FTC Ends Legal Challenge, Clears Way for Microsoft’s $69 Billion Gaming Merger

The largest acquisition in video game history is now a done deal. The U.S. Federal Trade Commission has officially dropped its lawsuit to block Microsoft’s $69 billion purchase of gaming giant Activision Blizzard, clearing the path for the two companies to finalize their long-anticipated merger.

According to Reuters, the FTC stated in a court filing that continuing to oppose the deal was no longer in the public interest. The agency had previously argued that the merger could harm competition in the gaming industry, but FTC Chairman Andrew Ferguson signaled the agency now plans to redirect its attention to other regulatory priorities.

With the merger finalized, Microsoft now owns blockbuster gaming franchises such as Call of Duty, Diablo, and World of Warcraft, adding them to a lineup that already includes Minecraft, Halo, and Elder Scrolls. The tech giant also strengthens its Xbox platform and related services, including its popular Game Pass subscription service and growing cloud gaming operations.

Regulators and industry observers had been closely watching the case, worried that Microsoft might make Activision Blizzard’s top-selling games exclusive to Xbox platforms, giving it an unfair edge over competitors like Sony’s PlayStation. But Microsoft made moves to address those concerns, publicly promising to keep Call of Duty available on other consoles and platforms. It also sold off cloud streaming rights for Activision Blizzard games to Ubisoft, a France-based video game publisher, to satisfy competition concerns from the United Kingdom’s antitrust regulator.

Microsoft originally announced the acquisition in early 2022, a time when Activision Blizzard was still dealing with the fallout from workplace misconduct allegations. For Microsoft, the merger not only adds top-tier game titles to its portfolio but also helps expand its role in mobile and online gaming, a fast-growing segment of the industry.

For everyday gamers, the impact might be subtle, at least for now. The games players already love aren’t disappearing, and may even become more accessible through Microsoft’s growing Game Pass library. In fact, many players are hoping the merger will lead to renewed interest in long-dormant franchises. As one Reddit user joked, “Given that Microsoft has bought Activision, do you think we’ll finally get a new Prototype game?”

Whether Microsoft brings back old fan favorites or focuses on streamlining its massive library of titles, the tech giant now controls an even bigger share of the gaming world. Critics continue to worry about industry consolidation, but for now, gamers are left to wonder what will come next and what other surprises might be waiting in their next software update.