Microsoft CEO, Satya Nadella, Says That Making Activision Games Exclusive to Xbox Would Make: “No Strategic Sense”

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According to Microsoft CEO Satya Nadella, making Activision games exclusive would make “no strategic sense.” The comment has come during the current legal battle between Microsoft and the Federal Trade Commission (FTC) over the company’s acquisition of Activision/ Blizzard.

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Related: “I would love to get rid of the entire sort of exclusives on consoles… I have no love for that world”: Microsoft CEO Makes Surprising Admission During FTC Trial

The FTC has requested a judge to freeze the proposed acquisition because, as it argues, it would give Microsoft exclusive access to key Activision titles, including the highly popular Call of Duty franchise.

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On top of this, the FTC believes the merger of the two gaming giants could violate US antitrust laws, which prohibit business practices that unreasonably deprive consumers of the benefits of competition.

Testify!: What Did Satya Nadella Say About The Merger?

Satya Nadella CEO of Microsoft
Satya Nadella, Image Credit: CHRISTOPHE MORIN/BLOOMBERG VIA GETTY IMAGES

On Wednesday 21st of June, Nadella disagreed with concerns regarding a breach of antitrust laws stating that:

“I grew up in a company that always believed that software should run on as many platforms as possible,”

When asked if Microsoft would have any incentive to refuse putting games on Sony’s PlayStation in order to sell more of its Xbox consoles, Nadella responded with the as previously mentioned: “It makes no economic sense and no strategic sense.”

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Related: Activision Announces Plans and Release Window for Upcoming Warzone Mobile Release

Although there have been several interesting discoveries from all parties throughout the trial so far, almost all of the testimony given has focused heavily on Activision’s Call of Duty and what its future will be on non-Microsoft machines.

Name of The Game- What Happens If The Activision Merger Goes Through?

Bobby Kotick, CEO of Activision
Activision Blizzard CEO Bobby Kotick, Image credit: Getty Images

Concerning the future of games, Activision CEO Bobby Kotick testified that if Microsoft bought his company and blocked other gaming platforms from offering Call of Duty, it would lead to the loss of about 100 million monthly active users. This would not only result in a completely decimated player base but also most likely a dislike from fans for the franchise leading to a nosedive in its popularity.

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Related: We Can Add Bungie and SEGA to the Long List of Companies Microsoft Considered Buying in Addition to Activision Blizzard

Kotick went on to say: “You would have a revolt if you were to remove the game from one platform”. He also believes that it is vital to offer support for Activision titles across multiple platforms, including PlayStation and Nintendo consoles to maintain the Call of Duty brand.

Kotick and Nadella’s main argument for the merger boils down to this; there is no incentive for Microsoft to force exclusivity. Kotick argued that removing “Call of Duty” from Sony platforms would be “very detrimental” to Activision’s business thus affecting the bottom line for Microsoft. He also acknowledged that the deal would result in his own personal shares being valued at over $400 million.

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Related: “I Don’t Like It”: During Testimony Sony Boss Jim Ryan Forced to Concede Starfield Exclusivity Isn’t ‘Anti-Competitive’

So far outside the USA the deal has gained approval from many jurisdictions but has been opposed by Britain’s Competition and Markets Authority. In the future, this could lead to possibly more legal issues with the acquisition within the UK courts. Be sure to stay tuned to FandomWire, where we will be sure to cover any other big news pertaining to this case as it comes out!

Source: Reuters 

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The Rise and Fall of Movie Tie-In Games | FandomWire Video Essay

Massimo Castelli

Written by Massimo Castelli

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Massimo Castelli is a part of FandomWire’s Video Game Reviewers and News Writers team. With a degree in Journalism and English from the University of Strathclyde and a passion for all things gaming and comic book-related, there is no one more qualified to ramble about video game lore and comic-book trivia than him.