gaming platforms operated by chipmaker Nvidia and independent player Boosteroid.

    Activision games aren’t available on cloud services, but the commission noted that the licensing commitments could expand the cloud gaming market “by bringing Activision’s games to new platforms, including smaller EU players, and to more devices than before.”

    The EU decision might help Microsoft’s chances as it faces down regulators in the U.S., where the Federal Trade Commission is taking the company to court to block the deal. A trial before the FTC’s in-house judge set to begin Aug. 2.

    But Brussels’ approval is at odds with the stance taken by British antitrust regulators, who last month upended the biggest tech deal in history over concerns it would hurt competition in the small but rapidly growing cloud gaming market.

    Britain’s Competition and Markets Authority said in a statement Monday that it “stands by its decision,” an unusual move that highlights the more muscular approach London has taken.

    “Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years,” authority chief executive Sarah Cardell said. “They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.”

    The companies are appealing the U.K. decision to a tribunal, but history doesn’t bode well.

    The watchdog previously denied Facebook parent Meta’s purchase of Giphy over concerns it would limit innovation and competition. The social media giant was ultimately forced to sell off the GIF-sharing platform after it lost an appeal.

    If Microsoft’s appeal fails, the company would be forced to either scrap the deal or carve out the U.K. as a separate market, which appeared to be an unfeasible option, said Deane, the game analyst.

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  • The Last of Us, Wii Sports entering Video Game Hall of Fame

    The Last of Us, Wii Sports entering Video Game Hall of Fame

    ROCHESTER, N.Y. — The first commercial video game and the first one marketed to girls are headed to the World Video Game Hall of Fame, alongside a post-apocalyptic nail-biter and a system that made gamers out of grandparents.

    Computer Space, Barbie Fashion Designer, The Last of Us and Wii Sports were announced Thursday as the Hall of Fame’s class of 2023.

    The Hall of Fame honors arcade, console, computer, handheld and mobile games that have influenced popular culture or the video game industry. This year’s additions bring to 40 the number of games to be enshrined since its opening at The Strong museum in 2015.

    The winners were voted in by a panel of experts from a field of finalists that also included Age of Empires, Angry Birds, Call of Duty 4: Modern Warfare, FIFA International Soccer, Goldeneye 007, NBA 2K, Quake and Wizardry.

    Nutting Associates’ coin-operated Computer Space appeared in 1971 as the first commercial video game and was recognized for proving that video games could reach paying audiences outside of the labs where they were being developed. It didn’t garner the kind of commercial success that would bring video games to the masses, according to the hall, but it did lay the foundation for the gaming industry: The developers went on to establish the gaming giant Atari Inc.

    “There was no video game industry in 1970. The games that we’d now call video games were still mostly locked away on computers in university and research labs, inaccessible to the public,” Jeremy Saucier, assistant vice president for interpretation and electronic games at The Strong, said in a news release.

    Barbie Fashion Designer was the first video game to target girls, letting them design and print clothes for their Barbie dolls. It quickly took off, selling more than 500,000 copies in two months after its 1996 release by Digital Domain/Mattel Media. The game not only expanded the audience for video games but also began a discussion about gender and stereotypes in gaming that continues today, according to the Hall of Fame.

    “Barbie Fashion Designer became a jumping-off point for the girls’ games movement and shook up the software and gaming scene,” collections manager Kristy Hisert said. “It also sparked important questions and debate. What does it mean to be a game for girls? Should there even be games ‘for girls’? What are the implications of these games? What are the consequences of gendering games?”

    The Last of Us, with its memorable characters and storytelling, quickly stood out in the field of post-apocalyptic zombie games when it was released by Naughty Dog and Sony Interactive Entertainment. More than 200 publications named it the game of the year when it entered the scene in 2013. Ten years later, millions of viewers now tune in for the HBO series it inspired.

    “The 2023 HBO adaptation has expanded the game’s reach and popularity. Created with Naughty Dog’s involvement, the show has garnered support from both critics and fans as one of the best video game adaptations ever made,” video game curator Lindsey Kurano said.

    Wii Sports, which launched with the Nintendo Wii home video game system in 2006, was honored for putting motion-based technology into living rooms across the world, where anyone from young children to older adults could grab the controller and join in virtual bowling, tennis matches and rounds of golf. Community centers for older adults embraced the games for their health and social benefits.

    “With more than 82 million copies sold, Wii Sports is one of the best-selling video games of all time, but its true influence comes from the fact that it made gamers out of millions of people around the world who’d never thought about playing one before,” said Aryol Prater, research specialist for Black play and culture at The Strong.

    Anyone can nominate a game for consideration by the World Video Game Hall of Fame. The hall is set to move to an expanded space in The Strong in Rochester come June 30.

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  • Sony posts record annual profit boosted by chips and all-time high PlayStation 5 sales

    Sony posts record annual profit boosted by chips and all-time high PlayStation 5 sales

    Sony aims to sell 18 million PlayStation 5 consoles in its financial year ending in March 2023.

    Thiago Prudencio | Lightrocket | Getty Images

    Sony posted record annual operating revenue on Friday, helped by its chip division and sales of its flagship PlayStation 5 gaming console which hit a record for the financial year.

    Here’s how Sony did in the March quarter versus Refinitiv consensus estimates:

    • Revenue: 3.06 trillion Japanese yen ($22.7 billion) versus 2.92 trillion yen expected. That represents a 35% year-on-year rise.
    • Operating profit: 128.5 billion Japanese yen versus 124.34 billion yen expected. That represents a 7% year-on-year fall.

    For its full fiscal year which ended in March, Sony previously forecast operating profit of 1.18 trillion yen and 11.5 trillion yen in revenue. The company beat its own forecast with 1.21 trillion yen in operating profit, a record for the company.

    Sony forecast its sales for the current fiscal year, which ends in March 2024, will be 11.5 trillion yen, roughly flat versus last year. It said operating profit would come in at 1.17 trillion yen, down 3% year-on-year.

    PlayStation 5 sales hit record

    Sony said it sold 19.1 million PlayStation 5 consoles in the financial year, beating its own forecast of 18 million. That was up from 11.5 million PS5 units sold in the previous fiscal year when Sony was facing supply chain issues.

    The Japanese giant’s gaming division was one of its biggest profit drivers for the year, bringing in operating profit of 250 billion yen, although that was down 27% year-on-year.

    For the fiscal year, Sony’s gaming division brought in revenue of 3.64 trillion yen, up 33% year-on-year. The business was Sony’s biggest category by sales.

    Sony forecast operating profit for its gaming business to be 270 billion yen for the current fiscal year. The company is hoping PlayStation VR 2, the company’s virtual reality gaming headset, will help add to sales. The company said it will see an improvement in profitability from hardware next year.

    This is a breaking news story. Please check back for more.

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  • Microsoft inks Xbox game deal with Boosteroid cloud service

    Microsoft inks Xbox game deal with Boosteroid cloud service

    Microsoft has struck a deal to make Xbox PC video games available on the Boosteroid cloud gaming platform

    Microsoft said Tuesday that it has struck a deal to make Xbox PC video games available on the Boosteroid cloud gaming platform, its latest move to appease antitrust regulators scrutinizing its purchase of game maker Activision Blizzard.

    The U.S. tech giant said the 10-year agreement would also include Activision Blizzard titles like the popular Call of Duty franchise if or when the acquisition gets approved.

    Microsoft has been announcing new partnerships as it tries to persuade regulators in the U.S. and Europe to allow the $69 billion all-cash transaction to go through.

    In recent months, Microsoft has signed similar agreements with Nintendo, Nvidia and Steam as it battles stiff opposition from Sony, which makes the rival PlayStation console and fears losing access to Call of Duty and Activision’s other hit games.

    The agreement makes “more clear to regulators that our acquisition of Activision Blizzard will make ‘Call of Duty’ available on far more devices than before,” Microsoft President Brad Smith said.

    Boosteroid, which has 4 million users and a software development team based in Ukraine, is billed as the world’s biggest independent cloud gaming provider.

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  • Insider Q&A-Nintendo’s Bowser

    Insider Q&A-Nintendo’s Bowser

    LOS ANGELES — With a new theme park attraction opened last month, an upcoming major motion picture and the sequel to a massive hit video game about to be released, everything’s coming up Nintendo.

    Doug Bowser, the head of Nintendo USA since 2019, spoke to The Associated Press at Universal Studios Hollywood’s Super Nintendo World in Los Angeles before its Feb. 17 grand opening. Q: You’ve got a new movie (“The Super Mario Bros. Movie,” April 7), this new attraction at Universal, and the new Legend of Zelda game (“Tears of the Kingdom,” May 12). What’s next, a prestige streaming TV show?

    A: You’re hitting on something which is really important. This is a milestone, what you’re seeing here with Super Nintendo World. Universal Studios is a great partner to allow us to do Super Nintendo World. I won’t comment on your question regarding a streaming show. But it really is a reflection on this ability to share our IP with people well outside of the video game space.

    Q: The new attraction I was able to see today is really impressive. Could there ever be an entire theme park build around Nintendo characters, like Disneyland?

    A: Well, we’ve got a great partner with Universal Studios. I think we have packed a lot of exciting and fun stuff. Even with the size of the park here, you can spend hours just exploring, finding little Easter eggs, little treasures. If you load the app on your phone you can actually keep score, it’s very much like being in a video game, with the ability to play in a linear way but then also wander around and explore.

    Q: Would you say video games are now the dominant force in entertainment?

    A: They’re clearly a prominent form of entertainment right now. As we came through and out of the pandemic, they became an incredible source if you will, of people’s entertainment. We saw very nice growth in the industry over the last few years with people looking for different forms to entertain themselves at home, either as an individual online or with the family. So I do think it’s a form of entertainment going forward that people will continue to choose.

    Q: What other characters besides the Mario Bros. would you like to develop new films or attractions around? Full disclosure, I’ve got a Donkey Kong tattoo, I’d be thrilled with a Donkey Kong movie for example.

    A: That really is a call for the creative groups here at Universal Studios and of course, Nintendo. If you think about park experiences, we have announced that at the Universal Studios in Osaka that will be expanding that land to include Donkey Kong. There’s a whole new Donkey Kong area being built out with its primary feature being a roller coaster. You can just imagine what a Donkey Kong roller coaster might be like! We have announced that we are working on other video projects but we’re not at the point where we want to talk about what these characters are. I could share my favorites, but that probably wouldn’t be appropriate. If you’ve noticed with the new Super Mario Bros. movie, Seth Rogen does play Donkey Kong. So Donkey Kong is a part of the movie. So look forward to that!

    Q: Is there any date for the Nintendo attractions at Universal Studios in Orlando and Singapore? Will they be bigger, different?

    A: No date on Singapore. Orlando is a couple years in the future. You’ll have to wait and see. You can assume, if you look at Orlando, it’s got a lot of land, so it’s likely a bigger footprint.

    Q: When is the next Switch coming out? What kinds of features or new capabilities would you like to see?

    A: As we enter the seventh year for the Nintendo Switch, sales are still strong. I think we still have a very very strong lineup coming. As Mr. Furukawa (Nintendo President Shuntaro Furukawa) said recently, we’re entering uncharted territory with the platform. It’s exciting to see that demand is still there. So nothing to announce on any future console or device, but we are still feeling very bullish about Nintendo Switch.

    I should be careful about what I personally would like to see (in a new Switch). But what I can share is that one of the reasons that even going into year seven we feel very confident that the Switch can have a strong performance over the next few years is that it is still truly that unique device that you can play in a variety of ways, at home, on the go. One of the things we look at always is how can we surprise and delight. How can we introduce new unique ways of playing. That’s always in front of our mind.

    Q: Is Madden coming to the Switch?

    A: That’s a better question for my good friends over at EA.

    Q: Are supply chain problems still an issue?

    A: Really coming out of the summer and into the final quarter of last year, the holiday period, we saw that that constriction if you will in chip supply reduce. So right now, from a supply chain perspective, we’re able to supply that demand that’s out there.

    Q: How did you get to a $70 price figure for the upcoming Zelda game?

    A: We look at what the game has to offer. I think fans will find this is an incredibly full, deeply immersive experience. The price point reflects the type of experience that fans can expect when it comes to playing this particular game. This isn’t a price point that we’ll necessarily have on all our titles. It’s actually a fairly common pricing model either here or in Europe or other parts of the world, where the pricing may vary depending on the game itself.

    Q: Any sales goals for the new Zelda?

    A: There are, but they’re not publicly disclosed yet.

    Q: What’s the next big thing in gaming? The metaverse, AI, what else?

    A: I think what you’ll see with gaming is that we’ll continue to see new technologies come into play that will allow us to expand the number of players that come in. As we think about technology, the most important thing is we think about how will it improve the gameplay experienced. It’s not technology for technology’s sake. Will it really create this experience that is immersive, that creates smiles. We lead with that and then see what technology can support that.

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  • Nvidia supports Microsoft, Activision merger after Xbox deal to add games to cloud service

    Nvidia supports Microsoft, Activision merger after Xbox deal to add games to cloud service

    BRUSSELS — Microsoft said Tuesday it will bring its Xbox PC games to Nvidia’s cloud gaming service, after the chipmaker had reportedly expressed opposition to a major Microsoft gaming deal.

    The announcement comes after Microsoft President Brad Smith met with European Union officials on Tuesday in a bid to convince them that its planned $69 billion acquisition of Activision Blizzard will be good for competition.

    Microsoft is offering the olive branch to stop the takeover from being blocked and thereby expand its gaming unit, which represents 9% of its total revenue. While sales of Microsoft’s Xbox consoles are slowing down, the company has been drawing on its cash pile to expand the collection of games it can sell and allow people to play through its cloud data centers.

    Microsoft President Brad Smith said at a press conference that, effective immediately, its Xbox games will be available on Nvidia’s GeForce Now cloud games service. Smith said if the Activision deal closes, it will bring all Activision Blizzard titles to GeForce Now.

    Nvidia is now on board with Microsoft’s pending deal for regulatory purposes, the two companies said in a joint statement confirming the two companies 10-year deal. In January Bloomberg reported that Nvidia had gone to the U.S. Federal Trade Commission with complaints about the Activision deal.

    “Combining the incredibly rich catalog of Xbox first party games with GeForce Now’s high-performance streaming capabilities will propel cloud gaming into a mainstream offering that appeals to gamers at all levels of interest and experience,” Jeff Fisher, Nvidia’s senior vice president for GeForce, was quoted as saying. “Through this partnership, more of the world’s most popular titles will now be available from the cloud with just a click, playable by millions more gamers.”

    Microsoft proposed its Activision Blizzard acquisition in January 2022, but since then, the buyer has faced pushback from regulators in the U.S., European Union and U.K.

    The Nvidia arrangement is meaningful because “now we’re addressing the full range of issues that have been raised by regulators as topics of not just interest but in some cases concern,” Smith said at the press conference.

    In November, the European Commission, the EU’s executive arm, opened an in-depth investigation into the deal citing concerns that it could reduce competition in the video games market.

    Activision Blizzard is the company behind popular game franchise Call of Duty. The EU commission said last year it is concerned that Microsoft could block access to the game on other platforms if the deal goes through.

    The commission is also concerned that it could give Microsoft an unfair edge in the nascent area of cloud gaming. Microsoft has a service called Game Pass through which it charges gamers $9.99 per month to access a library of games. The Activision takeover would add some high-profile titles to Game Pass.

    Nvidia’s GeForce Now has over 25 million members, while Microsoft said last year that 25 million people subscribe to Game Pass. Nvidia offers free and paid GeForce Now tiers, although high resolution is only available to those who pay. Members of GeForce Now will be able to stream through the cloud the games they buy through Microsoft’s app store, along with games listed in Epic Games and Steam’s app stores.

    In December, Microsoft said it had “entered into a 10-year commitment” to bring Call of Duty to Nintendo when the Activision acquisition closes. The announcement was seen as a move to assuage regulators’ antitrust concerns. On Tuesday, Smith tweeted that the two signs have now signed a “binding 10-year legal agreement” to bring Call of Duty to Nintendo players on the same day as Microsoft’s Xbox, “with full feature and content parity.”

    Smith declined to comment on the views of the European Commission in the hearing, but said the Nintendo and Nvidia deals are good for competition in the gaming market.

    “I think if you’re a competition regulator, and you’re focused on the interests of consumers and competition, today was a good day,” Smith told CNBC.

    Microsoft hopes for Sony deal

    Smith on Tuesday led a delegation that included Microsoft Gaming CEO Phil Spencer and Activision Blizzard CEO Bobby Kotick, Reuters reported, citing a European Commission document that the news agency had seen. Sony’s gaming chief Jim Ryan was also in attendance, Reuters added. Sony, Microsoft’s biggest rival, opposes the Activision takeover.

    Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022.

    Dado Ruvic | Reuters

    Sony was not immediately available for comment when contacted by CNBC.

    During a press conference on Tuesday, Smith held up a piece of paper saying it is an agreement he is ready to send to Sony.

    Smith told CNBC that Microsoft is offering Sony the same agreement as Nintendo — to have Call of Duty available on the PlayStation the same time as Xbox with the same features. However, Sony still remains opposed to the deal.

    “I live with the hope that we’ll come to terms with Sony,” Smith told CNBC.

    “We’re not there yet. But I do think as we make progress with others, if we can get a deal done with Nintendo, if we can get an agreement with Nvidia, it should provide a path forward that others like Sony can build on as well.”

    U.K., U.S. regulators take aim at deal

    It’s not only European regulators that have concerns about the deal.

    The U.K.’s Competition and Markets Authority said this month that the takeover raises competition concerns and may result in higher prices, fewer choices and less innovation. The regulator said it could move to block the deal and suggested several remedies Microsoft could take. One of those involved Microsoft divesting the business responsible for Call of Duty.

    Smith said that Microsoft doesn’t see a “feasible path” to sell off the Call of Duty game.

    “It just isn’t something that seems to be lining up,” Smith told CNBC.

    “The only reason to sell it off is the CMA’s potential concern that if we buy it, we won’t provide it to others as broadly. I think that concern should be dispelled by the two agreements we’ve signed today.”

    In December, the FTC filed an antitrust case against Microsoft attempting to block the Activision deal.

    Google parent Alphabet also went to the FTC with dissatisfaction about Microsoft’s deal, Bloomberg reported.

    “The European Commission asked for our views in the course of their inquiries into this issue. We will continue to cooperate in any processes, when requested, to ensure all views are considered,” a Google spokesperson told CNBC in an email.

    Smith declined to comment on Alphabet’s exact concerns with the Activision deal but recognized the company’s potential misgivings.

    “It’s easy to understand that Google might have questions about whether something like Call of Duty would be available in the future on say Chromebooks and the Chrome operating system,” Smith said.

    The Nvidia agreement addresses that as the GeForce Now cloud gaming service is available on ChromeOS, Smith said. Microsoft is able to maintain compliance with the sorts agreements with European regulators that might require it to keep Call of Duty on Chrome OS, he said during the press conference.

    “With the agreement we’ve done with Nvidia, we’ve just ensured Google will benefit as well,” Smith said.

    Microsoft has maintained that its takeover of Activision Blizzard would not harm competition in video gaming and instead increase competition against large players like Sony and Chinese giant Tencent.

    Microsoft has remained behind the likes of Sony and Nintendo in the video-gaming business. Microsoft’s Xboxes have lagged Sony’s PlayStation 5 and Nintendo’s Switch. Sony and Nintendo’s popularity has come from its large number of successful first-party games. Microsoft is looking to boost its games library with the Activision acquisition.

    Activision Blizzard shares edged up during Tuesday’s U.S. trading session following the announcement.

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  • Microsoft will fight US over $68.7B Activision Blizzard deal

    Microsoft will fight US over $68.7B Activision Blizzard deal

    Microsoft is headed for a battle with the Federal Trade Commission over whether the U.S. will block the tech giant’s planned takeover of video game company Activision Blizzard.

    Microsoft on Thursday filed a formal response to the FTC’s claims that the $68.7 billion deal is an illegal acquisition that should be stopped.

    After years of avoiding the political backlash that has been directed at big tech peers such as Amazon and Google, the software giant now appears to be on a collision course with U.S. regulators emboldened by President Joe Biden’s push to get tough on anti-competitive behavior.

    The FTC claims the merger could violate antitrust laws by suppressing competitors to Microsoft’s Xbox game console and its growing Xbox Game Pass subscription business.

    At the center of the dispute is Microsoft’s rivalry with PlayStation-maker Sony to secure popular Activision Blizzard franchises like the military shooter game Call of Duty.

    Microsoft’s response to the FTC tries to downplay Xbox’s role in the industry, describing itself as the “third-place manufacturer of gaming consoles” behind Sony and Nintendo, and one of just many publishers of popular video games with “next to no presence in mobile gaming,” where it is trying to make gains.

    Activision Blizzard filed its own rebuttal to the FTC complaint on Thursday criticizing what it described as the FTC’s “unfounded assumption” that Microsoft would want to withhold Call of Duty from platforms that compete with Xbox. Its CEO Bobby Kotick said he believes the companies will prevail.

    The dispute could be a difficult test case for Biden-appointed FTC Chair Lina Khan, who has sought to strengthen enforcement of antitrust rules. The FTC voted 3-1 earlier in December to issue the complaint seeking to block the deal, with Khan and the two other Democratic commissioners voting in favor and the sole Republican voting against.

    The deal is also under close scrutiny in the European Union and the United Kingdom, where investigations aren’t due to be completed until next year.

    The FTC’s complaint points to Microsoft’s 2021 acquisition of well-known game developer Bethesda Softworks and its parent company ZeniMax, as an example of where Microsoft is making some upcoming game titles exclusive to Xbox despite assuring European regulators it had no intention to do so.

    Microsoft on Thursday objected to the FTC’s characterization, saying it made clear to European regulators it would “approach exclusivity for future game titles on a case-by-case basis, which is exactly what it has done.”

    The FTC’s suit describes top-selling franchises like Call of Duty as important because they develop a base of loyal users attached to their preferred console or streaming service.

    “With control of Activision’s content, Microsoft would have the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition — including competition on product quality, price, and innovation,” the FTC lawsuit says. “This loss of competition would likely result in significant harm to consumers in multiple markets at a pivotal time for the industry.”

    Microsoft signaled that it will vigorously fight the case in court with a team led by high-profile corporate attorney Beth Wilkinson, while also leaving open the possibility of a settlement.

    “Even with confidence in our case, we remain committed to creative solutions with regulators that will protect competition, consumers, and workers in the tech sector,” said Microsoft’s president, Brad Smith, in a statement Thursday. “As we’ve learned from our lawsuits in the past, the door never closes on the opportunity to find an agreement that can benefit everyone.”

    Microsoft’s last big antitrust battle occurred more than two decades ago when a federal judge ordered its breakup following the company’s anticompetitive actions related to its dominant Windows software. That verdict was overturned on appeal, although the court imposed other penalties on the company.

    The FTC’s decision to send the complaint to its in-house Administrative Law Judge D. Michael Chappell instead of seeking an urgent federal court injunction to halt the merger could drag the case out at least until August, when the first evidence hearing is scheduled. Microsoft’s agreement with Activision Blizzard requires it to pay the video game company a breakup fee of up to $3 billion if it can’t close the deal before July 18.

    The timing and trajectory of the case could change depending on how regulators in the U.K. and Europe rule on the merger next year. If Microsoft wins approval in Europe, it could use that to try to expedite the process in U.S. courts.

    The merger faced yet another challenge this week from a group of individual video game players who sued in a San Francisco federal court to stop the deal on antitrust grounds.

    The plaintiffs, all fans of Activision Blizzard’s Call of Duty franchise and other popular titles such as World of Warcraft, Overwatch and Diablo, are particularly concerned about how the consolidation would affect future game quality, innovation and output, said their attorney Joseph Alioto.

    “When there’s a lack of competition, the quality necessarily goes down,” Alioto said. “By eliminating Activision, it gives such a strong position to Microsoft that they can do whatever they want.”

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  • Microsoft will fight US over $68.7B Activision Blizzard deal

    Microsoft will fight US over $68.7B Activision Blizzard deal

    Microsoft is headed for a battle with the Federal Trade Commission over whether the U.S. will block the tech giant’s planned takeover of video game company Activision Blizzard.

    Microsoft on Thursday filed a formal challenge to the FTC lawsuit’s declaring the $68.7 billion deal an illegal acquisition that should be stopped.

    After years of avoiding the political backlash that has been directed at big tech peers such as Amazon and Google, the software giant now appears to be on a collision course with U.S. regulators emboldened by President Joe Biden’s push to get tough on anti-competitive behavior.

    The FTC claims the merger could violate antitrust laws by suppressing competitors to Microsoft’s Xbox game console and its growing Xbox Game Pass subscription business.

    At the center of the dispute is Microsoft’s rivalry with PlayStation-maker Sony to secure popular Activision Blizzard franchises like the military shooter game Call of Duty.

    Microsoft’s response to the FTC tries to downplay Xbox’s role in the industry, describing itself as the “third-place manufacturer of gaming consoles” behind Sony and Nintendo, and one of just many publishers of popular video games with “next to no presence in mobile gaming,” where it is trying to make gains.

    The dispute could be a difficult test case for Biden-appointed FTC Chair Lina Khan, who has sought to strengthen enforcement of antitrust rules. The FTC voted 3-1 earlier in December to issue the complaint seeking to block the deal, with Khan and the two other Democratic commissioners voting in favor and the sole Republican voting against.

    The deal is also under close scrutiny in the European Union and the United Kingdom, where investigations aren’t due to be completed until next year.

    The FTC’s complaint points to Microsoft’s 2021 acquisition of well-known game developer Bethesda Softworks and its parent company ZeniMax, as an example of where Microsoft is making some upcoming game titles exclusive to Xbox despite assuring European regulators it had no intention to do so.

    Microsoft on Thursday objected to the FTC’s characterization, saying it made clear to European regulators it would “approach exclusivity for future game titles on a case-by-case basis, which is exactly what it has done.”

    The FTC’s suit describes top-selling franchises like Call of Duty as important because they develop a base of loyal users attached to their preferred console or streaming service.

    “With control of Activision’s content, Microsoft would have the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition — including competition on product quality, price, and innovation,” the FTC lawsuit says. “This loss of competition would likely result in significant harm to consumers in multiple markets at a pivotal time for the industry.”

    Microsoft signaled that it will vigorously fight the case in court with a team led by high-profile corporate attorney Beth Wilkinson, while also leaving open the possibility of a settlement.

    “Even with confidence in our case, we remain committed to creative solutions with regulators that will protect competition, consumers, and workers in the tech sector,” said Microsoft’s president, Brad Smith, in a statement Thursday. “As we’ve learned from our lawsuits in the past, the door never closes on the opportunity to find an agreement that can benefit everyone.”

    Microsoft’s last big antitrust battle occurred more than two decades ago when a federal judge ordered its breakup following the company’s anticompetitive actions related to its dominant Windows software. That verdict was overturned on appeal, although the court imposed other penalties on the company.

    The FTC’s decision to send the complaint to its in-house Administrative Law Judge D. Michael Chappell instead of seeking an urgent federal court injunction to halt the merger could drag the case out at least until August, when the first evidence hearing is scheduled. Microsoft’s agreement with Activision Blizzard requires it to pay the video game company a breakup fee of up to $3 billion if it can’t close the deal before July 18.

    The timing and trajectory of the case could change depending on how regulators in the U.K. and Europe rule on the merger next year. If Microsoft wins approval in Europe, it could use that to try to expedite the process in U.S. courts.

    The merger faced yet another challenge this week from a group of individual video game players who sued in a San Francisco federal court to stop the deal on antitrust grounds.

    The plaintiffs, all fans of Activision Blizzard’s Call of Duty franchise and other popular titles such as World of Warcraft, Overwatch and Diablo, are particularly concerned about how the consolidation would affect future game quality, innovation and output, said their attorney Joseph Alioto.

    “When there’s a lack of competition, the quality necessarily goes down,” Alioto said. “By eliminating Activision, it gives such a strong position to Microsoft that they can do whatever they want.”

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  • Video gamers sue to stop Microsoft’s Activision Blizzard buy

    Video gamers sue to stop Microsoft’s Activision Blizzard buy

    A group of video game players is suing to stop Microsoft from buying video game publisher Activision Blizzard, arguing that the $68.7 billion acquisition would stifle competition and reduce consumer choice

    SAN FRANCISCO — A group of gamers is suing to stop Microsoft from buying video game publisher Activision Blizzard, arguing that the $68.7 billion acquisition would stifle competition and reduce consumer choice.

    The lawsuit was filed late Tuesday in a U.S. federal court in San Francisco on behalf of 10 individual gamers who are fans of Activision Blizzard’s Call of Duty franchise and other popular titles such as World of Warcraft, Overwatch and Diablo.

    Microsoft is facing a number of legal challenges as it tries to finalize what would be the priciest-ever merger of technology companies. The Federal Trade Commission earlier this month sued to block the takeover, saying it could suppress competitors to Microsoft’s Xbox game console and its growing games subscription business. Antitrust regulators in the United Kingdom and European Union are also investigating the deal.

    Several of the plaintiffs in the private antitrust lawsuit said they play Activision Blizzard games on Sony’s PlayStation, the main rival to Microsoft’s Xbox. Others said they play them on personal computers, Xbox or Nintendo’s Switch.

    In response to the lawsuit, Microsoft said Wednesday that the merger “will expand competition and create more opportunities for gamers and game developers as we seek to bring more games to more people.”

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  • FTC sues to block Microsoft-Activision Blizzard $69B merger

    FTC sues to block Microsoft-Activision Blizzard $69B merger

    The Federal Trade Commission on Thursday sued to block Microsoft’s planned $69 billion takeover of video game company Activision Blizzard, saying it could suppress competitors to Microsoft’s Xbox game console and its growing games subscription business.

    The FTC’s challenge could be a test case for President Joe Biden’s mandate to scrutinize big tech mergers. The commission voted 3-1 to issue the complaint after a closed-door meeting, with the three Democratic commissioners voting in favor and the sole Republican voting against.

    The complaint points to Microsoft’s previous game acquisitions, especially of well-known developer Bethesda Softworks and its parent company ZeniMax, as an example of where Microsoft is making some upcoming game titles exclusive to Xbox despite assuring European regulators it had no intention to do so.

    “Microsoft has already shown that it can and will withhold content from its gaming rivals,” said a prepared statement from Holly Vedova, director of the FTC’s Bureau of Competition. “Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”

    The FTC said it was filing the complaint through its administrative process rather than taking the case to a federal court. An administrative law judge it set to hear evidence but not until August 2023, according to the complaint.

    Microsoft’s president, Brad Smith, signaled in a statement Thursday that the company is likely to challenge the FTC’s action.

    “While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court,” Smith said.

    The company had been ramping up its public defense of the deal in recent days as it awaited a decision. Smith said Microsoft has been committed to addressing competition concerns and brought proposed concessions to the FTC earlier this week.

    “We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers,” Smith said.

    Microsoft announced the merger deal in January but has faced months of resistance from Sony, which makes the competing PlayStation console and has raised concerns with antitrust watchdogs around the world about losing access to popular Activision Blizzard game franchises such as the military shooter game Call of Duty.

    Antitrust regulators under Biden “have staked out the view that for decades merger policy has been too weak and they’ve said, repeatedly, ‘We’re changing that,’” said William Kovacic, a former chair of the FTC.

    That has put pressure on the FTC to fulfill its bold promises to “not allow dodgy deals and not accept weak settlements,” said Kovacic, who was a Republican commissioner appointed in 2006 by then-President George W. Bush. But he said Microsoft has a good chance of winning its legal challenge.

    “It’s evident that the company has been making a number of concessions,” he said. “Microsoft would likely raise them in court and say the FTC is being incorrigibly stubborn about this.”

    Microsoft announced its latest promise Wednesday, saying it would make Call of Duty available on Nintendo devices for 10 years should its acquisition go through. It has said it tried to offer the same commitment to Sony.

    In an appeal to Biden administration priorities, Microsoft had also sought to characterize its deal as worker-friendly after announcing a “labor neutrality agreement” in June with the Communications Workers of America that would allow workers to unionize after the acquisition closes. The union’s president, Chris Shelton, wrote an opinion column in The Hill this week calling on the FTC to “seal the deal, not blow it up.”

    The deal is also under close scrutiny in the European Union and the United Kingdom, where investigations aren’t due to be completed until next year.

    FTC’s decision to send the complaint to its in-house judge instead of seeking an urgent federal court injunction to halt the merger could drag the case out for months and give more “confidence to authorities outside the U.S. to take a swing at the deal on their own,” said Kovacic, who is now a professor at George Washington University Law School.

    Activision Blizzard CEO Bobby Kotick said in a message to employees Thursday that the FTC’s action “sounds alarming, so I want to reinforce my confidence that this deal will close.”

    “The allegation that this deal is anti-competitive doesn’t align with the facts, and we believe we’ll win this challenge,” Kotick wrote.

    Kotick said the deal will be good for players, employees, competition and the industry.

    “We believe these arguments will win despite a regulatory environment focused on ideology and misconceptions about the tech industry,” he said.

    Led by FTC Chair Lina Khan, a legal scholar who’s advocated for tougher antitrust enforcement, the commission is made up of three Democrats and one Republican after a second Republican stepped down earlier this year and left an open seat on the panel.

    Democratic U.S. Sen. Elizabeth Warren tweeted Thursday that she welcomed the FTC action, noting that she had urged Khan to scrutinize the proposed merger.

    “Corporate monopolies have had free rein to hike prices and harm workers, but now the Biden admin is committed to promoting competition,” Warren said.

    Both the Justice Department and the FTC this year have looked at strengthening merger guidelines to better detect and prevent illegal and anticompetitive deals.

    Federal regulators also on Thursday opened their campaign to block Facebook parent Meta’s acquisition of a virtual-reality company Thursday in a San Jose, California, courtroom.

    In that case, the FTC sued to prevent Meta’s acquisition of Within Unlimited and its fitness app Supernatural, asserting it would hurt competition and violate antitrust laws.

    Microsoft in recent years has largely escaped the more intense regulatory backlash its tech rivals such as Amazon, Google and Meta have endured. But the sheer size of the Activision Blizzard acquisition — which could be the priciest in tech industry history — has drawn attention.

    Microsoft’s last big antitrust battle occurred more than two decades ago when a federal judge ordered its breakup following the company’s anticompetitive actions related to its dominant Windows software. That verdict was overturned on appeal, although the court imposed other, less drastic, penalties on the company.

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  • Microsoft strikes 10-year deal with Nintendo on Call of Duty

    Microsoft strikes 10-year deal with Nintendo on Call of Duty

    LONDON (AP) — Microsoft agreed Wednesday to make the hit video game Call of Duty available on Nintendo for 10 years should its $69 billion purchase of game maker Activision Blizzard go through — an apparent attempt to fend off objections from rival Sony.

    The blockbuster merger is facing close scrutiny from regulators in the U.S., Europe and elsewhere. Microsoft, maker of the Xbox game console, faces resistance from Sony, which makes the competing PlayStation console and has raised concerns with antitrust watchdogs about losing access to what it calls a “must-have” game title.

    Phil Spencer, the head of Xbox, tweeted that Microsoft “entered into a 10-year commitment” to bring Call of Duty to Nintendo.

    Microsoft President Brad Smith tweeted his thanks to Nintendo, which makes the Switch game console, saying the same offer was available for Sony.

    “Any day @Sony wants to sit down and talk, we’ll be happy to hammer out a 10-year deal for PlayStation as well,” he said.

    Smith said the agreement would bring Call of Duty to more gamers and more platforms, and “that’s good for competition and good for consumers.”

    Sony’s European press office didn’t respond to a request for comment. Adding to the pressure on Sony, Microsoft also said Wednesday it has committed to keeping Call of Duty on the platform Steam, a digital marketplace for PC games, in an agreement with Steam’s operator Valve.

    In an op-ed for The Wall Street Journal this week, Smith raised concerns about the possibility that the Federal Trade Commission could take Microsoft to court to stop the deal. Antitrust watchdogs in both Britain and the European Union also are investigating the transaction over concerns it would distort competition.

    At the heart of the dispute is control over future releases of Activision Blizzard’s most popular games, especially Call of Duty, a first-person military shooter franchise. Activision reported last month that the latest installment, Call of Duty: Modern Warfare 2, had earned more than $1 billion in sales since its Oct. 28 launch.

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  • Nintendo sets sales record with new Pokémon games on the Switch console

    Nintendo sets sales record with new Pokémon games on the Switch console

    Nintendo said its Pokémon Scarlet and Pokémon Violet games for the Nintendo Switch hit an all-times sales record for the company. Pokémon is one of Nintendo’s longest-running and most popular franchises.

    Guillaume Payen | Sopa Images | Lightrocket | Getty Images

    Nintendo on Thursday said it latest Pokémon games have set a sales record at the Japanese gaming giant as it continues to pump out blockbusters ahead of the crucial holiday season.

    The Kyoto, Japan-headquartered company said sales of the Pokémon Scarlet and Pokémon Violet games for the Nintendo Switch surpassed 10 million units in the first three days since their global launch on Nov. 18.

    That is the highest level of sales for a game’s debut in Nintendo’s history.

    Nintendo’s success with Pokémon comes two months after Splatoon 3 hit a domestic sales record in Japan, in signs the gaming giant is hitting the mark with players ahead of the holidays.

    Pokémon is one of Nintendo’s most recognizable and longest-running franchises. Nintendo breathed new life into the series by releasing Pokémon Sword and Pokémon Shield three years ago and Brilliant Diamond and Shining Pearl last year.

    Pokémon Scarlet and Pokémon Violet are different as they are open-world games, allowing players to explore the game environment without completing missions in a linear way.

    The video games industry saw a boom during the Covid-19 pandemic in 2020 and 2021 as people were stuck at home during lockdowns. But as economies have reopened, the industry has started to normalize, which has weighed on video game giants including Nintendo, Sony and Microsoft.

    “With the new Pokémon, Nintendo achieved a rare feat among all video game companies: scoring two blockbusters in a difficult 2022 for the industry,” Serkan Toto, CEO of Tokyo-based consultancy Kantan Games, told CNBC.

    “Sure, Pokémon is almost always a safe bet, but the new title has exceeded expectations, just like Splatoon 3 did earlier this year.”

    Investors are backing Nintendo thanks to its recent blockbusters. The company’s shares are up more than 11% this year, outperforming Japan’s benchmark Nikkei 225 index. In September, Nintendo carried out a 10-for-1 stock split which has also boosted sentiment.

    Nintendo also has a strong pipeline of games. Toto expects The Legend of Zelda: Tears of the Kingdom slated for release in May to be the company’s next major hit.

    But Nintendo is not the only gaming giant entering the holiday season in a strong fashion.

    Sony said Wednesday that the God of War Ragnarok title for its PlayStation console sold 5.1 million copies in its first week making it the fastest-selling debut of any first-party game for the company. First-party games are those made by a gaming studio owned by Sony.

    Sony shares closed more than 2% higher in Japan on Thursday.

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  • Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant

    Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant

    Nintendo carried out a 10-for-1 stock split which reduces the price of an individual share. The 133 year old Japanese gaming giant hopes the move will make it more affordable for a wider pool of investors to buy the company’s shares.

    Zhang Peng | LightRocket | Getty Images

    Nintendo carried out its previously announced 10-for-1 stock split on Thursday aimed at reducing the price of one individual share to attract new investors to the more than century old Japanese gaming giant.

    Prices for Nintendo’s stock reflected the split on the Japanese Stock Exchange website. Nintendo shares closed at 6,043 Japanese yen ($41.76) on Thursday, after closing at 59,700 on Wednesday.

    Each share of common Nintendo stock has been split into 10 shares, hence the reduction in price per share.

    The move is designed to appeal to a wider pool of investors. In Japan, typically investors must buy a block of 100 shares in one company. At Nintendo’s old share price, that would cost a minimum of 5.97 million Japanese yen, or just over $41,200. With the split, 100 shares would cost 604,300 Japanese yen or just over $4,170 at Thursday’s closing price, potentially making it more affordable for individuals to invest in Nintendo.

    “That minimum investment of around 6 million yen is enough to put a student through an entire four-year study program at a Japanese university,” Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, told CNBC.

    “It was really about time for Nintendo as a consumer-facing company with such a strong brand recognition to reduce the share price.”

    “Now, Nintendo is more affordable especially for younger people, a type of investor that has been growing in Japan in recent years,” he added.

    A number of major tech firms, including Apple and Amazon, have announced stock splits over the past few years. While stock splits don’t fundamentally change the company in any way, they do make buying shares in the firm cheaper.

    The split comes at a testing time for Nintendo, a 133-year-old company, amid broader challenges in the video game industry. In the second quarter of the year, Nintendo’s operating profit fell 15% while sales of its flagship Switch games console also declined. The Japanese gaming giant is facing supply chain challenges which is hampering its ability to meet demand for the Switch.

    However, Nintendo games are still appealing to a wide range of consumers. The company said this month that sales of Splatoon 3 in Japan surpassed 3.45 million units — a domestic record for any Nintendo Switch software within the first three days of sales. Splatoon 3 was launched on Sept. 9.

    Nintendo is also gearing up to release popular titles in the coming months including a new game in the Pokemon franchise.

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