Microsoft settles lawsuit with CoD gamers over Activision Blizzard acquisition
What's the story
Microsoft has managed to settle a lawsuit from a group of gamers, who wanted to block the tech giant's $69 billion acquisition of video game publisher Activision Blizzard. The terms of the settlement have not been revealed, according to a court filing done earlier this week. Both parties have agreed to dismiss the lawsuit and bear their own costs and fees. In response to the settlement, Microsoft issued a brief statement saying, "the parties have resolved the litigation."
Gamer concerns
Lawsuit filed by 10 individual gamers
The lawsuit was filed in a US federal court in San Francisco last year, on behalf of 10 individual gamers. These gamers are fans of popular Activision Blizzard franchises such as Call of Duty, World of Warcraft, Overwatch, and Diablo. The acquisition process took almost 22 months to finalize over concerns from competitors and government regulators that Microsoft could use its growing game portfolio to stifle competition.
Market shifts
Industry consolidation and independent developer worries
The Microsoft-Activision Blizzard deal is also part of a larger industry consolidation trend. This has raised concerns among independent game developers about being overshadowed as resources are increasingly directed toward successful franchises. Last month, Microsoft also terminated approximately 650 positions within its gaming division, Xbox. "As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming," Xbox head Phil Spencer wrote in a memo.