UK watchdog no longer thinks Microsoft’s Activision Blizzard merger is a threat to console competition (updated)

The UK is softening its objections to Microsoft's buyout of Activision Blizzard. The Competition and Markets Authority (CMA) has revised its findings and determined that the merger won't lead to significantly reduced competition in the console space. While the evidence remains the same, the watchdog now finds that Microsoft's ownership of franchises like Call of Duty would "not materially affect" Sony's ability to compete with PlayStation systems. Microsoft could "degrade" the PlayStation's appeal, the CMA says, but Sony's platform has a strong-enough catalog that the damage would be limited.

The Authority also reconsidered its view that Microsoft might benefit from shutting out Call of Duty's PlayStation audience. More recent Microsoft data suggests the company could suffer substantial losses in "any plausible scenario" by making the game franchise Xbox-only or offering exclusive perks, according to the CMA. Not enough gamers would switch from PlayStation to Xbox to make that strategy work, in other words.

The CMA makes clear that the updated findings don't change its concerns about cloud gaming services. In February, the regulator said Microsoft represented up to 70 percent of the worldwide cloud gaming market, and completing the Activision Blizzard purchase could harm gamers who can't afford an expensive console or PC.

We've asked Microsoft and Sony for comment. Activision Blizzard tells Engadget in a statement that the CMA now has an "improved understanding" of the console market, and that Microsoft already has solutions in place for remaining issues. Activision maintains that Sony is only trying to "protect its dominance" by contesting the acquisition.

Sony has long opposed the deal and calls it a "threat to our industry" that could hurt the quality of Call of Duty on PlayStation. Microsoft has made a number of concessions in hopes of clinching the Activision Blizzard takeover, including 10-year multi-platform promises for Call of Duty as well as arrangements to bring games to rival cloud platforms.

The UK overseer's change of heart doesn't overcome resistance to the merger in other countries. The US Federal Trade Commission is still suing to block the union, and points out that Microsoft made future titles like Redfall Xbox-exclusive on consoles despite assurances to European Union officials. Objectors can also comment on the findings before the end of March. However, the new stance still improves Microsoft's chances of completing the acquisition — a major regulatory body just dropped its main point of contention.

Update 3/24 4:10PM ET: Microsoft President Brad Smith says his company "appreciates" the CMA's review, and believes it "underscores a growing consensus" that the Activision Blizzard pact will create more competition.  

Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard's games characters in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration

Nintendo takes Wii U games 'Mario Kart 8' and 'Splatoon' offline over security issues

Nintendo has taken Wii U titles Mario Kart 8 and Splatoon offline indefinitely while it attempts to resolve security issues. "This network service is currently unavailable due to urgent maintenance required to fix a vulnerability related to online play," reads a message posted to Nintendo's website at 11:30PM ET on Thursday. "We do not yet have information on when network services can be restored. We apologize for any inconvenience caused."

As VGC notes, the vulnerability could be related to an exploit that allows an attacker to take control of a victim's system simply by way of being matched with them in an online multiplayer game. Dataminer OatmealDome suggested the issue is “almost certainly” due to ENLBufferPwn.

Mario Kart 7 on the 3DS was previously vulnerable to that exploit. Several Switch games apparently were too, including Mario Kart 8 Deluxe, Animal Crossing: New Horizons, Nintendo Switch Sports and Splatoon 2 and 3. Nintendo has seemingly patched all of those titles to protect them against the exploit.

A video posted by YouTuber PabloMK7 in December shows ENLBufferPwn in action on Mario Kart 7. It's used to inject custom firmware onto the targeted console. PabloMK7 wrote on GitHub that "it would be theoretically possible" to steal an account or credit card information and to record a victim using the 3DS' mic and cameras.

With nearly 8.5 million copies sold, Mario Kart 8 was the biggest-selling game on the Wii U. The original Splatoon sold almost 5 million. Those who are still playing the games on the discontinued system might be disappointed that the online features are currently unavailable, but it seems Nintendo was left with little choice but to take them offline for now.

The issue emerged only a few weeks before Nintendo shuts down the Wii U and 3DS eShops. After March 27th, owners of the systems won't be able to make purchases on the digital storefronts, but they'll still be able to download titles they previously bought. Meanwhile, Nintendo just revealed the latest courses that are coming to Mario Kart 8 Deluxe on Switch next week as part of the Booster Course Pass.

Baby Mario and Luigi in the Wii U version of Mario Kart 8.

Nintendo confirms it won't be at E3 2023

Nintendo has decided not to take part in this year's E3. "We approach our involvement in any event on a case-by-case basis and are always considering various ways to engage with our fans," Nintendo told Engadget in a statement. "Since this year’s E3 show didn’t fit into our plans, we have made the decision to not participate. However, we have been and continue to be a strong supporter of the ESA [Entertainment Software Association] and E3.”

Nintendo typically has a presence on the E3 showfloor and it has often run Treehouse broadcasts throughout the event in addition to a Direct. The company took part in the last proper edition of E3 in 2019, as well as the all-digital affair in 2021. There was no E3 in 2020 or 2022.

Earlier this month, IGN reported that Nintendo, Microsoft and Sony have all bowed out of E3 this year. Sony hasn't had a presence at the event since 2018, but neither it nor Microsoft have publicly confirmed plans for this year's edition. Regardless, Microsoft will host its big annual showcase in Los Angeles this summer. Microsoft Gaming CEO Phil Spencer recently hinted it will take place around the same time as E3, which will run between June 13th and 16th.

There could always be a Nintendo Direct in mid-June as well, even if it's not officially connected to the expo. Meanwhile, word on the street is that PlayStation is planning a major showcase ahead of E3 after this week's so-so State of Play stream.

The absence of just one of the big three console manufacturers from E3 is a blow for the ESA, let alone all of them. Summer Game Fest is threatening to steal more of the stalwart event's thunder too. But hey, at least Ubisoft will be at E3.

The Nintendo booth is shown at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, U.S. June 13, 2017.