Microsoft stated that PlayStation would still dominate most of the market even if Call of Duty didn’t exist.
Microsoft and the US Federal Trade Commission are embroiled in a legal dispute that could have lasting effects on the video game industry. One of the most significant trials in Microsoft’s history began on June 22 in a San Francisco courtroom. The regulator is suing both sides to prevent Microsoft from buying video game developer Activision Blizzard for $69 billion. The trial period ends on June 29 after the scheduled 5-day duration. Both Activision Blizzard CEO Bobby Kotick and Microsoft CEO Satya Nadella are expected to appear in person as witnesses at the hearing.
Jim Ryan, head of Sony’s PlayStation division, will also make a video presentation. Sony is worried that Call of Duty will come exclusively to consoles when Microsoft buys Activision Blizzard, but Sony has resisted the deal for months. The deal between Activision and Microsoft expires on July 18; If the deal goes through, Microsoft would have to pay a $3 billion exit fee.
Despite its long history in the video game industry, Microsoft hasn’t exactly had the same success as Sony and Nintendo. Except for a few games like Halo and Gears of War, Microsoft has not been successful in hardware and has not been effective with must-have game releases, despite having unlimited resources and marketing power.
However, Microsoft’s current CEO, Satya Nadella, plans to expand its gaming business by paying $69 billion to acquire Activision Blizzard, one of the largest technology acquisitions in history. Microsoft would acquire Call of Duty, World of Warcraft and Overwatch, to name a few, if it gets the go-ahead to buy the massive gaming giant.
These are the most played video games in the world, with millions of users spending billions on subscriptions and in-game purchases. Microsoft says buying Activision would allow it to add popular games to Game Pass, a Netflix-like game subscription service that now has more than 25 million paying customers. In addition, the acquisition gives Microsoft access to the popular mobile phone sector and Candy Crush.
Microsoft’s purchase of Activision Blizzard was once “very, very confident” for the company’s CEO, Satya Nadella. In an interview with Bloomberg last year, he said: “Of course, any purchase of this size has to be scrutinized, but we are very, very confident that we will get out. But since then, Microsoft has been involved in a legal matter.
The FTC recently sought a temporary restraining order and an injunction from the US Federal District Court after it filed a legal challenge trying to block Microsoft’s purchase of Activision Blizzard last December.
FTC attorney James Weingarten argued in a recent hearing that Microsoft would have the “ability and incentive” to harm competition by denying competitors access to some of Activision’s games, raising prices or reducing content in ways that are less effective on competing platforms.
The UK’s Competition and Markets Authority (CMA) has blocked Microsoft’s merger with Activision Blizzard amid concerns over the future of cloud gaming. However, the acquisition was approved only last month after Microsoft made concessions to increase competition in the cloud-based gaming market. The agreement was approved by China, Japan, Brazil and South Korea.
Microsoft expects the Xbox and PlayStation 6 to be released in 2028.
According to recent court documents, Microsoft expects to release the PlayStation 6 and the next Xbox in 2028. Although there has been no official announcement of a PlayStation 6 or a new Xbox system, suffice it to say that it is an industry-standard to begin with. working on new hardware years in advance. This alleged launch window would put the PS6 and the upcoming Xbox console debut eight years after the debut of the PS5 and Xbox Series X/S in late 2020, despite leaked articles indicating a 2028 timeline.