Microsoft CEO Says Exclusive Activision Games Make No 'Strategic Sense'

To address the FTC's concerns, Microsoft has committed to licensing the blockbuster game Call of Duty to rival platforms.

Microsoft has argued that financially, it is advantageous to license the games to all parties.

Source : Getty

In an effort to address concerns over antitrust issues, the leaders of Microsoft and Activision Blizzard assured regulators that their proposed $69 billion merger would not lead to an unlawful concentration of power. Microsoft CEO Satya Nadella emphasised that making Activision games exclusive would have no strategic sense and contradicted the Federal Trade Commission's (FTC) assertion that it would give Microsoft exclusive access to highly popular titles like Call of Duty at the expense of other gaming platforms.

During approximately 45 minutes of testimony, Nadella stated that Microsoft has always believed in software running on as many platforms as possible, highlighting the company's commitment to broad accessibility. When asked if Microsoft would have the incentive to limit access to games on Sony's PlayStation to promote the sale of Xbox consoles, Nadella responded that it would make no economic or strategic sense to do so.

To address the FTC's concerns, Microsoft has committed to licensing the blockbuster game Call of Duty to rival platforms. The company has argued that financially, it is advantageous to license the games to all parties, supporting its position of fostering a competitive and inclusive gaming ecosystem.

The FTC has requested a temporary halt to the merger's closure, seeking a decision by an in-house judge within the agency. Historically, the losing side in federal court cases has often conceded, rendering the in-house process unnecessary.

Under the Biden administration, the FTC has taken a stricter stance on mergers to safeguard consumers from potential harm caused by dominant corporations.

Much of the trial's testimony has centered around the significance of Activision's Call of Duty, one of the highest-grossing video games of all time.

Earlier in the day, Activision CEO Bobby Kotick testified that if Microsoft were to acquire his company and restrict access to Call of Duty on other gaming platforms, it would alienate a significant portion of the game's 100 million monthly active users, impacting its popularity. Kotick stressed the importance of offering the game across multiple platforms, including consoles, mobile phones, and personal computers.

Kotick further argued that there was no incentive for Microsoft to limit access to Activision's games, as removing Call of Duty from Sony's PlayStation would be detrimental to Activision's business. He also acknowledged that the completion of the deal, which he expressed a strong desire to see happen, would result in the valuation of his personal shares at over $400 million.

While the merger has received approval from various jurisdictions, it faces opposition from the FTC in the United States and the Competition and Markets Authority in Britain.