Microsoft: Differences Between AAA & Non-AAA Games Are “Blurred & Subjective”
Microsoft has shared an interesting observation about how gamers see AAA games and smaller games to the EU.
On paragraphs 45 to 46 of the EU decision on the Microsoft Activision deal, found on page 14 of the document, the EU shares this:
“As regards game types, the Notifying Party submits that there is some evidence of a low degree of demand-side substitution between AAA games and non-AAA games. This is because AAA games offer more complex gameplay features and mechanics, as well as a longer play time. Moreover, there may be also low supply-side substitution from non-AAA games to AAA games, based on the budget and technological innovation that the development of AAA games requires. This would make it burdensome for small studios to switch from non-AAA to AAA games.
However, the Notifying Party also puts forward that boundaries between AAA and non-AAA games are blurred and subjective. Gamers may play various game types according to their preferences and regardless of the status of the game. Furthermore, certain games initially developed as non-AAA games have become successful and highly regarded over time, involving an increasingly higher budget and larger development teams. At the same time, some games developed on an AAA budget were not considered as such by gamers.”
The Notifying Party described in the document refers to Microsoft itself.
When the EU refers to demand-side substitution, they refer to gamers switching between AAA and non-AAA games. Gamers aren’t likely to replace AAA with non-AAA games, because they see the games at a completely different level.
On the other hand, supply-side substitution refers to the likelihood that the game developers and studios themselves switch from making smaller games to AAA
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