Activision Deal Is Not a "Linchpin" for Xbox's Future, Phil Spencer Says

Xbox head Phil Spencer has recently stated that although Microsoft's proposed acquisition of Activision Blizzard is important for the company, it is not a "linchpin" for its future and Xbox's gaming division will still exist, even if regulators block the deal.

The acquisition is still being scrutinized by global regulators, including the UK's Competition and Markets Authority, the European Commission, and the US Federal Trade Commission. Global regulators are posing significant obstacles to the merger – the FTC filed a lawsuit to prevent the deal, while the CMA may mandate Activision to divest certain parts of its business before allowing the merger to go forward.

In an interview with The Times, Spencer discussed what would happen if the deal is eventually blocked.

"This is an important acquisition for us. It’s not some linchpin to the long term – Xbox will exist if this deal doesn’t go through," the Xbox boss said.

Regulators' concerns around the Activision Blizzard merger primarily center on the notion that Microsoft's acquisition of the Call of Duty franchise could potentially limit PlayStation's capacity to compete and harm gamers, even despite the tech giant repeatedly assuring both players and regulators that it has no plans to remove the shooter series from PlayStation.

Microsoft had also offered Sony a 10-year contract that would make each new Call of Duty release available on PlayStation the same day it comes to Xbox, although the company did not accept the deal.

Speaking to The Times, Spencer said that he does not understand how increased competition in the gaming console market could be harmful to consumers.

"To me, having us, Sony, and Nintendo doing well in the console market – all of us with strengths and uniqueness and content and capabilities – gives consumers more choice," he said. "I’d hate to see consoles go to where phones are where there are only two manufacturers. And, right now, we have three good competitors."

Similar thoughts were earlier expressed by Activision Blizzard CEO Bobby Kotick who claimed that when the two companies merge, they will "bring more competition to an already crowded field of world-class gaming competitors."

Kotick also criticized regulators saying that they "don't know" the game industry. This is what Spencer also touched upon in the interview with The Times.

"Most of the time in my career at Xbox as I’ve met with government regulators, there’s been a real lack of knowledge about the games industry," he said. "I’ve appreciated spending time with them and in certain cases helping to educate. I think for a lot of the regulators, this is the first time they’ve looked at this industry."

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