The planned $69 billion acquisition of Activision Blizzard by Microsoft has been met with opposition from various parties, including competitors and tech companies. Now, the UK’s Competition and Markets Authority (CMA) has added its own concerns to the mix, proposing that Activision Blizzard should sell off its popular Call of Duty franchise before the merger goes through. This decision by the CMA could seriously threaten the proposed acquisition and has many people wondering what will happen if the merger doesn’t happen.

The video game industry is constantly evolving, and with new technologies emerging every day, mergers and acquisitions are becoming more and more common. The Activision Blizzard and Microsoft merger was seen as a way to bring together two of the biggest players in the industry and create a company with the resources and power to take on the giants of the Asian market. However, if the merger falls through, it could have serious implications for the future of the industry and the way in which mergers of this size are approached in the future.

One of the biggest concerns is that the CMA’s decision could set a precedent for future mergers and acquisitions. If the CMA requires Activision Blizzard to sell off a major portion of its business before a merger can go ahead, it could raise red flags for other companies looking to merge in the future. This could mean that future mergers may become much more difficult and complex, requiring companies to break themselves apart and sell off key parts of their business before a merger can be completed.

Another concern is that the fallout from the proposed merger could lead to a decrease in consumer confidence. If the CMA’s decision causes the merger to fall through, it could send a message to consumers that the video game industry is not a safe place to invest their money. This could result in a decrease in consumer spending and, in turn, a slowdown in the industry as a whole.

The proposed Activision Blizzard and Microsoft merger is a complex issue with many factors at play. The CMA’s decision to require the sale of Call of Duty could be the straw that breaks the camel’s back and cause the entire merger to fall through. This could have serious consequences for the future of the industry and the way in which mergers of this size are approached in the future. Whether the merger goes ahead or not, it is clear that the video game industry is facing some big changes, and it will be interesting to see how things play out in the coming months and years.

If the Microsoft-Activision Blizzard merger is approved, the industry will likely see a shift in the balance of power. With Microsoft’s vast resources and technology combined with Activision Blizzard’s extensive portfolio of popular franchises, the merged company will likely become a dominant player in the industry.

This could mean increased competition for other players in the industry, who will have to work harder to keep up with the merged company’s advancements in gaming technology, marketing strategies, and content creation. For consumers, it could mean a wider range of gaming options and more advanced technology, as the merged company invests in research and development to create new gaming experiences.

However, the deal could also have negative consequences for the industry. The concentration of power in the hands of a few large companies could lead to a reduction in innovation and diversity in the industry. The market could become less competitive, with fewer options for consumers, and smaller companies could struggle to compete with the behemoth that is Microsoft-Activision Blizzard.

Another concern is the potential for anti-competitive practices, such as bundling and tying, that could limit consumer choice and stifle competition. The merged company could also use its dominant position to exert influence over other parts of the industry, such as distribution channels and hardware manufacturers.

If the deal is approved, regulators will need to keep a close eye on the merged company to ensure it does not abuse its power and stifle competition in the industry. Whether the merger is approved or not, the industry will continue to evolve, and it will be interesting to see how it all plays out in the years to come.