Finally, cloud gaming is expected to have only limited consumer adoption. MS expects that cloud gaming will account for only % of the total consumer spend on gaming by 2025 (page 111) In addition, the deals the Notifying Party closed with competing cloud game streaming services reflect a genuine desire to distribute Activision Blizzard's content broadly.
In addition, game distribution on PC mainly takes place through buy-to-play stores, such as Valve's Steam, which is the clear market leader in PC game distribution. In particular, World of Warcraft is a single-game subscription service that has never been made available on multi-game subscription services and cannot easily be integrated into one. This is because Activision Blizzard games such as Call of Duty or World of Warcraft are not an important input. According to MS, World of Warcraft cannot easily be integrated into a subscription service (page 109) The Notifying Party submitted that it will not have the ability to foreclose its rivals in a potential market for PC multi-game subscription services. In that regard, Nintendo submitted that "The process of constant development work has been affirmed generally by Nintendo on several occasions publicly".
However, the Commission's market investigation produced no evidence on whether and when Nintendo will launch a next generation console nor whether the specifications of this new hardware would be more or less comparable to the specifications of Sony's and Microsoft's current console generations. According to MS, a new higher specification console is coming soon from Nintendo (page 108) In that respect, in its SO Response, the Notifying Party submitted that Nintendo is expected to launch soon a new higher specification console that would become an even stronger competitive constraint on PlayStation and Xbox. This is PART 3, you can check PART 1 here and PART 2 here.Īnd done! 😅 COD (native) coming to Switch but not before August 2024 (page 107) Finally, the Commission notes that Microsoft and Nintendo signed the Letter of Intent on 2022 (the "Nintendo LOI") based on which Microsoft has committed to develop and publish future console versions of the Call of Duty title for native execution on the Nintendo platform for at least 10 years from the later of 30 August 2024and the date of completion of the Transaction. My highlights from the EC (European Commission) decision (256 pages).
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