The rumor of Microsoft's supposed "Super App" - the one app to rule them all - broke out yesterday, which alleged that Microsoft had planned to build a single application that will offer everything through it, including gaming. The report suggested that the idea was for Microsoft to leverage the IP it garnered from multiple acquisitions like Discord, TikTok, Activision Blizzard, and alike, to bolster and expand its own mobile efforts. While the report was that of a supposed failed ambition, we wondered if anything like that would be possible in the near future. The latest development suggests it may be a while before Microsoft thinks of a Super App-like idea again, at least one that would have something like Call of Duty as well.
The Federal Trade Commission (FTC) has made it public that it does not see eye to eye with Microsoft about its intent to acquire Activision-Blizzard. The main asset Microsoft seems to desire in this deal is the prize catch of Call of Duty (COD), which is one of the most popular first-person shooter video games in the world. Aside from being popular on PC and consoles, COD is now massively played on mobile phones as well. So if Microsoft does have any mobile Super App master plan lying somewhere, this is not a bad place to start.
While Microsoft has hinted at or stated that it will offer Call of Duty on Sony's PlayStation as well as Nintendo Switch consoles, FTC states it does not have faith in Microsoft's promises, citing earlier cases of acquisitions, and seeks to block the takeover of Activision Blizzard. In a press release today, FTC writes:
The Federal Trade Commission is seeking to block technology giant Microsoft Corp. from acquiring leading video game developer Activision Blizzard, Inc. and its blockbuster gaming franchises such as Call of Duty
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With control over Activision’s blockbuster franchises, Microsoft would have both the means and motive to harm competition by manipulating Activision’s pricing, degrading Activision’s game quality or player experience on rival consoles and gaming services, changing the terms and timing of access to Activision’s content, or withholding content from competitors entirely, resulting in harm to consumers.
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In a complaint issued today, the FTC pointed to Microsoft’s record of acquiring and using valuable gaming content to suppress competition from rival consoles, including its acquisition of ZeniMax, parent company of Bethesda Softworks (a well-known game developer). Microsoft decided to make several of Bethesda's titles including Starfield and Redfall Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles.
Microsoft President Brad Smith had also seemingly met with the FTC recently to discuss the matter, though it does not seem to have been fruitful. With today's announcement, FTC becomes the second regulator to block the move after the EU which also said that this was not a good thing for the gaming industry.
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