Microsoft has confirmed plans to bring Call of Duty to Xbox Game Pass in the event of a successful acquisition of Activision Blizzard, but UK regulators believe it could do more harm than good.
Speaking about Microsoft's proposed acquisition of Activision Blizzard in a blog post (opens in a new tab), Xbox boss Phil Spencer clarified the tech giant's ambitions. He said that Microsoft wanted to bring the core Activison game series to Xbox Game Pass, presenting the move as a win for gamers.
“We intend to make Activision Blizzard's popular library of games, including Overwatch, Diablo, and Call of Duty, available on Game Pass and grow those gaming communities,” Spencer said. "By offering even more value to gamers, we look forward to continuing to grow Game Pass, extending its appeal to mobile phones and any connected device."
Microsoft had promised to bring "as many Activision Blizzard games as it does to Game Pass in its initial acquisition announcement (opens in a new tab). Spencer's statement confirms the scope of this idea and goes further to suggest that the integration of Activision games in the Game Pass ecosystem will enhance player choice.
“Subscription services like Game Pass make gaming more affordable and help gamers around the world find their next favorite game,” Spencer said. "Game Pass allows developers to bring more games to more players, not fewer."
He also reiterated Microsoft's commitment to "make the same version of Call of Duty available on PlayStation the same day the game is released elsewhere." Fans are concerned that Microsoft will make the series exclusive to Xbox consoles, like it did with Starfield after it acquired Bethesda last year.
But Spencer doesn't say whether other enabling games of lesser commercial importance will get the same cross-platform treatment. While Diablo, Overwatch, and other IPs may be available on Xbox Game Pass, that doesn't rule out the possibility of them being excluded from PlayStation consoles.
A tough sell
Call of Duty's potential move to Game Pass has generated a lot of excitement among fans of the FPS series. If it goes ahead, subscribers could dive into the gargantuan franchise at their leisure and potentially play every new entry in the series at launch, on Game Pass, at no additional cost.
But Spencer's comments about improving player choice follow a report (opens in a new tab) from the UK's Competition and Markets Authority (CMA), a government body responsible for regulating markets, which raises serious concerns. concerns. This suggests that the acquisition could be detrimental to the industry and consumers.
"The CMA is concerned that having complete control over this powerful catalogue, particularly in light of Microsoft's already strong position in game consoles, operating systems and cloud infrastructure, could cause Microsoft to harm consumers by affecting the ability of Sony, Microsoft's closest gaming rival, to compete."
The merger is particularly concerning, he said, in light of Microsoft's impressive reach in the gaming and technology sectors. The company already has a significant share of the console gaming market with the Xbox Series X | S and Xbox One, a firm grip on the fledgling field of game streaming via Xbox Cloud Gaming, and dominating Windows 10 and 11 PC operating systems.
This combination of assets gives Microsoft a huge advantage over potential rivals, especially in the streaming space. You can stream games to Windows PCs without paying high license fees, build new games and services using your existing heavyweight studios, and tap into the huge player base already locked into the Xbox console ecosystem. He believes that Microsoft has "an unprecedented advantage over current and potential cloud gaming service providers."
"This could lead to further concentration in cloud gaming services or a market 'shift' towards Microsoft and ultimately deprive consumers of the benefits of competition between new and emerging providers vying for the success in cloud gaming," the CMA said.
Despite assurances from Microsoft, the regulator has also raised concerns about Call of Duty's Xbox exclusivity. Although Microsoft may choose to keep the series cross-platform, it may impose other more subtle access restrictions on other systems. Microsoft may well delay the release of Call of Duty content on PlayStation consoles or impose higher pricing structures for games sold on Sony systems. This will hurt Sony's profit margins, but it's also bad news for PlayStation gamers who don't want to buy into the Xbox ecosystem.
That's not to mention the other big Activision Blizzard games that Microsoft is about to acquire. Overwatch 2 will be free to play and will launch on October 4 on Xbox Series X|S, Xbox One, PS5, PS4, Nintendo Switch, and PC. While Spencer says that he would be moving to Game Pass, it's unclear what that would actually mean for existing cross-platform play.
It could still be some time before the deal is finalized and these issues are resolved. The CMA will begin a new "Phase 2 in-depth investigation" based on its findings, while regulators in the United States and other countries have yet to issue an assessment, let alone give their approval to the deal.