As Microsoft continues to defend its proposed $70 billion acquisition of Activision Blizzard in the face of the Federal Trade Commission’s (FTC) objections, a series of emails from Bethesda’s top executives has emerged that cast a spotlight on the company’s perplexing strategy on console exclusivity.
The bone of contention is Microsoft’s inconsistent stance on game exclusivity in light of its recent acquisitions.
Bethesda, purchased by Microsoft in 2020, found its much-awaited titles, Starfield, and quite possibly even The Elder Scrolls 6 and Fallout V, designated as Xbox exclusives. Meanwhile, in the ongoing Activision Blizzard deal, Microsoft committed to keeping Call of Duty on all platforms for at least ten years, including PlayStation.
Feb '22 email from Bethesda exec Pete Hines suggests frustration at Xbox/PC-centric strategy for team's games.
Reacting to public vow to keep Call of Duty on PlayStation: "I'm confused, is the below not the opposite of what we were just asked (told) to do with our own titles?" pic.twitter.com/N6S8IqBxbH
— Stephen Totilo (@stephentotilo) June 26, 2023
The Bethesda team is understandably puzzled by this. In a 2022 email, Pete Hines, Bethesda’s Head of Publishing, voiced his frustration at Microsoft’s flip-flopping policy. “I’m confused. Is the below not the opposite of what we were just asked (told) to do with our own titles?” Hines asked, referring to the company’s commitment to maintain Call of Duty’s availability on both the Xbox and PlayStation, even Nintendo.
His query highlights the conundrum: why should Call of Duty be a special case, while Starfield and The Elder Scrolls VI are corralled into the Xbox pen?
Microsoft’s argument that big, multiplayer games with established communities should stay multiplatform while single-player games don’t need such consideration is, to say the least, unconvincing. The Elder Scrolls franchise boasts a dedicated fan base, many of whom are PlayStation gamers. If Microsoft’s reasoning stands, it doesn’t quite account for the vast Elder Scrolls community potentially left out in the cold.
Moreover, the element of surprise has added salt to Bethesda’s wounds. Hines expressed his annoyance at the lack of forewarning about Microsoft’s non-exclusivity policy for Call of Duty. Todd Howard, renowned game designer and director, was due to attend the DICE Summit, where he would undoubtedly face pressing questions about the disparate treatment of Bethesda and Activision Blizzard’s titles.
Microsoft’s duplicity is telling in how it handles acquisitions. On the one hand, it assured Bethesda that game exclusivity is decided on a case-by-case basis. On the other, it promised Call of Duty’s multiplatform future without giving Bethesda the courtesy of a heads-up. This seemingly double standard approach has rattled Bethesda, stirring doubts about the parent company’s transparency and fairness.
While these courtroom revelations don’t directly contribute to the ongoing FTC trial, they poke holes in Microsoft’s public image. Both Sony and Microsoft, through separate instances, have seen their polished public veneers scratched, revealing the realities of strategic corporate maneuvering behind the scenes.
In this high-stakes game of chess, it is clear that some pawns are deemed more valuable than others. As the giants clash in court, some are left as “collateral” damage. If Bethesda, as big as it is, doesn’t get a say about which platforms its games will come out on, we’re pretty sure Microsoft’s other “smaller” acquisitions won’t have as much authority either.
Of course, there’s a benefit to all of this – Starfield is coming out in September, thanks, in part, because it’s exclusive to the Xbox Series S/X.
Unfortunately, exclusivity, especially to a platform that has traditionally struggled to sell compared to its contemporaries, is not a recipe for a best-selling launch. But, who knows? Maybe, with a renewed slate of upcoming exclusives like Avowed, Fable, and Forza Motorsport, on top of Starfield, the Xbox Series S/X will start selling better.
For now, we can sympathize with Bethesda for feeling confused about why its games are supposed to be exclusive when a game like Call of Duty isn’t.
