At the request of the Brazilian regulatory authority, Sony has provided its assessment of how the acquisition of Activision Blizzard by Microsoft will affect gaming. A key point for Sony: “There is no competition for Call of Duty” – the game is seen as unique in the world of gaming. It is simply too big and too established. If a new Call of Duty does not appear on the PS5, that would apparently be a real problem for Sony.
This is the situation:
- In January 2022, it became known that Microsoft made an acquisition offer to Activision Blizzard, which they also wish to accept.
- However, the two companies are so large that they need the “okay” from regulators. Such authorities examine possible monopoly tendencies that can arise in such large acquisitions.
- Now various regulatory authorities worldwide must approve the merger.
Where does the information come from? A Brazilian regulatory authority began its review process on May 20. They requested statements from major tech and gaming companies. From these statements, they want to deduce how the merger will impact the gaming market.
It is partly about whether Activision Blizzard has games that are unique. They have requested statements from companies like Apple, Riot Games, Bandai Namco, Amazon, Google, Meta, or Ubisoft – and of course also from Sony.
In Brazil, transparency goes so far that all companies’ responses have been published (via sei).
This is how most companies respond: As summarized by a user on Resetera, almost all major companies indicate that they do not expect significant impacts if Activision Blizzard is bought by Microsoft. Overall, it is believed that every game has competition and the market will remain balanced.
As an example of competitors to Call of Duty, Bandai Namco sees Battlefield, Valorant, or Destiny. Riot Games also believes: Apex Legends, CS:GO, and Rainbow Six Siege are competitors to Call of Duty. Similar statements are made regarding Candy Crush or WoW – competition is seen everywhere.
But Sony assesses the situation quite differently.
Every year a new Call of Duty comes out – for many gamers, it is the highlight of the year:
Call of Duty influences which console players buy
This is Sony’s response: Sony has elaborated in their response why “Call of Duty” is a unique game with no competition and that there will be no competition. They explain (via sei) :
Call of Duty is an essential game, a blockbuster that has no competition.
According to a study from 2019, Call of Duty is the only game brand to have made it into the top 10 entertainment brands, like Star Wars, Game of Thrones, Harry Potter, and The Lord of the Rings.
Call of Duty is so popular that it influences users on which console they choose, and their network of loyal users is so deeply rooted that even if a competitor had the budget to develop a similar product, they would not be able to compete with Call of Duty.
Sony argues why Call of Duty is so unique:
- 4 studios with numerous satellite studios are developing it – about 1,200 developers on each game and 1,500 additional employees are involved in publishing and distribution
- Therefore, Call of Duty alone has more developers than most studios have employees
- Moreover, Call of Duty is expected to grow even further in the future
“Call of Duty is synonymous with first-person shooters”
One comes to the assessment:
No developer can invest resources and experience in game development at this level. Even if they could, Call of Duty would be so established that no rival – no matter how relevant – could catch up to Call of Duty.
Call of Duty is the best-selling game for almost every year in the last decade and in its genre, it is so outstanding that it has become synonymous with first-person shooters and has defined the category.
Sony has invested heavily in Call of Duty for years
How is this being discussed? In gaming forums, Sony’s response is read as a sign of their unique position as a platform operator (via reddit). Therefore, Sony sees the situation quite differently than other tech companies.
It is thought that Sony’s focus on Call of Duty shows how dependent Sony is on releasing a Call of Duty on the PlayStation 5 every year. It is said that Sony has invested heavily for years to ensure that gamers associate the “Call of Duty” brand with Sony and with PS4 and PS5 – which could now be at risk.
It is believed that Sony’s response shows how reliant they are on Call of Duty.
We discussed the deal in a podcast:
What’s behind this: The Sony executives make here an argument against the merger of Activision Blizzard with Microsoft. There is an underlying fear that Microsoft could make the shooter “exclusive”.
This seems to be a “worst-case” scenario for Sony: An exclusivity of Call of Duty on consoles could significantly influence the decision on which console to buy – and that for years. Sony likely wants to make it clear to regulators that there is a serious risk for competition here.
After it became public that Microsoft wants to strike a deal with Activision Blizzard, “Will Call of Duty remain on PlayStation?” was the big question for many fans:
Xbox head says what fans of Call of Duty want to hear after the Activision deal
