The defendants argue that Microsoft and Activision Blizzard are significant rivals in the video game development, publishing and distribution markets, and that the purchase would harm free-market competition.
"The proposed acquisition may give Microsoft far-outsized market power in the video game industry and may enable Microsoft to foreclose rivals to critical inputs and important markets," the defendants said inThe consolidation would make it the third-largest gaming company by revenue in the world, as Microsoft has previously purchased 24 different gaming studios, including Minecraft maker Mojang Studios, KotOR makers Obsidian Entertainment and Hellblade maker Ninja Theory.
Activision Blizzard, the suit points out, is itself a large conglomerate that was formed through Activision's purchase of WoW, Starcraft and Overwatch maker Blizzard, along with mobile game giant King, Call of Duty maker Raven Software and others. The suit claims the merger would lessen competition across a range of product markets, including PC, console and mobile games, which it defines as separate"relevant product markets." The suit does the same for triple-A games, game subscription services, console hardware and"high-performance" console systems.
All of those markets, the plaintiffs claim, could end up suffering as a result of the Microsoft and Activision merger, and in turn that suffering could be passed onto them, and someone really needs to think of the gamers.
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