490°

Microsoft Posts Full Response to CMA Phase 1 "Unwarranted Theories" Regarding Activision Acquisition

Microsoft's full response to the CMA has surfaced and it's four pages long! Microsoft calls it "unwarranted theories" and lists Sony's recent acquisitions as counter-claims.

978d ago Replies(2)
Orchard978d ago

Seems like there’s some good and bad arguments in there.

Sony does indeed abuse their position as market leader when they increase prices with no fear of retribution from gamers.

On the other hand, trying to compare Bungie and Haven to Activision is comical - Haven haven’t actually made anything, and Bungie is a nothing compared to Activision.

LucasRuinedChildhood978d ago (Edited 978d ago )

They're mostly poor arguments. Their only decent argument was about raising hardware prices but even that is heavily flawed because Sony arguably did that for stakeholders because their stock price plummeted and has continued to decline since the news of the Activision Blizzard acquisition. lol

1. "Sony PlayStation has been the largest console platform for over 20 years."
This statement is deceitful. Sony haven't been on top for 20 years.
- In terms of profit, the PS3 was highly unprofitable for years and cost Sony billions with speculations of bankruptcy. Both the 360 and the Wii were more profitable.
- In terms of units sold, the Wii outsold the PS3 and the 360 and PS3 sold roughly the same with the PS3 behind until almost the end. The combined monthly sales of PS5 and PS4 are also lower than the Switch so in terms of hardware sales, Nintendo is again on top.

MS's trick is arbitrarily combining each gen with the last one even though that's not reflective of active users, software sales, or overall profitability as users quickly move onto the next gen. The best metric is profitability, which is true now, but not for the last 20 years.

2. "The suggestion that the incumbent market leader, with clear and enduring market power, could be foreclosed by the third largest provider as a result of losing access to one title is not credible. There are more than 4,000 games available on PlayStation alone."

Playing dumb to an extreme. By this logic, they should be entitled to buy up GTA and FIFA as well because, well, there's a whopping 4000 games on the PS Store and 2 or 3 games shouldn't make a difference. We all know that these few top franchises are worth more than thousands of others combined.

3. Their comparison of acquisitions is laughable, as you said, especially when you look at the extended ~$77b buying spree they've been on.

4. MS are also being coy when saying that if you removed all the monthly active COD users "the PlayStation gamer base would remain significantly larger than Xbox is today" because they're including PS4 numbers with the PS5 ones to try fudge the numbers.

Also, it's transparent at this stage that they are going to remove COD from PlayStation in spite of all their lies that "It wouldn't make sense" which the CMA have seen through.

DigitalDaniel978d ago (Edited 978d ago )

Why wouldn't they include PS4 and PS5 numbers ? CoD is still a CROSSGEN title.
The high majority of CoD sales will be on PS4. Should they not include that fact ?
Of course they should if you wanna stick with facts.
No, Xbox is not making CoD exclusive. They don't need to. That's not their strategy here.
Having it day and date on Game Pass is. Just Warzone alone generate 5.2 million dollars in revenue per day. They're not gonna just gonna ignore that kind of money after spending 70 billion dollars.
That's not taking mainline CoD games into account. The whole ABK purchase is about expanding the subscription/mobile/cloud market.

CMA's fear mongering won't hold up in phase 2. The merger will go through and Sony will be just fine. Xbox might close the gap a bit, but there's just no way Playstation goes away or loses that top spot. We need proper competition in more areas than just exclusive $70 titles (or $80+ as it costs many places in Europe, Australia etc) Lowering the barriers for customers to enjoy games is more pro-consumer now than ever considering the terrible economic we have globally. The CMA is supposed to look out for the customers, not the competitors.

The3faces978d ago

A multi billion dollar corporation raises hardware prices for the sake of shareholders and you're okay with that? Just curious

SullysCigar978d ago

Loving the deflection here about Sony put price up. So did Facebook, but crickets...so did third party games, even on xbox. More crickets. Crickets everywhere - Klaus Schwab's mouth must be watering!

As for the argument that they're not holding COD from gamers, fine, let them document that as a legal requirement to proceed and we can finally put all this nonsense behind us. It's a necessary step, given Microsoft's propensity for - let's call it - 'changing it's mind'.

Outside_ofthe_Box977d ago

No rebuttal from Orchard for ANY of the responses. Interesting.

+ Show (1) more replyLast reply 977d ago
OptimusDK978d ago

Size is not an issue here.

Mac is accusing Microsoft of potential practices like Sony has been doing for years. Even with COD. It is laughable

crazyCoconuts978d ago

Oh yeah. Sony has been making $40BN acquisitions for years buying up the companies that put out the most popular games. Like Minecraft, Skyrim, Doom... Oh wait...

AmUnRa978d ago

Just as MS have, they did the same practices for years especialy during the 360 years

shinoff2183978d ago

Must be a younging. You do know ms did the same thing with cod on xbox 360 right. Stop with the bs do your research

anubusgold976d ago

Only because they cant afford to buy them out because they sell bad over priced tvs .

+ Show (1) more replyLast reply 976d ago
gold_drake978d ago

sure but its not just sony.

there are alot of other phblishers who raised the prices. so your argument doesnt have anything to stand on.

neutralgamer1992978d ago

CMA had stated that Microsoft does not care about the blowback if they were to make some of the biggest IP's from Activision exclusive and that is 100% correct

This statement from Microsoft proves the point that they're going to make these games exclusives. All they have to do is give in legal writing that they will not make these games exclusive for the next two decades. And this deal will go through in a day but the reason they don't want to do that is because their end goal is to have these games exclusive you don't spend 70 billion dollars to support your competition

Unless Microsoft gives that in writing this deal should not go through simply because this is not healthy for gaming industry or good for any gamers besides some fanboys

This is such old kids argument that they do it too this is such hypocrisy because they think spending 3 billion on bungee is the same in spending family billion on Activision and 7 and 1/2 billion on Bethesda

Or has Microsoft forgot how many other studios they have acquired before Bethesda and Activision

LucasRuinedChildhood977d ago

Perfectly said.

If you're adamant that you're not removing COD, then what's the harm in getting that in writing?

Their lies have become transparent.

RauLeCreuset978d ago (Edited 978d ago )

I'm not normally one to advocate for price increases. Why would I? The increases to PS5 hardware and software are not the rare exception. But I can maintain that position while rejecting this nonsense no fear of retribution narrative MS is trying to push.

Hardware increased in some areas because of global events. I could go on a tangent about corporations, profits, and my objection to the corporate mentality that losses should be absorbed by the customer rather than cut into profits, but there is a distinction between a corporation passing costs on to the consumer and a corporation abusing their position in the market to up the price for no other reason than because they can.

Meta announced a price increase for their VR headsets prior to PS and for the same reason. That's for a market you have repeatedly argued is niche. Their stock has dropped, and they've spent a lot of money trying to push the Metaverse. Quest may have been the hot holiday item, but Meta is a long way from being able to take customers for granted and raise prices just because they can.

https://www.cnbc.com/2022/1...

I won't beat a dead horse on software increases. As pertains to this topic, Sony isn't the only publisher, nor the first, to increase software prices, so it seems flimsy to try to put that on Sony's position in the marketplace.

"On the other hand, trying to compare Bungie and Haven to Activision is comical - Haven haven’t actually made anything, and Bungie is a nothing compared to Activision."

It also ignores the other studios and publishers MS acquired. It is rich that they were quick to point out acquisitions made after MS announced they were buying up yet another big 3rd party publisher with a catalog of games popular on competing consoles, not to mention the acquisitions that preceded them. "But Sony bought a studio that hasn't made anything, in response, and they have minority investments!" I guess the best thing they can bring up is Bungie, comical as it may be.

RauLeCreuset978d ago

I'll add that the allegation of Sony getting complacent because of its position in the marketplace is ironic coming from a company making a good argument for why they would have gone the way of Sega if not for being propped up by a parent company that has dominated other markets.

Rude-ro978d ago

The market is raising the prices not Sony.
Comparing the price raises in an argument about Microsoft warrants Microsoft actually making AAA games of which they do not and have not for over a decade.

nirwanda977d ago

Sony was the first company to have $70 next gen games, it launched with a first party games at that price point thus encouraging other companies to increase there price point.
If Sony kept at the same price point there is no way others would have increased, Nintendo haven't, Microsoft haven't just Sony.

+ Show (5) more repliesLast reply 976d ago
XiNatsuDragnel978d ago

Oh boy imo this is getting spicy.

Crows90978d ago

only if youre into teenage drama. Thats what this document reads like.

anast978d ago

This is WWE levels of spice.

TGGJustin978d ago

Microsoft can shut right the heck up about Sony's acquisitions. Yeah Housemarque, Haven, and Bungie are really comparable to Activision. GIve me a break with this nonsense. You can put every gaming acquisition in the industry together from the past few years and they still don't compare to Activision.

OptimusDK978d ago

The point is that Sony is the market leader and they did and gave done these practices for many years. Even with the acquisition NS would be a smaller gaming company than Sony. And behind Tencent.

Crows90978d ago (Edited 978d ago )

You dont get it. 3rd party titles are the reason these companies stay afloat...it is not the 1st party but 3rd party. Microsoft has walked and and downright purchased many of the 3rd party out there...especially significant ones.

Sony has never done that. Feel free to name me 1 IP that theyve purchased away from competitiion.

anubusgold976d ago (Edited 976d ago )

Are they going to promise to put those games on xbox no they wont sony can shut up.

Christopher978d ago

***Sony PlayStation has been the largest console platform for over 20 years, with an installed base of over 150 million consoles making it larger than Nintendo and more than double the size of Xbox.***

Microsoft has plainly spoken about moving away from consoles. Did they forget to include the fact that Xbox is available on every PC running Windows 10 or 11? After praising how they understand the future is in the cloud, they now want to argue the importance of console hardware?

***Sony engages in conduct today which is reflective of its market power in console gaming, including increasing prices of its consoles without fear of losing market share.***

Sony doesn't have big daddy Microsoft deep pockets to keep things priced lower to undercut the competition and this is bad. Also, without fear? But the Internet has told me otherwise, but now people are saying without fear? Does no one complain about Sony pricing all of a sudden?

***The suggestion that the incumbent market leader, with clear and enduring market power, could be foreclosed by the third largest provider as a result of losing access to one title is not credible. There are more than 4,000 games available on PlayStation alone.***

This purchase automatically puts Microsoft billions ahead of its competition and with control over the biggest IP of each year for the last 19 years among others. Listing 4,000 games don't matter when it loses its most profitable game on its platform. It's $30B profit alone from 2003 to 2020. It made $3B profit alone in 2020. That's more than 10% of Playstation revenue from that same year.

***The evidence shows that the number of PlayStation’s monthly active users (“MAUs”) playing Call of Duty is not sufficiently material. Even without all of those gamers (a highly improbable outcome from a hypothetical foreclosure strategy), the PlayStation gamer base would remain significantly larger than Xbox is today.***

Why would it remain significantly larger? Because Microsoft says it would? The mass majority of both consoles is comprised of mainstream gamers who follow the most popular games. If the most popular game moves to only one console, how the heck are those MAUs not changing drastically? How? Explain it to us in dummy language, Microsoft. Because last I checked, you lost a lot of MAUs when PlayStation paid for marketing deals with Activision and DLC didn't have a monthly lead on 360 anymore.

***Since the Transaction was announced, Sony has acquired several game studios—including Bungie, developer of the popular online game Destiny 2, Haven Studios, Lasengle and Savage Games—and a minority interest in From Software, the developer of the biggest game of 2022, Elden Ring (among other hit games). This complements Sony’s existing minority shareholding in Epic Games, publisher of Fortnite, strong first-party game catalogue and extensive portfolio of exclusive arrangements with third-party publishers. There were over 280 exclusive firstand third-party titles on PlayStation in 2021, nearly five times as many as on Xbox***

Not only is this nothing compared to ActiBlizz, the largest amount anyone has ever paid for a video game publisher, but none of those interests change where players will find the games or limit the catalog of games from other consoles at all.

And that last bit? *chef's kiss* What great use of numbers to mislead. How many of those were timed? How many are VR games? How many are region-specific (specifically Japan)? How many are ports of PS2 games or the like? And, finally, if you total up the profit of every single one of those "exclusives" would they equal up to 1 CoD annual release in profits and MAUs?

excaliburps978d ago

Yeah, I agree there. Calling Sony's own acquisitions is kind of odd. Like, how on earth are those even remotely close to owning Activision, which owns probably the biggest gaming IPs in their respective genres.

Shooters/Online FPS = Call of Duty
Action-RPG = Diablo
Hero Shooter = Overwatch
MMORPG = WoW

And it goes on. If MS didn't buy Bethesda then maybe (just maybe) this wouldn't be as bug of as an issue as it is now.

blackblades978d ago (Edited 978d ago )

Ms is a piece of crap, they made so many stupid and desparate moves. Tried to get Nintendo back in the day, turned down Marvel to make a game for them but instead choose to focused on there own games which failed. Screwed up with rare and bungie. Now wanna buy everything up and tried to lie about there intentions which would probably fail as well. Ms just been making bad moves.

Zhipp978d ago

To be fair on that last point, a significant number of the big games announced at the start of this gen were timed exclusive or fully exclusive to PlayStation. Before MS went on their buying spree, it was really starting to look like the majority of all third party titles would launch first on PlayStation, and most of the ones that didn't would have some kind of exclusive content arrangement.

Christopher978d ago

***a significant number of the big games announced at the start of this gen were timed exclusive or fully exclusive to PlayStation***

The exclusives on PS5 and XSX are very limited and small in number. Microsoft literally chose 2021 as a comparison because PS4 (not PS5) had a lot of Indies and retro ports put onto it. This has absolutely nothing to do with PS5 vs XSX. Microsoft is only talking about PS4 when it comes to this because both XSX and PS5 have about the same number of exclusives overall.

excaliburps978d ago

Timed exclusives and entire game franchises going console-exclusive are two hugely different things though. Timed exclusives sucks as well, but I do get where Sony's fears are coming from. That said, they aren't innocents in all of this.

dumahim978d ago

Is COD really bigger than FIFA?

Christopher978d ago (Edited 978d ago )

Yes. It is the third highest-grossing IP behind Pokemon (1) and Mario (2). FIFA is #12.

https://res.cloudinary.com/...

Edit: And that's with FIFA being on the market a decade longer than Call of Duty.

anast978d ago

This is a solid argument.

Extermin8or3_977d ago

They already replied and called out all this stuff https://www.gamesindustry.b...

Christopher977d ago

That's a great response. Someone over there obviously is very well read on the gaming industry.

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210°

Japan: Nintendo Switch 2 already outsold lifetime sales of Xbox Series X|S and PS5 Digital Edition

The Nintendo Switch 2 has proved to be a success the world over, however, one nation which is particularly keen on the Nintendo’s latest platform is naturally Japan. Recent sales data has shown that…

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mynintendonews.com
Avfe6316h ago

Nintendo are #1 while PS and Xbox fight for 2nd

1Victor3h ago

@avfe/obscured
I see you spamming as usual

Operation12232h ago

N4G feels more like a Sony PR newsletter with a comment section. Sony fanboys have taken over this website.

CrashMania1h ago(Edited 1h ago)

@operation

Yet the biggest idiots on the site are the Xbox zealots, like the alt spamming articles daily with his endless accounts lol.

thorstein31m ago

@operation

We've always been here. Your complaint days back over a decade. There was no "taking over."

+ Show (1) more replyLast reply 31m ago
NotoriousWhiz2h ago

Nintendo dominates the handheld/hybrid market and Playstation dominates the high end market. There is no fight for 2nd. Xbox is just stumbling around until they leave the console market entirely to merge with Windows.

Avfe632h ago

There’s only one market - console gaming. And Nintendo are dominating Xbox and PlayStation

derek1h ago(Edited 1h ago)

@Avfe63, how many ps5 are out there compared to switch 2s? Lol. Just go play your kiddy Nintendo games, you're not part of the conversation. You Nintendo fans are the worst, you want so bad to get into this console war stuff but all you have is vague grandiose claims of sales. Just stay out of it, enjoy your 1 millionth edition of Mario kart/galaxy/world, Pokémon and donkey kong on you last last gen "new" hardware. Lol

Avfe631h ago(Edited 1h ago)

How many PS4 or 5 are out there compared to Switch 1?

Switch 2 just released, but it already shattered all records PS set (which was PS4. Not 5)

“enjoy your 1 millionth edition of Mario kart/galaxy/world”

Ironic for a fanbase who buys TLOU and Horizon remasters constantly 😂

CrashMania1h ago

Ignore the alt, he's just holding up a Nintendo shield to deflect from 2 disastrous gens in a row for Xbox.

CrimsonWing691h ago

The real question is will Swotch 2 outdo the lifetime sales. I’m not so sure about that and the third-party game sales appear to be abysmal. That’s not a fantastic sign of things to come. Time will tell though.

+ Show (2) more repliesLast reply 31m ago
shadowT11h ago

biggest console launch ever!

CrashMania6h ago

yeah nothing is gonna dethrone nintendo in japan, especially if there's a handheld involved.

Avfe635h ago

nothing is gonna dethrone Nintendo in any country

gold_drake4h ago

not surprised, the switch is relatively cheap in japan.

Avfe634h ago

It also broke the previous records set by PS4 in the west

So it’s not just Japan. Its global.

GamingSinceForever3h ago

A lot of that has to do with availability of consoles. You couldn’t find a launch PS4 after the first 3 days for a while. PS5 even more so.

I’m not saying this to take anything away from Nintendo, I’m only saying they came with more consoles to start. If there were 1.5M PS4s in North America at launch they likely would have all been sold immediately. So the launch record is a bit skewed there.

gold_drake3h ago

the article talks about Japan not global.

u may be right but still ha.

DivineHand1253h ago

I guess the resistance against always online and digital only consoles is BS. The people have voted with their wallets.

NotoriousWhiz2h ago

What are you talking about? Switch 2 is neither always online nor digital only.

DivineHand1251h ago

Nintendo can literally block your Switch 2 console from accessing their online services at any time. When that happens, it becomes a brick. You won't even be able to play those games that use game key cards that are not installed on the console. Some users who have been blocked tried factory resetting their system, and when they tried to boot it up with a new account, they are stuck.

Speaking of game key cards, the majority of third party publishers have opted to use those instead of loading their full game on those cartridges. Imagine having a library of game key card games and going on a long trip but not being able to play a particular game because you need to connect to Nintendo servers to download the game first. It is not like the old days where you just plug in and play.

Game key cards make sense for large games like GTA, Red Dead, or COD, but I don't see why publishers who have games with sizes less than 32 GB need to use that option.

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90°

Playdead co-founder slammed with lawsuit as bitter row with co-founder escalates

Playdead co-founder Dino Patti is allegedly being sued by his former studio and business partner.
Patti was threatened with a lawsuit earlier this year after he posted a now-deleted LinkedIn post that shared an "unauthorized" picture of co-founder Arnt Jensen and discussed some of Limbo's development. Patti said Jensen demanded a little over $73,000 in "suitable compensation and reimbursement," adding that he had "repeatedly" had such letters over the last nine years.

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gamesindustry.biz
80°

Pearl Abyss Issues Statement On CCP Games Sales Rumors

Amid rumors it was looking to sell Eve Online developer CCP Games, Pearl Abyss has given a statement to Insider Gaming.

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insider-gaming.com