The head of Microsoft Satya Nadella commented on the information that the deal to buy Activision Blizzard will be reviewed by the Federal Trade Commission, and not by the Department of Justice, as is usually the case.
Nadella said Microsoft shouldn’t be trying to talk the FTC into approving the deal because the situation speaks for itself. The video game market is so fragmented that it is very difficult to achieve an absolute monopoly. In addition, even after the purchase of Activision Blizzard, Microsoft will be third in terms of profit, behind Chinese Tencent and Japanese Sony.
Ultimately, any analysis must be conducted through the prism of the category we are talking about. What can be said about the structure of the market? Even after the completion of the transaction, we will be the third in terms of market share. This shows how fragmented content platforms can be. Shows how fragmented the category itself is. Yes, we will be a major player, but in a very fragmented area, Nadella said.
The head of Microsoft also added that market fragmentation applies to the entire industry as a whole. As an example, he cited Steam, which is the largest, and for many, the only store on the PC, which allows you to purchase video games in digital format.