Microsoft’s commitment to Call of Duty on PlayStation: The impact on Xbox’s brand and game exclusivity

UKRAINE - 2023/06/15: In this photo illustration, Microsoft and Activision Blizzard logos are seen on a smartphone and Federal Trade Commission (FTC) logo on a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
UKRAINE - 2023/06/15: In this photo illustration, Microsoft and Activision Blizzard logos are seen on a smartphone and Federal Trade Commission (FTC) logo on a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) /
facebooktwitterreddit

Microsoft’s proposed acquisition of Activision Blizzard has sparked discussions regarding the future of multi-platform releases and the potential exclusivity of highly anticipated games like Call of Duty. As part of the ongoing hearings, Xbox’s Phil Spencer reaffirmed Microsoft’s commitment to releasing Call of Duty on PlayStation.

Microsoft’s commitment to releasing Call of Duty on PlayStation underscores the importance of multi-platform releases in the gaming industry. The decisions made regarding exclusivity and collaboration have far-reaching implications for consumer choice, brand reputation, and the overall health of the gaming ecosystem. As the hearings continue, the gaming industry eagerly awaits the outcome, which will shape the future of multi-platform releases and the dynamics of platform competition.

The absence of major studios from San Diego Comic-Con 2023 highlights the challenges faced by traditional live events in the gaming industry. The COVID-19 pandemic and evolving marketing strategies have prompted studios to explore alternative avenues for engaging with their audience directly. As the landscape continues to shift, it is essential for industry stakeholders to adapt and find innovative ways to connect with fans, whether through digital showcases, specialized events, or reimagined conventions. The future of gaming events lies in striking a balance between tradition and innovation, providing meaningful experiences for fans while embracing the opportunities offered by emerging platforms and formats. Only by staying nimble and responsive to changing industry dynamics can the games industry continue to thrive and evolve.

In making its case for the Activision Blizzard acquisition, Microsoft’s commitment to releasing Call of Duty on PlayStation has been a crucial point of discussion. While Sony has reportedly refused to accept a contract guaranteeing future releases, Phil Spencer, the head of Xbox, emphasized the damage it would cause to Xbox’s brand if they were to pull the franchise from Sony’s systems.

During the ongoing hearings, the Federal Trade Commission (FTC) has sought a preliminary injunction to further review the acquisition. Spencer acknowledged the influence and vocal nature of gamers, expressing his belief that removing Call of Duty from PlayStation would create irreparable harm to the Xbox brand. He reiterated Xbox’s commitment to releasing future versions of Call of Duty on PlayStation 5, emphasizing that there are no plans to pull the franchise from Sony’s platform.

In a closed-door session, financial figures were presented to demonstrate why withholding Call of Duty from PlayStation would not make sense for Xbox. Although these specifics were not shared publicly, it was accidentally revealed that Xbox agreed to an 80/20 revenue split, deviating from the typical 70/30 split, to ensure the release of at least one high-profile game on Xbox. Indications suggest that Call of Duty was involved in this agreement.

Furthermore, Spencer addressed concerns about deliberately releasing inferior versions of games on other platforms, emphasizing that it would damage Xbox’s brand. Xbox has faced questions about exclusivity and its approach to games published by ZeniMax and Bethesda, particularly in light of the upcoming acquisition. The FTC has attempted to portray Xbox as having a vested interest in making Activision Blizzard games Xbox console exclusives, citing games like Starfield as examples. However, Spencer did not confirm whether Elder Scrolls VI would be an Xbox console exclusive or if it would even release on Xbox Series X|S.

The ongoing hearings and discussions surrounding the Activision Blizzard acquisition shed light on the complexities and considerations involved in maintaining multi-platform support for popular franchises like Call of Duty. While Microsoft has reaffirmed its commitment to releasing the game on PlayStation, the refusal of Sony to accept a contract guaranteeing future releases has created uncertainty. The final outcome of the acquisition and the implications for the future of cross-platform game releases will shape the gaming industry’s landscape and set precedents for future deals and collaborations between major game publishers and platform holders.

As the gaming industry continues to evolve, the relationship between platform holders and game publishers will remain a crucial factor. Balancing the interests of different stakeholders, including fans, studios, and industry regulators, will be essential to ensure the continued growth and success of the industry. The outcomes of these hearings and the subsequent decisions made by Microsoft and Sony will undoubtedly have a lasting impact on the gaming ecosystem and shape the direction of future collaborations and cross-platform strategies.