Currently, Microsoft is busy setting the mood for its proposed acquisition of Activision Blizzard. Antitrust watchdogs in Britain and the EU are skeptical that the deal would be a good thing for the industry. The Redmonders make concessions proactively. That’s why they signed a contract with Nintendo, for example, which will give the Japanese “Call of Duty” branded games for 10 years. You also try Sony’s arguments with references to their dominance to wipe off the table.
Directly after a closed hearing by the European Commission, Microsoft manager Brad Smith explained to media representatives how the market power between Microsoft and Sony is currently distributed in the console segment. According to Smith, Sony has about 80% of the market share in Europe – but Smith apparently only compares Microsoft and Sony here and ignores Nintendo. Internationally, Sony stands at 70% and Microsoft at 30%. In Japan the ratio is 96 to 4% in favor of Sony. In 2022, there was a 69/31 ratio of consoles sold between Sony and Microsoft.
What’s remarkable is that Microsoft is so openly acknowledging Sony’s dominance. Otherwise one is more used to such observations being put into perspective. But the goal behind it is to push through the takeover of Activision Blizzard. Microsoft’s argument: This is how competition is finally being boosted and not hindered. Sony, on the other hand, naturally sees things differently: PlayStation boss Jim Ryan had taken the view that the PlayStation brand would no longer be competitive without “Call of Duty”. The takeover must be prevented.
Brad Smith has again emphasized that an agreement with Sony, similar to the one with Nintendo, is open. In addition, an agreement has just been reached with Nvidia, which is hauling games from Microsoft to GeForce Now. According to Smith, however, Sony is more concerned with securing its own dominance than with negotiating fair deals.
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