In a significant development for the gaming industry, the Federal Trade Commission (FTC) has announced formal action to halt Microsoft’s planned acquisition of Activision, nearly a year after the $68.7 billion deal was first unveiled.
This regulatory move comes hot on the heels of Microsoft’s public commitment to bring the hugely popular Call of Duty franchise to Nintendo’s platforms, including the Nintendo Switch, pending acquisition approval. The proposed Microsoft-Activision merger, which would unite one of the world’s leading console manufacturers and subscription service providers with the publisher behind renowned franchises like Call of Duty, Overwatch, and World of Warcraft, has been under intense regulatory scrutiny worldwide.
Activision is a major force in video game publishing, with Call of Duty consistently ranking as one of the top-selling franchises and a perennial presence on both PlayStation and Xbox platforms. Yesterday, Phil Spencer, Head of Xbox, announced Microsoft’s intent to deliver Call of Duty to Nintendo’s consoles for at least the next decade, if the acquisition is approved.
This move was seen as part of Microsoft’s effort to address antitrust regulators’ concerns and promise broader content access across platforms. However, the FTC issued a formal statement, highlighting its opposition to the merger: The agency asserts that by acquiring Activision, Microsoft would gain "control of top video game franchises, enabling it to harm competition in high-performance gaming consoles and subscription services by denying or degrading rivals’ access to its popular content." The FTC further emphasized Microsoft’s history in this regard.
"Microsoft has already shown that it can and will withhold content from its gaming rivals," said Holly Vedova, Director of the FTC’s Bureau of Competition.
"We are taking action today to prevent Microsoft from taking control of a leading independent game studio and using its power to stifle competition across several fast-growing gaming sectors." According to the Commission, the decision to move forward with the complaint was not unanimous.
The vote split was 3-1, with Commissioner Christine S.
Wilson dissenting.
This high-profile case marks one of the most prominent antitrust challenges in the history of the gaming industry. For Nintendo fans, the possibility of Call of Duty returning to their consoles is a significant development—Call of Duty last appeared on a Nintendo platform with 2013’s Call of Duty: Ghosts for Wii U.
Should the deal proceed, Microsoft’s public attempts to expand content distribution to the Nintendo Switch and future hardware would reshape competitive dynamics in both hardware and digital content ecosystems like the Nintendo eShop. With the FTC now seeking to block the acquisition, the gaming industry is poised for months of legal review and heated debate over the future of content access, competition, and cross-platform publishing.
As proceedings unfold, all eyes remain on how regulators, platform holders, and major publishers will navigate this transformative moment in interactive entertainment.
This regulatory move comes hot on the heels of Microsoft’s public commitment to bring the hugely popular Call of Duty franchise to Nintendo’s platforms, including the Nintendo Switch, pending acquisition approval. The proposed Microsoft-Activision merger, which would unite one of the world’s leading console manufacturers and subscription service providers with the publisher behind renowned franchises like Call of Duty, Overwatch, and World of Warcraft, has been under intense regulatory scrutiny worldwide.
Activision is a major force in video game publishing, with Call of Duty consistently ranking as one of the top-selling franchises and a perennial presence on both PlayStation and Xbox platforms. Yesterday, Phil Spencer, Head of Xbox, announced Microsoft’s intent to deliver Call of Duty to Nintendo’s consoles for at least the next decade, if the acquisition is approved.
This move was seen as part of Microsoft’s effort to address antitrust regulators’ concerns and promise broader content access across platforms. However, the FTC issued a formal statement, highlighting its opposition to the merger: The agency asserts that by acquiring Activision, Microsoft would gain "control of top video game franchises, enabling it to harm competition in high-performance gaming consoles and subscription services by denying or degrading rivals’ access to its popular content." The FTC further emphasized Microsoft’s history in this regard.
"Microsoft has already shown that it can and will withhold content from its gaming rivals," said Holly Vedova, Director of the FTC’s Bureau of Competition.
"We are taking action today to prevent Microsoft from taking control of a leading independent game studio and using its power to stifle competition across several fast-growing gaming sectors." According to the Commission, the decision to move forward with the complaint was not unanimous.
The vote split was 3-1, with Commissioner Christine S.
Wilson dissenting.
This high-profile case marks one of the most prominent antitrust challenges in the history of the gaming industry. For Nintendo fans, the possibility of Call of Duty returning to their consoles is a significant development—Call of Duty last appeared on a Nintendo platform with 2013’s Call of Duty: Ghosts for Wii U.
Should the deal proceed, Microsoft’s public attempts to expand content distribution to the Nintendo Switch and future hardware would reshape competitive dynamics in both hardware and digital content ecosystems like the Nintendo eShop. With the FTC now seeking to block the acquisition, the gaming industry is poised for months of legal review and heated debate over the future of content access, competition, and cross-platform publishing.
As proceedings unfold, all eyes remain on how regulators, platform holders, and major publishers will navigate this transformative moment in interactive entertainment.
