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Microsoft’s pledge to bring the Call of Duty franchise to Nintendo platforms for a ten-year period serves as a strategic public relations maneuver rather than a substantive shift in market dynamics.
- Microsoft's offer to bring Call of Duty to Nintendo and Steam is a strategic PR move designed to appease regulators regarding the Activision Blizzard acquisition, despite the negligible business impact of a Nintendo port.
- Microsoft is increasing the price of its first-party games from $60 to $70 starting in 2023, aligning with industry-wide pricing trends.
- Zenimax Studios' QA staff have announced their intent to unionize with the Communications Workers of America (CWA), with Microsoft stating it will not interfere, partly to maintain favor during the Activision Blizzard merger process.
News Mash-Up: Week 49
The weekly briefing delivers a concise snapshot of recent developments across the global gaming landscape, focusing on corporate moves, product launches, regulatory actions, and new releases.
- Microsoft has offered a ten-year guarantee to keep the Call of Duty franchise on PlayStation platforms to address regulatory scrutiny regarding its acquisition of Activision Blizzard.
- Maze Theory and Pluto Digital have merged to form Emergent Entertainment PLC, an entity valued at over $65 million that is currently preparing for an IPO.
- Australian MP Andrew Wilkie has proposed legislation that would mandate R18+ ratings or deny ratings entirely for games containing loot boxes, citing research on the financial and emotional harm to children.
Rift at FTC Over Microsoft’s Activision Blizzard Buyout
Internal deliberations within the Federal Trade Commission (FTC) regarding Microsoft’s proposed $69 billion acquisition of Activision Blizzard have revealed a significant policy divide among the agency's commissioners.
- Internal disagreement exists within the four-member FTC panel regarding Microsoft’s proposed $69 billion acquisition of Activision Blizzard.
- At least one of the two Democratic commissioners, aside from Chair Lina Khan, is reportedly leaning toward supporting the merger, potentially creating a tie vote that could lead to the deal's approval by default.
- Republican commissioner Christine Wilson has already indicated her support for the acquisition.
Rock Band: How a Genre Died in 5 Years
The rapid rise and collapse of the rhythm game genre between 2005 and 2010 represents a unique phenomenon in the video game industry, where a multi-billion dollar market segment effectively vanished within five years.
- The rhythm game genre collapsed between 2005 and 2010 due to extreme market oversaturation and a reliance on a hardware-centric business model that became unsustainable.
- Annual sales for the genre plummeted by 50 percent in 2009 as consumer demand for new plastic instrument peripherals evaporated.
- The market was diluted by a flood of spin-offs and band-specific titles, which eroded the appeal of the core experience and led to diminishing returns.
QA Workers at Activision Blizzard Albany Officially Unionize
Quality assurance workers at the Activision Blizzard studio in Albany, New York, have officially unionized, forming the Game Workers Alliance Albany.
- Quality assurance workers at Activision Blizzard Albany have officially unionized as the Game Workers Alliance Albany following a 14-0 vote.
- The U.S. National Labor Relations Board (NLRB) rejected an appeal from Activision Blizzard management, which had argued that the bargaining unit should be studio-wide rather than limited to QA staff.
- Management challenged four additional votes on the grounds that they were not submitted in time, despite organizers attributing the delays to issues such as mail delivery problems.
Call of Duty League Enters 2023 Season Without a Media Rights Partner
The Call of Duty League (CDL) commenced its 2023 season without a dedicated media rights partner following the expiration of a three-year agreement with YouTube.
- The Call of Duty League (CDL) began its 2023 season without a media rights partner following the expiration of a three-year, $160 million deal with YouTube that previously covered the CDL, Overwatch League, and Hearthstone.
- Activision Blizzard has moved to broadcasting CDL competitions on Twitch and its official website, though Twitch is not currently designated as an official broadcast partner.
- League franchisees and stakeholders have expressed significant concern regarding the loss of revenue sharing resulting from the absence of a new media rights deal.
Microsoft Prepared to Fight FTC in Court Over Activision Blizzard Merger
Microsoft is prepared to challenge the Federal Trade Commission (FTC) in court to secure its proposed $69 billion acquisition of Activision Blizzard.
- Microsoft is prepared to challenge the Federal Trade Commission (FTC) in court to defend its proposed $69 billion acquisition of Activision Blizzard.
- The company is reportedly negotiating a 10-year agreement with Sony to keep the Call of Duty franchise available on PlayStation platforms to address antitrust concerns.
- Regulatory opposition to the merger has been driven by concerns regarding market competition in jurisdictions including the UK and the European Union.
Picking a Side: Single Player Strategy in a Multi-sided Game Economy
This analysis examines the shifting regulatory and competitive landscape of the global video game industry during late 2022.
- The global video game industry is facing heightened antitrust scrutiny, exemplified by the FTC's likely challenge to Microsoft’s proposed acquisition of Activision Blizzard.
- Regulatory filings reveal divergent strategies: Sony’s CMA submission focuses on the competitive risk of losing Call of Duty, while Microsoft’s filing emphasizes consumer-centric language, referencing 'gamers' and 'players' at a rate 20 times higher than Sony.
- The industry is increasingly defined by a 'blockbuster dynamic' where a small fraction of titles dominates engagement, evidenced by Call of Duty: Warzone 2.0 reaching 25 million players in five days and Pokémon Scarlet and Violet selling 10 million units in three days.
Harry Potter's Warted Legacy
Hogwarts Legacy is positioned as a major commercial success for Warner Bros., serving as a strategic hedge against broader industry weaknesses and declining consumer spending.
- Hogwarts Legacy is a commercial success for Warner Bros., projected to exceed 10 million units sold and building on a franchise legacy of over 50 million units since 2001.
- Activision Blizzard reported a 43% year-over-year revenue increase to $3.57 billion, fueled by the performance of Call of Duty and Overwatch 2.
- The omission of a multiplayer component in Hogwarts Legacy conflicts with industry trends, as nearly 50% of the 18-to-34 demographic prefers social gameplay.
Serbia Approves Microsoft’s Activision Blizzard Acquisition as FTC Mulls Opposition
The Serbian government has granted unconditional approval for Microsoft’s proposed $69 billion acquisition of Activision Blizzard, marking a notable regulatory milestone for the tech giant.
- The U.S. Federal Trade Commission (FTC) is reportedly preparing an antitrust lawsuit to block Microsoft’s $69 billion acquisition of Activision Blizzard.
- The Serbian government has granted unconditional approval for the acquisition, joining Brazil and Saudi Arabia as jurisdictions that have cleared the deal.
- Microsoft is preparing to offer remedies to European Union regulators, including a proposed 10-year licensing deal for Call of Duty, to address concerns regarding platform exclusivity.
Market Wire: November 28, 2022
This market analysis provides a snapshot of the video game industry as of late November 2022, focusing on major corporate developments, competitive dynamics in mobile gaming, and regional market trends.
- The Federal Trade Commission is reportedly preparing an antitrust lawsuit to block Microsoft’s $69 billion acquisition of Activision Blizzard due to concerns over market competition.
- Microsoft Gaming CEO Phil Spencer confirmed that the primary strategic motivation for the Activision acquisition is to bolster Microsoft's mobile gaming capabilities, an area where the company currently lacks significant market presence.
- Activision’s 'Call of Duty: Warzone Mobile' has reached over 35 million pre-registrations as of November 25, 2022, positioning it as a major competitor to EA’s 'Battlefield Mobile' in the mobile FPS sector.
Why Blizzard Didn’t Renew NetEase Partnership and What’s Next? - The Metacast by Naavik
The gaming industry is currently undergoing a significant structural shift characterized by cross-platform expansion, the integration of generative AI, and intense scrutiny of platform distribution models.
- Google’s 'Project Hug' initiative utilized hundreds of millions of dollars in financial incentives to major developers like Activision Blizzard and Riot Games to discourage the development of competing app stores and maintain the 30 percent platform fee.
- The Blizzard-NetEase partnership collapsed primarily due to Blizzard’s demands for higher revenue shares and the pursuit of global mobile IP development, exposing the volatility of international publishing in restrictive regulatory environments.
- Mobile-first studios, exemplified by Gameloft’s Disney Dreamlight Valley, are increasingly adopting cross-platform strategies to reduce market volatility and expand their reach beyond mobile-only audiences.
Its games in the library
Halo: Combat EvolvedBungie · 200112
Call of DutyInfinity Ward · 2003560- Overwatch154
Call of Duty: Modern Warfare 3Sledgehammer Games · 20117
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Grand Theft Auto VIRockstar North · 2026175
Call of Duty: Modern Warfare 2Infinity Ward · 20099