Switch Problems: CMA Poses Potential Stumbling Block For Microsoft's Activision Purchase

The UK’s Competition and Markets Authority (CMA) has recently presented a potential stumbling block for Microsoft's ongoing attempts at acquiring the video game developer and publisher Activision Blizzard. CMA has stated that the Nintendo Switch may be entirely incapable of running the contemporary Call of Duty games, which is one of the most prominent franchises in the Activision Blizzard portfolio. These claims have put Microsoft and Activision Blizzard at odds with the regulator and have forced them to reconsider their strategy regarding the deal.

The Nintendo Switch is a hybrid console, meaning it can be used as a portable device or connected to a TV. Unfortunately, its capabilities are limited by its relatively low power, storage capacity, and graphical capabilities, making it difficult to run the latest Call of Duty games. According to the CMA, the Switch may be unable to offer a competitive user experience for graphically intensive multiplayer games like Call of Duty.

Microsoft and Nintendo have signed a game launch agreement in which Microsoft promised to deliver future Call of Duty titles to Nintendo devices. However, it is still being determined if this extends to the Nintendo Switch, as the agreement did not mention any specific devices. There have been rumors that Call of Duty 2024 may be released on last-gen consoles, including the Switch, but with downgraded visuals. Alternatively, the publisher may opt for a cloud-based streaming solution, where gamers will be able to stream the game online instead.

The CMA's decision may have consequences for Activision Blizzard, as Call of Duty games are a key part of its portfolio. The Switch's incapability to run the game will be taken into consideration during the CMA's investigation of the Microsoft Activision Blizzard deal.

Overall, the CMA's opinion on the Nintendo Switch's capabilities will have a significant impact on Microsoft's plans to purchase Activision Blizzard. The regulator's stance puts the company in a difficult position, as Call of Duty is one of the most important franchises in the publisher's portfolio. Activision Blizzard and Microsoft must now decide how to proceed with the deal, taking into account the Switch's lack of ability to run the game.

Mariana Rocha 02 Mar 2023