Exposure of classified documents, blackmail, lawsuits and guaranteed gossip. Litigation by large companies always draws attention, and Sony and Microsoft are no exception. How did it all start, who scored how many own goals and what fouls whistled? Let’s summarize the whole situation.
The first major dispute arose as early as August 2022, when Microsoft accuses Sony of blocking the addition of games to Game Pass. It was a series Call of DutyWhich Sony considers it an important name when choosing and then buying a console. Game console. Microsoft disagreed with Sony’s point of view and stated that Activision Blizzard does not have unique names. According to Microsoft, Sony is trying to prevent the development Xbox Game Pass and pays publishers and developers to keep their content out of Game Pass.
Source: MicrosoftWhy is Microsoft buying Activision Blizzard? The reason may surprise you
The story continued a few months later – in December. Shortly before the start of The Game Awards 2022, Microsoft officially learned that The Federal Trade Commission (FTC) will sue the company over its acquisition of Activision Blizzard. almost $69 billion. The way they made this move does not prevent Microsoft from buying Activision Blizzard, but rather an attempt to negotiate terms. Xbox’s purchase of Call of Duty publisher will hurt competition in game consoles and subscription services, as well as cloud gaming, according to the FTC.
Due to the fact that Microsoft must complete its acquisition of Activision Blizzard no later than July 18, 2023, and the trial period must take place within 15 days after the deadline, Microsoft took advantage of the situation and began a trial period in which it could present its position and reasons for the purchase AB. So, at the end of June, the situation began to unravel, and from the very beginning there was a sharp clash.
PERSONAL CORRESPONDENCE EXPOSES FALSE
At the trial, the first piece of evidence was presented from the very beginning, and that was it. personal correspondence — that is, last year’s email between Jim Ryan and the former CEO of Sony. In it, Jim Ryan writes that there is no cause for concern and that Call of Duty will be on the PlayStation for many years to come, that he spoke on the subject with Phil Spencer from Microsoft and Bobby Kotik from Activision Blizzard. It was revealed that Jim Ryan lied to officials when he told them that fears about the future of COD on PS were justified.
However, the current contract between Activision and PlayStation expires at the end of this year, and if Activision becomes the owner of Microsoft, the FTC says it’s unlikely that Sony will strike another contract with Microsoft. The FTC is concerned that Call of Duty could become an Xbox and PC exclusive and will no longer be released on the PlayStation platform.
MICROSOFT REVEALS ITS REAL INTERESTS
A Microsoft legal representative took advantage of the situation and put into perspective their intentions, which are not consoles, but Cell phones. This market is worth about 145 billion dollars, which is incomparably more than that of consoles. Microsoft only has 0.3% of that market and wants to change that with this AB purchase.
The Federal Trade Commission (FTC) tried to convince the court that Microsoft’s cooperation with the publisher of major games such as Call of Duty, Diablo or World of Warcraft would have impact on the market and competition.
Source: ActivisionThe Elimination Challenge in Call of Duty: Warzone is exclusive to PlayStation.
NO EXCLUSIVENESS MORE EXCLUSIVENESS
In addition, documents were also presented confirming that Both Starfield and Redfall were originally supposed to come to PS5., but Microsoft turned it off for both games after it bought ZeniMax, Bethesda’s parent company. This was to support the argument that the same fate could befall Activision Blizzard and their games. In response, Microsoft promised that many more ZeniMax (and Bethesda) games would come to the PlayStation and Nintendo. It even happened Phil Spencer specifically promised to release more COD titles on PS..
Several other interesting claims were made during the trial. Microsoft explained that since the unsuccessful launch of the Xbox One they want to make games available to all players, everywherewhat they do through Game pass. But since Microsoft has a small share of the console market, there are certain conditions that Sony dictates. If it was up to them, they would gladly forgo exclusives, but Xbox needs them to compete with Sony.
He is also against exclusivity. Bobby Kotick from Activision Blizzard, who opined that COD’s Xbox exclusivity would ultimately hurt Microsoft. He also added that he was wrong about the Nintendo Switch and still regrets not releasing COD on the Switch.
UNEQUAL TERMS AND EXCLAIM
There were further skirmishes over exclusives. Microsoft pointed to reporting limitations Call of Duty: Vanguard for XBOX that he could not share in the usual ways, such as in a trailer on his YouTube channel or anywhere else where he could be seen by potential customers who are not their own customers. When Hogwarts legacy, which came out earlier this year, the situation was different. The game was exclusively seen at the PlayStation presentation, and featured exclusive content for PS5 players in the form of a side quest.
There was even blackmail in court. Activision’s Bobby Kotick blackmailed Microsoft with Call of Duty in such a way that he demanded an increase in the share of sales. An FTC spokesman explained in the courtroom that Microsoft gives developers or publishers 70% of the profits and takes 30% of the sales. However, Activision Blizzard wants 80% because that’s what it currently has with rival PlayStation.
Source: ActivisionActivision’s Bobby Kotick blackmailed Microsoft with Call of Duty
MICROSOFT CAN GET THE COMPETITION BLEEDING
Microsoft looks like loser of the console war. According to them, the console market is dominated by Sony and Nintendo. The Xbox is said to be struggling with a small market share, accounting for just 16% of total console sales in 2021.
In another piece of evidence presented, the FTC makes it clear that Microsoft wishes put up with financial losses in order to increase Game Pass subscribers. This is an email exchange between Matty Botti and Tim Stewart, CEO of Xbox Game Studios. They could literally give people 10 years Game Pass free and watch your competitors sink into the abyss in an attempt to get paid subscribers for their services or consoles. The thought that this could actually happen is chilling.
Source: Microsoft Microsoft was supposed to reveal sales of the Xbox Series X/S and Xbox One consoles
SONY DOESN’T BELIEVE MICROSOFT
Microsoft’s legal representative called the Federal Trade Commission’s (FTC) skepticism about cloud contracts completely absurd. The FTC defends itself by saying that their efforts are aimed at protecting consumersnot Sony. They express concern that we may end up in a world where content is only available through Game Pass and possibly through PlayStation Plus.
Another rivalry concerns the future of Microsoft’s games, which it decides to release for consoles. Sony has made it clear that it is wary of misuse of its technology, so the studios owned by Microsoft will send dev kits only after some time. This could also happen in the case Minecraft legends, which was released on PS5, but in the PS4 version. A non-disclosure agreement between game developers is simply not a sufficient guarantee for Sony.
AND ALL THIS IS JUST BECAUSE OF THE CODE?
Judge Jacqueline Scott Corley in her closing remarks, she expressed surprise that this whole situation only concerns one game – Call of Duty — and pointed to the fact that 62% of PlayStation owners have never played the game.
Federal Trade Commission (FTC) Asks Court to Temporarily Break Link Between Call of Duty Publisher and Xbox. If the FTC wins the lawsuit, Microsoft will be banned from buying Activision Blizzard until 08/02/2023, when the main trial is scheduled.
FTC LOSES IN COURT AND MICROSOFT GETS GREEN
The outcome of this test was successful for Microsoft. Federal Trade Commission she did not provethat Microsoft would distort economic competition with a planned acquisition, so may continue buying Activision Blizzard as she originally planned.
The whole procedure brought other positive results – thanks to it, a written agreement was reached that Microsoft would keep Call of Duty titles on the PlayStation for 10 years, at the same level as the Xbox. They also agreed with Nintendo to bring Call of Duty to the Switch, as well as making deals that will bring Activision Blizzard content to multiple cloud gaming services for the first time.
Despite this, the FTC can appeal the result. The UK has yet to approve the acquisition, as the hearing is not scheduled until the beginning of next month. Microsoft has until July 18 to buy Activision Blizzard to fulfill its end of the deal. Brad SmithMicrosoft’s director, also commented positively on the whole issue, thanking the San Francisco court for a quick, timely and thorough decision.
Source: Joaquincorbalan / envato.comActivision Blizzard acquisition could face new UK investigation
Source :Indian TV
