Gaming

Microsoft responds to the FTC: we want Activision to gain a mobile presence

Microsoft's response to the FTC

It seems that the battle between Microsoft and the United States Federal Trade Commission (FTC) has begun in earnest since the Xbox company made public its response to the document in which the regulator confirms its demand with intentions to block the purchase of Activision Blizzard. In a first order of ideas, the North American company reaffirms that its intention for the purchase is to gain a position in the mobile gaming sector.

Microsoft makes public its response to the FTC on the purchase of Activision

A few moments ago, the official document with Microsoft’s response was published (via CNBC) to the FTC where he sets out the points and reasons why the acquisition will not create a monopoly or affect the industry. In this sense, the company begins by pointing out that the main reason it bought Activision Blizzard King is for the success of its mobile business. Here, it is necessary to remember that the King division, owner of Candy Crushcontributes more than 50% of the revenue and profit for the publisher.

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Microsoft wants Activision to gain mobile presence

In this regard, Microsoft states: “Xbox wants to increase its presence in mobile games. Three-quarters of Activision’s gamers and more than a third of its revenue come from mobile offerings. Xbox also believes that it is good business to make the portfolio of Activision’s most popular games more accessible to consumers by bringing them to more platforms, making them more affordable.

Microsoft’s response to the FTC

To exemplify his point, Microsoft shared graphs in which it proves its position in different sectors of the video game business, which offer interesting data such as the distribution of the console sector in 2021 with Nintendo in the lead with 50%, PlayStation with 34%. and Xbox with 16%. At the same time, the graphs confirm that the presence of Xbox on mobile phones is almost nil.

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According to the information available so far, in case there is no prior settlement, the FTC’s first hearing on the Microsoft and Activision case will take place until August 2023, hence it is thought that there are still a long way to go.

Stay informed, at LEVEL UP.

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