Microsoft Reaches Settlement in Gamers Lawsuit Over Activision Blizzard Deal

In December 2022, a faction of ten individuals identifying as gamers initiated a lawsuit against Microsoft. They sought to obstruct the company’s proposal to acquire Activision Blizzard, arguing that such an acquisition would significantly harm gamers and adversely affect the gaming industry at large.

On Monday, The Hollywood Reporter revealed that Microsoft has settled with the group of gamers, effectively concluding the lawsuit and related legal proceedings. The case was dismissed “with prejudice,” indicating that it cannot be refiled in the future.

While the detailed conditions of the settlement between Microsoft and the gaming group remain confidential, it has been stated that both parties will “bear their own costs and fees.”

Microsoft finalized its acquisition of Activision Blizzard in October 2023 for a staggering $69 billion. In the aftermath, the tech giant has downsized its gaming division significantly, laying off around 1,900 employees in January and another 650 in September. Moreover, it shuttered three internal game studios in May, impacting an unspecified number of jobs, including Tango Gameworks, which was later bought by Krafton.

Despite the acquisition being finalized, Microsoft still faces uncertainties surrounding the purchase of Activision Blizzard. The U.S. Federal Trade Commission has expressed opposition to the deal. In December 2023, the involved parties convened at the United States Court of Appeals for the Ninth Circuit in San Francisco.

The U.S. government contended that the judge who initially denied the preliminary injunction against Microsoft’s acquisition made an erroneous decision, claiming the judge should have determined that the deal posed significant competitive issues within the gaming market. The appeals court is yet to issue a ruling on the matter, and a timeline for this announcement remains uncertain.

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