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Chronicles

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Microsoft's president discusses the FTC reportedly blocking the Activision Blizzard acquisition and says the company offered Sony a 10-year Call of Duty deal

Far from harming competition, it'll allow us to compete against more powerful companies through innovation.

Wall Street Journal Brad Smith

Context & Ripple Effects

Microsoft’s proposed long-term access commitment became central to its defense of the Activision Blizzard transaction: the company later argued in its FTC lawsuit rebuttal that the deal would not harm competition, while FTC officials’ reported focus extended to cloud-gaming access rather than console exclusivity alone.

The offer also foreshadowed the eventual 10-year PlayStation Call of Duty agreement, showing that access guarantees—not simply ownership of the franchise—were becoming the key instrument for answering regulators and Sony.

First-order effects

  • Microsoft can use the proposed 10-year Call of Duty commitment to argue that Sony’s PlayStation users would retain access to a major Activision title if the acquisition proceeds.
  • Sony gains a concrete contractual benchmark for continued Call of Duty availability while the FTC’s challenge puts the acquisition under pressure.

Second-order effects

  • FTC scrutiny shifts Microsoft’s case from whether Call of Duty is exclusive to whether acquisition control can affect cloud-gaming distribution, raising the importance of commitments across platforms.
  • Sony’s opposition is tested against a long-duration access offer, while Microsoft must demonstrate that such terms meaningfully constrain its post-deal incentives.

Third-order effects

  • Large game acquisitions are increasingly assessed through enforceable access remedies for major franchises, rather than through console exclusivity claims alone.
  • If regulators continue to center cloud distribution, platform holders seeking content deals will face pressure to make cross-platform availability a durable part of transaction design.

The trend: Game-industry consolidation is making flagship-title access agreements a core antitrust remedy, with cloud distribution expanding the definition of platform control.

Discussion

  • Gameranx Ryan Parreno on x
    Microsoft's President Will Commit To Same Day Release Call of Duty On Xbox And PlayStation
  • @bradsmi Brad Smith on x
    The @FTC blocking our acquisition of @ATVI_AB would make the gaming industry less competitive and gamers worse off. This deal is good for competition, consumers, and thousands of game developers. @Xbox https://www.wsj.com/...
  • @parismarx Paris Marx on x
    “by pushing for massive industry consolidation we're actually increasing competition” fuck off, man https://twitter.com/...
  • @carlquintanilla Carl Quintanilla on x
    “.. Think about how much better it is to stream a movie from your couch than drive to Blockbuster. We want to bring the same sort of innovation to the videogame industry.” ⁦@BradSmi⁩ ⁦@WSJopinion⁩ $MSFT $ATVI https://www.wsj.com/...
  • @charlieintel @charlieintel on x
    Microsoft's President confirms they offered Sony a 10 year deal to release each “new Call of Duty” on PlayStation “same day as Xbox” and says the company does not “have enough popular games” and needs Activision Blizzard titles to grow its Game Pass https://www.wsj.com/... https:…
  • @profwrightgmu Joshua Wright on x
    “Why did you sting me?” the frog asked the scorpion... https://twitter.com/...
  • @cwaunion @cwaunion on x
    If @FTC approves the Microsoft/Activision merger w/ the labor agreement that we created to protect collective bargaining rights, it would send a game-changing message to corporations: Workers do have a seat at the table & their concerns must be addressed. https://thehill.com/...
  • @logmey92 Logan Meyer on x
    Amen. Approving this deal protects worker's rights. Trying to block deal would send a terrible message of not caring about the workers they claim to care about in their “concerns”. https://twitter.com/...
  • @jongraywb @jongraywb on x
    Gosh, I wonder why the head of a well known greedy corporation who hosts a “Tools & Weapons” podcast & stands to make boatloads of money in a greedy deal would would pay for a propaganda based editorial in a business newspaper in order to say something positive about a merger. 🤔 …
  • @uniglobalunion @uniglobalunion on x
    “Union representation and collective bargaining agreements are the most powerful tools workers have to balance power between themselves and corporations which have too much control over our economy, our democracy and our work lives.” https://twitter.com/...
  • @benedictevans Benedict Evans on x
    Microsoft in 2021: “big tech needs more regulation! There should be break-ups! We will welcome this!” Microsoft in 2022: https://twitter.com/...
  • @alexhern @alexhern on x
    tales of videogames being priced at £70 feels like it's another world. the most expensive game I've bought this generation was £53 and it was utterly mediocre. my favourite game of the year so far cost £20, and I had to steel myself to pay that much
  • @wario64 @wario64 on x
    Microsoft is setting $69.99 game prices for its first-party titles built for Xbox Series X|S starting in 2023, including Forza Motorsport, Redfall, and Starfield https://www.ign.com/... “This price reflects the content, scale, and technical complexity of these titles”
  • @benjisales Benji-Sales on x
    Xbox is raising its prices for 1st party games to $70 in 2023 “This price reflects the content, scale, and technical complexity of these titles” No one should be surprised. I've been saying it's inevitable since we saw other publishers raising price https://www.ign.com/... https:…
  • @stephentotilo Stephen Totilo on x
    With Xbox game prices rising to $70, most of the big publishers are there. (Not Nintendo, which operates in a universe of its own) Back in 2005, I wrote about game prices rising to $60. $60 in 2005 = $92 now $70 now = $46 in 2005 https://www.axios.com/... https://twitter.com/...
  • @stephentotilo Stephen Totilo on x
    Flashback! “We believe that premium titles command premium pricing,” said EA spokesperson Tammy Schachter when asked why EA's first-run 360 titles were selling for $10 more than [its] titles for Xbox,PS2 and GameCube. “These are deep, rich, complex games” https://www.mtv.com/... …
  • @infrarogue89 @infrarogue89 on x
    I still blame PS for pushing the industry to $70 But I give all credit to Xbox on giving us Gamepass which means I can play their games Day 1 without paying $70
  • @moatxsx @moatxsx on x
    2023 Redfall $70 or $15/m Starfield $70 or $15/m Forza Motorsport $70 or $15/m Diablo 4 $70 or $15/m Hellblade 2 $70 or $15/m Avowed $70 or $15/m ughhh why Xbox
  • @ohnoitsalexx @ohnoitsalexx on x
    Game Pass is not the “cure” or argument to use for trying to defend 70$ games on Xbox
  • @vicious696 Parris on x
    Shocked at Xbox raising prices to $70? Not really but if Game Pass can hold steady with its pricing in 2023 it increases it's value for games like Starfield and Forza coming day one Now more than ever Xbox Game Studios needs to deliver high quality titles in 2023
  • @andrearene Andrea Rene on x
    This should surprise no one and is overdue. @Xbox is still offering an amazing value with #XboxGamePass which, if you haven't browsed lately, has a WILD amount of great games in it. Was scrolling the other night and continue to be impressed with the selection. https://twitter.com…
  • @thenintendofeed @thenintendofeed on x
    When Nintendo changes, it's how you play. When others change it's how much more you pay. 🥶 https://twitter.com/...
  • @zhugeex Daniel Ahmad on x
    I've been thinking a lot about whether im willing to pay $70 for Xbox first party games and I've finally come to the decision that I'm going to pass Game Pass, to be more specific https://twitter.com/...