LogInThe FTC previously said that Microsoft "contradicted" its earlier statement to keep Activision Blizzard's operational independence.
Image credit: Blizzard
The drama between Microsoft and the FTC is still ongoing, even though we all thought that after the big acquisition, it'd come to its end. The FTC has recently filed a complaint accusing Microsoft of interfering with Activision Blizzard's operational independence after the tech giant had decided to lay off nearly 2,000 employees from Activision Blizzard and Xbox gaming division. As we earlier discussed, half of this number is staff from the acquired company.
Microsoft hasn't stood aside and responded to the FTC stating that Activision had already planned to downsize a significant number of employees, regardless of whether the acquisition was completed or not.
"Consistent with broader trends in the gaming industry, Activision was already planning on eliminating a significant number of jobs while still operating as an independent company," stated the company. "The recent announcement thus cannot be attributed fully to the merger."
Stephen Totilo, a game journalist, says that Microsoft's response sounds "plausible", as he observed that despite a significant increase in Activision Blizzard's workforce from 9,800 employees at the end of 2021 to 13,000 at the end of 2022, the company failed to meet its growth goals. This means that Activision management may have intended to make job cuts before the Microsoft deal was finalized.
Microsoft also contacted VGC and shared the following statement.
"In continuing its opposition to the deal, the FTC ignores the reality that the deal itself has substantially changed," stated Microsoft's spokesman. "Since the FTC lost in court last July, Microsoft was required by the UK competition authority to restructure the acquisition globally and therefore did not acquire the cloud streaming rights to Activision Blizzard games in the United States. Additionally, Sony and Microsoft signed a binding agreement to keep Call of Duty on PlayStation on even better terms than Sony had before."
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