Microsoft claims it ‘simply wouldn’t be profitable’ to make Call of Duty Xbox exclusive

The Xbox firm reiterates it intends to keep Call of Duty on PlayStation beyond its Activision acquisition.

[jonny897]

MS just wants this deal to go through. After that they will do whatever they want with COD.

[piroh]

MS is right, if they want give away the game for a small fee on GP it wouldn't be profitable if its XB exclusive. If so, the quality and development time of franchise would greatly suffer without PS

[GrmpyolGamer]

Tell me you have no idea how GP works without telling me you have no idea how GP works. And the quality of CoD has been in the toilet the last few years with PS as the lead platform so your point is moot

[jonny897]

Everything depends on how much revenue it will make on Xbox in future. They want to shift as many COD fans as possible from PS to Xbox.

[CaptainHenry916]

COD is already suffering and becoming stale with or without PS 😅

[Extermin8or3_]

They literally are on record saying in another statement to questions from a market competition authority that when it comes tondeciding what to make exclusive profitability in short term isn't deciding factor. If the title has the powers to draw lots of players to their platform in the longer term to play the game. That is the deciding factor. Do the maths. COD will go exclusive after 2027 when soby'a agreement with activision was due to expire or renew. Unless its mid gen then I bet on them waiting for the start of the next generation as if you already bought a ps5 or ps6 you are unlikely to swap and doiing so woukd just kill the franchise if they haven't already killed it by then.

[S2Killinit]

MS is full of crap.

[SeTTriP]

Ms has so much money that they could give it away on gamepass day 1 and the quality would remain.we not talking about Sony because that's what would happen to them, we are talking about a trillion dollar company fixed on a business model and has the cash to fail for 5 console cycles.

And ms could fail with multiple triple A studios giving gamepass day 1 games just to block the competition and still be way more profitable then Sony and all its assets.

This is dangerous.

[neutralgamer1992]

No man Ms have kept Minecraft on all platforms and it's the best selling game of all time and still is getting support

Ms can't think like a fanboy because contrary to popular belief companies make acquisitions to make more money not less. COD is too big

And here is the main reason it won't be. Ms will get the best of both worlds:

1- release it day one on GP
2- release on other platforms, sell millions and sell at full price

We as gamers should be asking these companies to make acquisitions only to make less gamers have the ability to play. Not everyone has the time to justify multiple consoles

When Sony buys square enix I still want their bigger know titles to be available elsewhere

[Extermin8or3_]

Based on MS's comments about Sony having clauses in contracts blocking games release on games pass where they have marketing rights. MA may actually be contractually unable to release COD on games pass till 1-2 years after each titles release till 20227.

[Michiel1989]

I think Notch demanded in the sale of Mojang that they wouldnt make it xbox exclusive.

[neutralgamer1992]

Extermin8or3_

these business deals are so weird man and what's so funny is the fact so many have hated on COD and destiny yet the moment playstation and xbox buy them people can't keep themselves from discussing these business deals. I mean as a gamer i could careless as long as i get to play the games i want should be our mindset. We shouldn't be encouraging these companies to keep these well known IP's exclusive

if sony really is doing that than it's sad and stupid but it's kind of hard to believe since MLB the show is made by sony and is on GP day 1

[MadLad]

Sony isn't buying Square Enix. Square sold their western devs; which is what Sony concentrates on for the last few generations, and they already pay a sum to keep Final Fantasy away from their main competitor.

They also just came out and offered shares in the developers under them, which would make an acquisition more than a headache.

Does that sound like a sure thing buyout? They're making bank on FF14 right now, and can easily bankroll new projects via the revenue.

[Jin_Sakai]

The best part of the acquisition is that I won’t have to shell out $70 to play CoD games going forward.

[Redemption-64]

Yeah that's not how things work. You can, say for example, lie to make a deal go through and turn around an do the example opposite. That would mean you intentionally lied to the FTC and putting aside the fines, this will put any future acquisitions in jeopardy.

[DarXyde]

Let's assume that's true.

Acquiring Activision was a big deal in the beginning, but it really doesn't matter now when you think about it. Look no further than Microsoft's own studio to see what I mean: Rare. The franchises really matter to Microsoft, and it actually leaves them vulnerable to massive incoming losses on their investments with that being their focus. I think even if Call of Duty is exclusive in the future, the studio talent can be poached. I don't know what the Microsoft work culture is like, but there appears to be some discontent. Not everyone is Vince Zampella, but I think it's clear that if developers are dissatisfied or want to move on, they'll walk. Naughty Dog lost Straley who is a legend coming off the heels of games as remarkable as The Last of Us and Uncharted 4. People move on. Do I believe the CoD guys will want to move on? Maybe. Leaving a publisher as high profile as Activision Blizzard is tough, especially when thinking about where you'll land. But that was under someone as reprehensible as Kottick, who probably levied threats at employees related to job prospects if they left. Microsoft is a bigger company absorbing said company, but I can't imagine you'll see many high profile staff members remain in place, exclusive or not, because the culture is expected to change. That change will either encourage people to stay or push people out faster. Time will tell and probably contingent, at least in part, upon how Microsoft addresses grievances, including on the matter of unionization (which I genuinely don't believe Microsoft will not try to fight).

My point is... Call of Duty is a massive franchise. But it was also created by people. And those people can build another game independently that's better on multiple platforms. Name recognition goes a long way, but so does word of mouth and having your friends on a game. The acquisition doesn't really matter in the grand scheme of things, nor does exclusivity. As I've said about games like Metal Gear, do you really trust Konami to make another Metal Gear as they are now? They have the name, but not the talent. I see this case as very similar.

[masterfox]

haha told ya!

[King_Noctis]

Remember Starfield? Yeah neither do I.

[Aloymetal]

Star who?

[Redemption-64]

They never gave a statement like this for Starfield or any other Bethesda game. At best they said a case by case basis for Bethesda games.

[Eonjay]

Well it was always obvious to me. PlayStation is the main Platform for Call of Duty. So why would Microsoft spend 70 billion and then hamstring it's ROI? To satisfy fanboys? Staying on Playstation was never a question. The real question is how they handle future releases on Xbox. Will they only release multiplayer as a title and then make single player DLC? What is the most effective way to monetize Call of Duty in the age of game pass?

[gametapes]

You answrered your own question.

"So why would Microsoft spend 70 billion and then hamstring it's ROI?"

PlayStation is the main Platform for Call of Duty.

And PlayStation is hardly "beating" Microsoft this generation, with all the subsidization they're doing and the console supply limitations they are quickly pulling consumers away from PlayStation

[darthv72]

7th gen, 360 was the place to play CoD due to the deal MS & Activision made. 8th gen Sony made a deal with Activision. And it didnt hurt that XBO tripped itself (constantly) and more people got PS4 as a result. 9th gen is a continuation of the previous deal until several more years. Then all bets are off.

[MajorLazer]

The gap's already nearly 6 million despite supply issues and the gap will only get bigger and bigger. PS is easily CoD's biggest playerbase.

[Silly gameAr]

@gametapes
Playstation is hardly beating Microsoft? Not even with a cheaper console, giving their games away, and buying up all the 3rd party companies are helping MS pull in front. The only thing you have a point about is the chip shortage, but when that is taken care of, then what?

[MadLad]

Companies say a lot of things when making industry changing acquisitions.

[GoodGuy09]

I don't think mcsft has ever had that intention, keeping the major titles/franchises to only their platforms as history has already shown and I don't know why people have been thinking that. Obviously ads, timed exclusive content, etc will go to xbox though.

They bought these companies for more profit and to bring on over to gamepass and the cloud. I do wonder if they will have any of these studios work on other games though, I'd really like to see treyarch or sledge make a halo game...just anyone besides 343....

[Welshy]

"I don't think mcsft has ever had that intention, keeping the major titles/franchises to only their platforms as history has already shown"

Last time I checked my history, they bought a 3rd party publisher in Bethesda and now all future titles will "only be on platforms where Gamepass is available". That's the opposite of not taking games away from platforms like Switch and PS4/5.

[roadkillers]

That’s the key… where Gamepass is available. They are putting a stranglehold on Sony to allow a Gamepass app on their device. It’s going to happen within the next 3 years.

[crazyCoconuts]

You buy IP to use it competitively... That's the point of owning it - draw more people to your brand. Sure it's possible MS feels that it's got the Midas Touch and can take struggling studios and make them more profitable while keeping the games on competitor's platforms, but MS has not demonstrated that competency in the past imo, so I don't know why they'd go in with that assumption.

[Knushwood Butt]

So the new Senua game will be profitable?

[-Foxtrot]

And whether people want to admit it or not, someday they’ll realise that with Elder Scrolls, Fallout, Crash Bandicoot etc

[Knightofelemia]

Business wise no keeping COD on other platforms will generate more money then closing it off to one platform and losing that other half of the money it generates.

[Extermin8or3_]

Depends if they think they'd lose that playerbase or force them onto gamespass.

[Knightofelemia]

It's Microsoft and they have a tendency to put their games on Gamepass day one COD might generate big numbers on the subscription side. Gamepass will not end up on Playstation so Microsoft needs those Playstation sales and I doubt it will appear on PSNow day one. Unless Microsoft and Sony hammer out a deal and Sony pays serious cash. And again I doubt Microsoft will cut off the Playstation sales of COD. Why make half the sales numbers and half the profit when you can make double the sales numbers and twice the cash pushing the game also on Playstation. Businesses speak money and that's the one language they speak well Microsoft must way in keeping COD an exclusive lose sales numbers and cash or allow the game on other platforms and make twice the cash and twice the sales numbers. Microsoft also has to recoup the money they spent on Activision which they don't take control until 2023.

[XiNatsuDragnel]

It'll be profitable for them to have COD in name let's be honest here in my opinion

[Christopher]

***Such a strategy would be profitable only if Activision Blizzard’s games were able to attract a sufficiently large number of gamers to the Xbox console ecosystem***

They said the quiet part out loud.

[GrmpyolGamer]

They don't need to make it exclusive. Day and date in game pass and subs will skyrocket $$$. There will.ne a massive shift from PS to Xbox GP

[EvertonFC]

Playstation gamers will just buy CoD,

[Extermin8or3_]

Not sure they can make it day and date- see their comments regarding blocking clauses in marketing rights contracts. They almost certainly have them too but they are pissy about them bexaiae I reckon it stops them putting new aCod Games on gamespass for a year....

[GrmpyolGamer]

When the Activision deal goes through MS will own the IP. They can put it anywhere they want when they want

[VenomCarnage89]

@fatty
Pre signed contracts are pre signed contracts, did you think that all legal obligations just disappear when a company gets bought?

[Pocahontas]

That’s not how it works you thinking so is hilarious

[Extermin8or3_]

@fattyboy3D Microsoft have already stated they will honour all existing contracts fully. Just as they have had to with bethesda- releasing a couple of games as times ps5 exclusives... because the agreements were already there.

[Aloymetal]

Straight from the horse's mouth:

''Microsoft would not be able to offset the losses by earning higher revenues in the Xbox ecosystem as a result of implementing exclusivity.
This is especially true considering (i) the ‘gamer-centric’ – as opposed to ‘device-centric’ – strategy that Microsoft has pioneered with Game Pass, and (ii) the fact that PlayStation has the most loyal users across its various generations, with all indications that brand loyalty accrued in previous rounds of the ‘console wars’ suggesting that PlayStation will continue to have a strong market position.”

[Extermin8or3_]

You missed abit "Such a strategy would be profitable only if Activision Blizzard’s games were able to attract a sufficiently large number of gamers to the Xbox console ecosystem." Otherwise what are they doing making Elder Scrolls exclusive..

[jeromeface]

knew this all along

[HeliosHex]

Should've bought it when it was young and sold it back to Sony now. The game is not what it use to be.

[Father__Merrin]

Ha ha ha ha ha LOL lol yet again it's proven that COD remains on PlayStation lmao and people are Still saying it's only untill deal goes through lol

I bet you elder scrolls will also be on PlayStation and almost definatly fallout 5, after all fallout 4 sold over 5 million first weekend on ps4 and currently sat at over 8 million

[Drakul]

then make it timed exclusive.

[Kakashi Hatake]

For who? Fanboys? Don't go into business, you'll lose money.

[Profchaos]

Does the average cod player even want gamepass or just to pay for the game as a one off of that's all they play in the console it makes sense to just buy it so I don't see it making waves on gamepass

[RabbitFly]

Man the console war flames being fed in this comment field, on both sides, is insane.

I see one issue Microsoft would have in leveraging COD to create game pass incentives without exclusivity.

Namely COD's numbers show that the appeal of that franchise trancends the general market trends. I. E. It is a fact that many, if not most, COD players buy very few other games. As such the value of a subscription service like game pass is less for the potential customer. I. E. If you mainly play COD the $70 purchase price is a lot less than the $179 price of a year of game pass. So without exclusivity you will only appeal to COD gamers that are already part of the core gamer group, a group that MS probably already have a decent market share of, and to which COD will be less of an enticing offering than f. Ex. Goty contenders.

With that being said. Considering the monetary value of the COD-franchise it is likely that keeping it multi-plattform is one of the main strategies for recouping the investment. That would Just make sense. However. I said the same about the bethesda acquisition and were proved wrong as Microsoft had no qualms about shifting all of those IPs to exclusives.

COD is on another level though. Buying something with a percieved value of billions then removing 70% of the revenue generating market is insane. In business it would be usually be suicide. Your stocks would tank.

If Microsoft truly believe such losses is worth it in the long run I cannot really fault them. If anything, what annoys me the most about big business decisions like that is that they are usually very focused on the short term. It might have scary consequences for the market, but it has the potential to create exciting changes as well.

FYI I prefer Sony to Microsoft, but things can change and sometimes for the better. Microsoft is not evil if they wanna bet 70% of their COD acquisition on making ir exclusives. If anything they are brave. Consequences be damned.

[gametapes]

Ya know, until they put PlayStation out of the console business. Then it'll be super profitable.

And why should Microsoft even care if it's profitable, there is plenty of evidence that shows Microsoft has been running Game Pass at a loss since the start and spending 100bn on studios is two generations or more of profit from its Xbox division.

Microsoft's goal is clearly not any kind of short term profitability. Thier goal is to continually attack Sony's profitability and make it so difficult for them to make money that they have to leave the console space, leaving Microsoft as the only competitor, allowing them to do whatever they want.

Always keep in mind the Xbone anti-consumer moves didn't fail because people didn't like them, they only failed because consumers had another option. Without PlayStation they would have just rammed xbone through and whatever other unpopular things they wanted.

[DeadlyFire]

They can say whatever they want. The game will likely be changed or degraded on other platforms so it will play best on Xbox. They want to shift console sales no matter what. It will be challenged in the future by the ftc or others if it passes this sale either way. Likely Activision will be split off and on it's own again in the future.

[sourOG]

I don’t think so. When you have a loyal fan base like cod players you don’t f**k it up. I mean loyal just in terms of pure purchase power. These f***ers show up every year in rain, sleet or snow like usps. It’s not more profitable to wall it in like that when it comes to things like cod or gta.

At most cod will be heavily mtx’ed. you can play it on gamepass and pay for mtx. Or you can buy the full retail ps5 version and buy the mtx. It will be a cheaper experience, not a degraded one at least in the terms you said. It won’t be degraded on one system more than another. Cod has been degraded on all platforms equally for years.

[brewin]

Exactly. Why limit the fanbase? Now exclusive to Gamepass makes total sense, but not exclusive to Xbox. I dont think thatll ever happen. I mean, they didn't remove Minecraft from anything or so supporting it in all the other platforms so IDK why people are worried about PS losing CoD. Its not happening.

[MadLad]

Gamepass day one.
PlayStation maybe a year or so after.

[purple101]

Activision deal does not go through till next April.

This year's cod is FULL PRICE on both systems.

[MadLad]

Okay.
And I'm talking about after the deal officially goes through.
It's common knowledge CoD will still be on Playstation for a bit.

I'm simply stating that if CoD doesn't end up simply exclusive, it's highly realistic it will be a timed exclusive.

[MIDGETonSTILTS17]

Lol I guess they REALLY are not interested in selling consoles anymore.

CoD would absolutely be a system seller, assuming Factions doesn’t dethrone them during their planned hiatus in 2023

[Neofire]

Lol MS is full of 💩 who said that they have to make it "Xbox" exclusive.....Sony said it would hurt them if it wasn't on their platform. MS knows they could easily only take it off Sony's platforms (just like the next elder scrolls and Starfield which they have already confirmed they will be Xbox/PC only).

Of course it would be stupid for them to only put it on the series S/X consoles and we all know they won't but what we do know is that all MS has to do is choke out the Playstation version just to gain market share over Sony and MS has done this before with acquisitions in the past.

[Bathyj]

It won't be profitable on gamepass either.
Call of duty needs PlayStation as much as PlayStation needs call of duty.

[sourOG]

I doubt that. It would be highly profitable as an exclusive. “As profitable” is obvious. It would be stupid to throw away the most loyal fan base in the history of gaming.

[Ryuk_2007]

"On the contrary, Microsoft has publicly stated "its desire to keep Call of Duty on [Sony's] PlayStation", as well as the intention to "continue to make Call of Duty and other popular Activision Blizzard titles on [Sony's] PlayStation" with the commitment to do so "in addition to existing contractual arrangements".

That's some funky wordplay right there.
M$: We want to keep COD on PlayStation but Sony won't comply with our demands.

[rlow1]

It’s no sweat on MS to allow Call of Duty on PlayStation. They benefit no matter the scenario. People will either pay $70 dollars or jump onto Gamepass. It’s that simple. They’ll make a profit either way.

[fitofficial]

Its almost like limiting your userbase to half of what it could be has always been a monumentally stupid idea.