christian petersen
Google (GOOG) (GOOGL) and Nvidia (NVDA) have teamed up to raise concerns about the (NASDAQ:MSFT) $69 billion deal to acquire Activision Blizzard (NASDAQ: ATVI), reports Bloomberg.
That adds to strong objections from PlayStation maker Sony (SONY), which said that Microsoft could make Activision hits like the Obligations exclusive franchise for your Xbox console or for your Xbox Game pass streaming service. The Federal Trade Commission, heavily armed with Sony’s arguments, filed a lawsuit to block the giant deal on December 8.
Google and Nvidia are fueling a key FTC objection — that the settlement could give Microsoft an unfair advantage in the booming market for cloud, subscriptions and mobile gaming — though Nvidia is not directly opposing the deal, according to the report.
While Sony is considered the most obvious direct competitor to Microsoft’s Xbox console, Google competes with Microsoft in cloud computing, and its Android mobile system is key to mobile gaming. Nvidia (NVDA) represents a major player in gaming, as part of a graphics hardware duopoly whose cards are highly sought after by computer gamers.
The two companies have also dove into the streaming gaming space. The Google Stadia effort has now been shut down, while Nvidia launched its GeForce Now offering in 2020.
Microsoft has argued that regulators are making too much of Sony’s concerns about competition, but the new issues help bolster the FTC’s argument that Microsoft could tie more exclusive content to its Xbox Game Pass.
