UK games sector welcomes Microsoft acquisition of Grand Theft Auto parent company

Sir Ian Livingstone, a veteran of the UK gaming industry, has said that the UK games sector would have welcomed a Microsoft acquisition of Grand Theft Auto parent company Take-Two Interactive. Livingstone made the comments during an interview with The Guardian, in which he expressed concern about the lack of investment in the UK games industry. Livingstone, who co-founded Games Workshop and served as chairman of Eidos Interactive, argued that the UK has a wealth of creative talent but is struggling to attract investment due to a lack of government support and the dominance of US companies in the market.

Sir Ian Livingstone, who was one of the founders of Eidos Interactive and served as its chairman for many years, has stated that the UK games sector supported Microsoft’s proposed acquisition of Activision. Microsoft announced in January 2022 that it planned to purchase Activision Blizzard, the parent company of popular video game franchises such as Call of Duty and World of Warcraft, for $68.7bn.

Livingstone noted that the deal would be beneficial to the UK games industry as a whole, citing Microsoft’s commitment to investing in the sector and its support for studios based in the UK. He also expressed confidence that the acquisition would not negatively impact the creative direction of Activision’s studios, stating that Microsoft had a track record of allowing its studios to maintain creative independence.

Some critics of the deal have raised concerns about consolidation in the video game industry and the potential impact on competition. However, Livingstone argued that Microsoft’s acquisition of Activision would not create a monopoly, as there are many other companies operating in the games market, including Sony and Nintendo.

The deal is still subject to regulatory approval in several countries, including the US and the European Union. If approved, it would be one of the largest acquisitions in the history of the video game industry.

The UK games sector was supportive of Microsoft’s bid for Activision, according to Sir Ian Livingstone, co-founder of Games Workshop and former chairman of Eidos. He said it would be strange if the UK were the only country to object to the deal, which has been blocked by the Competition and Markets Authority (CMA) on the grounds of concerns about reduced innovation and less choice in cloud gaming. The $68.7bn (£55bn) deal would have been the biggest ever takeover in the gaming industry, giving Microsoft control of titles such as Call of Duty, Candy Crush and World of Warcraft. Both Microsoft and Activision have said they will appeal against the CMA’s decision.

The co-founder of Games Workshop and Hiro Capital, has said that the UK games sector was in favour of Microsoft’s bid for Activision Blizzard being approved, describing it as “odd” if the UK was the only place to object. The UK’s Competition and Markets Authority (CMA) blocked the proposed $68.7bn deal, saying it was concerned the deal would offer reduced innovation and less choice for gamers in the fast-growing cloud gaming business. Microsoft president Brad Smith called the decision Microsoft’s “darkest day” in its four decades of working in the UK, but a spokesman for Prime Minister Rishi Sunak said that the UK games sector had doubled in size over the past 10 years, and that Smith’s claims were “not borne out by the facts”.

According to Gareth Sutcliffe, a senior games analyst at Enders Analysis, the Microsoft-Activision deal “has been in trouble for a while.” He stated that Microsoft failed to reach out to regulators adequately to secure the deal’s approval. However, Sir Ian Livingstone, the co-founding partner of gaming investment group Hiro Capital, believes that the UK games industry is in favour of the deal going ahead. He said that the UK’s games industry has developed some of the world’s most extensive franchises, and any negative sentiment could be harmful to the industry and the UK economy. Sir Ian also suggested that a settlement could be reached that would benefit all parties involved.