PS5: Sony comments on Microsoft’s acquisition of Activision Blizzard – “Call of Duty has no competition, never will”

On August 1, 2022By Garmin Philip

At the request of the Brazilian regulatory authority, Sony has given its assessment of how gaming will be affected if Activision Blizzard is acquired by Microsoft. A key point for Sony: “There is no competition for Call of Duty” – the game is considered unique in the world of gaming. It’s just too big and too established. Should a new Call of Duty not appear for the PS5, that would obviously be a real problem for Sony.

This is the situation:

In January 2022, it became known that Microsoft had made a takeover bid for Activision Blizzard, who would also like to accept it.
But the two companies are so big that they need the “okay” of the supervisory authorities. Such authorities examine, for example, possible monopoly tendencies that can arise with such large takeovers.
Now various regulators around the world have to approve the merger.

Microsoft buys Activision Blizzard and gamers around the world are at a loss for words

Where is the information from? A Brazilian regulator began its review process on May 20. Big tech companies and gaming companies have been asked for statements. From these statements one wants to deduce how the merger will affect the gaming market.

Among other things, it is about whether Activision Blizzard has games that are unique. Companies like Apple, Riot Games, Bandai Namco, Amazon, Google, Meta and Ubisoft have been asked to make statements – and of course Sony too.

In Brazil, transparency goes so far that all of the company’s responses have been published (via be).

This is how most companies answer: As a user on resetera In summary, virtually all major companies say they do not fear a major impact if Activision Blizzard is bought by Microsoft. Overall, it is believed that every game has competition and the market remains balanced.

Bandai Namco sees Battlefield, Valorant or Destiny as examples of Call of Duty competitors. Riot Games also believes that Apex Legends, CS:GO and Rainbow Six Siege are competition for Call of Duty. The companies say the same thing about Candy Crush or WoW – you see competition everywhere.

But at Sony, the situation is assessed very differently.

A new Call of Duty arrives every year – for many gamers it’s the highlight of the year:

Call of Duty: Modern Warfare II “Ultimate Team” teaser

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Call of Duty influences which consoles players buy

Here’s how Sony responds: Sony detailed in their response why Call of Duty is a unique game that has no competition and will not have any competition. They explain (via be) :

Call of Duty is an essential game, a blockbuster that has no competition.

According to a 2019 study, Call of Duty is the only game brand to make the top 10 entertainment brands, along with Star Wars, Game of Thrones, Harry Potter and Lord of the Rings.

Call of Duty is so popular that it influences users which console they choose, and their network of loyal users is so ingrained that even if a competitor had the budget to develop a similar product, they wouldn’t do it with Call of duty could accommodate.

Sony cites why Call of Duty is so unique:

4 studios with numerous satellite studios would develop it – about 1,200 developers on each game and 1,500 other employees worked publishing and distribution
Therefore, Call of Duty alone has more developers than most studios even have employees
In addition, Call of Duty wants to grow in the future

“Call of Duty is synonymous with first-person shooters”

One comes to the conclusion:

No developer can put resources and experience into game development at this level. Even if they could, Call of Duty would be so solid that no rival – no matter how relevant – could match Call of Duty.

Call of Duty has been the best-selling game for almost every year over the past decade, and it is so paramount the best-selling game in its genre that it has become synonymous with first-person shooters and defined the category.

Sony has invested heavily in Call of Duty over the years

How is this discussed? In gaming forms, Sony’s response is read as a sign of its special position as a platform operator (via reddit). That’s why Sony sees the situation very differently from other tech companies.

Sony’s focus on Call of Duty is thought to show how dependent Sony is on having a Call of Duty on PlayStation 5 every year. It is said that Sony has also invested a lot for years, that people connect Call of Duty with Sony and with PS4 and PS5 – that could now break away.

Sony’s response is believed to show how reliant they are on Call of Duty.

We covered the deal in a podcast: