The United States Federal Trade Commission (FTC) has faced a significant setback as its appeal to block the acquisition of Activision Blizzard by Microsoft was dismissed. This monumental deal, valued at $69 billion, became finalized in October 2023 following a series of legal proceedings. Initially, the FTC sought a preliminary injunction to halt the transaction until an internal court could assess its impact on competition within the gaming sector. However, this request was denied by the US District Court for the Northern District of California in July 2023, paving the way for the completion of the merger. Despite the FTC’s efforts to overturn the decision through an appeal in December 2023, the 9th Circuit US Court of Appeals upheld the original ruling.

Judging from the appeals court's perspective, the FTC did not provide sufficient evidence to substantiate its claims regarding the potential anti-competitive effects of the merger. Specifically, it failed to demonstrate that Microsoft would restrict rival companies' access to Call of Duty post-acquisition or that the deal would diminish competition in the gaming subscription market. Furthermore, the court found no proof supporting the FTC's assertion that the acquisition would negatively affect cloud gaming competition. The court pointed out that even if Microsoft were to make Activision games exclusive to Xbox, such exclusivity practices are commonplace in the industry. Both Nintendo and Sony Interactive Entertainment have notably more exclusive titles than Microsoft does.

Since completing the acquisition, Microsoft has demonstrated its commitment to maintaining cross-platform accessibility. Titles like Call of Duty continue to be available on PlayStation platforms, while former Xbox exclusives such as Forza Horizon 5, Indiana Jones and the Great Circle, and Sea of Thieves have been released on Sony consoles. Additionally, Gears of War: Reloaded is set to debut this summer on Xbox Series X/S, PC, and PS5, marking another milestone in bringing Xbox franchises to PlayStation.

In light of these developments, the rejection of the FTC's appeal solidifies Microsoft's position in the gaming industry. The company's approach underscores a strategy focused on expanding its reach without compromising cross-platform availability, thereby enhancing its competitive edge while respecting industry standards. As the gaming landscape continues to evolve, this merger sets a precedent for future transactions within the sector.