Microsoft Responds to Sony’s Argument to Buy Activision as Anti-Competitive

The company denied the claims about Game Pass and the Call of Duty franchise

THE Microsoft responded to the arguments of the Brazilian regulatory authority Sony which increased the possibility of acquisition activation be a move that would lead to the Xbox maker dominating the market. Now, in the document 27 pagesA Microsoft answered Administrative Council of Economic DefenseCADE denies the allegations

Understanding the situation

News of the opinions broke earlier this month in August Sony About the purchase activation for Microsoft. O WHERE IS The company interviewed used some arguments about the transaction between the competitor and the PlayStation owner to point out Microsoft’s alleged market monopoly after the acquisition.

Raised between the points Sony– they say in the company Call of duty As an unrivaled AAA-type game, it complements the argument that it is a franchise “It’s so popular that it influences consumers’ choice of console, and its network of loyal users is so embedded that even if a competitor had the budget to create a similar product, it wouldn’t be able to compete.”

THE Sony He even mentioned it Game pass As an important structure of Microsoft, he said that the service has grown thanks to the company’s acquisition of other studios, such as Double Fine, Obsidian Entertainment, Ninja Theory and Bethesda, and included their content in Game Pass. with vision Sony, “So adding Activision games to that content will be a tipping point.”.

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Microsoft’s response

The document was registered this Wednesday (10). Microsoft CADE has a specific section to reject arguments Sony About the purchase. The Windows owner begins the section by saying this “Not surprisingly, Sony was the only third party to express a materially different public opinion on the competitive analysis of the transaction than that of the plaintiffs and the third parties.”

THE Microsoft asserts that Sony It doesn’t want a subscription game service like Xbox Game Pass to threaten its dominance in the digital distribution market for console games. “Shopping to Play”. Still on Game Pass, Microsoft says that entry securities activation cannot be considered essential to the success of the game’s distribution channel, since Microsoft has already achieved expressive marks in Game Pass without the studio’s titles, “The same can be said for Nintendo’s console platform and Epic Games’ PC store, which stood out even though Call of Duty games weren’t available.”

About COD Microsoft notes that Sony did not provide any practical data to support the thesis that the franchise is a separate market from all other game categories. The company also confirms this Call of duty He has many rivals “Faces strong competition from many genres and types of games”. In addition, he notes that the franchise’s impact on Sony’s revenue is not large enough to consider the game a key to its catalog (although this data is not public and only the parties involved have access to it).

“Such a radical argument — which clearly doesn’t hold up — becomes even more fragile when you consider that only two Activision Blizzard titles were among the 20 best-selling console games in 2021, a list that includes several titles. Other popular franchises owned by rival publishers, such as FIFA (Electronic Arts), Grand Theft Auto (Take-Two Interactive), Assassin’s Creed and Far Cry (Ubisoft), Resident Evil Village (Capcom), Minecraft (Xbox) – it should be noted that the latter is also available for PlayStation and Nintendo on consoles. Interestingly, the list of best-selling titles also includes content exclusive to other consoles: Mario Kart, Super Mario, Animal Crossing, Pokémon, Super Smash Bros (Nintendo exclusive) and Spider Man (Nintendo exclusive). For PlayStation ).In other words, Call of Duty is just one game among a wide range of best-selling games, many of which aren’t even available on Xbox. Because of i exc strategies. Lust received by Microsoft’s competitors,” Adds the company to the document.

Other arguments are mentioned in the public version of the official document, which can be found at this link. However, some of its parts are limited to parties only.

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Source: CADE

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