Will the proposed merger lead to an unfair advantage for Xbox and degrade the PlayStation gaming experience?
Introduction
The proposed merger between Microsoft and Activision Blizzard, the company behind the popular Call of Duty franchise, has been met with skepticism from Sony. The tech giant has voiced its concerns to the UK’s Competition and Markets Authority (CMA), suggesting that Microsoft could potentially sabotage future Call of Duty games on PlayStation, prompting gamers to switch consoles.
Microsoft’s Stance
Microsoft vice chair and president Brad Smith attended a press conference in Brussels to address the concerns surrounding the Activision Blizzard merger. The company has repeatedly painted Sony as a titan that doesn’t need the protection of regulators. Smith emphasized that Sony holds a larger market share compared to Xbox, and Microsoft has offered Sony the same binding deal agreed with Nintendo, ensuring equal access to Call of Duty over the next 10 years.
Sony’s Concerns
Sony has countered Microsoft’s assurances, claiming that the regulators’ recent turnaround is “surprising, unprecedented, and irrational.” Sony argues that Microsoft might subtly undermine PlayStation by not making Call of Duty games as good as they could be on the platform, degrading the experience to benefit Xbox. The company cites detailed analyses from Digital Foundry and VG Tech, which compare game performance on PlayStation 5 and Xbox Series X/S, to support their concerns.
PlayStation’s Potential Disadvantages
Sony worries that Microsoft could take advantage of the merger to prioritize the development of Call of Duty on Xbox, potentially leading to degraded quality or delayed releases on PlayStation. The company believes that even slight changes in game performance, availability, or price could quickly harm their reputation and cause a loss of engagement and players.
Regulatory Scrutiny
The proposed acquisition of Activision Blizzard by Microsoft has come under scrutiny by the CMA and the Federal Trade Commission over potential antitrust concerns. Microsoft has offered a 10-year Call of Duty licensing deal to both Nintendo and Sony to alleviate these concerns, and while Nintendo has accepted the deal, Sony remains hesitant, fearing that Microsoft could raise the price of Call of Duty on PlayStation or make it an Xbox Game Pass exclusive.
What’s Next
The CMA is expected to release its final report by the end of April, which will determine if Sony’s concerns are persuasive enough to affect the outcome of the merger. The European Commission is also investigating the merger and is expected to share the results of its investigation by April 11, 2023. If the merger is approved, it remains to be seen whether Microsoft will maintain parity between Call of Duty’s performance on both platforms and uphold its promise to provide equal access for competitors.
Conclusion
the proposed Microsoft-Activision Blizzard merger has created a heated debate between Microsoft and Sony over the future of Call of Duty games on PlayStation. While Microsoft has offered assurances of equal access and game quality for competitors, Sony remains skeptical, fearing subtle disadvantages that could potentially damage their reputation and player base. The outcome of the regulatory investigations by the CMA and the European Commission will significantly impact the gaming industry and the fate of the Call of Duty franchise. Regardless of the outcome, the key to maintaining trust among gamers and ensuring fair competition lies in the transparency of both companies and their commitment to providing a high-quality gaming experience across all platforms.