The purchase of Activision Blizzard by Microsoft is playing all or nothing before the United States Federal Trade Commission (FTC) and the authorities that review testimony and evidence to approve or reject a preliminary injunction that would call into question the acquisition. Last week, information emerged from the controversial “gamer lawsuit” that presented an email sent by Matt Booty in which he referred to the intention to “put PlayStation out of business.” Well, the tested part was made public a few moments ago and here are the details.
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Xbox did want to put PlayStation out of business, but from video game services
The Verge’s Tom Warren shared the untested content of the controversial email sent by Matt Booty, head of Xbox Game Studios to Tim Stuart, Microsoft’s CFO. According to the communication, dated December 17, 2019, Matt Booty points out that Microsoft and Xbox are at an ideal time to “spend and put Sony out of business” but not precisely from video games in general but from the video game services sector. gaming.
Microsoft was ready to “go spend Sony out of business” to strengthen Xbox. In an internal email, Microsoft’s head of Xbox Game Studios discusses competitors like Google, Amazon, and Sony. Details here: https://t.co/xE2JcdRx5K— Tom Warren (@tomwarren) June 26, 2023
As Matt Booty points out, Microsoft and Xbox need to pursue an acquisition strategy, even at the cost of losing a few billion dollars at the time, to prevent “Tencent, Google, Amazon, and even Sony from becoming the Disney of video games owning the most valuable content”. In this regard, the head of Xbox Game Studios points out the situation that was already experienced in 2019 regarding streaming platforms with the big competitors already defined and the impossibility of creating and developing a business of this type in that context. Likewise, Matt Booty highlights that the decisions made by Microsoft and Xbox regarding Xbox Game Pass have given them an advantage that must be taken advantage of to increase the presence of content on the service, content that is owned by the company, this in order to leave behind its main threat, PlayStation. In this sense, the manager states: “in video games, Google is 3 or 4 years away from being able to have a studio up and running. Amazon has not demonstrated any ability to run video game content. Content is the only ‘moat’ we have “In terms of a catalog that runs on today’s devices and the ability to create something new. Sony is really the only rival that could compete with Game Pass and we have a 2-year, 10 million subscriber head start.” Considering the dates, Microsoft was a few months away from acquiring ZeniMax – Bethesda and kicking off its acquisition strategy that could soon deliver a major coup should the merger with Activision Blizzard King be approved. Follow here, at WTTSpod.
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