Thoughts Unboxed

The Federal Trade Commission (FTC) has lost its motion for a preliminary injunction to halt Microsoft's acquisition of Activision-Blizzard. The case involved presentations from both parties over a span of five days, with the federal judge tasked with deciding whether to grant the FTC's request for an emergency injunction to prevent the deal from closing. While the FTC still has the option to file an appeal with the federal appellate court, it remains to be seen whether they will pursue that route or drop the lawsuit entirely. In her decision , Federal Judge Jacqueline Scott Corley stated: This Court’s responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger i...

Sony's fierce opposition to Microsoft's proposed acquisition of Activision-Blizzard has been no secret since the announcement last year. The gaming giant has been lobbying extensively against the deal's approval. In an attempt to assuage Sony, Microsoft offered a guarantee of Call of Duty's availability on Sony's PlayStation platform. Recent developments have shed light on a twist in the tale. According to a Twitter post, Sony's CEO, Jim Ryan, purportedly made a counteroffer to Xbox Boss, Phil Spencer, as a condition to green-light the deal. The counterproposal laid out several demands, as follows: Ensure that all existing and future Activision Blizzard games are still available on PlayStation & have parity with Xbox. Don't make PlayStation Activision Blizzard games more expensive than Xbox. Treat all Activision Blizzard games equally on subscription services of Xbox and Playstation. Upon comp...

Day 1 - June 22nd, 2023 Highlights The first day of the FTC v. Microsoft hearing sparked a heated battle between two gaming giants: PlayStation and Xbox. As the case unfolded, it became apparent that the FTC, seemingly donning the mantle of Sony, the unrivaled leader in the gaming world, was pitted against Microsoft's Xbox, a brand still striving to recover from the infamous Xbox One fiasco nearly a decade ago. FTC's Opening Statement According to James Weingarten, the counsel for the FTC, Activision is responsible for developing some of the most significant video games in the United States, including popular titles like Call of Duty, Diablo, and Overwatch. Weingarten emphasizes that both Microsoft and its competitors require high-quality content, referred to as triple-A, for their gaming consoles. As a result, they not only license Activision's content but also pay a premium for it. Weingarten further asserts that the evidence to be presented by the FTC in the coming days ...

Microsoft finds itself entangled in multiple legal battles, proving that its fight knows no rest. While the tech giant prepares to challenge the block on its proposed acquisition of Activision-Blizzard in both the UK and the United States, it also faces a smaller yet significant side battle—a lawsuit brought forth by a group of gamers. The lawyers representing the gamers recently unveiled an alleged internal email exchange between Matt Booty, the Head of Microsoft Xbox Game Studios, and Tim Stuart, Microsoft's CFO for Xbox. Although the exact contents of the email remain redacted, it is said to contain "uncontroverted evidence" that Microsoft aimed to eliminate its main competitor, Sony PlayStation, from the market. Microsoft has countered the claims by stating that the email was sent in 2019 and is unrelated to the acquisition of Activision-Blizzard in early 2022. However, when approached by Axios , the company refused to disclose the c...

Jim Ryan - The President and CEO of Sony Interactive Entertainment confirmed Sony is working on a handheld to make it easier to play PS5 games at the comfort of your couch. It was announced at Sony’s PlayStation Showcase and is called Project Q. “We are launching a dedicated device to let you stream any game from your PS5 console using Remote Play over Wi-Fi,” PlayStation boss Jim Ryan said during the PlayStation Showcase. “ Project Q has an 8-inch HD screen and integrates all the buttons and features of the DualSense Wireless Controller.  Seems like the market for handheld console is getting ripe. After the success of Nintendo Switch and to some extent, Steam's Steam Deck. Sony has decided to enter the arena as well. However, Project Q is strictly a streaming device and Games must be installed on PS5 and excludes VR games. From the verbiage, the cloud streaming device would only work with PS5 Console. Jim also introduced first ever PlayStation Earbuds that would bring wirele...