In the midst of the legal battle surrounding Microsoft’s proposed acquisition of Activision Blizzard, an email has surfaced, revealing internal discussions within Xbox Game Studios about aggressively competing with Sony in the gaming market. The email, sent by Matt Booty, then-Corporate Vice President of Xbox Game Studios, has sparked further debate and raised concerns about the potential implications of the acquisition.
The email release coincides with the news that Sony has decided not to share details about the PlayStation 6 with Activision if Microsoft’s acquisition of the publisher goes through. Critics of the acquisition fear that popular franchises like Call of Duty might become exclusive to Microsoft’s Xbox consoles and Game Pass service, leaving PlayStation players at a disadvantage. On the other hand, proponents of the deal point to Activision’s track record in addressing harassment issues within its studios and Sony’s own history of securing exclusive titles. Prior to pursuing Activision Blizzard, Microsoft had attempted to acquire mobile game developer Zynga, which was eventually purchased by Take-Two Interactive.
According to a report from tech site The Verge, the email in question was part of the evidence presented in the Federal Trade Commission’s case against Microsoft. In the email, sent by Booty in 2019 to Xbox CFO Tim Stuart, Booty urges increased spending on the Xbox brand to outpace Sony in the console wars. Booty claims that Microsoft has the opportunity to “spend Sony out of business.” However, Microsoft argues that the email represents a business strategy that was never implemented. David Cuddy, Microsoft’s general manager of public affairs, stated that the email is over three years old and was sent long before the announcement of the acquisition. Microsoft maintains that the email refers to industry trends that were never pursued and is unrelated to the Activision Blizzard acquisition.
While the contents of the email may initially raise concerns, Microsoft’s assertion that the proposed strategy was never put into action could potentially sway federal regulators. However, it remains to be seen whether this explanation will be sufficient to secure approval for the Activision Blizzard acquisition. The outcome of the legal proceedings may hinge on more than just assurances from Phil Spencer, the Head of Xbox, regarding the future of Call of Duty on PlayStation platforms. The final decision will have far-reaching implications for the gaming industry as a whole.
