Inside Xbox Game Studios' Secret Plan to Take on Sony and Dominate the Gaming Industry

In the ongoing legal dispute surrounding Microsoft's bid to acquire Activision Blizzard, an email has surfaced revealing internal efforts within Xbox Game Studios to outcompete Sony in the gaming market by investing more heavily in the Xbox brand. The email, sent by former Corporate Vice President of Xbox Game Studios, Matt Booty, has been disclosed shortly after news broke that Sony would withhold PlayStation 6 details from Activision if Microsoft's acquisition is approved.

Opponents of Microsoft's acquisition have raised concerns that beloved franchises like Call of Duty may become exclusive to Xbox consoles and the Game Pass service, leaving PlayStation players behind. On the other hand, proponents of the acquisition argue that Activision Blizzard has a problematic track record in addressing harassment within its studios, while highlighting Sony's own history of securing exclusive titles. Prior to targeting Activision Blizzard, Microsoft made unsuccessful attempts to acquire mobile game developer Zynga, which was eventually bought by Take-Two Interactive.

According to The Verge, a report states that a Federal Trade Commission case against Microsoft has revealed an email in which Matt Booty, the then-Corporate VP of Xbox Game Studios, tried to convince Xbox CFO Tim Stuart to increase spending on the brand to outdo Sony in the console wars. Currently serving as the Head of Xbox Game Studios, Booty's email from 2019 to Stuart emphasizes the need for more financial investment in acquiring content, claiming that Microsoft is uniquely positioned to surpass Sony's capabilities by outspending them. This release of the email comes shortly after a federal court temporarily halted Microsoft's acquisition of Activision.

Regarding the email sent during a discussion about Microsoft's Xbox Game Pass subscription service, the company has stated that it was merely a business strategy that was never implemented. Microsoft's general manager of public affairs, David Cuddy, clarified that the email was over three years old and was created before the announcement of their acquisition. Cuddy dismissed concerns that the aggressive strategy mentioned in the email should impact Microsoft's purchase of Activision Blizzard, emphasizing that it was unrelated to the acquisition.

While initially concerning, Microsoft's argument that the mentioned email was never acted upon may satisfy federal regulators. However, if this is not the case, it might require more than a mere declaration from Phil Spencer regarding the future of Call of Duty on PlayStation to gain approval for the Activision Blizzard acquisition.

Source: The Verge