Bobby Kotick Says Sony is a Baby on Microsoft Deal: "They Just Want to Block Our Merger

General
Bobby Kotick Says Sony is a Baby on Microsoft Deal: "They Just Want to Block Our Merger

Microsoft's proposed $68.7 billion Activision Blizzard acquisition is very likely to go through following last week's news that it has accepted most of the (tentative) assurances from UK regulators (opens in new tab). Specific concerns have been addressed over Call of Duty, the hugely popular series that Microsoft has been trying to deal with every entrant in recent months, and Sony's pleas have become increasingly desperate: about three weeks ago, Microsoft's COD on PlayStation even suggested it might interfere (opens in new tab).

Sony is starting to sound a bit whiny here, and Activision Blizzard CEO Bobby Kotick is fed up. In an email sent to staff earlier this week with the subject line "March Update on Microsoft Contract," Kotick addresses the progress of the deal in general before attacking Sony with both feet.

According to Kotick, Activision Blizzard and Microsoft have been touring Brussels and London, and during various hearings "Microsoft has proposed a thoughtful and generous remedy to address regulatory concerns," including a new COD with Nintendo deal with Nvidia, Boosteroid, and Ubitus. He also noted one of the claims Microsoft has apparently made behind closed doors, that Chinese companies like Tencent and, to a lesser extent, NetEase, are operating globally on a scale previously unimaginable.

"Our proposed merger will help them compete in an increasingly competitive market that includes rapidly growing foreign companies and powerful companies that enjoy protection in their home markets and access to a strong talent pool. Our partnership with Microsoft will allow us to more effectively compete against these market-leading competitors."

Now it was PlayStation's turn, and what seemed to particularly irritate Kotick was the suggestion of sabotage. Sony's lawyers argued that since most of COD's revenue comes in the first few weeks after launch, Microsoft would have an incentive to launch a poorly optimized and glitchy version and then gradually fix it, thereby creating the impression that the PlayStation is not a suitable platform for playing COD. They argued that this would give them an incentive to instill the impression that the PlayStation is not the right platform to play COD. Hey, I'm not making this up.

"You may have seen statements from Sony including claims that Microsoft may intentionally release a "buggy" version of the game on PlayStation if this deal goes through. Our enthusiasts will be the first to hold Microsoft accountable for upholding its promise of equivalence in content and quality." And all of us who work so hard to deliver the best games in the industry care too deeply about our players to ever release an inferior version of a game. Sony admits that it is not actually worried about the "Call of Duty" agreement.

While nitpicking, Kotick continues that he is not mad at Sony. He says, "But Sony's actions will not affect our long-term relationship, and PlayStation players know that we will continue to offer the best possible games on Sony's platforms since the launch of the PlayStation."

Kotick said the Japanese Fair Trade Commission is the latest global regulator to pass the deal, with final decisions from the EU and UK expected in the coming months. However, there is still a significant regulatory cloud on the horizon, and the U.S. Federal Trade Commission has opted to file suit to halt the deal in December 2022 (opens in new tab). However, the FTC is not seeking an injunction against the acquisition, which could be enacted regardless.

Categories