Nearly eighteen months have passed since Microsoft made waves with its ambitious $69 billion acquisition of Activision Blizzard, and it seems the tumultuous journey to finalize this deal may finally be nearing its conclusion. The 9th Circuit Court has just ruled against the US Federal Trade Commission’s (FTC) appeal to block the acquisition, a significant legal victory for Microsoft that could reshape the gaming landscape.
This saga kicked off in late 2022 when the FTC raised alarms about what they claimed would be detrimental impacts on competition across various vibrant gaming sectors. Their antitrust lawsuit, unleashed in December of that year, aimed to halt Microsoft’s march toward acquiring one of the industry’s titans, fueled by concerns that this deal would harm consumers by limiting their choices. But after extensive legal wrangling throughout 2023, regional and global regulatory bodies began giving the green light for Microsoft’s takeover.
Despite the acquisition finally concluding in October 2023, the FTC wasn’t willing to go down without a fight. They sought a last-minute appeal from the 9th Circuit Court to reverse a July 2023 ruling that declined to enjoin the merger. However, in a notable turn of events, the 9th Circuit upheld the previous ruling, asserting that the lower court had appropriately applied legal standards and that the FTC’s evidence did not convincingly indicate a substantial reduction in competition.
Should the FTC wish to pursue this further, they are faced with the monumental task of convincing the US Supreme Court to overturn the 9th Circuit’s decision. Alternatively, the FTC could reignite its internal proceedings, which had been paused for the 9th Circuit’s decision. However, with a shift in political tides and a new chairperson appointed by the previous administration steering the FTC, it’s unclear if they will continue pressing forward with this case.
For Microsoft, the acquisition has started to yield fruitful rewards. Reports from Q1 2025 highlighted an impressive 61% year-on-year increase in Xbox content and services revenue, largely attributed to the inclusion of Activision Blizzard’s vast catalog. This surge reflects a growing trend in the gaming market where consolidation is becoming more frequent, as companies strive to enhance their offerings to consumers amid fierce competition.
As we look ahead, one can only speculate how this monumental deal will reshape the gaming industry. Will Microsoft continue to innovate with beloved franchises from Activision Blizzard? How will competitors react to this newfound power? The answers to these questions could define the gaming landscape for years to come as Microsoft rediscovers its role in a rapidly evolving environment.
