Activision and Microsoft Argue Cloud Gaming Is Transient and De Minimis
Microsoft, in tandem with Activision, has made the case that cloud gaming isn’t actually expected to be as big as everyone expects them to be.
Of course, the two companies made these arguments in front of the CMA, in their responses to CMA’s provisional findings. It’s a doubtful statement particularly in Microsoft’s part, but let’s review how they reached that conclusion in the first place.
Activision seems to be more credible in stating this belief. In page three of their document titled ACTIVISION BLIZZARD’S RESPONSE TO THE PROVISIONAL FINDINGS, dated March 2, 2023, they say this:
“Cloud gaming is a transient technology.
The computing power of consumer electronics hardware – in particular mobile phones – is developing so rapidly that it will soon, further constraining the future growth and reach of cloud gaming. All forms of local processing (e.g. smart TVs, laptops, tablets and phones) have increasingly powerful processing capabilities, that are more efficient and available than streaming.”
Activision shares similar sentiments in the rest of their document, arguing the point that Activision really had no interest in entering cloud gaming on their own.
But their point here is that they have no faith that cloud gaming will be the future of video games. In particular, this is because technology is still catching up to make advanced tech more affordable at a rapid pace. If cloud games are still more advanced, consumers will still be happy with the tech on their phones, tablets, and laptops.
Microsoft’s claim, however, makes one wonder if they are being as honest to the CMA as they have successfully projected themselves to be so far.
On their document titled MICROSOFT’S RESPONSE TO THE CMA’S PROVISIONAL FINDINGS, dated
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