In this contest, Sony has become a relevant player, lobbying to stop Microsoft’s acquisition of Activision-Blizzard. In fact, the latest rumors suggest that the FTC, the US regulator, plans to block the deal or, at least, force the Redmonds to make numerous concessions.
Brad Smith, President of Microsoft: “Blocking the acquisition will make the industry less competitive”
Brad Smith wanted to address regulators with an opinion piece in the Wall Street Journal. In the text, Smith indicates that the acquisition is entirely focused on creating a streaming service based on Xbox Game Pass, in a very “Netflix-like” way.
In fact, he stresses that Microsoft has offered Sony an agreement to keep Call of Duty on PlayStation for the next ten years. The president of Microsoft explains that Game Pass “would benefit developers by allowing them to reach a much larger audience” and places Sony, Google and Apple among the competitors that slow down innovation for the 30% rate established in their stores.
Brad Smith stresses that the acquisition wants to position Microsoft within the mobile gaming segment, where right now “it does not have a significant presence.” In addition, he adds that “that segment generates most of the profit and has the highest growth, but a significant part of that revenue goes to Apple and Google.”
No doubt, Microsoft is fighting to get appreciation from regulators for its efforts on Cloud Gaming and the subscription model. In the end, the argument that “Microsoft doesn’t want Call of Duty on PlayStation” doesn’t make much sensesince the losses of doing that would be multi-million dollars for the company.