Shocking Evidence Weakens Sony's Objection to Microsoft-Activision Deal

A dramatic revelation emerged at a Federal Trade Commission (FTC) hearing, weakening Sony's protest against Microsoft's proposed acquisition of Activision. The twist, a covert email from Sony's PlayStation head Jim Ryan, discloses an inconsistency between Sony's public stance and private outlook.

Over recent months, Microsoft's planned purchase of Activision, creators of the popular Call of Duty franchise, for a hefty $69 billion has encountered considerable regulatory resistance. The UK watchdog has discarded the proposal, and the American FTC harbours serious reservations. In contrast, the European Union has given it a tentative nod, while China's approval is still under consideration.

The loudest opposition emanates from Sony, apprehensive about potential Xbox exclusivity over Activision's content. However, an unveiled email from Jim Ryan, Sony's PlayStation chief, contradicts this narrative.

At the FTC hearing, the internal communication quoted Ryan: "It is not an exclusivity play at all... I'm pretty sure we will continue to see Call of Duty on PlayStation for many years to come". This revelation sharply contrasts Sony's public allegations and statements to international regulators.

Ryan further communicated: "We have some good stuff cooking... we'll be OK; we'll be more than OK."

Microsoft has strenuously attempted to assuage Sony's apprehensions, guaranteeing PlayStation access to games such as Call of Duty. Initially, Microsoft proposed a three-year pledge following the termination of the current Sony-Activision agreement, later escalating the offer to a decade-long deal, which Sony has declined. Microsoft has already secured the support of Nintendo and Nvidia for the proposed acquisition.

The Call Of Duty dilemma was instrumental in the UK Competition and Markets Authority's decision to reject the Microsoft-Activision transaction. The FTC shares similar anxieties regarding Microsoft's potential upper hand in the cloud gaming market. However, the EU remained untroubled by the possibility of PlayStation losing access to Call Of Duty and thus sanctioned the deal.

"Today showed Sony has known all along we'll stand by our promise to keep games on its platform and made clear its work to lobby against the deal is only to protect its dominant position in the market," asserts David Cuddy, general manager of public affairs at Microsoft.

This could have consequences for the CMA ruling, which Microsoft has appealed, and what the FTC decides. If Microsoft gets these two regulators on board, then more or less, the acquisition is done.

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