Microsoft again insists the ActiBlizz deal is all about mobile (it’s not)

 

Tech colossus Microsoft has insisted that its proposed buyout of Activision Blizzard is motivated by its weak presence in mobile.

In Microsoft’s response to an FTC complaint designed to block the $69bn deal, Microsoft stated that it is in third place behind Sony and Nintendo in the console space, and “has next to no presence in mobile gaming”.

It added that mobile is “the fastest-growing segment of gaming and the place where 94% of gamers spend their time today.”

Later, it continued: “[Microsoft’s] vision for the transaction is simple: Xbox wants to grow its presence in mobile gaming, and three quarters of Activision’s gamers and more than a third of its revenues come from mobile offerings.”

As part its response Microsoft also produced a pie chart to show how far behind it is in the console space and how irrelevant it is in mobile (below).

Microsoft has a market cap of $1.78 trillion, but paints itself as the underdog in the games business.

It later added: “Microsoft is buying Activision to meet the billions of gamers who choose to play on mobile devices instead of a console or PC, and to learn how to make games that appeal to and engage them.”

The real motivation of the deal, however, appears to be control of the Call of Duty franchise. To address concerns around that, Microsoft has already promised to release Call of Duty games on PlayStation and Nintendo formats for the foreseeable future if the deal does goes through.

Microsoft’s latest remarks came in response to the FTC’s attempt to block the $69bn deal on the grounds that it would harm competition in the games industry. The UK and EU are also investigating the deal, which was announced almost a year ago.