Unfortunately, the footnote ends there, so there's not much in the way of detail about what these restrictions are or how long they'd remain in effect in a potential post-acquisition world. Given COD's continued non-appearance on Game Pass, you've got to imagine the restrictions are fairly significant if they're not an outright block on COD coming to the service. Either way, the simple fact that Microsoft is apparently willing to maintain any restrictions on its own ability to put first-party games on Game Pass is rather remarkable, given that making Game Pass more appealing is one of the reasons for its acquisition spree. The irony of Sony making deals like this one while fretting about COD's future on PlayStation probably isn't lost on Microsoft's lawyers, which is no doubt part of why they brought it up to the CMA. While it's absolutely reasonable to worry about a world in which more and more properties are concentrated in the hands of singular, giant megacorps, it does look a bit odd if you're complaining about losing access to games while stopping them from joining competing services. Microsoft and Sony are both battling behind the scenes over the Activision Blizzard deal, and Microsoft is no longer pulling its punches with regulatorsBy Tom Warren / @tomwarren Oct 12, 2022, 6:23 PM UTC| Share this storyIllustration by Alex Castro / The Verge Microsoft isnât happy with Sony and the UKâs Competition and Markets Authority. The UK regulator signaled an in-depth review of Microsoftâs $68.7 billion deal to acquire Activision Blizzard last month, and the CMA has now published its full 76-page report (PDF) on its findings. The CMA says it has concerns that Microsoftâs Activision Blizzard deal could lessen competition in game consoles, subscriptions, and cloud gaming, but Microsoft thinks the regulator has simply been listening to Sonyâs lawyers too much. Microsoft pleaded for its deal on the day of the Phase 2 decision last month, but now the gloves are well and truly off. Microsoft describes the CMAâs concerns as âmisplacedâ and says that the regulator âadopts Sonyâs complaints without considering the potential harm to consumersâ and âincorrectly relies on self-serving statements by Sony which significantly exaggerate the importance of Call of Duty.â Microsoft even accuses the CMA of adopting âSonyâs complaints without the appropriate level of critical review,â suggesting that the regulator is simply just listening too much to what Sony has to say. At the heart of all the back and forth is access to Call of Duty and concerns around the future of game subscriptions. âThe CMA recognizes that ABKâs newest games are not currently available on any subscription service on the day of release but considers that this may change as subscription services continue to grow,â says the UK regulator. âAfter the Merger, Microsoft would gain control of this important input and could use it to harm the competitiveness of its rivals.â Microsoftâs full response to the CMA, seen by The Verge, also includes parts where the company tries to, comically, make it look like it somehow sucks at gaming and it canât compete. Microsoft says Xbox âis in last place in consoleâ and âseventh place in PCâ and ânowhere in mobile game distribution globally,â and Microsoft argues it has no reason to harm or degrade rival cloud gaming services as it wants to âencourage the major shift in consumer behavior required for cloud gaming to succeed.â Microsoft might well be in last place in console sales during the previous generation, but itâs certainly investing billions of dollars to ensure any future Xbox sales arenât less than half of the PlayStation and that its Xbox Game Pass bet pays off. Sony and Microsoft have also been battling it out over Call of Duty, and the CMA recognizes this by revealing itâs concerned about Sonyâs future revenues related to Call of Duty. âPlayStation currently has a larger share of the console gaming market than Xbox, but the CMA considers that Call of Duty is sufficiently important that losing access to it (or losing access on competitive terms) could significantly impact Sonyâs revenues and user base.â Call of Duty is at the center of Sony and Microsoftâs battles.Image: Activision Sony has shown how significant Call of Duty is after it labeled Microsoftâs offer to keep Call of Duty on PlayStation âinadequate on many levels.â The Verge revealed last month that Microsoft Gaming CEO and Xbox chief Phil Spencer made a written commitment to PlayStation head Jim Ryan earlier this year to keep Call of Duty on PlayStation for âseveral more yearsâ beyond the existing marketing deal Sony has with Activision. âAfter almost 20 years of Call of Duty on PlayStation, their proposal was inadequate on many levels and failed to take account of the impact on our gamers,â said PlayStation head Jim Ryan in response. Now Microsoft says keeping Call of Duty on PlayStation is a âcommercial imperative for the Xbox business and the economics of the transaction.â Microsoft says it would put revenue at risk if it pulled Call of Duty from PlayStation and that âMicrosoft has been clear that it is counting on revenues from the distribution of Activision Blizzard games on Sony PlayStation.â Microsoft also accuses Sony of not welcoming competition from Xbox Game Pass and that Sony has decided to block Game Pass on PlayStation. âThis increased competition has not been welcomed by the market leader Sony, which has elected to protect its revenues from sales of newly released games, rather than offer gamers the choice of accessing them via its subscription, PlayStation Plus.â This comes just months after Microsoft claimed, in legal filings, that Sony pays for âblocking rightsâ to keep games off Xbox Game Pass. If the UK battles are anything to go by, this acquisition could get messy as Microsoft and Sony battle it out behind the scenes to sway regulators. Microsoft even has a dedicated website to highlight its arguments as it seeks to convince regulators that its giant deal isnât a bad one for gamers. Weâre still months away from final regulator decisions, but get ready for this battle to continue to spill out onto the internetâs streets. Join the conversation Most Popular
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