Microsoft Can Cripple Sony’s Billion-Dollar Revenue With This Simple Call of Duty Move
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Microsoft’s $68.7 billion acquisition of Activision Blizzard has become the talk of the entire gaming community. This new takeover has become the most expensive deal in the video game industry’s history, and Microsoft now has access to some exclusive games such as the Call of Duty games, Candy Crush, and Overwatch.
Now that the Call of Duty franchise is under Xbox, this would mean that PlayStation might lose their exclusive rights on certain COD games. Though Phil Spencer has assured fans that Microsoft has no intentions of removing the game from PS consoles, such a move might mean that PlayStation would be losing millions of dollars if Microsoft made COD an Xbox exclusive.
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PlayStation might face tremendous loss if Microsoft makes COD an Xbox exclusive
Experts have been pondering the question of Call Of Duty’s future after Microsoft acquired Activision Blizzard. Financial experts from CitiGroup estimate that Sony might lose 10 billion-30 billion yen ($87.5 million to $262.6 million) if Microsoft were to make COD an Xbox exclusive franchise.
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Phil Spencer, the CEO of Xbox, has assured that Activision’s previous contractual agreements would be honored post this acquisition. Spencer says,
“I confirmed our intent to honor all existing agreements upon acquisition of Activision Blizzard and our desire to keep Call of Duty on PlayStation. Sony is an important part of our industry, and we value our relationship.”
Had good calls this week with leaders at Sony. I confirmed our intent to honor all existing agreements upon acquisition of Activision Blizzard and our desire to keep Call of Duty on PlayStation. Sony is an important part of our industry, and we value our relationship.
— Phil Spencer (@XboxP3) January 20, 2022
It is interesting to note that companies such as Sony, Microsoft, and Valve earn millions from third-party distributions that companies like Activision contribute to from the sale of their games. Sony earns a considerable margin of its revenue from such third-party contributions. Furthermore, Microsoft will now take a 70% cut of all COD sales and revenues following this takeover.
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Sony has millions of users playing COD on consoles, and taking COD away from PlayStation might mean losses in millions of dollars for Microsoft.
Call of Duty is indeed a successful franchise for Activision, with the franchise having earned almost $3 billion from Warzone, mobile titles, and other games within the franchise.
Bobby Kotick, the CEO of Activision Blizzard, feels that this new acquisition might bring new AI and machine learning abilities to improve the COD titles of the future. He says, “For the long term, we could have a real streaming Call of Duty experience that’s going to be critically important.”
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What do you think about the future of the Call of Duty franchise with Microsoft? Let us know in the comments.
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