A hot potato: Microsoft’s president and vice-chair Brad Smith says that the FTC suing the company to block its $69 billion acquisition of Activision Blizzard would hurt competition, consumers, and thousands of game developers. He also compared Sony’s objections to the deal to Blockbuster complaining about the rise of Netflix.
In a Wall Street Journal guest post , Smith wrote that Microsoft faces huge challenges in the gaming industry. He noted that when it comes to console gaming, the Xbox sits behind the PlayStation and Nintendo Switch, and that Microsoft has no presence in the mobile game industry, which generated 50% of the overall global gaming revenue, or $92.2 billion , in 2022.
Smith noted that a significant portion of mobile gaming revenue goes to Google and Apple through app-store fees. Acquiring Activision would allow Microsoft, which has a market cap of $1.87 trillion, to compete against these companies through “innovation,” apparently.
Much of Smith’s argument for the acquisition involves adding more titles to the Xbox and PC Game Pass service, including World of Warcraft and Call of Duty. CoD has been a particularly contentious issue ever since news of the acquisition arrived back in January.
“Sony has emerged as the loudest objector. It’s as excited about this deal as Blockbuster was about the rise of Netflix. The main supposed potential anti-competitive risk Sony raises is that Microsoft would stop making Call of Duty available on the PlayStation. But that would be economically irrational,” Smith wrote.
The Microsoft exec reiterated that a vital part of CoD revenue comes from the PlayStation and that cross-play between consoles is very popular. He also confirmed the previously reported 10-year deal to keep the series on PlayStation that Microsoft offered Sony, adding that the Redmond firm is willing to offer the same deal to other platforms (including Nintendo consoles) and make the agreement legally enforceable in the US, EU, and UK. Furthermore, Microsoft has made repeated assurances that Call of Duty would stay on PlayStation “as long as there’s a PlayStation out there .”
“Think about how much better it is to stream a movie from your couch than drive to Blockbuster. We want to bring the same sort of innovation to the videogame industry,” Smith concluded.
This week brought news that the Federal Trade Commission (FTC) is split on whether to launch an antitrust lawsuit against Microsoft to stop it from buying Activision. Rather than face a split vote, the FTC might approve the deal. Some countries, including Brazil and Saudi Arabia, have already given the acquisition the green light, but it still needs the go-ahead from the UK and EU.
- Sony teases new details about the PlayStation 5 and demos its super fast load times
- How the iPhone has transformed over 10 years
- PS5 snub shows just how little Sony cares about India
- Over 1,000 PS5 and Xbox Series X orders CANCELLED after ‘error’ – and refunds could take 10 days
- PS5 stock UK – eBay seller offers console for £1 MILLION as he mocks gamers who failed to pre-order on Amazon
- Best Black Friday PlayStation deals 2020: PS4 and PS5
- PS5 stock: When and where to buy the PlayStation 5 on Cyber Monday
- PlayStation 5: Teen gifts PS5 to young neighbour who underwent brain cancer surgery
- Project Athia is console exclusive to PS5 for at least two years
- Sony confirms more PS5 pre-orders are on the way this week following disastrous launch day
- Will there be another PlayStation 5 and Xbox restock at retailers this year?
- How Microsoft Xbox Game Pass compares with Sony PS Plus
- PlayStation 5 can play 99% of PS4 games - but these 10 won't work at all
- PSN status: Sony's PlayStation Network is back up after hour-long outage
- Lifting the VR veil: How PlayStation 5 works with Sony’s last-gen headset
- PlayStation 5 review: Sony's newest machine is a gaming powerhouse
- What happens when your PlayStation 5 gets error code CE-108255-1
- Fresh PS5 Amazon stock offered to customers with ‘missing consoles’ first after bungled launch
- Oscar Isaac cast as Solid Snake in Sony's Metal Gear Solid film
- These are the free PlayStation Plus Games for December 2020
Microsoft compares Sony to Blockbuster, confirms 10-year CoD-PlayStation offer have 655 words, post on www.techspot.com at December 6, 2022. This is cached page on TechNews. If you want remove this page, please contact us.