Top tech news of the week - Microsoft's Cloud Gaming Ambitions Hit Roadblock

Key Points

• There were lots of reasons Microsoft wanted to buy Activision Blizzard.
• Activision has a multitude of popular game franchises — Call of Duty, World of Warcraft, and Candy Crush Saga — to add to its Xbox gaming division.
• But the key one, and the thing Microsoft is betting its gaming future on, was cloud gaming. That’s what’s thrown the multibillion-dollar deal into doubt.
• U.K. regulators fear that Microsoft could in future withhold its blockbuster Call of Duty, Warcraft and Diablo titles from other cloud gaming platforms.

Microsoft's $68.7 billion acquisition of Activision Blizzard, one of the largest in gaming history, is facing regulatory scrutiny, largely due to Microsoft's focus on cloud gaming. Activision Blizzard owns popular franchises like Call of Duty, World of Warcraft, and Candy Crush Saga.

The acquisition would strengthen Microsoft's Xbox gaming division with additional content and talent. However, UK regulators blocked the deal due to concerns that Microsoft, which dominates the cloud gaming market, could withhold Activision Blizzard's titles from other cloud gaming platforms in the future.

Cloud gaming, which allows players to stream games from remote data centers on any internet-enabled device, is seen as the future of the gaming industry, and Microsoft has made significant investments in it. However, the technology is still in its early stages and requires a strong internet connection to function well.

The UK's Competition and Markets Authority (CMA) is worried that Microsoft could inhibit the industry's growth as cloud gaming becomes more mainstream. Despite its small size today, cloud gaming revenue is expected to more than double by 2026.

Read the full article - https://www.cnbc.com/2023/04/28/microsofts-big-bet-on-cloud-gaming-is-what-tripped-up-activision-deal.html??

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