UK likely to approve Microsoft Activision merger, but this isn’t a win for gaming

The U.K.’s CMA, the competition and markets authority, has released a statement that points to it approving Microsoft’s Acquisition of Activision Blizzard King. No matter which way you look at it, this is not good news.

The CMA’s statement asserts a new version of the merger will see Activision’s cloud gaming rights sold to Ubisoft, and this appeases the CMA’s worries about a Microsoft monopoly on the technology. It’s a step in the right direction, that’s for sure, but such a large developer and publisher being absorbed by Microsoft is just going to lead to less competition and innovation further down the line.

First off, I’m not saying this from the point of view of some Sony pony. I play games across all major platforms: PS5, Xbox, PC, Switch, and mobile. I don’t care that Halo is only available on Xbox and PC and God of War is only on PlayStation. What I do care about, as should you all, is studios losing their independence. Yes, even one as big as Activision Blizzard. Especially one as big as Activision Blizzard, actually.

Every capitalist loves the free market, but mergers like this destroy it. Microsoft and Sony buy as many studios as they can fit under their belts to ensure their platforms have exclusive hits, but so often we see smaller studios consumed by the content machine and forced to work on flagship live-service games as support staff. This happened to legendary Burnout developer Criterion just this week.

It also, inevitably, means layoffs. Organizational restructuring and streamlining are just corporate terms for sacking a bunch of people. Do you really think ABK’s HR department is going to remain intact? Some will have their employment moved over to Microsoft, the rest will be made redundant.

Those at the top will be fine, and CEO Bobby Kotick, whose resignation was demanded by ABK workers following a Wall Street Journal report that claimed he knew about the company’s internal issues for years, stands to make hundreds of millions off the back of this deal. It’s the devs who do the work who will suffer.
An Activision Blizzard spokesperson has reached out to Dot to give the following statement:

“When the Company received complaints we responded to them appropriately and after the extensive and thorough reviews of workplace policies and procedures, workplace practices, compliance, and company data performed by an array of external company advisors including former EEOC Chair Gilbert Casellas, Skadden Arps, WilmerHale, Paul Hastings and CDF Labor Law LLP, the Board concluded there was never widespread or systemic harassment, retaliation or discrimination at the Company. The Board and advisors also concluded there was no evidence that the Company’s senior executives ignored complaints when they were reported.”

Microsoft already laid off Bethesda employees earlier this year, and Embaracer has been cutting staff left, right, and center, so it’s likely only a matter of time before the people of ABK get the axe, too. This isn’t about something as petty as loyalty to a console, but about wanting what’s best for the people who make the games we love to play.

Updated 8:41am CT: A previous version of this article was unclear and potentially implied Kotick was named in the DFEH suit against ABK. The line has been clarified and a statement from Activision Blizzard has been added.