In a document sent to Brazil’s Administrative Council for Defense Economics (CADE) in which the acquisition was proposed Activision BlizzardMicrosoft claims that this is about it Call of Duty is now an Xbox exclusive And that it is no longer published on PlayStation is simply unfounded will not be profitablefor Microsoft.
“No matter how surprising Sony’s criticism of content privacy – given that the entire PlayStation strategy has been around exclusivity over the years – the truth is that making Activision Blizzard games exclusive by not distributing them on competing consoles wouldn’t be profitable. To Microsoft, The company claims in the documents.
“Such a strategy would only be profitable if Activision Blizzard games were able to attract a large enough number of players to the Xbox console ecosystem and if Microsoft could earn enough game sales to offset losses from not distributing those games. competition control,” the company adds.
“As if that wasn’t enough, exclusivity strategies They involve specific securities costs, “the document states: More information has been omitted, possibly for confidentiality reasons.” These costs, added to the estimated lost sales […] Above, you indicate that Microsoft will not be able to offset the losses by earning more revenue in the Xbox ecosystem as a result of implementing exclusivity.”
This is especially true when you consider (1) Player-centered strategy – unlike the “device-centric” – which Microsoft has experimented with with Game Pass, and (ii) the fact that PlayStation has users who remain loyal across its various generations. ”
Continuing to back its argument, Microsoft says that even if the Xbox exclusive of Call of Duty proves profitable, its implementation “will have no impact on the competition,” due in part to the “intensive competition in the publishing market for games,” the fact that strategies for Exclusivity is commonly adopted in the gaming industry and the fact that competing consoles have a high degree of player loyalty.
“In short,” the document concludes, “the default adoption of any content disruption strategy would not be profitable for Microsoft, and even if implemented, such a strategy would have no impact on competition, for the reasons outlined above.”
Additionally, Microsoft is accusing Sony of paying to stop games from accessing Xbox Game Pass.
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