Microsoft’s Acquisition of Activision Blizzard Would Lead to Higher Prices, Worse Deals for Indie Developers – Sony
Among the details to be revealed in Sony’s recent 22-page statement to the UK’s Competition and Markets Authority, the company has said that if Microsoft’s acquisition of Activision Blizzard went through, developers would be hurt in the long term, and customers will have been harmed. to suffer price increases.
Sony believes that the regulatory body’s investigation will bring the acquisition to an end, considering the damage it would do to competition in the market if it were allowed to go through. Calling Call of Duty irredeemable franchise, Sony states that Microsoft owning the IP would be a serious market imbalance against PlayStation.
“Microsoft would curate unique content that drives user engagement,” Sony said in the statement. “After a transaction, Microsoft would control Activision’s driving content [redacted] more user engagement on PlayStation than all of SIE’s best-performing first-party titles combined.”
Sony believes so, to a fault Call of Duty statements on PlayStation, a “significant number” of gamers would instead switch to Xbox. And this in the spark that reduces competition in the market would drive Microsoft to raise the prices of its consoles, games, and even PC and Xbox Game Pass.
“Microsoft’s foreclosure strategy would lock many users into Xbox, including existing Xbox users who play Call of Duty and those switching from PlayStation to play Call of Duty. These locked-in consumers would become less likely to switch in response to any procompetitive actions on the part of SIE,” said Sony.
“This would effectively prevent SIE from competing for the business of a large share of console players, reducing its incentives to invest.”
Talking about how the deal would hurt developers, Sony believes that Microsoft’s position as the market leader would give the company a monopoly on subscription services with Xbox Game Pass, which could encourage Microsoft to offer worse deals to indie developers.
“With Microsoft shutting down PlayStation/PlayStation Plus, it would likely become a critical distribution channel for independent developers,” Sony said. “In that weak negotiating position, independent developers would likely receive worse terms for their content from Microsoft or even be required to promise exclusivity in exchange for distribution, thereby reducing the ability and incentive of independent developers to invest in new high quality games. This, in turn, would also harm consumers even further.”