A Microsoft / Activision agreement is expected very soon. A merger that poses a problem for Sony. Indeed, the Japanese multinational recently announced that it was not profitable with its AAA games. The Microsoft / Activision alliance could withdraw Call of Duty, something unimaginable for Sony.
In a recent report, Sony claimed that its AAA games are unprofitable and third-party game revenue is a key factor in its ability to invest in innovative hardware and games. Given the importance of these third-party games, Sony rejected Microsoft’s 15-year Call of Duty deal proposal which seems to contradict his assertions.
Sony does not want a Microsoft-Activision alliance
A recent response from the CMA (Capital Market Authority) of Sony has decreed that their AAA exclusives are not profitable. The merger of Activision and Microsoft could change the landscape of the video game industry. A situation that Sony continued to oppose, citing the importance of market share and competition.
In the CMA Phase 1 responses, Sony makes an interesting claim that third-party franchises like Call of Duty inadvertently help fund first-party game development, implying that without successes like CoD, Sony may not be able to. propose high-level 1P. Games. pic.twitter.com/Osy2wZSSc5
— Derek Strickland (@DeekeTweak) February 27, 2023
On the eve of this groundbreaking deal, Sony claimed that Call of Duty was generating a significant income. Microsoft’s lockdown strategy could pose big problems for Sony and the Call of Duty license. The Japanese multinational would lose a huge customer base, which would affect its ability to invest in innovative gaming hardware and technology.
The reliance on revenue from third-party game sales for its other projects is a bit surprising given the success of these exclusives. Given the importance of third-party games and Call of Duty for PlayStation, Sony’s recent decision is quite contradictory. Microsoft offered a 15-year Call of Duty contract to its competitor, which was quickly turned down. On the other hand, it seems that the agreement has the support of several countries.
Sony Says These Exclusives Are Unprofitable
Earlier this month, Equity Report said China would likely approve the deal in the coming days. For now, the merger did not result in anything concrete, but is in the process of being concluded…