CADE (Council for Economic Defense Administration) was one of the first in the world to approve Microsoft’s acquisition of Activision Blizzard, shortly after Saudi Arabia.
The agreement was announced in January $68.7 billion (~$371 billion)The largest technology in the industry to date and has been approved by the Brazilian regulatory authority without restrictions.
Economy and market
Economy and market
In the document, CADE acknowledges that due to the huge popularity of Call of Duty, it is reasonable to conclude that if Activision Blizzard games are no longer available on Sony consoles, PlayStation users may decide to switch to Xbox or PC to continue access. on franchises.
On the other hand, he also says that it’s reasonable to assume that if future Call of Duty games become exclusive to the Microsoft ecosystem, loyal PlayStation players may simply abandon the franchise and move on to other games available on their beloved console.
The body says that the possibility of adopting Microsoft’s exclusivity strategy with Activision Blizzard games should not be ruled out, even if this decision leads to a significant drop in sales, users and popularity of Call of Duty.
As we spread the joy and community of gaming to everyone, we’re incredibly excited to welcome Activision Blizzard’s fantastic teams and iconic franchises to Team Xbox https://t.co/DVrgYS8ssB
— Phil Spencer (@XboxP3) January 18, 2022
In theory, CADE believes that this will boost Xbox sales, expand the number of Xbox Game Pass subscribers and strengthen the effects of the Microsoft ecosystem, offsetting the loss of sales revenue in the short term.
In the ruling, the authority said that it believes that exclusive content is very important for competition in the console market, which is one of the main factors for PlayStation and Nintendo to be market leaders.
He concludes that Nintendo does not need Activision Blizzard’s content to compete in the market, while Sony has led the market for more than 20 years with extensive industry experience, the largest user and console base, a strong catalog of exclusive games, and partnerships with other countries. Brands that should continue despite the loss of Call of Duty and other franchises.