A Microsoft executive has promised that rival Sony's PlayStation devices will continue to have access to the popular shooting game, Call of Duty, following Microsoft's $69 billion acquisition of Activision Blizzard Inc. The promise by Phil Spencer, who heads Microsoft Gaming, contradicts the US Federal Trade Commission's (FTC) claim that the purchase would limit competition in the console gaming market.
During a five-day court hearing, US District Judge Jacqueline Scott Corley asked Spencer to confirm that Microsoft won't remove Call of Duty from consoles offered by Sony. Spencer's response was clear and unequivocal: "My commitment is, my testimony is, we will continue to ship future versions of Call of Duty on Sony's PlayStation." His assurance could weaken the FTC's argument that the deal would reduce competition in the console gaming market. The court hearing, which began on Thursday, could lead to a temporary halt in the acquisition while the FTC challenges it legally.
Microsoft has said the primary motive behind its purchase of Activision is to gain a footing in the mobile gaming market rather than increasing its share in the console market. The acquisition would secure Microsoft's place as the third-largest global gaming market player after Tencent Holdings Ltd. and Sony.
The FTC has challenged the acquisition, claiming that it would injury competition in markets for game subscriptions and cloud-based streaming games. The agency also states that the deal has nothing to do with Microsoft's bid to challenge Google and Apple's 'duopoly' in the mobile market. However, Microsoft's interest in the mobile gaming market was highlighted when Spencer revealed that the company made a bid for smartphone game maker Zynga, which was ultimately sold to Take-Two Interactive Software Inc. for $11 billion.
Spencer also confirmed that the "impetus" behind Microsoft's purchase of ZeniMax Media Inc. for $7.5 billion in 2020 was to prevent the video game creator from offering its Starfield role-playing game exclusively to Sony's PlayStation.
Microsoft CEO Satya Nadella and Activision CEO Bobby Kotick are expected to testify before the hearing ends on June 29. If the ruling goes against Microsoft, the acquisition may not meet its closure deadline of July 18.