A Fortnite and odd days: the console wars

The videogames industry is called to play a key role in the development and design of the future digital arena, ranging from the up-and-coming metaverse to the digital platforms’ future innovation. At this point, projections show that video gaming can surpass $220 billion in revenue in 2024, wherea...

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Main Author: Alba Ribera Martínez
Format: Article
Language:English
Published: Universidade Católica Editora 2022-11-01
Series:Market and Competition Law Review
Subjects:
Online Access:https://revistas.ucp.pt/index.php/mclawreview/article/view/11398
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author Alba Ribera Martínez
author_facet Alba Ribera Martínez
author_sort Alba Ribera Martínez
collection DOAJ
description The videogames industry is called to play a key role in the development and design of the future digital arena, ranging from the up-and-coming metaverse to the digital platforms’ future innovation. At this point, projections show that video gaming can surpass $220 billion in revenue in 2024, whereas the entertainment industry’s revenues are rapidly decreasing. Still, the video gaming sector has gone largely unnoticed by competition law authorities. A few skewed and inconsistent decisions have tried to set out the relevant product and geographical markets. However, the subsequent developments over the years do not show a linear sequence of events. Instead, several breakthroughs such as introducing cloud gaming and subscription video gaming services have contributed to blurring the lines of market delineation altogether. The European Commission’s approach through merger control has been instrumental to provide some guidance on the subject, although its Vivendi/Activision, Activision Blizzard/King and Microsoft/ZeniMax have not paid attention to the special characteristics of video gaming, namely differences between user experience when playing different game genres and when playing across platforms. Given the foregoing, we will first address the videogame market’s economic conditions and particularities overlooked by competition authorities when performing their analysis, namely in the preliminary stage of market definition. Based on these findings, the article builds on the calls for intervention with regard to the Microsoft/Activision Blizzard4 operation and instrumentalises it as a yardstick to measure the wider impact of acquisitions within the video gaming market.
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spelling doaj-art-f7fad921c641471595ac62ce2a7d575d2025-01-02T23:24:31ZengUniversidade Católica EditoraMarket and Competition Law Review2184-00082022-11-016210.34632/mclawreview.2022.11398A Fortnite and odd days: the console warsAlba Ribera Martínez0University Carlos III of Madrid, School of Law and Social Sciences The videogames industry is called to play a key role in the development and design of the future digital arena, ranging from the up-and-coming metaverse to the digital platforms’ future innovation. At this point, projections show that video gaming can surpass $220 billion in revenue in 2024, whereas the entertainment industry’s revenues are rapidly decreasing. Still, the video gaming sector has gone largely unnoticed by competition law authorities. A few skewed and inconsistent decisions have tried to set out the relevant product and geographical markets. However, the subsequent developments over the years do not show a linear sequence of events. Instead, several breakthroughs such as introducing cloud gaming and subscription video gaming services have contributed to blurring the lines of market delineation altogether. The European Commission’s approach through merger control has been instrumental to provide some guidance on the subject, although its Vivendi/Activision, Activision Blizzard/King and Microsoft/ZeniMax have not paid attention to the special characteristics of video gaming, namely differences between user experience when playing different game genres and when playing across platforms. Given the foregoing, we will first address the videogame market’s economic conditions and particularities overlooked by competition authorities when performing their analysis, namely in the preliminary stage of market definition. Based on these findings, the article builds on the calls for intervention with regard to the Microsoft/Activision Blizzard4 operation and instrumentalises it as a yardstick to measure the wider impact of acquisitions within the video gaming market. https://revistas.ucp.pt/index.php/mclawreview/article/view/11398VideogamesConsolesMarket definitionEcosystemsInteroperability
spellingShingle Alba Ribera Martínez
A Fortnite and odd days: the console wars
Market and Competition Law Review
Videogames
Consoles
Market definition
Ecosystems
Interoperability
title A Fortnite and odd days: the console wars
title_full A Fortnite and odd days: the console wars
title_fullStr A Fortnite and odd days: the console wars
title_full_unstemmed A Fortnite and odd days: the console wars
title_short A Fortnite and odd days: the console wars
title_sort fortnite and odd days the console wars
topic Videogames
Consoles
Market definition
Ecosystems
Interoperability
url https://revistas.ucp.pt/index.php/mclawreview/article/view/11398
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