In recently released documents, Sony expresses concern over the possibility of Microsoft owning the Call of Duty franchise in the wake of the tech giant’s attempt to acquire Activision Blizzard for $69 billion. The documents suggest that Microsoft may raise prices on future Call of Duty installments or intentionally release lower-quality ports of the game on Sony’s PlayStation consoles. Microsoft has spent the past year trying to convince regulators and lawmakers that the merger would not have negative repercussions, but many have opposed it, fearing that Xbox would become too powerful in the video game industry. Xbox has attempted to appease these entities by negotiating deals to keep Call of Duty on PlayStation consoles, but Sony is worried that even these deals may not prevent Microsoft from attempting to harm PlayStation.
In documents submitted to the UK’s Competition and Markets Authority (CMA), Sony lists hypothetical ways in which Microsoft could circumvent the proposed 10-year deal it is offering PlayStation, including releasing a buggier version of Call of Duty on PlayStation consoles to encourage players to switch to Xbox. While Sony’s concerns may seem paranoid, the CMA has already announced provisional findings that the merger would threaten competition in the gaming market, and has even suggested that Activision Blizzard would need to sell off the Call of Duty brand before the deal could be approved. The likelihood of this happening is low, so it seems that negotiations and complaints from all parties involved will continue. It remains to be seen how the situation will ultimately be resolved, but it is clear that both Sony and Microsoft are determined to protect their interests in the gaming industry.
Despite Sony’s concerns and their submission of these new documents, it’s unclear whether they will have any impact on the ongoing regulatory review of the deal. It’s not uncommon for companies to express concerns and hypothetical scenarios during these types of proceedings, and ultimately it will be up to the regulatory bodies to determine the validity of these claims and whether they should impact the approval or rejection of the merger.
What is clear, however, is that the proposed Microsoft-Activision Blizzard deal continues to face significant scrutiny and opposition from various entities around the world. Many have raised concerns about the potential impact on competition in the gaming industry, with some fearing that the deal could lead to higher prices, fewer options for consumers, and less innovation.
The CMA’s provisional findings and suggestions for divestiture of the Call of Duty brand further underscore these concerns, and it remains to be seen how Microsoft and Activision Blizzard will respond. The deal, if approved, would be one of the largest in gaming history and could have significant implications for the future of the industry.
As for Sony, it’s clear that they are taking this potential threat seriously and are doing what they can to protect their interests. While their claims may seem paranoid to some, it’s important to remember that the video game industry is a fiercely competitive one, and companies are always looking for ways to gain an edge. Whether Microsoft would actually sabotage a PlayStation release of Call of Duty is debatable, but it’s clear that the potential consequences of this merger have many people on edge.
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