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Microsoft to Acquire Activision Blizzard


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Microsoft shoots down Sony’s claims that its Activision acquisition is anti-competitive

 

The claims are “simply unjustifiable under any quantitative or qualitative analysis”, the xbox company says.

 

Microsoft stated: “Not surprisingly, Sony was the only third party to convey public opinion materially different from MS/ABK and the third parties regarding the competitive analysis of the transaction.”

 

Microsoft claimed that Sony doesn’t want to see Call of Duty games on Game Pass on day one, because it “is not resigned to having to compete with Microsoft’s subscription service”.

 

“Sony’s public outcry on subscription games and the company’s response are clear: Sony doesn’t want attractive subscription services to threaten its dominance in the market for digital distribution of console games,” it claims.

 

“In other words, Sony rails against the introduction of new monetization models capable of challenging its business model.”

Microsoft also shoots down Sony’s claim that Call of Duty is a “category of games in itself”, stating: “The PlayStation itself has a foundation established by players loyal to the brand.

 

“This finding, however, does not lead to the conclusion that the PlayStation – or any branded product with loyal consumers – is a separate market from all other consoles.

“Extrapolating from such a finding, the extreme conclusion that Call of Duty is a ‘game category in itself’ is simply unjustifiable under any quantitative or qualitative analysis.”

 

It also lists five reasons arguing against Sony’s claim that the addition of Activision Blizzard games to Game Pass would lead to an unattainable lead in subscription services for Microsoft. According to Microsoft, this claim is wrong because:

 

- it’s not part of Microsoft’s strategy to remove content from players, and COD will still be on PlayStation as a paid title

- data shows that players see subscription services as only one way to pay for games

- Sony’s claim ignores the “dynamic nature” of subscription services, and the fact that Sony has its own too

- (redacted information)

- there are numerous other game distribution channels and subscription services, many of which include content that isn’t available on Xbox

 

Microsoft also claims that arranging exclusivity deals has been at the heart of Sony’s strategy to strengthen its position in the games industry, and that as well as having its own first-party exclusives it also has exclusivity deals with third-party publishers.

 

It also claims that Sony actively tries to hamper Game Pass’s growth by paying some developers for “blocking rights” to prevent them adding content to Game Pass.

 

Finally, Microsoft claims that not having Call of Duty games on PlayStation wouldn’t make business sense, because it would only be profitable if enough people jumped over to Xbox to make up for the money lost from not selling PlayStation copies.

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Like it or not, Sony has to take the L on this. I don't know about other anti-trust issues (which might be a different matter), but Sony's claims were futile to begin with.

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16 minutes ago, triggr happy ss said:

Its funny they spend money blocking games in Gp when they could use that money to give day 1 games through their service.

 

 

 

That will make industry subscription focused. 

 

They don't want to compete there. 

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14 hours ago, Mr. Comingle said:

At least this confirms cod will be on GP

If games like MW2 are on GP day 1, that’s some serious blow for Sony. 

 

And amazing value for GP users. 
 

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21 minutes ago, Mr. Comingle said:

It has to be right? That’s the entire play. 


Not necessarily. 

 

Depends on which method is more profitable. 

$70 initially and launch on GP after 2-3 months or go on GP Day 1. 

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