Microsoft’s agreed acquisition of Activision Blizzard is to be subject to an antitrust review by the US Federal Trade Commission (FTC).
The FTC will lead the investigation to determine whether the proposed deal will substantially undermine market competition, Bloomberg reports, citing a source familiar with the matter.
Typically, the FTC or US Department of Justice will review acquisitions that are valued over a certain threshold . Deals are assigned to each agency on a case-by-case basis, depending on their expertise in the relevant industry.
However, the FTC’s involvement in the acquisition is particularly noteworthy because FTC chair Lina Khan has been an outspoken critic of tech giants and corporate consolidation.
Khan has previously argued the need to break up and rein in Big Tech companies , such as Amazon, Facebook, Google, and Apple. Her appointment as chair of the FTC led to both Amazon and Facebook filing petitions seeking her removal from any investigations into those companies.
While chair of the FTC, Khan has already blocked one major tech deal that directly influences gaming: GPU manufacturer Nvidia’s proposed acquisition of ARM , which now looks set to be dropped entirely.
Analysis: more consolidation, less exclusivity
In its investigation, the FTC is likely to scrutinize the extent to which Microsoft’s agreed acquisition of Activision Blizzard will undermine competition through platform exclusivity. If the deal goes through Microsoft would be in a position to keep several major gaming franchises, including the best-selling Call of Duty series, exclusive to Xbox, and off PlayStation altogether.
Xbox boss Phil Spencer was quick to alleviate immediate concerns after the deal was announced, saying he doesn’t intend to “pull communities away” from other platforms. Similarly, it was revealed that existing contractual arrangements guarantee the next three Call of Duty games will release on PlayStation . However, past that point, the future exclusivity of the series, and others like it, is unclear. Microsoft has committed to nothing concrete.
If Microsoft can sufficiently demonstrate to regulators that its control of these major franchises doesn’t substantially hinder competition, the deal will pass. If not, it won’t be finalized, at least in its current form.
The deal won’t be assessed in a vacuum, however, but in light of the increasing consolidation of the games industry. Last year, Microsoft finalized its acquisition of Doom, Fallout, and The Elder Scrolls parent developer Bethesda, while Grand Theft Auto publisher Take-Two announced its proposed acquisition of mobile games maker Zynga at the top of the year.
And only two weeks after Microsoft’s acquisition of Activision Blizzard was announced, console competitor Sony revealed its own plans to buy Destiny and Halo developer Bungie for $3.6 billion, signally even greater monopolization of the industry.
Stranger Things 4 cost more than Game of Thrones and The Mandalorian combined
Stranger Things season 4 was reportedly more expensive to make than Game of Thrones and The Mandalorian combined.
According to The Wall Street Journal , whose report into Netflix's cost-cutting measures helps to reveal why the streaming giant is cancelling so many shows , the hit Netflix show 's next instalment cost $30 million per episode. Given that the supernatural horror series' next season will consist of nine episodes, that means Netflix spent an eye watering $270 million on Stranger Things season 4 alone.
For context, the final season of Game of Thrones cost $15 million per episode, while The Mandalorian , the hit Star Wars show, set Disney and Lucasfilm back by a similar amount. Additionally, the recent slate of Marvel shows that have released exclusively on Disney Plus are believed to have cost $25 million per episode.
Netflix, then, is pulling out all the stops to ensure that Stranger Things 4 is the TV series' biggest entry yet. Based on what we've seen so far – namely, the three-minute long trailer and a few teasers – it certainly seems that way, too.
That said, Stranger Things season 4 won't come close to being the most exorbitant TV show to arrive in 2022. The first season of The Lord of the Rings: The Rings of Power , which will launch on Prime Video in September, has reportedly cost an eye watering $462 million – a monumental outlay that's sure to make it the most expensive TV series of all-time.
Still, for a streaming company that's rumored to be reining in its spending, the revelation regarding Stranger Things 4's production costs isn't likely to sit well with those who have hit out at Netflix in recent times. The streaming giant's trialling of a paid password sharing feature , plus a downturn in its subscriber base and year-on-year growth, means that things aren't looking rosy for Netflix at the present moment.
After a near three-year hiatus from our screens, Stranger Things 4 Part 1 will exclusively launch on Netflix on Friday, May 27. Part 2, meanwhile, will arrive five weeks later on Friday, July 1. For more Stranger Things season 4 content, check out our official trailer breakdown .
Analysis: paying the price
Stranger Things season 4 may be the kind of big-budget show that Netflix needs right now. With the myriad issues surrounding the streamer, coupled with the likely unwelcome press it's received since its Q1 2022 earnings report, its executive team could do with a big win. Given Stranger Things' popularity, the show is poised to deliver on that front.
Even so, at $30 million per episode, Stranger Things 4's production costs are sure to raise eyebrows. Yes, the TV series' latest entry needs a budget to reflect the fact that it's the biggest instalment yet. But, given the financial problems that Netflix is suffering (and may continue to suffer) from, a new $300 million budget for Stranger Things season 4 may appear to be a tad excessive.
It's a cost that may rankle with the creative teams behind other Netflix projects. Per The Wall Street Journal's report, Netflix is looking to create "under-the-radar, relatively low-cost hits" to offset the financial outlay of its biggest shows and movies. Think The Witcher ($10 million per episode), The Crown ($13 million per episode), Red Notice ($200 million overall), and The Adam Project ($116 million overall), and Netflix isn't shy about backing up its biggest hitters and most notable stars.
So Netflix is positioning itself to produce films and TV series with smaller budgets in the hope of discovering the next Squid Game . From a financial position, that's a commendable stand to take. But, from a creator's perspective, the possibility of being handed a smaller budget than Stranger Things may not allow you to deliver on your original vision for a movie or show. Once that project is released into the wild, it may not resonate with Netflix's audience, particularly if it seems poorly produced. In turn, that can lead to Netflix cancelling your production , which might be viewed as money wasted on Netflix's part. Thus, the cycle continues.
Of course, Netflix has proven that a show's success doesn't equate to its automatic renewal for another season or two. Hit shows like Archive 81 have been cancelled by the streaming company over the past few years, so positive audience engagement doesn't always mean a show will live on at Netflix. What it does do, though, is alienate fans of those shows, who might be inclined to cancel their Netflix subscription if they've grown weary of the streamer's decision to pull the plug on fan-favorite productions earlier than expected.
As much as Netflix would arguably like itself to be seen as such, it isn't Marvel. It can't expect to have a success on its hands every time, unlike every Marvel movie or TV show that's been released thus far (if you discount Phase 4 project Eternals , anyway). Netflix pumps out too much content (in a bid to cater to every audience) to achieve that level of success on a regular basis.
However, it's still paying the price for canceling popular shows that its fanbase wants to continue watching. There's no point suggesting that you want to go in a different direction and produce low-cost shows and films if you decide not to renew the most popular ones for further instalments. It's wasted money and does little to instil confidence in your subscriber base that their favorite binge watches will stick around for the long haul.
So yes, shows like Stranger Things 4, Shadow and Bone season 2 , and others may need big budgets to make them bigger and better than their predecessors. But, when your shares slump by 40% in the wake of subscriber and financial losses (per Yahoo Finance ), forking out almost $300 million on Stranger Things season 4 may not put you in the best light, especially with your audience.
Fortnite Chapter 3 Season 2: Doctor Strange debuts, building is banned, and more
Fortnite Chapter 3 Season 2 has done the unthinkable. There's no more building in Battle Royale (BR). Admittedly, this is a temporary effect thanks to IO's meddling. But the divisive move is going to separate the Sweats from the shooter lovers.
Epic has offset the lack of portable cover with upgraded movement and another defensive layer on top of your shield and health bars. But it'll undoubtedly shake up gameplay by eliminating the one feature that sets the game apart from the likes of PUBG, or Warzone.
The war with IO is ongoing so players can donate to the war fund. You can chip in Bars towards munitions for the Resistance, or use them to vote for which items get unvaulted.
The Armored Battle Bus is another new edition, and once funded, can be found at particular points on the map. It doubles as a party bus so if you want to lighten the mood, turn the radio on and dance your little heart out.
While Epic Games dropped the Fortnite Chapter 3 Season 2 cinematic story trailer, the Battle Pass trailer is MIA. But we do know which skins are on the way, so read on for everything we know about the new season of Fortnite so far.
Fortnite Chapter 3 Season 2 – what's new?
Overshield Fortnite Battle Royale has scrapped building right at the outset of the new season. But to make up for it (and give the sweats a chance) Epic has introduced Overshield.
Layered on top of your shield and health, Overshield is described as your "first line of defense". It'll basically take hits until it reduces to zero, at which point your shield and health will start getting whittled down. It also recharges, so if you're under fire, get out of there and let it regenerate.
Fortnite Chapter 3 Season 2 has rolled out a few more upgrades that'll help you to get to grips with the new normal. Thanks to mantling, a new sprint system, and a shoulder bash, you should be able to get out of dodge with ease.
Sprinting Default movement is now faster, and that means so is sprinting. The result of your supercharged speed means that items being held go into pockets. The boosted sprint is short-lived though. A sprint meter has been added to the HUD so make sure you have enough stamina when you need to make a run for it.
Mantling Scaling the vertical heights of Fortnite is more intuitive now thanks to mantling. When jumping up to high places, or between platforms, your character will grab the edge and haul themselves up. So feel free to be braver when traversing the map.
Shoulder bashing A fun new way to open doors is at your disposal thanks to shoulder bashing. Just sprint at doors to open them with your shoulder. You can also slide into doors to open them, too.
Repair Torch The Repair Torch restores your vehicle's health. You can top them up at gas pumps to keep them functional.
Marvel's Doctor Strange finally gets added to the roster this season. He won't be available right away, by the sounds of things. And neither will "world-class criminal" Prowler. But here's what the lineup looks like at the moment:
Fortnite Chapter 3 Season 2 – Bar funding
War with IO is expensive, so Bar funding is back in Fortnite Chapter 3 Season 2. You can choose whether to donate your Bars to 'pro-Resistance devices' or spend them on voting to unvault items. Here's a look at what those Bars will get you:
Armored Battle Bus You can start funding the Armored Battle Bus straight away. It's kitted out with Chonkers tires, a Cow Catcher for "extra ramming power", and both a light and heavy turret. Once funded, you'll find the Armored Battle Bus at Resistance-occupied POIs. It also has a radio if you want to give it those party bus vibes.
Turret vote Instead of voting on which items to unvault, players will be voting on the type of turret that'll be installed at pro-Resistance sites. There's a Light Turret which gives the "classic Mounted Turret experience." Or you can vote for the Heavy Turret which is slower but more powerful and does heavy damage to vehicles.
Fortnite Chapter 3 Season 2 – weapons
A new season of Fortnite means new and unvaulted weapons. There's a new SMG and rifle to play with, as well as the unvaulted (and refreshed) Drum Shotgun and Revolver.
Fortnite Chapter 3 Season 2 – vehicles
IO Blimps There's a lot going on this season in terms of land and sky vehicles. IO Blimps are a new edition. They can be boarded from the ground via ziplines and ransacked for loot. You'll also spot them above IO-occupied PIOs, along with Titans, IO guards, and Siege Canons. Resistance-occupied POIs can feature the Armored Battle Bus, sentry guards, and turrets.
IO Titan Tanks Kitted out with a cannon and machine gun turret, the IO Tanks are a boon for your armory. These vehicles have a ton of health, but the weak point is their treads. Happily, they can be easily fixed up with a Repair Torch. The engine is another weak spot; target an IO Tank's engine, found on the back of the vehicle, to temporarily overheat its systems.
Siege Cannons Perfect for launching yourself across the map, just hop into one to go flying in the direction of your choice. They do fire projectiles as well, so feel free to turn up the heat on approaching enemies by opening fire.
Cow Catcher Cow Catchers join Chonkers Tires as a mod for your vehicle. Plastering one on the front increases your ramming power, so you can bash down blockades and careen into friends and foes.
Fortnite Chapter 3 Season 2 – balance changes and notes