To Clear Activision Deal, Microsoft Says: We've Lost The Console Wars
To overcome the FTC to buy Activision Blizzard, Microsoft has decided to admit defeat in the video game console wars.
Microsoft made the argument in court today as the FTC is trying to stop the merger on antitrust grounds. To do so, the Commission is requesting a US judge order a preliminary junction to halt the deal, which risks jeopardizing Microsoft’s bid to complete the acquisition.
In response, Microsoft has filed a 77-page document that tries to argue why the deal should go through. “Xbox has lost the console wars, and its rivals are positioned to continue to dominate, including by leveraging exclusive content,” the company wrote(Opens in a new window) in the court filing.
Microsoft adds that the Xbox has consistently ranked third behind Sony’s PlayStation and Nintendo’s own hardware, with only a 16% share of the market. “Sony’s lead is so significant that press reports have recently declared that ‘Sony’s PlayStation brand dominates 2021’s worldwide console market,” the company added.
Microsoft then argues the reason why is because both Sony and Nintendo have many first-party titles exclusive to their platforms. The Xbox, on the other hand, has struggled to match the same output.
“The number of exclusive games available on PlayStation dwarfs the number available on Xbox, with eight exclusive games on PlayStation for every one on Xbox,” the company said. The court document even points out the most recent Xbox first-party title, Redfall, “has been widely panned by critics and has generated minimal sales.”
It’s a surprising admission. But it’s also been clear from day one that Microsoft wants to buy Activision Blizzard for its game catalog, which includes hit franchises such as Call of Duty, Diablo and
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