According to court documents in the ongoing FTC trial involving Microsoft’s attempt to acquire Activision Blizzard, Microsoft believes that the next generation of gaming consoles should be released in 2028. In the documents, it is stated that the next Xbox and PlayStation 6 may be launched eight years after the current consoles were released in 2020. This timeline aligns with Sony’s statement in 2022, which suggested that the next console generation would not arrive until 2027. These dates hold significance because Microsoft is trying to convince the court that it is committed to making Activision’s popular franchise Call of Duty available on PlayStation consoles for a duration of 10 years.
Microsoft stated in the documents, “This term would, in any case, go beyond the expected starting period of the next generation of consoles (in 2028). Thus, Call of Duty will be published on successor PlayStation consoles should one be released during the term of the agreement. The agreement also would ensure that Call of Duty console games are offered on PlayStation at parity with Xbox.” This contradicts Sony’s claim from November of last year, where they stated that Microsoft’s plans to offer Activision games on PlayStation would only last until 2027. Microsoft had sent a draft of the 10-year agreement to Sony, but Sony refused to respond to the offer. This longer duration would also extend beyond the 2028 release window, allowing Call of Duty to thrive on Sony’s next-generation consoles.
The US FTC (Federal Trade Commission) has requested a temporary block on the $69 billion deal between Microsoft and Activision Blizzard until the agency’s in-house court determines whether the deal negatively impacts competition in the video game industry.
In addition, Microsoft has now admitted that it has been losing the “console wars” since the first generation of Xbox launched in 2001. The term “console wars” refers to the competition between major video game console manufacturers, including PlayStation, Xbox, and Nintendo, to dominate the market and outsell one another. Microsoft stated in the documents, “Xbox has lost the console wars, and its rivals are positioned to continue to dominate, including by leveraging exclusive content. Xbox’s console has consistently ranked third (of three) behind PlayStation and Nintendo in sales.” According to VGChartz, Xbox Series S/X consoles have sold 21.3 million units since launch, while the PS5 and Nintendo Switch have sold approximately 36 million units as of April 2023. However, Nintendo holds a slight lead with 36.2 million units sold.
A report from Kotaku reveals that Microsoft has opted to no longer compete in the current console wars, instead focusing on delivering high-quality software. This can be achieved through games or its subscription service, Xbox Game Pass, which the company actively promotes. The documents emphasize that Xbox does not generate profit from console sales, as the systems are sold at a loss in hopes of making up for it through game and accessory sales. Recently, Microsoft raised the prices of its flagship Xbox Series X console in certain regions, as well as the Game Pass subscription worldwide.
In related news from the court hearing, it was revealed that the game based on the Indiana Jones franchise by Bethesda, which was originally planned for multi-platform release, will now be exclusive to Xbox and PC. This decision came after Microsoft acquired parent company ZeniMax Media for $7.5 billion in 2021. During the hearing, Bethesda’s head of publishing, Pete Hines, explained that the original agreement with Disney would have allowed the Indiana Jones game to be released on multiple consoles. However, when Microsoft acquired ZeniMax, Disney had concerns about console exclusivity, resulting in changes to the contract and making Indiana Jones an Xbox exclusive. Similarly, plans to release Arkane’s Redfall on PS5 were dropped after the Bethesda acquisition.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
