Microsoft Defends Bethesda Acquisition Following Activision Blizzard Lawsuit
Responding to the FTC's lawsuit against its acquisition of Activision Blizzard, Microsoft defends a previous merger with Bethesda.
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Microsoft has defended Bethesda after the US Federal Trade Commission cited the company in its justification for suing the proposed deal with Activision Blizzard. Both Microsoft and Activision Blizzard have had their responses to the FTC's lawsuit published which strongly contest the arguments posited by the regulatory body. The FTC followed through on prior rumors that it would likely sue to block Microsoft's nearly $69 billion acquisition of Activision Blizzard, announcing its intent to do so earlier this month. Seemingly convinced by the concerns raised by chief competitor Sony, the commission cited fears that the merger would allow Microsoft "to suppress competitors." Providing evidence that Microsoft may engage in this behavior, the FTC pointed to its acquisition of ZeniMax last year, which brought IPs such as Fallout and Elder Scrolls under its control. Although Microsoft honored previously established timed-exclusivity deals made with Sony, future titles published by Bethesda are expected to be Xbox and PC bound.
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And this is effectively confirmed in the response offered to the FTC, which states "Xbox anticipates that three future titles... will be exclusive to Xbox and PCs." Microsoft justifies this course of action by describing the games as "designed to be played primarily alone or in small groups." Due to a redaction, it is not clear if the titles in question have been announced or refer to Starfield, The Elder Scrolls 6, and Redfall, three upcoming games that have already been confirmed to be Xbox and PC exclusive.
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Microsoft believes that its acquisition of ZeniMax "has no relevance to the current transaction" and arguably works in its favor because "Xbox has continued to release new updates of existing ZeniMax games such as Fallout 76 and Elder Scrolls Online on both Xbox and PlayStation." The perceived strength of Microsoft's position has led many to the conclusion that the FTC will seek concessions, given that it is allegedly unlikely to achieve victory in court. However, the commission has found recent success against Epic Games, announcing that the Fortnite owner would have to pay over $500 million for breaching privacy laws. Other than Sony, the FTC does not seem to have the support of many stakeholders, notably gamers themselves. The United Kingdom's Competition and Markets Authority invited the public to offer their opinions regarding Microsoft's acquisition of Activision Blizzard and approximately three-fourths spoke favorably about it. Much of sentiment surrounding the proposed merger is informed by the parties' respective reputations, which could not be more at odds. Activision Blizzard has experienced a spectacular fall from grace that reached its lowest point last year, when the Californian government filed a lawsuit against the company for a toxic workplace that targeted women. The predatory monetization of Diablo Immortal and the disappointing launch of Overwatch 2 have done little to heal its image, and fans hope that Microsoft, a company that has spent years cultivating a positive standing in the industry, could act as a good influence.
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