Microsoft settles video gamers' lawsuit over Activision takeover

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SAN FRANCISCO (AP) — Microsoft Corp. has settled a lawsuit from a group of gamers who sued to try to stop the company from buying video game publisher Activision Blizzard for $69 billion last year.

Terms of the settlement were not disclosed. The two parties agreed to the dismissal of the lawsuit and will cover their own costs and fees, according to a court filing dated Monday.

The lawsuit was filed in 2022 in a U.S. federal court in San Francisco on behalf of 10 individual gamers who are fans of Activision Blizzard’s Call of Duty franchise and other popular titles such as World of Warcraft, Overwatch and Diablo.

The deal took nearly 22 months to close, reflecting concerns from rivals and government regulators that Microsoft could use its growing collection of games to stifle competition. It’s part of a broader industry consolidation that also has some independent game developers worried they’ll get sidelined as the industry allocates its resources toward blockbuster franchises with a history of past success.

In a statement, Microsoft said "the parties have resolved the litigation.”