In response to Sony’s comments about the Microsoft and Activision Blizzard merger, Microsoft sent in a 27-page rebuttal to a Brazilian court, claiming that Sony pays developers “blocking rights” to prevent them from publishing their game on Xbox Game Pass and other competitive services .
Microsoft appears to have not taken kindly to Sony’s remarks about there being no way to compete with Call of Duty. First spotted by Eurogamer, Microsoft filed a huge rebuttal squarely aimed at their rival, addressing almost every point Sony has brought up in the hearing so far.
Sony originally remarked that it objected to the merger because Call of Duty has “no rival”, “an essential game” that “influences users’ console choice.” Sony also pointed out that despite arguably bad years for the mega-franchise, Call of Duty still outperforms most other games by large margins due to brand loyalty.
Microsoft’s objections, filed in Brazil’s Administrative Council for Economic Defense (CADE), attempted to counter these claims. Microsoft states that the company was able to grow Game Pass without Call of Duty, claiming that the series might not be as “essential” as Sony claims. They also restored their intent to keep Call of Duty multi-platform.
Regarding the exclusivity comment, Microsoft stated that “the use of exclusive arrangements has been at the heart of Sony’s strategy to strengthen its presence in the gaming industry,” and that the arguments are “incoherent”. PlayStation commands a larger market share of digital sales — and Microsoft claims that Sony is paying developers to keep them away from Xbox Game Pass “and other competing subscription services.”
Microsoft wraps up by stating that Sony isn’t afraid that the merger will hamper its ability to compete, but instead that the Game Pass model will threaten Sony’s market leadership “forged from a device-centric strategy and focused on exclusivity.”
Brazil is only one of the first countries to undergo the scrutinization necessary for the Microsoft and Activision Blizzard merger — expect to hear more from both companies as other countries start to ramp up their investigations.
Written by Junior Miyai on behalf of GLHF.
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