Sony claims to know Microsoft’s true motives behind the Activision merger and makes a bizarre claim to UK regulators.
SEE THE GALLERY – 4 IMAGES
Sony is fighting tooth and nail against the $68.7 billion Microsoft-Activision merger. The industry market leader released a 29 page response to the UK’s Competition for Markets Authority which outlines Sony’s main issues with the merger. Sony’s arguments mostly line up with what the CMA has already said, but some rather odd comments have come under scrutiny.
One of the bolder claims is that Microsoft apparently wants Sony to be more like Nintendo. It seems rather absurd. Sony argues that by acquiring (and potentially retaining) key Activision franchises like Call of Duty, the PlayStation maker would implicitly be downgraded and no longer such a close competitor to the Xbox business. This plan, Sony says, is Microsoft’s real strategy with the deal.
The weight of Activision games is indeed heavy for Sony, which has made billions from Call of Duty alone, and Sony continues to claim that following the merger, Xbox will become a one-stop-shop for the lucrative shooter genre. However, to equate the loss of Activision games to something that would bring PlayStation down to par or on par with Nintendo is an extremely tough sell, especially since Sony earned over $9 billion more in 2021 than Nintendo.
Here is what Sony says on page 7 of the response letter:
“Microsoft says Nintendo’s differentiated model demonstrates that PlayStation doesn’t need Call of Duty to compete effectively. But it does reveal Microsoft’s true strategy. Microsoft wants PlayStation to become like Nintendo, so that it’s a less akin and less efficient to Xbox.”
The reality is that Microsoft has a vested interest in Sony’s success. The Xbox business is set to succeed even when faced with the biggest gaming platform holder, but after the Activision merger, Microsoft will be heavily dependent on Sony.
After all, Microsoft will still sell its games on Sony’s platform. The two contestants will have to create a symbiotic bond and try to find a mutually beneficial deal. The alternative, which would keep Activision games locked only to Xbox and PC and miss out on tens of millions of game sales each year, is not viable and would significantly affect Xbox and PlayStation. Xbox just isn’t big enough to handle full exclusivity.
That’s not to say that Microsoft or Sony are ruling out Nintendo, only that Nintendo operates on a somewhat different level with an emphasis on first-party, family-oriented games, whereas Xbox and PlayStation offer macabre, violent, and full-bodied offerings. of action. securities.
While Nintendo is technically in third place compared to Microsoft and Sony, that’s not third place by much.
It’s also worth noting that Microsoft claims Nintendo is the world’s largest video game publisher in its own CMA response. Why would Microsoft want to make Sony the biggest game publisher in the world if it wants to demote or hurt Sony’s competition?
Sony claims to know Microsoft’s true motives behind the Activision merger and makes a bizarre claim to UK regulators.
SEE THE GALLERY – 4 IMAGES
Sony is fighting tooth and nail against the $68.7 billion Microsoft-Activision merger. The industry market leader released a 29 page response to the UK’s Competition for Markets Authority which outlines Sony’s main issues with the merger. Sony’s arguments mostly line up with what the CMA has already said, but some rather odd comments have come under scrutiny.
One of the bolder claims is that Microsoft apparently wants Sony to be more like Nintendo. It seems rather absurd. Sony argues that by acquiring (and potentially retaining) key Activision franchises like Call of Duty, the PlayStation maker would implicitly be downgraded and no longer such a close competitor to the Xbox business. This plan, Sony says, is Microsoft’s real strategy with the deal.
The weight of Activision games is indeed heavy for Sony, which has made billions from Call of Duty alone, and Sony continues to claim that following the merger, Xbox will become a one-stop-shop for the lucrative shooter genre. However, to equate the loss of Activision games to something that would bring PlayStation down to par or on par with Nintendo is an extremely tough sell, especially since Sony earned over $9 billion more in 2021 than Nintendo.
Here is what Sony says on page 7 of the response letter:
“Microsoft says Nintendo’s differentiated model demonstrates that PlayStation doesn’t need Call of Duty to compete effectively. But it does reveal Microsoft’s true strategy. Microsoft wants PlayStation to become like Nintendo, so that it’s a less akin and less efficient to Xbox.”
The reality is that Microsoft has a vested interest in Sony’s success. The Xbox business is set to succeed even when faced with the biggest gaming platform holder, but after the Activision merger, Microsoft will be heavily dependent on Sony.
After all, Microsoft will still sell its games on Sony’s platform. The two contestants will have to create a symbiotic bond and try to find a mutually beneficial deal. The alternative, which would keep Activision games locked only to Xbox and PC and miss out on tens of millions of game sales each year, is not viable and would significantly affect Xbox and PlayStation. Xbox just isn’t big enough to handle full exclusivity.
That’s not to say that Microsoft or Sony are ruling out Nintendo, only that Nintendo operates on a somewhat different level with an emphasis on first-party, family-oriented games, whereas Xbox and PlayStation offer macabre, violent, and full-bodied offerings. of action. securities.
While Nintendo is technically in third place compared to Microsoft and Sony, that’s not third place by much.
It’s also worth noting that Microsoft claims Nintendo is the world’s largest video game publisher in its own CMA response. Why would Microsoft want to make Sony the biggest game publisher in the world if it wants to demote or hurt Sony’s competition?