Sunday, January 24, 2021

Microsoft takes the gloves off as it battles Sony for its Activision acquisition

Microsoft might well be in last place in console sales during the previous generation, but it’s certainly investing billions of dollars to ensure any future Xbox sales aren’t less than half of the PlayStation and that its Xbox Game Pass bet pays off.

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The UK regulator signaled an in-depth review of Microsoft’s $68.7 billion deal to acquire Activision Blizzard last month, and the CMA has now published its full 76-page report on its findings. The CMA says it has concerns that Microsoft’s Activision Blizzard deal could lessen competition in game consoles, subscriptions, and cloud gaming, but Microsoft thinks the regulator has simply been listening to Sony’s lawyers too much. Microsoft also accuses Sony of not welcoming competition from Xbox Game Pass and that Sony has decided to block Game Pass on PlayStation. “This increased competition has not been welcomed by the market leader Sony, which has elected to protect its revenues from sales of newly released games, rather than offer gamers the choice of accessing them via its subscription, PlayStation Plus.” This comes just months after Microsoft claimed, in legal filings, that Sony pays for “blocking rights” to keep games off Xbox Game Pass.

Microsoft takes the gloves off as it battles Sony for its Activision acquisition

If the UK battles are anything to go by, this acquisition could get messy as Microsoft and Sony battle it out behind the scenes to sway regulators. Microsoft even has a dedicated website to highlight its arguments as it seeks to convince regulators that its giant deal isn’t a bad one for gamers. We’re still months away from final regulator decisions, but get ready for this battle to continue to spill out onto the internet’s streets. Sony has shown how significant Call of Duty is after it labeled Microsoft’s offer to keep Call of Duty on PlayStation “inadequate on many levels.” The Verge revealed last month that Microsoft Gaming CEO and Xbox chief Phil Spencer made a written commitment to PlayStation head Jim Ryan earlier this year to keep Call of Duty on PlayStation for “several more years” beyond the existing marketing deal Sony has with Activision. “After almost 20 years ofCall of Dutyon PlayStation, their proposal was inadequate on many levels and failed to take account of the impact on our gamers,” said PlayStation head Jim Ryan in response.

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