Call of Duty exclusivity won’t be profitable for Microsoft, but there’s a “but”

In a document sent to Brazil’s Administrative Council for Economic Defense (CADE), which is considering its proposed acquisition of Activision Blizzard, Microsoft alleges concerns that Call of Duty is becoming exclusive to Xbox and will no longer be published on PlayStation. It is unfounded at this time will not be profitable For Microsoft.

“No matter how surprising it is Sony’s criticism of content exclusivity – Considering that the whole strategy PlayStation focused on exclusivity Over the years – the reality is that making Activision Blizzard games exclusive by distributing them to competing consoles simply wouldn’t have been profitable for Microsoft.

“Such a strategy will only be profitable if Activision Blizzard’s games can attract a large enough number of players to the Xbox console ecosystem and if Microsoft could generate enough revenue In order to compensate for losses from the sale of games There is no distribution of these games to competing consoles“- adds the company.

“As if that wasn’t enough, exclusivity strategies imply specific costs for titles,” the document says: however, other information is left out, presumably for privacy reasons. “Added to these costs are estimated lost sales […] Above, point out that Microsoft wouldn’t be able to recoup the losses from pursuing exclusivity with more revenue in the Xbox ecosystem.

This is especially true when we consider (i) the “player-centric” strategy—as opposed to the “device-centric” strategy—that Microsoft has pursued with Game Pass, and (ii) the fact that PlayStation has customers to stay loyal through its various generations.’

Continuing to support its argument, Microsoft says that even Call of Duty exclusivity for Xbox is a win-winits implementation “There will be no impact on competition”Partly because of the intense competition in the publishing market. they are usually accepted in the gaming industry and the fact that competing consoles enjoy high levels of player loyalty.

“In summary,” the document concludes, “the hypothetical adoption of any content disruption strategy would be unprofitable for Microsoft, and even if implemented, such a strategy would not affect competition for the reasons outlined above.”

With this statement, Microsoft was surprised by Sony’s attack on the “exclusivity” argument, since it has been doing this practice for years and did not expect it to be viewed negatively by it. Also, currently, Call of Duty will be multi-platform, unless Microsoft hypothetically reaches a base that also supplies Playstation, in which case it believes that making Call of Duty will not affect the competition, as Sony has also always adopted this practice. .

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