The Explanation of Mergers Provided by Xbox’s Head to the FTC

Today’s testimonies in the legal battle between the FTC and Xbox regarding its merger with Activision were quite eventful. Microsoft’s senior finance director, Jamie Lawver, and Google Stadia’s product director, Dov Zimring, were both questioned before Xbox’s Phil Spencer took the stage. Spencer remained composed and confidently laid out Xbox’s mobile-focused strategy for acquiring Activision. The discussion also revolved around defining the “relevant markets” and whether Xbox’s acquisition would harm competition.

The FTC focused on the high-end console market, excluding the Nintendo Switch, to prove its point. Xbox argued that it was in third place behind PlayStation and Switch, and acquiring Activision would strengthen its position rather than harm competition. The FTC continuously questioned the exclusion of the Switch from Microsoft’s market analysis. Spencer clarified that Microsoft uses different metrics to gauge success, some including the Switch and some not. Microsoft’s legal counsel even presented a chart with all three platform holders to support this argument.

Another topic of discussion was whether the deal would be anti-competitive in the United States due to Xbox’s larger market share. However, both parties didn’t spend much time on this matter. A particularly amusing moment was when Spencer was asked if Xbox had “lost the console wars.” He responded that the concept of “console wars” is a social construct and emphasized the loyalty of Xbox’s community.

During cross-examination by Microsoft’s counsel, Beth Wilkinson, Spencer outlined Xbox’s strategy in acquiring Activision Blizzard. He explained why it would be financially illogical to degrade a game on another platform and highlighted the potential harm to the Call of Duty brand if it were removed from PlayStation.

Spencer also discussed Xbox’s mobile strategy, acknowledging the challenges they faced with xCloud. He stated that their ultimate solution would be to create a gaming storefront on mobile phones for Apple and Google, where players can find Xbox games and third-party games. Xbox’s acquisition of Activision would provide them with the properties and development capabilities to establish a presence in the mobile market.

Throughout the day, the FTC asked questions that showed a lack of understanding of the gaming industry. They questioned Spencer about Minecraft’s absence on PS Now and PS+, to which he responded that Sony had never made an offer for the game to be on those services.

 

Reference

Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
DMCA compliant image

Leave a Comment