Microsoft calls its Cloud Gaming ‘immature’ amid CMA investigation
As Microsoft continues to pursue authorization from the UK’s Competition and Markets Authority (CMA) for the Activision Blizzard acquisition deal, the company’s latest legal filing has revealed that it believes its cloud gaming platform is still “immature.”
Previously, the CMA expressed concerns about Microsoft’s acquisition of Activision, which included plans to make prominent games such as Call of Duty exclusive, resulting in a monopoly on the developing cloud game services market.
The argument was raised again in the latest investigation and filings, with the tech giant debunking the CMA’s “concern” that Microsoft has a competitive edge over cloud competitors and would take control of the whole market. According to the company, cloud gaming is still in its infancy and has yet to be proven as a consumer proposition.
“This is a new and immature technology which the CMA has recognized faces significant challenges, particularly on mobile devices,” Microsoft said.
“As users may be unaware of the choices available to them or find it difficult to access a provider’s services since web apps are not currently discoverable on, or distributed by, the App Store, which is how users are accustomed to discovering apps.”
Microsoft also said that because cloud gaming technology was still in its early stages, it would have no immediate impact on console gaming demand.
“Cloud gaming services may mean that hardware distinctions will become less important. However, the reality is that today cloud gaming remains in its infancy and unproven as a consumer proposition,” Microsoft said.
“Evidence from Microsoft’s internal documents, data and third-party reports shows that cloud gaming services are not relevant in any meaningful way to gamers’ ‘demand for consoles, PCs, and games’, nor is this expected to change in the next few years.”
The legal filing also contained detailed information about the company’s efforts to make a name for itself in the mobile world by developing next-generation games in collaboration with Activision. This includes plans to launch a mobile store platform to compete with Google Play and the App Store.
“The Transaction will improve Microsoft’s ability to create a next generation game store which operates across a range of devices, including mobile as a result of the addition of Activision Blizzard’s content,” said Microsoft.
Microsoft announced earlier this year that it would acquire Activision Blizzard. The historical transaction is estimated to be worth $68.7 billion, with shares purchased at $95 each. It is Microsoft’s largest acquisition to date, and once completed, the company will be the third-largest by market income in the world.
The CMA has provided a way for the general populace to respond to the huge acquisition deal. Those who wish to do so should send their thoughts and corroboration to [email protected]. The CMA told the public that entries should be in Word, Excel, or PDF formats.
Some gamers and users, particularly those involved in the “console war” between Sony and Microsoft, have engaged in heated online debates about the acquisition. While the CMA seeks public input on the matter, gamers have to wait to see how the situation develops in the near future.