Sony, for reasons understandable, was the biggest opposition to the Microsoft and Activision Blizzard deal citing concerns such as the exclusivity of the Call of Duty franchise.
However, we now also know that the company was deeply concerned that its rival could “leapfrog” the PlayStation in the console segment.
In newly leaked documents, Sony privately described the landmark merger between Microsoft and Activision as a “massive threat to PlayStation Plus.” The company also said, repeatedly in public too, that Microsoft use the Call of Duty series to “disrupt and threaten console gaming and game subscription markets.”
The concerns by Sony were detailed in documents that were leaked as part of the recent hacking incident at Insomniac Games. Some of the documents, including presentation slides where Sony identified threats presented by Microsoft’s Activision Blizzard takeover, have been released publicly online.
“Activision provides incredible strategic value across live service games, scale in mobile and PC storefront (Battle.net),” Sony wrote in the presentation. The document also detailed various advantages Microsoft has now that it acquired Activision Blizzard’s portfolio.
Sony said that there is a “day and date threat” with Microsoft poised to release Activision Blizzard games directly to Game Pass. Microsoft previously said that it will not be releasing Call of Duty and Diablo 4 on the subscription service yet. There are rumors that Call of Duty: 2024 will be made available as a day-one title on the Xbox Game Pass.
In the documents, Sony admitted that its “pillars are already dated and behind the competition” and that Xbox could potentially “leapfrog” the PlayStation. The company was concerned that Microsoft’s expansion could potentially impact the PlayStation Plus service, which generates $1.5 billion in annual revenue.
The company also said that the “perfect game subscription” service is still “elusive”, presumably hinting that its current model is far from ideal. However, Sony still doesn’t think that releasing first-party titles to PlayStation Plus is the solution.
The company defends its decision, saying “expectation of free, best-in-class games creates [an] unsustainable model” where subscription fees do not cover investment costs. This is an interesting take, set against the backdrop of Game Pass’ performance.
As per the documents, Sony plans to respond to these threats by expanding – however, specifics about the expansion plans are not detailed. This may mean that Sony is looking to acquire more studios to increase the number of first-party developers under its portfolio. The company does plan to stick to its current model of premium game sales as a “central approach.”
With regards to Microsoft’s ability to create a digital storefront to cover its consoles, PC, and mobile, Sony believes that a unified experience “doesn’t exist” as hardware requirements are “too diverse.” This is seemingly less and less true with every passing day, given the leaps in handheld gaming hardware tech.
Microsoft completed its acquisition of Activision Blizzard in October following lengthy regulatory proceedings in the US, UK, and EU. Gamers can expect Activision Blizzard titles to slowly arrive on the Xbox Game Pass next year.
