Friday, April 28, 2023

Game On: Activision's blistering PR strategy

Hey y'all, it's Austin Carr in Boston, filling in for Jason and Cecilia. Activision Blizzard is at war with UK regulators over its $69 billi

Hey y'all, it's Austin Carr in Boston, filling in for Jason and Cecilia. Activision Blizzard is at war with UK regulators over its $69 billion deal with Microsoft, but first…

This week's top gaming news:

  • Zelda is coming back to the Switch on May 12, this time with Minecraft-esque construction powers 
  • Electronic Arts' new Star Wars sequel has arrived in record time
  • Sam Bankman-Fried's favorite video game is shutting down

Activision's Blistering PR Strategy

Since the UK's antitrust watchdog vetoed Microsoft Corp.'s proposed $69 billion purchase of Activision Blizzard Inc. on Wednesday, both companies have gone on the offensive against the regulators, trying to set the larger stakes of the blocked merger for the public. Activision Chief Executive Officer Bobby Kotick called the Competition and Markets Authority's ruling "irrational" and suggested it would have serious consequences for the UK economy.

Meanwhile, Microsoft president Brad Smith told the BBC that the CMA's decision was "bad for Britain" and represented "probably the darkest day in our four decades" operating in the country.

The dire terms seem more befitting of some Dunkirk-scale adversity than a regulatory impediment to a deal between two video-game firms, but the aggressive messaging has been central to Activision's strategy for months. Since joining Activision in October, the company's corporate affairs head Lulu Cheng Meservey has promised a blunter style and hasn't hesitated to spar about union politics or throw shade at the US Federal Trade Commission. After the CMA's announcement, she tweeted that it marked a "major setback for the UK's ambitions to be a tech hub" and did a "disservice" to its citizens. What exactly does the maker of Call of Duty hope to get out of this kind of sniping? 

This sort of trash talking is common among gamers in the Xbox and PlayStation worlds, but the rhetoric has gone a bit beyond your typical headset trolling. In recent months, as Microsoft has sought agreements with other gaming platforms for Activision content in order to assuage fears that the acquisition would stifle competition, Kotick has criticized the UK's "fragile" post-Brexit government. He has also quipped that, if the deal was blocked, the UK would become "death valley" instead of Europe's Silicon Valley under Prime Minister Rishi Sunak. 

Activision declined to comment. But the goal of their messaging appears to have been to pressure regulators and make their case for the merger in the court of public opinion with attention-grabbing antagonism, especially regarding supposed unfair advantages Xbox would gain over rivals as a result. There are signs that at least some of Microsoft and Activision's arguments have resonated. Last month, the CMA pulled an about-face and announced "the transaction will not result in a substantial lessening of competition in relation to console gaming." Instead, the CMA said Wednesday it was chiefly concerned about competition in the cloud-gaming market

As the blocked deal likely heads toward an appeal in the UK, it seems inevitable Activision will now start applying pressure to British politicians and authorities that may end up scrutinizing the CMA's report. A spokesperson for Sunak rejected the notion that the CMA's decision was bad for Britain and said the CMA operated independently. The CMA said it was safeguarding market competition.

The question going forward is whether Activision's bombast will backfire with authorities who may not take so kindly to the idea that the UK's tech economy is on the verge of crumbling. But don't expect the company's rhetoric to tone down. Already this week, Kotick implied Activision will slow hiring across the pond. Meanwhile, Meservey tweeted that UK citizens are facing "increasingly dire economic prospects" and unless the CMA's decision is reversed, "The UK is closed for business."

What To Play

The Formula One season has been on break for nearly four weeks, and assuming you've already binged Netflix's Drive to Survive, the next best thing to immerse yourself in the motorsport is F1 2021, developed by Electronic Arts Inc.-owned studio Codemasters.

Despite its howling engines and unforgiving crashes, I've always found the game somehow relaxing and surprisingly therapeutic, forcing your brain to turn off and focus on nothing else but the next corner. The 2021 iteration, in my opinion, has more polish than its predecessor and less bugs than the 2022 version. With the Azerbaijan Grand Prix coming this weekend, it's a great way to get back into gear on the streets of Baku and see how your lap times compare to fan favorites such as Fernando Alonso.

In Other News

Workers at Sega of America are unionizing 

Controversy erupted over a viral trailer for a surprisingly realistic bodycam video game 

Got a news tip or story to share?
You can reach Jason at jschreier10@bloomberg.net or confidentially at jasonschreier@protonmail.com. Cecilia is cdanastasio@bloomberg.net.

More from Bloomberg

Get Tech Daily and more Bloomberg Tech weeklies in your inbox:

  • Cyber Bulletin for coverage of the shadow world of hackers and cyber-espionage
  • Power On for Apple scoops, consumer tech news and more
  • Screentime for a front-row seat to the collision of Hollywood and Silicon Valley
  • Soundbite for reporting on podcasting, the music industry and audio trends

No comments:

Post a Comment

Where to Put $100 Before Trump's New Tech Law Rolls Out

Jeff Brown was consulted by Congress on this - here's what he says comes next  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ...