NVDA - Microsoft leaves Sony out of response to EU over Activision deal - report

2023-03-20 15:38:29 ET

Microsoft ( NASDAQ: MSFT ) sent the European Union's antitrust watchdog its proposed remedies to address concerns over its $69B deal to acquire Activision Blizzard ( NASDAQ: ATVI ) - and they reportedly focus on cloud gaming services without mentioning key console rival Sony ( SONY ) at all.

The tech giant kept its proposals close to the vest, but they apparently focus on the potential threats to Microsoft's rival cloud/streaming services such as PlayStation Plus ( SONY ) or GeForce Now ( NVDA ), Reuters reported - suggesting that competition between Sony's PlayStation and Microsoft's Xbox hardware isn't as much of a concern at the EU these days.

To allay worries, Microsoft has reportedly been offering 10-year licensing deals for Activision Blizzard content to its rivals, including Sony, Nintendo ( OTCPK:NTDOY ), Nvidia ( NVDA ) and others.

Following Microsoft's submitted remedies last week, the EC set its deadline for a decision on the deal for May 22 , allowing this week for Microsoft's rivals and customers to offer feedback.

That put off a European Union decision that now looks less controversial until after a more volatile decision coming from the UK's competition watchdog, set for April 26.

Microsoft's response to the UK's Competition and Markets Authority has asserted that Activision Blizzard isn't the top provider of games to the PlayStation - that it's in fact fifth, smaller than publishers including Electronic Arts and Take-Two, and smaller than Sony's own publishing business.

Microsoft also said Sony had 286 games that are exclusive to PlayStation, including such popular titles as God of War, Spider-Man and The Last of Us.

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