The document reveals Sony’s view on Microsoft’s acquisition of Activision Blizzard

Call of Duty and Xbox Game Pass were cited in the document in an attempt to block the deal

document Found on the site WHERE IS (Administrative Council of Economic Defense) presents the answer Sony After the regulatory agency questioned the opinion of the acquisition Activision Blizzard for Microsoft. Several arguments can be identified in the publicly available document Sony which emphasizes strength Call of duty and also from Game passTo mention the market dominance which Microsoft will have after completion of purchase.

The negotiation is still being analyzed by several responsible bodies such as WHERE IS All over the world, who analyze the possibility of a monopoly on large acquisitions in the market to prevent unfair competition and monopoly in the industry.

Although there are some parts of the document where the text is not publicly available, many notable details show the cards used Sony try to stop the transaction.

When asked if there are games Active vision which have no competitors from other developers for other consoles Sony quoted Call of duty As the company’s flagship game is one of the top brands in global entertainment, see what they had to say:

“Activision’s Call of Duty is a must-have game: a blockbuster, AAA-like game that’s unmatched. According to a 2019 study: “Call of Duty’s importance to entertainment in general is indescribable. The brand was the only video game IP. Break into the top ten fanatics of all entertainment brands, joining powerhouses like Star Wars, Game of Thrones, Harry Potter and Lord of the Rings.” Call of Duty is so popular that it influences consumer choice of console, and its network of loyal customers is so embedded that even if a competitor had the budget to create a similar product, it would not be able to compete. “

– Continues after commercial –

“Activision puts a lot of resources into the development of Call of Duty. An annual Call of Duty release takes about 3-5 years of development. Since Activision releases one Call of Duty game per year, this equates to an annual investment of hundreds of millions of dollars.”

Annual AAA releases are developed by four rotating studios (Activision, Infinity Ward, Treyarch, and Raven Software), each supported by multiple satellite studios. Other studios are working on battle royale Warzone and Call of Duty: Mobile. About 1200 people work. Each version is developed and another 1,500 are involved in publishing and distribution. Thus, Call of Duty alone has more developers than most game companies employ across their entire development portfolio, even at AAA studios. In 2021, Activision probably expects Call of Duty to be even more successful in the future. No other developer can devote the same level of resources and expertise to game development. Even if they could, Call of Duty is heavily established, so there’s no competition – no. No matter how relevant it is, it can catch up. Call of Duty has been the best-selling game almost every year for the last decade, and is by far the best-selling game in its genre. It is synonymous with first-person shooters and essentially defines the category. This is also evidenced by the players’ engagement on social media: Call of Duty has more than 24 million followers on Facebook, compared to 7 million for Battlefield; and more than 12 million”

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Check out some excerpts below Sony cites Xbox Game Pass And talks about the impact this will have, also emphasizing that it will take many years to provide equivalent service.

“One of the reasons why Microsoft’s Game Pass has grown so quickly is that since 2017 Microsoft has acquired several third-party studios, including Double Fine, Obsidian Entertainment, Ninja Theory and Bethesda, and added their content to Game Pass in . A greater mass of Microsoft content – even without Activision games. Adding Activision games to that content will be the tipping point.”

– Continues after commercial –

“Over the past five years, Microsoft’s Game Pass has grown to capture approximately 60-70% of the global subscription services market. This share is even higher in Brazil, where Game Pass represents approximately 70-80% of PC subscription services. 12 When Microsoft announced, Game Pass had about 10 million subscribers when it acquired ZeniMax in 2020. Even if each subscriber bought the cheapest tier ($10 per month), that equates to more than $1.2 billion in annual revenue. […] By the time Microsoft announced it would acquire Activision in 2022, Game Pass had grown to 25 million subscribers — a 38% increase over January 2021 — doubling its annual Game Pass subscription revenue to at least $3 billion.

“SIE cannot provide a specific estimate of how long it will take for full penetration. However, it notes that a competitor – even with significant investment – will take several years to create a viable competitor to Game Pass.”

What do you think about the arguments of s Sony in connection with the merger negotiations between Microsoft and Activision Blizzard? Share your thoughts in the comments!

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Source: CADE


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