Meta pairMicrosoftThe Activision deal was lauded and defended its position against Sony’s arguments and concerns that the merger would raise monopoly issues.
According to the parent company of social media giants Facebook and Instagram, it “does not believe it is appropriate to segment video game development and publishing by platform/hardware.”
“In any case, barriers to market entry are generally low,” Meta added. “The app store model (on all platforms) has led to an increase in the number of newly published video games, as developers no longer have to organize distribution.”
Meta further believes that the gaming market continues to expand and everyone has the opportunity and tools to dive into it. It says that there are already different APIs, SDKs and various other free resources developed by big tech companies such as Meta, Microsoft,apple, Google, Amazon, etc.) to developers, enabling them to easily create new video games and features. Additionally, it highlights that with the now-new business model the gaming industry continues to evolve, developers have more ways to monetize and bring their content to market efficiently, whether through in-app, subscription, or free Ad-supported model.
Meta also claims that issues of consolidation and “the boundaries between platforms” are mitigated by cloud computing now allowing everyone to stream and upload games using virtually any internet-connected device.
Also, to justify its point about “low barriers to market entry”, Meta mentioned the launch of different video game distribution platforms, such as Google Stadia in 2019, Apple Arcade in 2019, Netflix Gaming in 2021, and more.
When referring to the major game developers/publishers that effectively compete with Microsoft and Activision Blizzard on the global and national scene, Meta cites a long list of companies from the perspective of Brazilian consumers, including Bandai Namco, Capcom , Epic Games, Konami,Nintendo, Sony Interactive Entertainment, Ubisoft, and more.
Earlier this month, Britain’s regulator, the Competition and Markets Authority, raised concerns about the deal, pushing it into a second phase of its investigation.