The ongoing takeover of Activision Blizzard by Microsoft is being scrutinized in a number of countries and the tone is slowly but surely getting rougher – on the part of Microsoft and Sony.
Microsoft’s purchase of Activision Blizzard has made some waves and is far from over. In several countries, the deal is being meticulously examined by the authorities to prevent any possible distortion of competition. It should be clear that Sony in particular is not exactly happy about the purchase and the console manufacturer has of course expressed concerns to the authorities in order to prevent the deal after all. But Microsoft is perfectly capable of fighting back.
In Brazil, in particular, things are flying in the air, where the Brazilian Administrative Council for Economic Defense (CADE) is currently reviewing the takeover. Among other things, Sony had argued that Call of Duty’s popularity was so great that not a single platform owner should own it. With Call of Duty possibly in Xbox Game Pass, the choice of players when buying a console would also be influenced.
Microsoft has now countered this with a 27-page statement. These include Microsoft’s intent to continue releasing Call of Duty games on PlayStation, analysis that Xbox Game Pass is just a way to pay for games, Sony’s own competitive subscription services, and so on. In addition, a possible Call of Duty in the Xbox Game Pass is not anti-competitive because Sony is currently far ahead of Microsoft in terms of market share.
Sony does not want attractive subscription services to jeopardize its dominance in the digital console game distribution market, it said. Sony is fighting against the introduction of new monetization models that could call their business model into question. Sony also ignores the “dynamic nature” of subscription services and the fact that Sony also offers its own service. Above all, it would make no economic sense to offer Call of Duty exclusively for Xbox in the future, certainly not in Xbox Game Pass.
Microsoft doesn’t just justify itself, it unpacks the club itself. Among other things, the document states that Sony is specifically paying game developers not to make their games available on the Xbox subscription service. Many feel that the renewed PS Plus is still inferior to Xbox Game Pass, and Microsoft claims that one of the ways Sony is holding back Xbox growth is by “bribing” developers to steer clear of it.
These certainly won’t be the final blows exchanged between the two console giants. It remains to be seen what decision the various antitrust authorities will ultimately make regarding the takeover. The deal isn’t off the table just yet – Microsoft will continue to try to justify the acquisition and Sony will continue to raise concerns about it.