Xbox Game Studios’ VP Was Prepared to ‘Spend Sony Out of Business’ to Grow the Xbox Brand
As part of the ongoing legal battle surrounding Microsoft’s proposed acquisition of Activision Blizzard, an email has surfaced that reveals a push from within Xbox Game Studios to oust Sony from the gaming market by increasing spending on the Xbox brand. The email was sent by Matt Booty, then-Corporate Vice President of Xbox Games Studios and now the Head of Xbox Game Studios. The release of this email comes after news that if Microsoft’s acquisition of Activision Blizzard is approved, Sony will not share details about PlayStation 6 with Activision.
Many people have expressed concerns that Microsoft’s acquisition of Activision Blizzard could result in popular franchises like Call of Duty being exclusive to Xbox consoles and the Game Pass service, which would leave PlayStation players out in the cold. However, supporters of the acquisition point out that Activision has a poor track record when it comes to combating harassment at its studios, and Sony has a history of paying for exclusive titles. Before targeting Activision Blizzard, Microsoft attempted to acquire mobile game developer Zynga, which was eventually bought by Take-Two Interactive.
The Verge reports that an email released as part of the Federal Trade Commission’s case against Microsoft shows Matt Booty, then-Corporate VP of Xbox Game Studios, attempting to persuade Xbox CFO Tim Stuart to increase spending on the Xbox brand to outdo Sony in the console wars. Microsoft’s general manager of public affairs, David Cuddy, stated that the email represents a business strategy that the company never ultimately pursued. The email is three and a half years old and predates the announcement of our acquisition by 25 months.
Although the email may appear troubling at first glance, Microsoft’s argument that Booty’s email represented a strategy that the company never followed through on may be accepted by federal regulators. If not, more than an assurance from Phil Spencer about Call of Duty’s future on PlayStation may be required to get the Activision Blizzard acquisition approved.
Source: The Verge
As part of the ongoing legal wrangling over Microsoft’s attempt to acquire publishing and development giant Activision Blizzard, an email has been released showing a push from inside Xbox Game Studios to force Sony out of the gaming market through increased spending on the Xbox brand. The release of the email, sent by Xbox Games Studios’ then-Corporate Vice President, Matt Booty, comes on the heels of news that Sony won’t share details about PlayStation 6 with Activision if Microsoft’s acquisition of the publisher is approved.
Many opposed to Microsoft’s acquisition of the gaming juggernaut have expressed concerns that popular franchises like Call of Duty could be locked to Microsoft’s Xbox consoles and Game Pass service, leaving PlayStation players out in the cold. Meanwhile, those in favor of the acquisition point to Activision’s poor track record in regard to combating harassment at the studios under its umbrella and Sony’s own history of paying for exclusive titles. Prior to setting its sights on Activision Blizzard, Microsoft tried to acquire mobile game developer Zynga before the company was eventually bought by Take-Two Interactive.
According to a report by tech site The Verge, an email released as part of the Federal Trade Commission’s case against Microsoft shows Xbox Game Studios’ then-Corporate VP Matt Booty attempting to get Xbox CFO Tim Stuart to increase spending on the brand to one-up Sony in the console wars. Now the Head of Xbox Game Studios, Booty’s 2019 email to Stuart pressuring the CFO to spend more money on acquiring content claims that Microsoft is “in a very unique position to be able to go spend Sony out of business.” The release of the email comes just days after a federal court temporarily barred Microsoft’s Activision acquisition.
In response to the email, sent as part of a discussion about Microsoft’s Xbox Game Pass subscription service, the company argued that it represented a business strategy that never ultimately came to fruition. In a statement to The Verge from Microsoft’s general manager of public affairs, David Cuddy, the company stated that “This email is three and a half years old and predates the announcement of our acquisition by 25 months.” Brushing off concerns that the arguably cutthroat strategy outlined in the email should prevent Microsoft’s purchase of Activision Blizzard, Cuddy goes on to state that the email “refers to industry trends we never pursued and is unrelated to the acquisition.”
While troubling at first glance, Microsoft’s argument that Booty’s email represented a strategy that the company never followed through on may pass muster with federal regulators. If not, it could take more than an oath from Phil Spencer about Call of Duty’s PlayStation future to get the Activision Blizzard acquisition approved.
Source: The Verge
