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The Microsoft / Activision Blizzard acquisition |OT| Antitrust Simulator (completed; discussing post-merger issues)

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Kyler

Member
May 31, 2022
3

Went over the Korean FTC's decision.

These are some of the main points that got concluded quite differently from CMA's argument. (Original Korean words followed by translations)

Unlike many other countries that use "Activision" as a shorthand for "Activision-Blizzard Inc", the KFTC refers to the company as "Blizzard". Therefore, in this document, "Blizzard" means the entire "ABK". Some of the arguments presented here may be specific to the Korean domestic market, while many still have broader global implications.

  • 오히려 본 건 결합으로 콘솔 시장의 3위 사업자인 MS의 경쟁력이 강화되면 콘솔 시장의 경쟁이 촉진될 가능성도 존재한다
    • On the contrary, the merger may promote competition in the console market by strengthening the competitive position of MS as the third largest player in the console market.
  • (봉쇄능력) MS와 블리자드가 개발·배급하는 클라우드 게임의 합산점유율(4~6%)이 낮고, 블리자드 외에도 다수의 배급사들이 인기 게임들을 공급*하고 있어 대체공급선도 충분하므로 봉쇄능력이 없다고 보았다. * 스마일게이트(로스트아크), 텐센트(리그오브레전드), EA(배틀필드) 등
    • (Lock-in capability) The combined market share of cloud games developed and distributed by MS and Blizzard is low (4-6%), and there are many publishers besides Blizzard supplying popular games*, so there are enough alternative supply lines, so there is no lock-in capability.
      * Smilegate (Lost Ark), Tencent (League of Legends), EA (Battlefield), etc.
  • (봉쇄유인) 현재 블리자드 게임은 모든 클라우드 게임 서비스에 제공되지 않고 있어 봉쇄 유인을 계량적으로 판단하기는 어렵다. - 다만 경쟁사인 엔비디아의 사업모델상 엔비디아에 블리자드 게임을공급(스트리밍 라이선스 부여)할 경우, 해당 게임의 다운로드 판매 매출도함께 증가하므로 봉쇄 유인이 작아지는 측면이 있다. * 엔비디아의 사업모델은 BYOG(Bring-your-own-game) 방식으로, 이용자들은 원하는게임을 별도로 구매(예: 스팀에서 블리자드 게임 구매)하여 다운로드 방식으로 즐길 수 있고, 엔비디아의 클라우드 게임 서비스에 가입(월정액)하면 보유한 게임을 스트리밍방식으로도 즐길 수 있게 되므로 블리자드와 엔비디아의 매출 증가가 상호 상승 작용.
    • (Lock-in incentives) It is difficult to quantify lock-in incentives because Blizzard games are not currently available on all cloud gaming services. - However, given the business model of competitor Nvidia, the incentive to lock-in is reduced by the fact that supplying Blizzard games to Nvidia (licensing them for streaming) increases the revenue from download sales of those games.
      Nvidia's business model is BYOG (bring-your-own-game), which means that users can purchase the games they want separately (e.g., buy Blizzard games on Steam) and enjoy them as downloads, and if they subscribe to Nvidia's cloud gaming service (for a monthly fee), they can enjoy their games as streams, so the increase in revenue for Blizzard and Nvidia is mutually reinforcing.
  • 아울러 클라우드 게임 서비스는 초기 단계*이고, 국내 시장에서 사업자 순위가 매년 뒤바뀌는* 등 역동적으로 변화하고 있으며, 향후 진입가능한 사업자(소니, 아마존 등)도 존재하여, 본 건 기업결합으로 인한 경쟁제한 우려도 작다. *국내 클라우드 게임 서비스 시장규모는 전체 게임 시장의 0.02% 수준
    * 최근 3년간 1위 사업자 추이: MS('20년) → 엔비디아('21년) → MS('2년)
    • In addition, cloud game services are in their early stages*, the domestic market is changing dynamically, with the ranking of providers changing every year*, and there are possible future entrants (Sony, Amazon, etc.), so there is little concern that the merger will restrict competition. * Domestic cloud game service market size is 0.02% of the total game market * The trend of the number one provider in the last three years: MS ('20) → Nvidia ('21) → MS ('22)
  • 엔비디아 클라우드 게임(GeForceNow)은 PC전용 게임을 서비스할 수 있어, 이용자가기존에 스팀 등 PC게임 상점에서 구매한 게임들도 활용할 수 있다는 강점이 존재→ 실제로 PC용 인기 게임인 로스트아크가 엔비디아 클라우드 게임 서비스로 출시되자 국내 유료 가입자가 크게 증가하는 현상이 나타남
    • NVIDIA Cloud Games (GeForceNow) has the advantage of being able to serve PC-only games, allowing users to utilize games previously purchased from PC game stores such as Steam → In fact, when the popular PC game Lost Ark was released on NVIDIA Cloud Games, the number of domestic paid subscribers increased significantly.
  • 공정위는 MS가 클라우드 인프라(Azure), 서버 OS(윈도우) 보유 등 클라우드 게임 시장에서 다수의 경쟁력 있는 생산요소를 보유하고있으나, 이는 결합 이전부터 보유한 특성으로, 본 건 결합으로 발생한 특유의 효과라고 판단하지 않았다.
    • The KFTC found that MS possesses a number of competitive production factors in the cloud gaming market, including cloud infrastructure (Azure) and server OS (Windows), but these are characteristics that it possessed prior to the merger and are not unique effects of the merger.
  • PC OS 시장에서 MS 윈도우는 높은 점유율([70~80]%)을 보유하고 있고, 게이밍 PC로 한정 시 윈도우 점유율은 더욱 높은 것*으로 예상된다. 그러나 공정위는 본 건 결합이 없더라도 블리자드가 非윈도우 OS용 게임을 개발할 가능성은 극히 미미하다고 판단하였다. 윈도우가 지배적 OS이고 경쟁 OS는 이용자층이 넓지 않아 게임 개발사로서는 타OS로 게임을 발매할 유인이 적기 때문이며, 이에 따라블리자드도 최근 10년 간 주요 PC 게임을 윈도우OS로만 발매하고 있다.
    • MS Windows has a high market share ([70-80%]) in the PC OS market, and its share is expected to be even higher* when limited to gaming PCs. However, the FTC found that even without the combination, the likelihood that Blizzard would develop games for non-Windows OSes was extremely small. This is because Windows is the dominant OS and competing OSes do not have a large user base, so game developers have little incentive to release their games on other OSes, which is why Blizzard has only released major PC games on Windows OS for the past 10 years.
  • 타OS로 게임을 추가로 발매하기 위해서는 개발 시간 및 비용, 운영비용(품질보증, 이용자 지원 등)이 추가 소요되나, 이용자가 적으면 수익은 제한적
    • Releasing additional games on other OSes requires additional development time, costs, and operational costs (quality assurance, user support, etc.), but the revenue is limited if there are few users.
  • 따라서 향후 블리자드 윈도우 외의 OS로 게임을 개발하지 않더라도, 이는 기업결합으로 인한 경쟁제한 효과라 보기 어렵고, 현재도 윈도우용 게임만 제공하는 만큼 기업결합 후 PC OS 시장에서 MS 윈도우의 지배력이 추가로 강화되는 것도 아니라고 보았다.
    • Therefore, even if Blizzard does not develop games for OSes other than Windows in the future, this is unlikely to be a restrictive effect of the merger, and it is unlikely that the merger will further strengthen the dominance of MS Windows in the PC OS market as it currently only offers games for Windows.


I hope this is useful for those who are curious.
 
Gavalanche

Gavalanche

Prophet of Regret
Member
Oct 21, 2021
17,795
12Danny123 said:
They're the second biggest market for consoles. Consoles is not a concern for the CMA, only Cloud gaming. The UK being the Xbox's second biggest console market has no bearing here.
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Thats fine, I wasn't speaking from the CMAs point of view, or their ruling. The question was how can the UK be the sole veto when the rest of the world is fine, and they can be because it is a country that is of upmost importance to microsoft, thats how it has bearing. They command a lot of influence, essentially. I only used consoles because well I don't know how important it is to Microsoft as a whole, but I imagine it is decent. It is big enough that they can't be ignored.
 
Dingo

Dingo

Member
Jul 19, 2022
776
Jesus 0.02 percent of the entire market for cloud in Korea eh?

Interesting how korea regs see sony and amazon as safety nets ensuring their will be new entrants to keep the field competitive.

Also the way they phrase MS having azure and windows as a non interest because they had them before the deal Is a little shocking. Really casual.
 
OP
OP
Idas

Idas

Antitrusting By Keyboard
Member
Mar 20, 2022
2,042
New report from MLex with more details about the KFTC decision:

- KFTC's Im Kyeong-hwan said during a background briefing with reporters that: "There might be criticism that we have taken a lenient approach to the merger involving a Big Tech company, especially as some global regulators like those in the EU or the US, have raised issues about the deal". "But we'd like to highlight that we have carefully scrutinized the impact it might have on the competitive landscape within our local markets and made our assessments accordingly."

- The regulator's review primarily focused on the potential for competition to be stifled in console and cloud gaming services, to see if MS could choose to supply Blizzard's popular games exclusively to its own platforms. The review concluded that the likelihood of Microsoft implementing such a strategy is small, and, even if Microsoft were to do so, the chances of other competitors being pushed out of the markets are low due to the combined market shares of their games being relatively small and the presence of other game developers with a variety of popular titles.

- The KFTC did not express any concerns about the potential for Microsoft to obstruct competition by blocking access to Blizzard games on Sony's PlayStation because the combined market share is very small, at most 2 percent, Blizzard's comparatively lower game popularity in South Korea and the robust alternative sources of supply available to Sony.

- Call of Duty's market share is less than 2 percent in South Korea, while it's up to 8 percent globally.

- While the KFTC expressed uncertainty about Microsoft's potential incentives for limiting the Blizzard games on PlayStation, pointing out to the company's move to restrict access to certain titles from Zenimax, as a long-strategy, they didn't find any no clear short-term monetary benefits.

- The market shares, based on game sales in 2021, are PlayStation with 70 to 80 percent, Nintendo with 10 to 20 percent, and Xbox with 0 to 10 percent.

- The KFTC noted that if Microsoft's competitiveness increases as a result of the merger, it could paradoxically enhance competition within the console gaming market.

- The KFTC differed from its UK and EU counterparts regarding cloud gaming, determining that the deal's vertical integration of cloud gaming distribution and services markets does not pose a competitive threat by restricting Nvidia and other competitors' access to Blizzard games.

- The KFTC pointed out that Microsoft and Blizzard's combined share of the cloud gaming market is small, sitting between 4 to 6 percent, and there are numerous other distributors, including Smilegate, Tencent and EA, providing popular titles like Lost Ark, League of Legends or Battlefield.

- In South Korea the popularity of console games is eclipsed by PC games, which limits Microsoft's ability to block competition, given that it delivers only console games, not PC games, via cloud. The regulator said even if Microsoft were to provide Blizzard games, to Nvidia via a streaming license, it would likely boost the revenue from game downloads, reducing Microsoft's incentive to block access.

- The KFTC also underlined that while it's true that Microsoft commands a significant market share in cloud gaming, 60 to 70 percent, and that there's a notable entry barrier in the cloud gaming services market, the popularity of Blizzard games, again, is not overwhelming, and considering the domestic preference for PC games over consoles, Nvidia could potentially have a brighter future since it provides existing PC games via cloud.

- The KFTC said that the cloud gaming service market is still nascent, with the leading businesses shifting annually: Microsoft in 2020 and 2022, and Nvidia in 2021. The market currently represents just 0.02 percent of the total gaming market (in South Korea, I guess), and with potential future entrants like Sony and Amazon, the competition isn't likely to be stifled.


So far, 5 regulators have reviewed the cloud gaming market:

- EC (Europe): concerned about it but too small and nascent; behavioural remedies are enough.

- FTC (US): concerned about it, nascent but it will become a reality soon; behavioural remedies are not enough.

- CMA (UK): concerned about it, nascent but will become a reality in 5 years, behavioural remedies are not enough.

- JFTC (Japan): not concerned about it, nascent market, hard to measure, too small right now.

- KFTC (South Korea): not concerned about it, nascent market, too small right now.

Next ones should be Canada, New Zealand and Australia :p
 
Agent Icebeezy

Agent Icebeezy

Member
Oct 27, 2017
2,655
Kyler said:

Went over the Korean FTC's decision.

These are some of the main points that got concluded quite differently from CMA's argument. (Original Korean words followed by translations)

Unlike many other countries that use "Activision" as a shorthand for "Activision-Blizzard Inc", the KFTC refers to the company as "Blizzard". Therefore, in this document, "Blizzard" means the entire "ABK". Some of the arguments presented here may be specific to the Korean domestic market, while many still have broader global implications.

  • 오히려 본 건 결합으로 콘솔 시장의 3위 사업자인 MS의 경쟁력이 강화되면 콘솔 시장의 경쟁이 촉진될 가능성도 존재한다
    • On the contrary, the merger may promote competition in the console market by strengthening the competitive position of MS as the third largest player in the console market.
  • (봉쇄능력) MS와 블리자드가 개발·배급하는 클라우드 게임의 합산점유율(4~6%)이 낮고, 블리자드 외에도 다수의 배급사들이 인기 게임들을 공급*하고 있어 대체공급선도 충분하므로 봉쇄능력이 없다고 보았다. * 스마일게이트(로스트아크), 텐센트(리그오브레전드), EA(배틀필드) 등
    • (Lock-in capability) The combined market share of cloud games developed and distributed by MS and Blizzard is low (4-6%), and there are many publishers besides Blizzard supplying popular games*, so there are enough alternative supply lines, so there is no lock-in capability.
      * Smilegate (Lost Ark), Tencent (League of Legends), EA (Battlefield), etc.
  • (봉쇄유인) 현재 블리자드 게임은 모든 클라우드 게임 서비스에 제공되지 않고 있어 봉쇄 유인을 계량적으로 판단하기는 어렵다. - 다만 경쟁사인 엔비디아의 사업모델상 엔비디아에 블리자드 게임을공급(스트리밍 라이선스 부여)할 경우, 해당 게임의 다운로드 판매 매출도함께 증가하므로 봉쇄 유인이 작아지는 측면이 있다. * 엔비디아의 사업모델은 BYOG(Bring-your-own-game) 방식으로, 이용자들은 원하는게임을 별도로 구매(예: 스팀에서 블리자드 게임 구매)하여 다운로드 방식으로 즐길 수 있고, 엔비디아의 클라우드 게임 서비스에 가입(월정액)하면 보유한 게임을 스트리밍방식으로도 즐길 수 있게 되므로 블리자드와 엔비디아의 매출 증가가 상호 상승 작용.
    • (Lock-in incentives) It is difficult to quantify lock-in incentives because Blizzard games are not currently available on all cloud gaming services. - However, given the business model of competitor Nvidia, the incentive to lock-in is reduced by the fact that supplying Blizzard games to Nvidia (licensing them for streaming) increases the revenue from download sales of those games.
      Nvidia's business model is BYOG (bring-your-own-game), which means that users can purchase the games they want separately (e.g., buy Blizzard games on Steam) and enjoy them as downloads, and if they subscribe to Nvidia's cloud gaming service (for a monthly fee), they can enjoy their games as streams, so the increase in revenue for Blizzard and Nvidia is mutually reinforcing.
  • 아울러 클라우드 게임 서비스는 초기 단계*이고, 국내 시장에서 사업자 순위가 매년 뒤바뀌는* 등 역동적으로 변화하고 있으며, 향후 진입가능한 사업자(소니, 아마존 등)도 존재하여, 본 건 기업결합으로 인한 경쟁제한 우려도 작다. *국내 클라우드 게임 서비스 시장규모는 전체 게임 시장의 0.02% 수준
    * 최근 3년간 1위 사업자 추이: MS('20년) → 엔비디아('21년) → MS('2년)
    • In addition, cloud game services are in their early stages*, the domestic market is changing dynamically, with the ranking of providers changing every year*, and there are possible future entrants (Sony, Amazon, etc.), so there is little concern that the merger will restrict competition. * Domestic cloud game service market size is 0.02% of the total game market * The trend of the number one provider in the last three years: MS ('20) → Nvidia ('21) → MS ('22)
  • 엔비디아 클라우드 게임(GeForceNow)은 PC전용 게임을 서비스할 수 있어, 이용자가기존에 스팀 등 PC게임 상점에서 구매한 게임들도 활용할 수 있다는 강점이 존재→ 실제로 PC용 인기 게임인 로스트아크가 엔비디아 클라우드 게임 서비스로 출시되자 국내 유료 가입자가 크게 증가하는 현상이 나타남
    • NVIDIA Cloud Games (GeForceNow) has the advantage of being able to serve PC-only games, allowing users to utilize games previously purchased from PC game stores such as Steam → In fact, when the popular PC game Lost Ark was released on NVIDIA Cloud Games, the number of domestic paid subscribers increased significantly.
  • 공정위는 MS가 클라우드 인프라(Azure), 서버 OS(윈도우) 보유 등 클라우드 게임 시장에서 다수의 경쟁력 있는 생산요소를 보유하고있으나, 이는 결합 이전부터 보유한 특성으로, 본 건 결합으로 발생한 특유의 효과라고 판단하지 않았다.
    • The KFTC found that MS possesses a number of competitive production factors in the cloud gaming market, including cloud infrastructure (Azure) and server OS (Windows), but these are characteristics that it possessed prior to the merger and are not unique effects of the merger.
  • PC OS 시장에서 MS 윈도우는 높은 점유율([70~80]%)을 보유하고 있고, 게이밍 PC로 한정 시 윈도우 점유율은 더욱 높은 것*으로 예상된다. 그러나 공정위는 본 건 결합이 없더라도 블리자드가 非윈도우 OS용 게임을 개발할 가능성은 극히 미미하다고 판단하였다. 윈도우가 지배적 OS이고 경쟁 OS는 이용자층이 넓지 않아 게임 개발사로서는 타OS로 게임을 발매할 유인이 적기 때문이며, 이에 따라블리자드도 최근 10년 간 주요 PC 게임을 윈도우OS로만 발매하고 있다.
    • MS Windows has a high market share ([70-80%]) in the PC OS market, and its share is expected to be even higher* when limited to gaming PCs. However, the FTC found that even without the combination, the likelihood that Blizzard would develop games for non-Windows OSes was extremely small. This is because Windows is the dominant OS and competing OSes do not have a large user base, so game developers have little incentive to release their games on other OSes, which is why Blizzard has only released major PC games on Windows OS for the past 10 years.
  • 타OS로 게임을 추가로 발매하기 위해서는 개발 시간 및 비용, 운영비용(품질보증, 이용자 지원 등)이 추가 소요되나, 이용자가 적으면 수익은 제한적
    • Releasing additional games on other OSes requires additional development time, costs, and operational costs (quality assurance, user support, etc.), but the revenue is limited if there are few users.
  • 따라서 향후 블리자드 윈도우 외의 OS로 게임을 개발하지 않더라도, 이는 기업결합으로 인한 경쟁제한 효과라 보기 어렵고, 현재도 윈도우용 게임만 제공하는 만큼 기업결합 후 PC OS 시장에서 MS 윈도우의 지배력이 추가로 강화되는 것도 아니라고 보았다.
    • Therefore, even if Blizzard does not develop games for OSes other than Windows in the future, this is unlikely to be a restrictive effect of the merger, and it is unlikely that the merger will further strengthen the dominance of MS Windows in the PC OS market as it currently only offers games for Windows.


I hope this is useful for those who are curious.
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This is all great, thanks for the translation. Perhaps it is my lack of legal decorum, but it appears that as these new reports continue to come in, the proportionality aspect of this situation continues to increase. A mountain of overwhelming info that supports Microsoft's stance in this affair.
 
Dingo

Dingo

Member
Jul 19, 2022
776
I still laugh at the "soon" tm from the FTC for cloud.

And the CMA is even worse. 5 years because their only allowed to focus that far reliably.

No one can convince me cloud will become something to entertain on a remotely large scale in the next 5 years.

I like how the KFTC uses the "if Microsoft buys abk it will make the console field more competitive!" Line of reasoning.
 
Gavalanche

Gavalanche

Prophet of Regret
Member
Oct 21, 2021
17,795
Dingo said:
I still laugh at the "soon" tm from the FTC for cloud.

And the CMA is even worse. 5 years because their only allowed to focus that far reliably.

No one can convince me cloud will become something to entertain on a remotely large scale in the next 5 years.

I like how the KFTC uses the "if Microsoft buys abk it will make the console field more competitive!" Line of reasoning.
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Maybe. Technology blossoms fast, nothing surprises me really. There was like six years difference between the basic nokia mobile phone and the first Iphone. When it comes to a developing section of technology, it can make quick massive leaps in short succession.
 
Agent Icebeezy

Agent Icebeezy

Member
Oct 27, 2017
2,655
Gavalanche said:
I still laugh at the "soon" tm from the FTC for cloud.

And the CMA is even worse. 5 years because their only allowed to focus that far reliably.

No one can convince me cloud will become something to entertain on a remotely large scale in the next 5 years.

I like how the KFTC uses the "if Microsoft buys abk it will make the console field more competitive!" Line of reasoning.
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Maybe. Technology blossoms fast, nothing surprises me really. There was like six years difference between the basic nokia mobile phone and the first Iphone. When it comes to a developing section of technology, it can make quick massive leaps in short succession.
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I would argue that for phones, that was a natural progression with the inclusion of cameras, media players, email clients, etc. Cloud gaming is just another delivery model for games. One day, it may make sense to stream games but given the limitations of data caps and slow broadband speeds in various areas of the world, the barriers of success for this are far higher than what once existed for phones. Moore's law isn't getting around Comcast market share and their high prices or the fact that we still have countries that restrict access to sites like Google of Facebook.
 
Dingo

Dingo

Member
Jul 19, 2022
776
Gavalanche said:
Maybe. Technology blossoms fast, nothing surprises me really. There was like six years difference between the basic nokia mobile phone and the first Iphone. When it comes to a developing section of technology, it can make quick massive leaps in short succession.
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But why play on cloud when physical exists.
And I'm talking about the mass audience here. If you want a competitor for cloud look no further then the switch or steamdeck, they share the same playspace as cloud imo.

But again I've always been anti cloud lonngg before this situation.

And I would argue comparing phones to cloud is a huge leap. Mobilephones were always going to make big leaps because they legit change the way we live every facet of our life's. Cloud? It's an addon for an entertaint market that is incredibly hostile to any change in the way they play.

Considering also that mutiplayer is a huge thing for the mass audience and still has problems with tickrate,netcode,latency,desync and ghosting etc you think people want to add the problems that streaming may add on top?
 
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Dave.

Dave.

Member
Oct 27, 2017
6,178
Agent Icebeezy said:
One day, it may make sense to stream games but given the limitations of data caps and slow broadband speeds in various areas of the world, the barriers of success for this are far higher than what once existed for phones. Moore's law isn't getting around Comcast market share and their high prices or the fact that we still have countries that restrict access to sites like Google of Facebook.
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It should be obvious, but the CMA's remit is the UK - They do not concern themselves about Comcast's market share and their high prices, the limitations of data caps or slow broadband speeds in various areas of the world. So when they suggest cloud gaming might see a large increase in the next 5 years, they are speaking with regard to the technologies in play in the UK market - where, well within the next 5 years we will have transitioned from a "mostly ~20Mb ADSL broadband, 80Mb if you're lucky / 4G wireless" coverage to a "mostly 1Gb+ FTTP / maybe even mostly 5G wireless". A connectivity revolution, which makes cloud gaming a viable option to many. We generally don't have data caps. Hell, we're a physically small island we don't even really have latency to speak of once analogue copper is out of the way.

It is not absurd to me as a UK person that they think that the "one day" for cloud gaming mass-market might come within the next 5 years.
 
12Danny123

12Danny123

Member
Jan 31, 2018
1,722
Dave. said:
It should be obvious, but the CMA's remit is the UK - They do not concern themselves about Comcast's market share and their high prices, the limitations of data caps or slow broadband speeds in various areas of the world. So when they suggest cloud gaming might see a large increase in the next 5 years, they are speaking with regard to the technologies in play in the UK market - where, well within the next 5 years we will have transitioned from a "mostly ~20Mb ADSL broadband, 80Mb if you're lucky / 4G wireless" coverage to a "mostly 1Gb+ FTTP / maybe even mostly 5G wireless". A connectivity revolution, which makes cloud gaming a viable option to many. We generally don't have data caps. Hell, we're a physically small island we don't even really have latency to speak of once analogue copper is out of the way.

It is not absurd to me as a UK person that they think that the "one day" for cloud gaming mass-market might come within the next 5 years.
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If the concern is about the UK Market, then they should remedies that address only the UK Market. Divesting impacts all countries.
 
OP
OP
Idas

Idas

Antitrusting By Keyboard
Member
Mar 20, 2022
2,042
Not related to the acquisition, but another interesting case to follow regarding antitrust and the videogame industry:

www.resetera.com

Sony faces Romanian antitrust probe over PlayStation dominance abuse Sony

Sony is the target of an antitrust probe by the Romanian Competition Council. They have concerns about Sony abusing its dominant position in the console gaming market through PlayStation, for example for selling online video games exclusively through the PlayStation Store and for banning...
www.resetera.com www.resetera.com
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Caiusto

Caiusto

Member
Oct 25, 2017
3,846
Dingo said:
But why play on cloud when physical exists.
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I know this is a common take on Era, a place that not only ignores but actively despises mobile gaming in general, but if we're being serious about this topic then it has to be taken in consideration.

There's a reason why Free Fire, COD Mobile, Wild Rift and many other "mobile version of AAA games" are so big: the access to console gaming in many places in the world is still prohibitively expensive, so their access to videogames is through mobile gaming.

I know of people who don't have a console, don't have a gaming computer, but gave fast enough internet and a smartphone that allows them to play cloud games and they're content with the experience they have.
 

Yoga Flame

Alt-Account
Banned
Sep 8, 2022
1,674
Gavalanche said:
Maybe. Technology blossoms fast, nothing surprises me really. There was like six years difference between the basic nokia mobile phone and the first Iphone. When it comes to a developing section of technology, it can make quick massive leaps in short succession.
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This doesn't mean much in terms of cloud. For it to be at the point where this section of gaming challenges or substitutes local gaming is unlikely in the next 5/10 years. External forces at play like government infrastructure investment also make this unlikely. Cloud providers rely on these to be in place.
 
GulfCoastZilla

GulfCoastZilla

Shinra Employee
Member
Sep 13, 2022
6,726
So the CMA remains the lone hold out. It's kind of a shame because I'm sure they are relishing in the notoriety of it all. As if they are the only one that can see clearly.
 
Mobius and Pet Octopus

Mobius and Pet Octopus

Member
Oct 25, 2017
12,681
I wouldn't be surprised if cloud gaming blows up over the next 5 years, particularly in some markets but isn't that how it always goes? You probably don't expect to see new technology to proliferate through the entire world at once.
 
Dingo

Dingo

Member
Jul 19, 2022
776
Caiusto said:
I know this is a common take on Era, a place that not only ignores but actively despises mobile gaming in general, but if we're being serious about this topic then it has to be taken in consideration.

There's a reason why Free Fire, COD Mobile, Wild Rift and many other "mobile version of AAA games" are so big: the access to console gaming in many places in the world is still prohibitively expensive, so their access to videogames is through mobile gaming.

I know of people who don't have a console, don't have a gaming computer, but gave fast enough internet and a smartphone that allows them to play cloud games and they're content with the experience they have.
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Wait can't you download those games on your phone? Because when I said physical I included mobile.
 
Gavalanche

Gavalanche

Prophet of Regret
Member
Oct 21, 2021
17,795
[/QUOTE]
EZMode said:
So the CMA remains the lone hold out. It's kind of a shame because I'm sure they are relishing in the notoriety of it all. As if they are the only one that can see clearly.
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I like it, just drags all this out further! I would also love to be them, as it is something I can see myself doing if I were in that situation.
 
12Danny123

12Danny123

Member
Jan 31, 2018
1,722
Dingo said:
Wait can't you download those games on your phone? Because when I said physical I included mobile.
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Yes you can download those games, but Cloud gaming is useful in this scenario where you don't need to install the game if you don't have enough space.

Imo, if this is a way Cloud gaming is being used, then is that still considered a seperate market?
 
maabus1999

maabus1999

Member
Oct 26, 2017
9,034
PtM said:
Are they that incompetent?
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FTC is a time threat in trying to drag things out since they don't go to court unless forced to. The DOJ is the more serious anti trust threat in the US but rarely gets involved. Recent Supreme Court rulings, combined with the FTC chairs overt aggressiveness, is going to soon end that time wasting component of the FTC and therefore severely defang the agency, at least from previous strategies.
 
show me your skeleton

show me your skeleton

#1 Bugsnax Fan
Member
Oct 28, 2017
15,654
skeleton land
PtM said:
Are they that incompetent?
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i think the states' appeal process (taken to a judge in court) is very much weighted towards the merger.

i think that unless something changes with the CMA's ruling, which i doubt, then the UK will be carved out in some way (no activision games via cloud etc). not sure if that's already ruled out by the CMA, i'm a big dumbo brain tbh.
 
Daramir

Daramir

Member
Jan 20, 2022
1,458
Germany
Eroke said:
South Korea's Fair Trade Commission approves MS's acquisition of ABK.

First, the combined share* of games developed and distributed by Microsoft and Blizzard is small, and unlike overseas, major Blizzard games are not popular, and there are many popular game developers that competitors can trade alternatively, so it is not enough to exclude competitive game services.


Share of domestic console games (by distribution): 2-4%, domestic cloud game (distribution) share: 4-6% (21 years)

Second, even in the event of a blockade, the effect of converting competitors' consumers to subscribers of its services would be minimal due to the lack of popularity of Blizzard's games, and competitors have a significant market share*, so there is no risk of exclusion from competition.

* Competitors' market share: domestic console games (Sony 70~80%), domestic cloud games (Nvidia 30~40%).
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Good to see!
 

KnowinStuff

Member
Feb 6, 2023
206
show me your skeleton said:
i think the states' appeal process (taken to a judge in court) is very much weighted towards the merger.

i think that unless something changes with the CMA's ruling, which i doubt, then the UK will be carved out in some way (no activision games via cloud etc). not sure if that's already ruled out by the CMA, i'm a big dumbo brain tbh.
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In the USA there is an extremely steep hill to climb when the government tries to block a vertical merger for a non-essential input. The CMA ruling, if unchanged, prohibits MSFT from buying ATVI. MSFT's only legal avenue in the UK is to fight and win at the CAT at this point.
 
show me your skeleton

show me your skeleton

#1 Bugsnax Fan
Member
Oct 28, 2017
15,654
skeleton land
KnowinStuff said:
In the USA there is an extremely steep hill to climb when the government tries to block a vertical merger for a non-essential input. The CMA ruling, if unchanged, prohibits MSFT from buying ATVI. MSFT's only legal avenue in the UK is to fight and win at the CAT at this point.
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well that seems silly. send in banjo 'head-knocker' the bear to soften up the british, that's what i'd do.
 
tt98

tt98

Member
May 19, 2023
198
I would love to see the FTC argue this in federal court when they ask for an injunction if Microsoft decides to close the deal before their in-house "trial". FTC will lose in federal. All bark no bite. The only concern Microsoft has is the CMA.
 
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Deleted member 93062

Account closed at user request
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Mar 4, 2021
24,767
Now I'm not a lawyer and Microsoft can probably hire the best lawyers possible but I feel like using the CMA's own "mission statement" for remedies basically being "reasonable and proportional" is like point numero uno that should be argued. For a market that is a percent of a percent of a much larger market the deal is being entirely blocked by the UK whereas every other regulator/country is approving it. That doesn't seem reasonable or proportional to the SLC.
 
xyla

xyla

Member
Oct 27, 2017
8,415
Germany
So as someone who hasn't followed the deal in detail it seems like the UK is the outlier.
Could MS just ignore their judgement and pay a (probably insane) fine if the whole rest of the world agrees on the deal?
I still have no real grasp if it goes through or not - seems too big to fail but also kinda like the UK might not budge just on principle.
 
DopeyFish

DopeyFish

Member
Oct 25, 2017
10,802
Sullivan said:
Microsoft (obviously) wants to do this as early as possible, CMA wants to wait till fall/autumn.

Is it not Microsoft arguing right now? CAT is just taking arguments for why it should be accelerated?
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the first guy (judge) was mentioning that's their intent to do it.

second guy speaking is the MS lawyer which is arguing for sooner vs later.
 
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