As part of the ongoing legal wrangling overMicrosoft’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 thatSony won’t share details about PlayStation 6 with Activisionif Microsoft’s acquisition of the publisher is approved.
Many opposed to Microsoft’s acquisition of the gaming juggernaut have expressed concerns that popular franchises likeCall of Dutycould 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 Zyngabefore the company was eventually bought by Take-Two Interactive.
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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 aftera federal court temporarily barred Microsoft’s Activision acquisition.
In response to the email, sent as part of a discussion aboutMicrosoft’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 fromPhil Spencer aboutCall of Duty’s PlayStation futureto get the Activision Blizzard acquisition approved.
