Microsoft is aware that its decision to not release Starfield and other Bethesda games on PlayStation will result in missing out on millions of sales. The ongoing court case with the United States Federal Trade Commission has provided interesting testimony about the past and future plans for Xbox exclusivity. This testimony reveals that Microsoft predicts a loss of 10 million sales from Starfield and MachineGames' Indiana Jones alone.
The acquisition of Activision Blizzard is currently in a precarious situation. The FTC's court case, which aims to delay the merger and potentially terminate it, is still in the appeals process, although its chances of success are slim. Microsoft's main challenge now is reaching an agreement with UK regulators to allow the merger to proceed. The exclusivity of Activision Blizzard games remains uncertain, causing PlayStation and Xbox users to speculate about what this means for the future.
According to a document containing the testimony of Xbox CFO Tim Stuart, exclusivity plays a crucial role for Xbox, but it comes at a price. Stuart acknowledged that after Microsoft's acquisition of ZeniMax in 2020, the cost of exclusivity for certain Bethesda games was carefully assessed. The evaluation revealed that if Xbox also released Starfield and Indiana Jones on PlayStation, these two games would generate an additional 10 million in sales.
Microsoft's belief in the profitability of exclusivity is further emphasized by its willingness to forego forecasted sales numbers. The company is confident that increased Xbox console sales and Game Pass subscriptions will compensate for any lost revenue. This demonstrates Microsoft's strong conviction in the potential benefits of exclusivity agreements with newly acquired studios. In fact, the possibility of securing exclusivity for the Call of Duty franchise is seen as a highly advantageous move by Microsoft.
The Federal Trade Commission (FTC) claims that Microsoft's plans for exclusivity, including the potential exclusivity of Activision Blizzard games, are anti-competitive. However, during the trial, documents were presented that revealed PlayStation's Jim Ryan did not view the exclusivity of Starfield as "anti-competitive." This evidence weakens the FTC's argument, as exclusivity has historically been regarded as a competitive strategy.
Although US courts have consistently ruled in favor of Microsoft over the FTC, it does not automatically make the idea of Xbox-exclusive games from Activision Blizzard more appealing to PlayStation gamers. Regardless of the competition, numerous PlayStation players may have to contemplate buying a PC or an Xbox in order to play Starfield, and possibly Indiana Jones as well. It seems probable that Call of Duty and other games from Activision Blizzard will also follow this route in due course. The release date for Starfield is set for September 6 on PC and Xbox Series X/S.
Source: IGN