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38. Re: Morning Consolidation Jan 22, 2013, 22:04 killer_roach
Creston wrote on Jan 22, 2013, 16:22:
jdreyer wrote on Jan 22, 2013, 01:49:
Given the dominance such a merger would produce, I suspect in the US anyway, that it would be blocked by the FTC.

I wonder if the FTC would care. It's not as if MS and Sony are Telcoms or Cable providers.


A joint venture would be reasonably unlikely for the FTC to intervene, although they would be likely to examine it to some extent. Keep in mind that Nintendo is still a non-trivial entity in the market, and such a joint venture would be done more out of cost consolidation to both parties (to minimize risk exposure) than to shut competitors out of the market.

Typically speaking, dominant market positions aren't by themselves grounds for concern, but rather what is done with them. In the case of FTC inquiry, Sony and MS would both point out Nintendo's presence in the market as well as the fact that the major publishers have been working more and more in the mobile space, and that the console gaming market is simply a sub-sector of the videogame market as a whole.
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