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Phil Spencer Says Xbox Will Forge Ahead, Even Without Activision Blizzard - Report

The deal was recently blocked by the UK, but Microsoft is reportedly working around it.

46 Comments

Microsoft Gaming CEO Phil Spencer has reportedly reassured staff following the news of the block to the Microsoft/Activision Blizzard deal in the UK.

On Wednesday, it was confirmed that the UK government's Competition and Markets Authority had decided to block Xbox's acquisition of Activision Blizzard, due to cloud gaming concerns. The $69 billion deal has been in the works for months, but the CMA said that the purchase "would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come."

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According to Bloomberg and its sources, Spencer reportedly acknowledged the CMA's decision in a meeting for division employees, saying it will slow the approval process but that Microsoft's desire to pursue the deal hasn't wavered.

The Xbox chief went on to say that the deal was meant to speed up the company's gaming plans. He explained that it doesn't represent the entirety of the planned strategy, which would apparently move ahead even without Activision, the source who was present in the meeting added.

Additionally, Spencer told those in the meeting that Microsoft President Brad Smith was drafting a response to the CMA at 2 AM Seattle time on Wednesday, while Chief Financial Officer Amy Hood, who oversees acquisitions, held a senior leadership meeting the same day.

The CMA also noted in its deliberation that Xbox making Activision Blizzard games like Call of Duty exclusive to its consoles didn't make any business sense and that Microsoft had failed to address the concerns of cloud gaming. The Microsoft President responded to the block on Wednesday, saying, "We're especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works." Smith added that the company "remains fully committed" to the acquisition and will appeal the decision.

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Zedetach6

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I can never understand how a literal nobody gets to decide the fate of two established American companies.

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Dushness

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Dushness  Online

so now they pay $69 billion to keep activision/blizzard games off playstation?

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sladakrobot

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Edited By sladakrobot

@dushness: Well,the CMA said they see no problems Xbox having CoD and other franchises as far its about consoles.

The CMA saw issues in the cloud gaming sector(which is just a jokingly around 3% of the current gaming revenue if i recall it correctly) and the fear Xboxs possible dominance in future could prevent cloud gaming from innovation and stuff in the UK.

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nintendians

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eventually microsoft would move on.

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Atzenkiller

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@nintendians: Sure, they'll just buy up some other giant company. In the meantime, while they were working on this deal plenty more billions of $ have piled up, so they can aim for an even bigger deal now.

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nintendians

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@Atzenkiller: pretty much.

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crazknuk

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Honestly, I hope MS was actually acting in good faith to keep COD multiplat, but now I hope they either buy the IP outright or pay Activision and make it an exclusive just as an FU to the CMA and FTC. Honestly, the ruling makes zero sense and it shows how out of touch these organizations are. Unfortunately they cannot be experts in every industry, but when they simply don't listen to experts, it's boggling.

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thenephariouson

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Now that the 'Cat's out of the bag', I reckon they'll end up purchasing components and elements of Activision.

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Slannmage

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What is fascism? The marriage of state and corporations..... These companies are not your friends people. It should be the role of government to keep them in check, not to partner up with them. It is so bizarre to me today how people worship corporations, they have fanboy wars over them as if they care about anything other than profit. Phil Spencer has been with Microsoft since 1988, he isn't think hip cool gamer doing it for the love of games like he makes you believe, this is an act.

If Microsoft buys Activision Blizzard, they will do exactly what they did with Bethesda, they will make games exclusive to their platforms and then blame others for not gaming Gamepass support.

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lonewolf1044

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@Slannmage: Of course they are not friends, they are in it to make money as any company does. They want you pay your money and not cheap sometimes, but they are not a charity where everything is free. Sony is not my friend and I do not expect free stuff, Some of Sony's games are exclusive and MS is the wrong one here Oh please. Oh, and yes, I own a PS 2 through 5 as well as a OG Xbox and Xbox X series.

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NilsDoen

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@lonewolf1044: what are you even saying?

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Atzenkiller

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@lonewolf1044: So you think that MS buying up other companies to get more exclusives is the solution? That this will improve the problem with Sony having too many exclusive titles? Sounds like as great a solution as delivering an endless supply of weapons to Ukraine to make sure the war never ends.

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EastLand

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@Atzenkiller: You're right Ukraine can't win that war, we're supplying weapons simply to keep it going and make certain individuals lots of money.

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gaeandilth

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@Slannmage: Corporations have much better intentions than the Government. Can not really put all the blame here on them. Corporations only get away with things like Microsoft does at the mercy of the politicians they are paying off.

I have no doubt this play by the CMA is either UK politicians trying to get their cut. Or they already have and actually blocked this because they were paid by Sony in Retaliation for Microsoft doing the same thing to them over the Bungie buyout.

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Zedetach6

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@Slannmage: and how is game pass a problem when it's significantly better than anything that Sony has to offer?

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lonewolf1044

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Edited By lonewolf1044

@zedetach6: Yes, it is better than what Sony offer even though the GP app itself has some flaws, I sub to both GP and PS Plus.

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deactivated-64efdf49333c4

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One part you're missing is the CMA not having faith in MS producing a proper CoD entry for the Switch.

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squishytia

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Microsoft has been getting very desparate to try and get this deal through. They've engaged in a literal flurry of concessions to try to make this appealing to the regulators. Thing is, if this deal is such a good thing for competition, why then do they have to make concession after concession just to eke out a win? Shouldn't the acquisition stand on its own if it's good for competition?

The answer is no, it shouldn't, because it can't. In the game industry, acquisitions are for one purpose and one purpose only: to bolster one's own IP portfolio while subsequently making said IP exclusive to the new IP holder. This happened with Bethesda, and Microsoft has a very clear track record of not adhering to either agreements or even legal requirements (MS Edge, like its predecessor, Explorer is tied directly into Windows Update, which was supposed to have never happened; Click a link in any of Microsoft's own control panel windows and it opens...Edge, regardless of what your default browser is).

MS isn't trustworthy. The regulators know this.

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lonewolf1044

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@squishytia: Is Sony trustworthy? I do not trust either one of them and with good reason but business is business and sorry Sony is sour about the whole thing. They are a business and they will eventually work things out.

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BlackDiamond81

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@lonewolf1044: Under every comment, you say you're impartial, but constantly have disparaging quips about Sony. Just admit that you may not be as objective as you're portraying yourself to be. You can always smell an MS fanboy a mile away, lol.

MS will eventually get Activision/Blizzard and flake because they have a history of this behavior. I have a PC, so we will see how this whole thing shakes out. Gamepass has been somewhat subpar.

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deactivated-64c06b51403e7

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I know they can do without Activision and I'd rather they did.
Honest to god, we don't need another megacorp, or an even bigger megacorp.

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lonewolf1044

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@proceeder: No, but even with buying up smaller to larger devs eventually lead to a megacorp each purchase adds and not subtract and Sony may not like that as well looking at their behavior.

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Atzenkiller

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@lonewolf1044: Why are you so desperate to see Sony burn? It's a company like any other, all out to get your money and not giving a **** about you otherwise. So why do you seem to obsessed with blaming Sony for everything that you're even supporting another much bigger company like MS gaining even more power? So they can **** you over even better.

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sladakrobot

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@proceeder: Yeah,lets buy all the smaller and mid studios seperatly then in future ....chomp chomp chomp.
Sony shows that these deal get through as fast as you tie your shoes.

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deactivated-64efdf49333c4

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@sladakrobot: The Playstation division is not considered a megacorp, and not a single one of those studios produced a megahit multiplat franchise that they then proceeded to exclusivize. The closest one is Bungie, but Destiny remains multiplat. And a good chunk of those studios have disbanded over the years.

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sladakrobot

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@Barighm: By saying this you exclude Sony...can i exclude Microsoft?
PS is not a megacorp but it is dominating the gaming market.
Xbox is not a megacorp and is in the backfield.



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Atzenkiller

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@sladakrobot: I dunno why Xbox is considered to be a separate business. It's just a product branch of one of the biggest, most powerful companies in the world. A company that makes over $60 billion a year in profit. That's a company that could buy up whole countries if it wanted to. Is there really a good reason for why such a company should be allowed to get even bigger? Would you benefit from it in some way?

The main concern is that MS is going to get even bigger and have even more control over the gaming industry but also in general. This deal is not likely to put them back into the lead in the console race or anywhere close to it. I'm sure everyone realizes that. But the bigger they get the more companies they will keep buying up. And folks are cheering them on because who needs companies that are under their own leadership? We'd be much better off under an overlord who owns everything and decides everything for us. Right?

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deactivated-64c06b51403e7

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@sladakrobot: Well that's terrible too.
The other wrong doesn't make this right.

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hardwenzen

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We can clearly see that with how they handle ALL their first party devs, Halo Infinite and Redfall😆

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deactivated-64efdf49333c4

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@hardwenzen: To be fair, Sony hasn't been much better lately as more and more of their games are feeling mainstreamed, and we KNOW Ryan is all-in on GaaS. We just had Yoshida state outright he often encourages devs to abandon any game he doesn't consider worthwhile, or as he put it, save them from burdening themselves with a poorly selling idea.

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sladakrobot

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Edited By sladakrobot

@hardwenzen: Infinite is on Xbox shoulders for sure but Zenimax/Bethesda act independent as before so Redfall is their burden to carry.

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GamerBum

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Edited By GamerBum

@sladakrobot:

I would say the Redfall 30FPS debacle is on both Xbox and Bethesda. But mainly Xbox. Xbox is now in charge, something should have been done to get the 60 FPS performance patch ready for launch. And if they couldn’t have made it in time then they should’ve just delayed, regardless of the 12 month commitment they made.

Xbox failed here, there’s no denying it. The leadership at Xbox should know by now that they are held to a different standard. They are not let off the hook by the industry in the same way playstation is. There’s a double standard unfortunately. It’s just the way it is.

Xbox leadership must know by now that the gamers/industry are laser focused on them right now. Any little slip up gets magnified for them and gets blown out of proportion.

Then the biased towards playstation gaming media and fanboys crucify them as quickly and as toxically as possible.

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sladakrobot

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Edited By sladakrobot

@gamerbum: Redfall started as a UE4 developed game and mid in the project Epic brought out UE5 and Arcane wanted to use it and had to switch.

Wrong decision? Perhaps.

There are technical problems they have to solve and the only thing Xbox could have done is to send devs skilled with UE5(maybe they did...Coalition?) over to Arcane or give them even more time means another delay(a bigger PR disaster?).

Either way,they all should get their shit together and release games in the best possible shape.

Still, the last Redfall trailer looks and sounds dope...shame i am not into FPS that much

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Atzenkiller

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@sladakrobot: Arkane's games always had issues. I remember playing Dishonored 2 after they're stopped support for the game, so it was supposed to be fully patched up, yet it still had some control lag that they never got rid of.

But as they're owned by Bethesda and Bethesda is known to release games in a piss poor state, what do you expect? I'd never expect any Bethesda game to be in a decent state at launch. Many of their games never got there at all.

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Carpetfluff

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Edited By Carpetfluff

Phil's going to be gone soon for sure. They won't do it right now because they need to look like they're still a steady ship, but it's gonna happen.

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deactivated-64efdf49333c4

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@Carpetfluff: Oh, he's already "gone". They only keep him around for PR. Other executives have been signing off on all of his decisions for a good while now. Pay close attention to any announcement or topic he talks about. There is always one of MS' top brass behind him. There have also been numerous instances where he has said something along the lines of "I'd love to do this, but I can't". This is in stark contrast to when the Xbox One first released when he was often bragging about how he reversed all of the X1's polarizing decisions and how the BC thing was all his idea. When none of that did little to break the Xbox's 30 million cap, that is when Spencer seemed to fade.

"OMG LOL!?!)a!? THEN WHY THEY PROMOTE HIM?" you say? Simple: when you can't fire someone because they're too well liked, but you don't want to lighten up too much on their leash, you promote them. A lot of people think promotions are always this amazing thing, but the reality is one of the best ways to neuter a popular progressive personality is to put them in the boardroom where their influence is reduced to just one vote.

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