Google, Nvidia Express Concerns To FTC About Microsoft's Activision Deal

Alphabet's Google and Nvidia have expressed concerns to the Federal Trade Commission about Microsoft's acquisition of Activision Blizzard, adding fuel to the government's case against the $69 billion deal, Bloomberg News is reporting, citing people familiar with the matter. From the report: The companies joined Sony in raising issues with the transaction, which the FTC sued to block in December. The commission has argued that the deal would hinder competition in the video-game industry and has scheduled an in-house trial for August. Either company could be called to testify as part of the FTC trial.

Google and Nvidia provided information that backs a key FTC contention -- that Microsoft could gain an unfair advantage in the market for cloud, subscription and mobile gaming -- according to the people, who asked not to be identified because the process is confidential. In its remarks to the FTC, Nvidia stressed the need for equal and open access to game titles but didn't directly oppose the acquisition, according to one of the people.

Neither company is in the gaming market

[AutoTrix]

Neither company has any reason to have an opinion. Google just exited the gaming market and Nvidia is a hardware and cloud services vendor which is very little to do with actual gaming outside of Datacenter cards being repurposed and sold to gamers at extraordinary abusive pricing.

Re:

[Xenx]

Both Nvidia and Microsoft offer cloud gaming subscriptions, so there is something there. Activision/Blizzard explicitly blocked their games from Geforce Now. I don't know if that still stands right now or not. If MS completes their purchase, those games are likely to end up on MS's platform. If Nvidia still doesn't get access, they're likely to lose customers.

Re:

[Xenx]

Activision/Blizzard doesn't allow streaming at all. There absolutely are people that would want to use a streaming service over not using a streaming service, while still also wanting to stream Activision/Blizzard games if given the option.

Re:

[Targon]

So, you are suggesting that because Activision had already blocked Geforce Now that Microsoft would somehow go beyond that? If anything, Microsoft might actually get rid of the damned requirement of a Blizzard account, or where games are only available through those launchers. The Microsoft "platform", Xbox and Windows, it's not about "cloud gaming" when it comes to this stuff. Geforce Now has its own issues that should make developers not like it.

Re:

[Xenx]

So, you are suggesting that because Activision had already blocked Geforce Now that Microsoft would somehow go beyond that?

No, I'm saying Activision/Blizzard has blocked all cloud gaming. If Microsoft buys them, they will make the games available on their service. The suggestion is that if people want to stream those games, and MS restricts it to their platform, Nvidia will lose customers. That is why Nvidia wants assurances.

Re:

[grmoc]

There are a number of games that are ported (or not) to platforms like Android.
Similarly cloud gaming, which Google may have exited for now, but may certainly enter again in the future. .. so, Google certainly has a reason to be in there.

NVidia sells cards because of games (and now AI, but certainly games are still a big deal).
If something disrupts the game market substantively, as they're worried this deal could do, then that will impact their ability to sell things...

Re:

[Targon]

And that is why those who aren't in the, "I hate Microsoft" camp see only wild speculation as the real complaint. Microsoft MIGHT do this, they MIGHT do that, but if you look at the history of other studios that Microsoft has purchased, there hasn't been a lock-in to any Microsoft store, and nothing pushing for a lock-down that has prevented even a Playstation version from showing up. Sony, the company that prides itself on popular exclusives for the Playstation that have never come to the PC or Xbox,

Re: Neither company is in the gaming market

[RazorSharp]

The point is not whether they will abuse their position. The point is they will have the power to do so.

Unnecessary mergers are bad for competition and bad for consumers. We have made this mistake time and time again. Disney and Fox. Sprint and T-Mobile. Consolidation is bad for everyone except the fat cats.

Re:

[evanh]

"... the market for cloud, subscription and mobile gaming" is not Windoze gaming is it.

However, Nvidia is very much tied to the Windoze gaming market. They have a huge stake of their revenue in selling GPUs for that very market. So Nvidia is taking a huge risk with that very business by saying anything on the merger issue, particularly in laptops where OEMs are extremely at M$'s beckon. Which is the heart of the issue really. M$ is totally in control and anyone who steps out of line will find themselve

Burn it

[Voyager529]

Microsoft could gain an unfair advantage in the market for cloud, subscription and mobile gaming

Translation: "We're just jealous that we couldn't succeed in this market, while Microsoft has the inroads to possibly make 'recurrent user spending' mandatory".

If Microsoft can f'k up gaming-as-a-service so badly that people become skittish about recurrent spending, let 'em spend a fortune doing it.

Re:

[Targon]

And, this is still all speculation, with zero evidence to support their claims.

Stupid lawsuits

[Targon]

At what time has Microsoft make any game exclusive to its own game store? We've seen games from various developers use their own launchers and such, and honestly, there would be less of a reason for the Blizzard launcher to exist under Microsoft, meaning that other stores/platforms would benefit from not needing an account there before you could play a game. These lawsuits are really idiotic, and should be slapped down for a lack of evidence that Microsoft would magically stop games from being offered outside of its own store. If anything, other developers/publishers have taken steps to force people into being locked into their own store to get access to a game and NOT Microsoft.

Re:

[UnknowingFool]

At what time has Microsoft make any game exclusive to its own game store?

Errrr? Like every single Microsoft game exclusive ever? Both Sony and Microsoft have games exclusive to their platforms. Unfortunately for Microsoft, most of their exclusives have not been as successful as Sony's. So Microsoft has done what they have done in the past: buy out their competition.

The real question is

[fbobraga]

It will run in IE6?

I can see what NVIDIA is worried...

[jonwil]

If Microsoft buys Activision Blizzard, there is every chance Microsoft could add the games from these companies to xcloud and there will be people who will cancel GeForce Now and move to xcloud instead.