A lot can change in a day, much more so in four years. But, the internet never forgets, no matter how much you regret what you said many years ago.
This is what Microsoft and Xbox, specifically, the Head of Xbox Game Studios, Matt Booty, is finding out right now.
A 2019 email exchange between Booty and Xbox CFO Tim Stuart, exposed Microsoft and its combative approach to getting content for Xbox Game Pass and outpace competitors. Booty confidently stated, “We are in a very unique position to be able to go spend Sony out of business.” A bold claim that reveals Microsoft’s firm belief in their financial supremacy over Sony, emphasizing their readiness to use this advantage to get ahead in the game streaming business.
Despite the fierce tone of this exchange, Microsoft executives, including Phil Spencer, Sarah Bond, and Pete Hines, have all expertly handled the FTC’s questions. They’ve maintained a strong stance on the legality of their acquisition of Activision Blizzard and have consistently underscored its potential benefits for the gaming community. The contradictions between the aggressive content of the email and the company’s official stance, however, are a source of intrigue and speculation.
The same email by Matt Booty further underscores Microsoft’s awareness of their position in the gaming industry, stating, “Sony is really the only other player who could compete.” It seems clear that, in Microsoft’s eyes, the gaming landscape was, and likely still is, a two-horse race.
Google and Amazon’s struggles to make a significant entry into the gaming market corroborate this viewpoint.
This 2019 email has provided fodder for gaming industry analysts, but Microsoft was quick to respond to the buzz.
In a reply to The Verge, Microsoft referred to it as an old email concerning industry trends that they never pursued. Despite this denial, the sheer magnitude of their recent acquisition moves, such as the $7.5 billion spent on ZeniMax Media in 2020, suggest an aggressive investment strategy in line with Booty’s email.
Much of the email content was redacted in the courtroom, leaving observers with more questions than answers.
Booty’s mention of a potential reversal on their promise of day-one releases of first-party Xbox Game Pass games hints at a significant shift in strategy, which, so far, hasn’t occurred yet.
The last we heard, Starfield and Forza Motorsport, two of the biggest first-party exclusives headed to the Xbox Series S/X in September and October, respectively, are still on for the Game Pass at launch, as are a handful of other third-party releases.
The FTC hearing touched on Microsoft’s interactions with other tech giants such as Amazon and Google as well. The email had dismissed the idea of these companies posing any serious threat, which proved prophetic as both companies’ attempts at establishing a foothold in gaming have failed, at least to some extent.
However, the question still stands: Can tech giants buy their way to the top of the gaming industry? Microsoft seems to be under the belief that it can, or at least, it used to.
While Microsoft’s aggressive acquisition strategy and willingness to sacrifice the Xbox Series S/X in pursuit of cloud gaming has raised eyebrows, it’s also yielded some interesting insights into its approach to the gaming industry.
Whether these strategies will stand the test of regulatory scrutiny, and how they will affect the gaming industry, remains to be seen.
