Shulou(Shulou.com)11/24 Report--

On October 5 local time, the Brazilian Economic Protection Administration (CADE) announced that it had approved Microsoft's acquisition of Activision Blizzard without any restrictions, and now the branch has issued a document explaining why.

CTOnews.com learned that the document included a discussion of the exclusivity of call of Duty and what impact it would have on Sony if the series were monopolized by Xbox. It is worth mentioning that Microsoft has said that "call of Duty" will remain on the PlayStation platform.

CADE believes that the exclusivity of call of Duty will hurt Sony. But the damage will not be catastrophic, nor will it force Sony to close its business.

According to CADE, call of Duty is "expressive" as a percentage of PlayStation's additional content revenue, but not big enough to force PlayStation to shut down without them. In Brazil and other markets, the premise of anti-competition law is whether the merger or acquisition will force competitors to go out of business.

Sony earned more than $7.9 billion on game additions throughout 2021, thanks to popular games such as call of Duty, Apex Hero and Fortnite, according to regulators. Activision's games earned $1.32 billion on the PS platform in 2021, and Sony earned more than $570 million from Activision Blizzard products, inferred from the standard 30 per cent split commission.

It is worth noting that CADE is mainly concerned with how the deal will affect Brazilian consumers and the Brazilian domestic gaming market. Call of Duty is not very popular in Brazil, and neither Microsoft nor Activision Blizzard has generated a lot of revenue in the region. In addition, market share data show that the combination of Microsoft and Activision Blizzard will still account for about 14% of the global video game market in revenue compared with 2021, leading CADE to assert that the Microsoft-Activision merger does not pose a direct threat to competition and consumers.

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