Microsoft's Proposed Strategy To "Spend Sony Out Of Business" Revealed In 2019 Internal Email
Head of Xbox Game Studios Matt Booty wrote the company needed to «avoid a situation where Tencent, Google, Amazon, or even Sony have become the next Disney of games.»
By Jess Howard on
As part of the ongoing trial between the Federal Trade Commission and Microsoft, an internal email from Xbox Game Studios chief Matt Booty encouraging Microsoft CFO Tim Stuart to «spend Sony out of business» has been made public. The email, which was sent in December 2019, explains Microsoft's aggressive acquisition plans, which almost resulted in the company purchasing Sega, Niantic, and Bungie.
In the email, first shared by The Verge, Booty writes, «We (Microsoft) are in a very unique position to go spend Sony out of business. If we think that video game content matters in 10 years, we might look back and say, 'Totally would have been worth it to lose $2B or $3B in 2020 to avoid a situation where Tencent, Google, Amazon, or even Sony have become the Disney of games and own most of the valuable content.»"
Booty went on to explain how it is «practically impossible» for a company to start a new streaming service due to Disney's competitive holdings, before drawing a comparison between video streaming services and the future of the games industry:
«In games, Google is three to four years away from being able to have a studio up and running. Amazon has shown no ability to execute on game content. Content is the one moat that we have, in terms of a catalog that runs on current devices and capability to create new. Sony is really the only other player who could compete with Game Pass and we have a two year and 10 million subs lead.»
In the years since the email was sent, both Sony and Microsoft have increased their portfolios through major studio
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