Xbox CEO: Activision Deal Blocked Over Nonexistent Cloud Gaming Market
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The CEO of Xbox, Phil Spencer, recently commented on the proposed acquisition of Activision by Microsoft, which was ultimately blocked by regulators.
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According to Spencer, the deal was blocked due to concerns over the cloud gaming market, which he argues "doesn't really exist yet.
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Cloud gaming, also known as game streaming, is a technology that allows users to play video games over the internet, without the need for a dedicated gaming console or high-end PC.
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Microsoft has invested heavily in cloud gaming in recent years, with its Xbox Cloud Gaming service allowing players to stream games to their devices.
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The proposed acquisition of Activision by Microsoft would have given the company access to a vast library of popular video game franchises, including Call of Duty, World of Warcraft, and Candy Crush
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However, regulators were reportedly concerned that the deal would give Microsoft an unfair advantage in the cloud gaming market, which is still in its early stages.2.
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Spencer argued that the cloud gaming market is not yet significant enough to warrant regulatory intervention, and that Microsoft's investment in the technology would benefit consumers
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He also suggested that the decision to block the deal was driven in part by political considerations, rather than a genuine concern for consumers or competition
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The proposed acquisition of Activision by Microsoft was valued at $68.7 billion, making it one of the largest deals in video game industry history