The UK has blocked Microsoft’s acquisition of Activision Blizzard - here’s why that matters

In a bombshell revelation, the UK Competition and Markets Authority has prevented Microsoft’s $69 billion acquisition of major AAA developer Activision Blizzard.

In January of 2022, Microsoft initially announced its plans to merge with Activision Blizzard, a move that sent shockwaves through the gaming world and beyond. Major publishers - spearheaded by an obstinate Sony - quickly spoke against such a move. Sony in particular argued that Microsoft gaining in-house access to Call of Duty, World of Warcraft, and other major IPs would unfairly tip the scales of development in Xbox’s favor. Thus, a year-long battle began. Microsoft pledged not to make any Activision-Blizzard IPs platform exclusive, offering a 10-year contract of keeping Call of Duty on Playstation. Along with that, however, Xbox sent subpoenas to Sony’s Playstation offices, forcing Playstation to reveal key figures of its business, sales, and production cycle. And the cherry on top? Activision Blizzard, the publisher Microsoft is dropping the biggest acquisition in gaming history on is led by Bobby Kotick, the CEO known for sexual assualt, harassment, and misleading his employees.

UK’s CMA block doesn’t mean the deal is dead in the water. The FTC already sued to block, and Microsoft has vowed to appeal both decisions from these trade commissions. But as of right now, things are looking rough for Microsoft. A lack of platform exclusivity has shot their newest console, the Xbox Series X, squarely in the foot. This massive merger could mean real incentive to buy their flagship product over Playstation’s PS5 - though that would only happen further down the line.

Whether the deal goes through or not, this merger - and the legal fight following it - will forever be remembered as one of the biggest and boldest moves in the industry.