Microsoft has won its fight against the Federal Trade Commission, with Judge Jacqueline Scott Corley denying the FTC's request for a preliminary injunction, meaning that the big Activision Blizzard deal can now close. Microsoft first announced its intent to acquire Activision Blizzard in early 2022. Since then, the deal has been approved by a wide range of governing bodies, though it was blocked in the UK.
While most countries have approved Microsoft's acquisition of Activision Blizzard, the UK's CMA blocked the deal. The FTC was also looking to put a stop to the massive acquisition. However, Judge Corley's decision effectively means that the FTC has failed to block Microsoft's attempt to acquire Activision Blizzard, and the record-breaking deal is now free to close. The FTC can still technically appeal the decision, but it's unclear at this time if it will actually do so.
Judge Corley's ruling explained that the FTC failed to show that Microsoft's acquisition of Activision Blizzard would "substantially lessen competition," and in fact, that the evidence points to the deal being beneficial to consumers. Judge Corley pointed to Microsoft's commitment to keep Call of Duty on PlayStation for at least 10 years, the plan to bring Call of Duty to Nintendo platforms, and the various deals made that would see Activision games come to different cloud gaming services. Basically, Microsoft's acquisition of Activision Blizzard will make it easier for consumers to access Activision-published games on a wider variety of platforms.
When Microsoft's acquisition of Activision Blizzard officially closes, it will have a massive impact on the industry. For instance, Sony has suggested that the deal would mean that it can't give Activision PlayStation 6 development kits. If this happens, it could potentially cause some issues with Microsoft's pledge to keep bringing Call of Duty to PlayStation.
In the more immediate future, the deal could be massive for Xbox Game Pass. Bringing Call of Duty to Xbox Game Pass on day one could definitely convince many gamers to sign up for the subscription service. Microsoft could also add some extra benefits for Activision games for gamers that are signed up for Xbox Game Pass Ultimate as it has done with its own titles.
Previously, Activision expressed a desire to see some of its dormant franchises revived through Xbox, like the toys-to-life series Skylanders and the music/rhythm game phenomenon Guitar Hero. Time will tell if that ever happens, but regardless, Microsoft's acquisition of Activision Blizzard will ensure that Xbox gets a big boost in the console, PC, and mobile gaming spaces.