Sony fears Microsoft, Call of Duty bug

Little by little the acquisition of Activision by Microsoft is being finalized, and Sony is having a bit of a cold sweat at the idea of ​​seeing Call of Duty in its direct competitor’s stable.

The announcement of the giant Microsoft’s acquisition of Activision had a real earthquake effect within the industry. While mergers and acquisitions are common, This possession and the amount on the table mark history. But everything is not over yet, and if it is clear that the FTC must validate the deal, the case must also pass through various regulators around the world (Japan, Australia, China, UK, etc.) The type of business is secret most of the time in countries, but not in Brazil where everything is so transparent that it is possible to find all the exchanges between the different parties directly on the network.

During these exchanges, the country’s regulatory services interrogate several market players (Google, Warner, Ubisoft, etc.) about their opinion and vision of the Brazilian market and the acquisition of Activision. And if there’s one answer that interests us here, it’s that of the green brand’s direct competitor, Sony.

Call of Duty: Unbeatable License

In a long document (you can refer to it online) Sony says it’s wary about the idea of ​​seeing Call of Duty in the Xbox Wallet. For the manufacturer, Call of Duty is a true “system vendor” with no competitors, and players will be willing to switch consoles just to play Activision’s FPS.

Activision’s Call of Duty is an essential game: an AAA-like game that has no rival. […] The brand was the only video game intellectual property to enter the top 10 of all entertainment brands among fanatics, joining strong companies such as Star Wars, Game of Thrones, Harry Potter and Lord of the Rings. […] Call of Duty is so popular that it influences users’ choice of console, and its network of loyal users is so well established that even if a competitor had the budget to develop a similar product, they wouldn’t be able to compete.

So Sony is afraid of this acquisition, which may harm itEspecially since Call of Duty and Warzone have been the most played games on PlayStation in years. For Sony, no one can rival the Call of Duty brand, which alone brings together as much resources (manpower and finance), if not more, than most companies can deploy across all of their projects.

Around 1200 people develop each game 1,500 others are involved in publishing and distribution. So Call of Duty alone has more developers than most game companies they employ in their entire development portfolio, even AAA studios. However, with Activision planning to hire an additional 2,000 developers by 2021, Call of Duty will likely be more successful going forward. No other developer can devote the same level of resources and experience to game development. Even if they could Call of Duty is very well establishedso that no competitor – no matter how relevant – can catch up.

Microsoft takes up a lot of space, Sony sways

A machine considered unstoppable that could end up in the hands of Microsoft which, according to Sony, is still already swallowing all the competition and has also established itself as a necessity in many sectors.

Game Pass has grown to capture about 60-70% of the global subscription services market (This market share is greater in Brazil, where Game Pass accounts for about 70-80% of the PC subscription services market)[…] It can take a competitor several years – even with significant investments – to create an effective Game Pass competitor..

So Sony sees red and the stakes are high. As mentioned earlier, the Call of Duty brand is very present on PlayStation and is one of the most important licenses for the brand. Sony specifically acknowledges that Call of Duty is the third-party license that brings in the most money on PS4 and PS5.and that he would lose large sums if the shooter disappeared from his services (numbers have not been announced).

Exclusive games are a benchmark for competition between Microsoft and Sony, although no company has yet developed or acquired an exclusive game that has decisively tipped the balance in favor of the console. In fact, Exclusive first-party games are less popular and represent less revenue than AAA third-party gamesWhich is now available on Xbox and PlayStation. Activision titles, including Call of Duty is an important source of revenue for PlayStation. Call of Duty: Modern Warfare set a record for most digital pre-orders on PlayStation Store in 2019. Together, The Call of Duty franchise games are one of SIE’s largest sources of third-party revenuein terms of physical and digital spending in 2021 as well as microtransactions and downloadable content.

So we will understand that Sonny doesn’t want to see the golden egg goose The feeling of being taken by the throat Microsoft is taking over the market very quickly. But for now, Microsoft has confirmed that Call of Duty will not leave other platforms for at least 3 years.

Sony, for its part, is also beginning to surpass the second. The Japanese brand is investing more and more and has not hesitated to buy studios like Bungie and Housemarque recently, is developing its own catalog on PC, and has even rolled out a new offering for its PlayStation Plus to gain a spot in Game Pass. Microsoft may pretend to be a real controller, but the competition has begun and nothing has been won. I may have arrived a little late, but who’s wrong?

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