Microsoft has reiterated its declare that it doesn’t have plans to make Call of Duty an Xbox exclusive ought to it efficiently purchase Activision Blizzard.

In a doc despatched to Brazil’s Administrative Council for Economic Defense (CADE) discussing the proposed acquisition, Microsoft claims that any considerations that Call of Duty would not seem on PlayStation are unfounded as a result of it “would simply not be profitable” for Microsoft.

“Regardless of how unsurprising Sony‘s criticism of content exclusivity is – given that PlayStation’s complete technique has been centred on exclusivity through the years – the truth is that the technique of retaining Activision Blizzard’s video games by not distributing them in rival console outlets would merely not be worthwhile for Microsoft,” the corporate claims within the docs.

“Such a strategy would be profitable only if Activision Blizzard’s games were able to attract a sufficiently large number of gamers to the Xbox console ecosystem, and if Microsoft could earn enough revenue from game sales to offset the losses from not distributing such games on rival consoles,” it provides.

“As if that weren’t enough, exclusivity strategies still result in title-specific costs,” it claims, giving additional info that has been redacted from the doc, seemingly due to confidentiality.

“Such prices, added to the misplaced gross sales estimated […] above, imply that Microsoft wouldn’t be in a position to offset the losses by incomes greater revenues within the Xbox ecosystem in consequence of implementing exclusivity.

“This is particularly true contemplating (i) the ‘gamer-centric’ – as opposed to ‘device-centric’ – technique that Microsoft has pioneered with Game Pass, and (ii) the truth that PlayStation has essentially the most loyal customers throughout its varied generations, with all indications that model loyalty accrued in earlier rounds of the ‘console wars’ suggesting that PlayStation will proceed to have a powerful market place.”

Continuing to push its case, Microsoft claims that even when making CoD Xbox exclusive have been to end up to be worthwhile, its implementation “would have no competitive impact”, partly due to “the intense competition in the game publishing market”, the truth that exclusivity methods are generally adopted within the video games business and the truth that rival consoles get pleasure from a excessive diploma of participant loyalty.

“In summary,” it concludes, “the hypothetical adoption of any content discontinuation strategy would content would not be profitable for Microsoft and, even if implemented, such strategies would have no competitive impact, for the reasons described above.”

Microsoft claims it ‘simply wouldn’t be profitable’ to make Call of Duty Xbox exclusive

In its first response to Microsoft’s proposed acquisition of Activision Blizzard, printed in January, Sony stated it expects Call of Duty video games to stay multiplatform due to “contractual agreements”.

Microsoft’s head of gaming additionally subsequently confirmed his intention to keep Call of Duty on PlayStation platforms as soon as Microsoft’s acquisition of Activision Blizzard is accomplished.

However, it was later claimed that Activision Blizzard is contractually dedicated to releasing solely the next three Call of Duty games for PlayStation consoles, together with this 12 months’s Modern Warfare 2.

The Call of Duty collection is usually amongst PlayStation’s hottest video games. Last 12 months, the collection was each the primary (Vanguard) and third (Black Ops Cold War) best-selling video games on PlayStation within the US, in accordance to NPD.

Commenting on Sony’s earlier feedback on the significance of the Call of Duty model, GamesIndustry.biz’s Chris Dring claimed that the shooter franchise remaining on PlayStation would really profit Xbox.

“Microsoft isn’t as interested in the battle of the console boxes. It believes the future of games is going to be through streaming and subscriptions. Call of Duty isn’t so much a reason to buy an Xbox console, but a reason to subscribe to the Game Pass subscription service,” he wrote.

“And that is the place PlayStation is true to be involved. Because Call of Duty is the No.1 recreation on PS4 and PS5. Should this deal undergo, Microsoft will personal the preferred recreation on PlayStation. And what a chance that’s. The advertising writes itself: ‘Fed up of spending $70 every year on this game? Want extra in-game items and points? Then subscribe to Game Pass instead. You can even stream it on mobile.’

“Microsoft would be in a position to converse instantly to PlayStation’s personal fanbase by itself console, placing Sony in an inconceivable place of both rejecting its console’s hottest recreation, or accepting what may quantity to an enormous Game Pass advert disguised as a first-person shooter.”