FTC Officially Drops Case Against Microsoft's Activision Blizzard Acquisition - News
by William D'Angelo , posted on 23 May 2025 / 5,951 Views
Microsoft completed its acquisition of Activision Blizzard in October 2023, however, the US Federal Trade Commission (FTC) would file an appeal in December 2023 in an attempt to overturn the court's decision to allow the merger to proceed.
Earlier this month, the appeal by the US FTC was rejected by the 9th Circuit US Court of Appeals. The appeals court stated the FTC did not show that Microsoft would cut off rivals from having access to Call of Duty or that it would lessen competition in the video game subscription market.
The US FTC has now dropped its complaint against Microsoft's Activision Blizzard acquisition.
"The Commission has determined that the public interest is best served by dismissing the administrative litigation in this case," reads the order dismissing the complaint. "Accordingly, it is hereby ordered that the Complaint in this matter be, and it hereby is, dismissed."
"Today’s decision is a victory for players across the country and for common sense in Washington, D.C. We are grateful to the FTC for today’s announcement," said Microsoft president Brad Smith in a statement.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.
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what did this cost the taxpayers?
Nothing to do with who what contract is with, comparison of money spent. FTC costs 500mil, it works to make sure consumers aren't getting ripped off and in many cases, it wins back money people can can claim. It will still cost 500mil whether it was sueing MS or not.
But in comparison to what the US government does spend money on, $500mil really isn't a lot considering tax payers got back $330mil.
Damn, son, you were really worried about taxpayers money until SpaceX came into picture.
spacex saves the taxpayers billions on space launches
They make more launches in an year than what the NASA does in a decade, and most of those launches fail.
you are kidding right ?
SpaceX has a high success rate for its Falcon 9 launches, consistently exceeding 99%. In 2024, they launched 134 Falcon 9 rockets, with 133 being successful, which represented over half of all orbital launches that year. The Falcon 9's reusable boosters play a key role in this success, with a landing success rate of over 97% and many boosters being reused multiple times.
yes and nasa struggles to launnch, SpaceX generally offers significantly lower launch costs than NASA's Space Launch System (SLS). SpaceX's Falcon 9 launches are advertised around $62 million per launch, while larger rockets like Falcon Heavy can cost upwards of $90 million. NASA's SLS is estimated to cost over $2 billion per launch. SpaceX's reusable rocket technology, such as the Falcon 9, has been instrumental in reducing launch costs.
Oh, sorry, I was wrong, so what you're telling me is that they launch WAAAAAAY more than I initially thought, and they spent, just last year, with a single rocket, 8.308.000.000 of taxpayers money in launches. Again, with only one of their rockets. Thanks for clearing that up.
Oh, one more thing, all that money going to Elon Musk is returning to the taxpayers in what way exactly? I mean, I'm sure the 1% who doesn't even pay taxes will love all the space trips they will get to do in the near future...
A senior guy in the Space Force told me that their estimates are that SpaceX has saved them $40B since they started contracting with them (which goes all the way back to when they were still part of the Air Force). This is due to better performance and lower cost then the legacy cost plus contracts with the military industrial establishment.
The FTC is a joke
completely agree
Many things have changed over the last few years in relation to the buy out, the fear of MS just removing future games platforms from their now owned publishers has certainly taken a vastly different turn.
"Today’s decision is a victory for players across the country and for common sense in Washington, D.C. " - How as anything changed for gamers? Same games as they would have got anyway. $70bil wasted to line corporate pockets. And that last bit... oof.
New games? Nice, what are they? Because it would be nice to see something from Activision and Blizzard that isn't the same franchises they have been milking for the best part of a decade.
I guess this method was more cost effective than opening 40 studios, giving them all $250mil budget each to make whatever the game they wanted and have 60 billion left over while still getting all the same Activision Blizzard games on your systems.
Brand power makes more money than opening up 40 unproven studios.
Microsoft/Xbox isn't a big brand? Who knew.
What? I didn't say Xbox isn't a big brand, I am referring to 40 unproven studios.
Owned by Microsoft. MS should put their game making expertise ... oh, hmm, maybe you're right. Better to buy than create for MS.
Don't need to take this personal. Its buisness 101. A well established brand is more valuable then an unproven one. ABK is incredibly valuable, no matter how many studios you create, nothing is getting close to ABK. Its just facts.
Also what expertise are you referring to? You know MS games are topping PS charts right?
So, not sure you are getting me. I believe MS has the skills and resources to spend time, effort and resources to support their console and GP ambitions by creating new stuff for gamers.
It's just they don't want to, because as you know, it's not about creating, it's about control. They get to control these popular franchises so you have to go to them for it, where ever they end up putting them. As mentioned in my original post here, things have vastly changed, which is why FTC dropping things is sensible.
But "Also what expertise are you referring to? " The ones they bought and didn't create.
Nothing is getting close to the horribly monetisation and exploitative content ABK puts out, that's for sure. ABK might have certain power in it's content but just because MS owns them doesn't make them suddenly a better brand or are making content worth it. MS could do so much better but they just can't be arsed.
Its alot more than just creating. Control and garenteed releases are important for the Xbox brand.
What ever Xbox make, ABK has to create content for it, like we are seeing with GamePass.
Creating 40 studios, many will shut down, many will be mediocre and maybe afew might strike lucky. Its a huge risk for little gain.
ABK have some of the biggest IPs in the industry, weather it's for you, is another story.
You fail to see the real benefit here. MS now makes 70% of all sales profits from anything ABK sell, and they also have complete control of the games, meaning Sony can no longer moneyhat games like COD as a selling point. All future Bethesda and ABK games are 100% Guaranteed to release on Xbox hardware and services, Thats a huge W for MS.
Yes, you hit the exact reason they bought ABK and Bethesda, control. It's not about the industry, it's making it so you have to go to them for your favourite game series.
"...meaning Sony can no longer moneyhat games like COD as a selling point."
I mean, they could have always outbid them, they have the money. They used to do it but guess 70bil is cheaper.
You cant outbid the market leader, unless they offer so much money that it will end up costing more then they will make. No buisness will do that they also need to make money off the product.
Owning them will work out cheaper and is a long term investment asset.
Yes you can buy having more money.
"unless they offer so much money that it will end up costing more then they will make."
MS just spend 70bil to "outbid" the market leader and they aren't even going to make their money back for a long time, annual profits of ABK are listed at $1.5bil.
Owning them might work out cheaper but not in most people's lifetime and considering how gaming itself is rather fickle, they've got to do more than just depends on game franchises which in 5 years could be gone. Which brings me to the other post above...
There is a huge difference between spending money to secure exclusives and spending billions in Assets.
ABK is an asset to MS, much like buying a house. No money is lost, its moved from a bank account to a buisness. MS paid cash, no loan needed. ABK will continue to generate billions for MS.
No need to outbid the market leader when it's your property. That's a much better situation to be in.
When someone says common sense, it always means they are lying.
Good, now make CoD exclusive to the very expensive Xbox consoles.
That would be funny
It was always a weak case – ultimately punctuated by the appellate court’s thorough dismissal of the FTC’s appeal.
At the time, FTC chief Khan was even advised by her support staff not to take the case to court, but she ignored her own staff. So as a dire consequence, the FTC’s embarrassing display in court inevitably lead the public to question the institution’s (in)competency.
But with the change in US admin, Khan is no longer in the FTC – and the new FTC people sanely decides enough’s enough. The whole circus was just a waste of time and resources.
The FTC should had been less worried about an Xbox monopoly, but instead more worried about a Playstation monopoly - a Monopolaystation!
Xbox gamers probably wish Microsoft hadn't purchased Activision. It sped up the end of Xbox console with Microsoft's investors and board members realizing the profit margins are immensely better going more third party.
Where did MS announce an end to hardware?
So... Can you just give us your official source for that? Did not know that Xbox was stopping making console. So far we only see that from people making up that from their behind...
But I am interrested by the any official source you got (cause the latest official we got is tha tthey are working not on one but 2 next gen consoles... including a handled).
Oh and as an Xbox gamer, I cannot be more happy about the purchase. :)
As an Xbox gamer I think its been a major mistake by Microsoft
So you were happy with Xbox having no more relevance?
If you really want Xbox to improve and develop new games, then why on earth would you not be happy about them acquiring Activision?
I mean, there is a big difference between the people (who are wrong) wanting exclusives on Xbox even if it will do nothing, and the success of Xbox in general.
The Xbox One fiasco was not recoverable, people who invested heavily in Play Station would need a LOT to move to Xbox and that's the main reason why Sony is ahead now. And there is nothing Xbox can do to take that back.
Buying Activision is giving them relevance and a LOT of games to build from.
If you are unhappy about the Xbox exclusive going on another platform, then you do not understand the reality of Xbox since the Xbox One era. The console war thing is just ridiculous at this point. And that's the only reason someone would want Xbox to have exclusives at the cost of getting worse year after year and becoming irrelevant simply to brag about how many exclusives are on your plastic box of choice.
Now Xbox have the tools to beat Sony as game publisher and then take it from there, before Activision, it was a dead end (and one that coming pretty fast...)
How the hell, could you not be happy about that if you are really an Xbox gamer...
They have spent $71 billion buying CoD. Activision are basically nothing else. King are mobile and Blizzard primarily PC.
It doesn’t give the console anymore relevance. All the major new games released MS have lately have been coming from Bethesda. That was an acquisition that was a boon for Xbox although I think MS haven’t made as much as they could have.
In Activision they broke the back to buy a cash cow, whilst still not giving PlayStation gamers a reason to switch to Xbox.
In fact they have less now. You can soon play all major Microsoft and Sony titles on a PlayStation, be it God of War, Horizon, CoD, Forza, Gears and probably even Halo soon. But you can’t play all of those on an Xbox.
That isn’t MS having the tools to beat Sony, especially when most its recent major franchise releases have been seen as disappointing.
Oh... Well, either you do not read on purpose or you simply just want to talk about console.
"Switch to Xbox"... Clearly you are in for the plastic box, like I assumed, here is some news for you: they were already in that position after the Xbox One debacle. End of story, not sure what Acitivision has to do with that.
And as far as not having the tools to beat Sony to become the first publisher, you must be living under a rock; just looking at numbers they are clearly in a very good position to do so.
Same thing in your insistence to split Kings, and PC games. those ARE games and counts toward being the most prominent game publisher... If you want to count them out for some reason, that's on your. You seem to focus on the console only for some reason, good thing for Microsoft, they do not have you to lead the Xbox division because they would be dead by now on insisting about beating Play Station when 75% of the market was already on Play Station 4 at the beginning of the generation (which was almost impossible to take back).
Unlike you I do not think Xbox about a plastic box (and never did); I always loved Microsoft ecosystem and started to really like them when they came up with Xbox Play Anywhere.
If you are stuck with "Xbox being a console"; then you must be unhappy since a LONG time, and Activision was not even in the picture... And we can argue forever because you are talking about a completely different thing than me for sure...
Its not just about the console, its about the brand. Xbox has become a much stronger brand after the buyout. They now have a much bigger profit margin and full control on some of the most popular IPs in the industry. No longer can Sony pay for timed exclusivity to hurt Xbox. Xbox customers will get the equal best treatment if not the best treatment of all future game releases, ie: GamePass.
Hmm, I remember all the whining back then, that people said MS would prevent them from playing their favorite game. Now are more MS games available on the most common platforms. If anything then MS has opened the games to more gamers with the acquisition of Bethesda and Activision. MS has become a full multiplatform publisher.
Take advantage of Trump's power and buy EA, Ubisoft, Asobo and SEGA. The justification... Sony and Tencent generate revenues similar to those of the XBox division, while in the console business we have Sony dominating the high-performance hardware market with approximately 70%, that is, we do not have a monopoly. Add to the argument that XBox is not focused on exclusives like Sony and Nintendo and you will have more justifications for future acquisitions.
