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March 16, 2023 02:43 pm

Microsoft isnt happy with a UK regulators math on its Activision Blizzard deal




The Microsoft Xbox game logo against a green and black background.
Illustration by Alex Castro / The Verge



Microsoft’s proposed Activision Blizzard acquisition is at the messy stage. After recruiting Nvidia, Nintendo, and two other cloud gaming companies to help convince regulators to approve its $68.7 billion deal, Microsoft is now criticizing the UK’s Competition and Market Authority’s (CMA) math calculations.


The CMA published a financial model that calculated Microsoft could turn a profit by withholding Call of Duty from PlayStation to draw former Sony fans to Xbox, basing its calculations on profits and losses from Xbox hardware, subscriptions, and games over a period of five years.


Microsoft argues that the CMA’s financial modeling is flawed. The CMA’s model compares gains on a five-year basis to losses on just a one-year basis, and...



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Original Link: https://www.theverge.com/2023/3/16/23642922/microsoft-uk-cma-response-math-activision-blizzard-deal

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