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FTC drops case against Microsoft’s acquisition of Activision Blizzard

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The US Federal Trade Commission has dropped its complaint against Microsoft’s acquisition of Activision Blizzard.
On May 22, 2025, the FTC issued an order dismissing its case after it lost its appeal against Microsoft earlier this month.
“The commission has determined that the public interest is best served by dismissing the administrative litigation of the case,” it said. “Accordingly, it is hereby ordered that the complaint in this matter be, and hereby is, dismissed.”
In response, Microsoft president Brad Smith described the decision as a “victory for players” on social media.
“Today’s decision is a victory for players across the country and for common sense in Washington D.C.,” Smith wrote. “We are grateful for the FTC for today’s announcement.”
Microsoft finalised its deal to acquire Activision Blizzard in January 2022 for $68.7 billion. The FTC subsequently attempted to block the merger, believing it would cause a threat to competition in cloud gaming, subscription services, and exclusive first-party titles.
This was denied, and in turn the FTC submitted a preliminary injunction – which was also denied.
On May 8, 2025, the 9th Circuit US Court of Appeals threw out the FTC’s challenge against the Microsoft Activision merger.
“The panel held that the district court applied the correct legal standards and did not abuse its discretion, or rely on clearly erroneous findings, in holding that the FTC failed to make a sufficient evidentiary showing to establish the requisite likelihood of success on the merits of its claim,” the court said.

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Still Wakes The Deep developer The Chinese Room has seemingly made a small number of layoffs

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Still Wakes The Deep developer The Chinese Room appears to have made a small number of layoffs following the release of the BAFTA-winning game’s Siren’s Rest DLC this week.
A lighting artist and level designer from the studio have posted notices that they’re looking for work on LinkedIn over the past 48 hours (those posts are not linked here out of discretion, but have been verified by GamesIndustry.biz).
At a glance, around 10 staff with the studio listed as their current employer have the ‘looking for work’ label on their LinkedIn profiles – though this is not a reliable metric by itself.
When reached for clarification from GamesIndustry.biz, the studio did not confirm the number of layoffs, or directly confirm that layoffs had occurred.
It did, however, offer the following statement from studio director Ed Daly. “The Chinese Room will share news on changes for the studio in the coming weeks.”
The company is owned by Sumo Group, which in February announced it was refocusing its business on development services.
Still Wakes the Deep won three BAFTAs earlier this year, including two for performers Alec Newman and Karen Dunbar, and an award for New Intellectual Property.

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Capcom Spotlight stream set for June 26 | News-in-brief

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Capcom Spotlight stream set for June 26 | News-in-brief

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Warner Bros. Games promotes three studio heads as it focuses on four key properties

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Warner Bros. Games has confirmed a new leadership structure as it follows its previously revealed strategy of developing games based on the Harry Potter, Game of Thrones, Mortal Kombat, and DC Comics properties.
Three studio heads have been promoted into senior vice president roles, per Variety. Montréal studio head Yves Lachance will be SVP of development on Harry Potter and Game of Thrones-related games.
Shaun Himmerick, studio head of Mortal Kombat developer NetherRealm, will be SVP of development for both that series and games based on DC Comics. Warner previously indicated that “top-tier characters like Batman” were a focus area for DC-related games.
Finally, Warner Bros. Games New York studio chief Steven Flenory will be SVP of central tech & services, with a focus on game and publishing technology, QA, user research and customer service.
All three will report to JB Perrette, CEO of global streaming and games.
“We are very fortunate to have a strong stable of development and technology talent, and Yves, Shaun and Steven are respected leaders with excellent track records in their areas of expertise,” said Perrette in a statement.
“I’m looking forward to working closely with them and the team as we work to make the best games possible for our key franchises.”
Parent company Warner Bros. Discovery recently revealed plans to split into two companies: Streaming & Studios, which includes its gaming business, and Global Networks, which is largely focused on its legacy TV business and will carry the “bulk” of its $37 billion debt.
No layoffs or executive exits have been made as part of the changes, according to Variety.
Warner Bros. Games president David Haddad exited the company back in January. Variety notes it’s unclear if the company is seeking a replacement for his role.
The company also confirmed it was shutting down three studios in February, including long-running studio Monolith Productions, which resulted in the cancellation of its Wonder Woman game.
Rocksteady Studios – best known for the highly-rated singleplayer Batman: Arkham games, before spending nearly a decade making multiplayer game Suicide Squad: Kill the Justice League – made multiple rounds of layoffs following that project missing its financial targets upon release in 2024.
Rocksteady co-founders Sefton Hill and Jamie Walker left the studio in October 2022, before the game was released.
Warner Bros. Games previously took a $300 million+ writedown on its games business in 2024, which led to the decision to restructure around proven properties.

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