Microsoft/Activision Blizzard Antitrust Hearings Reveal Internal Emails and Badl...

VentureBeat is enjoying "secrets that spilled out" in the Microsoft/Activision Blizzard antitrust hearings. "Whether the Federal Trade Commission wins its antitrust case or not, its attempt to stop Microsoft's $68.7 billion acquisition of Activision Blizzard has revealed a trove of new data for everyone."

The FTC has argued in a federal court that the merger would harm competition in the game industry and be bad for consumers, as Microsoft could pull Activision Blizzard's games like Call of Duty away from the Sony PlayStation, despite Microsoft's stated intention of not doing so for at least 10 years. In this case, the FTC might not have had an obvious winning hand, as the industry has an odd situation. Microsoft has the highest value ($104 billion in cash alone, versus $13.4 billion for Sony) at $2.49 trillion as a company compared to $115 billion for Sony, and yet it is in third place behind Sony and Nintendo.

Hence, there's some significance to Microsoft's Xbox first-party head, Matt Booty, sending an ill-advised email in 2019 saying Microsoft "has the ability to spend Sony out of business." That was long before the deal was announced 17 months ago, but it could be used as a sign of intent. Microsoft said it never pursued this strategy. While competing fiercely is fine, using monopoly power to drive a rival out of business so you can raise prices later is a no-no...

Did the FTC prove its case? I can't say just yet. Microsoft makes a decent point in saying all the regulators of the world except the U.S. and the United Kingdom have approved the deal. But I hope to have more reasons to binge on popcorn.

In January Ars Technica noted Microsoft's contract set July 18th as the deadline for closing the deal — or else paying a $3 billion "breakup fee".

The Verge spotted that some of Sony's documents were poorly redacted. While looking at the lines that were crossed out with black pens, they could see that The Last of Us Part 2 cost the company $220 million to make, with 200 people working on it, while Horizon Forbidden West cost $212 million to make, with 300 working on it for over five years. Both games made considerably more money... In the unSharpied documents, Sony also revealed that a million Call of Duty players spent 100% of their time playing Call of Duty in 2021. It also said that Call of Duty generated $800 million for PlayStation in 2021 alone in the U.S. and perhaps $1.5 billion globally. It also looks like Sony's exclusive marketing deal with Activision for Call of Duty will expire in late 2023. Sony went on to say half of PS5 owners also have a Nintendo Switch.

Microsoft also failed to redact some of its acquisition targets. Those were later marked up, but not before Axios noted that the list included Thunderful, Supergiant Games, Niantic, Playrix, Zynga, Bungie, Square Enix, Warner Bros., Sega, IO Interactive and Scopely... Among the secrets revealed among the companies Microsoft acquired: Microsoft bought Ninja Theory, maker of Hellblade: Senua's Sacrifice, for $117 million.
Thanks to Slashdot reader ole_timer for sharing the news.