Call of Duty won’t be exclusive to Xbox because it would cost too much, says Microsoft –

In a document sent to the Administrative Council for the Economic Defense of Brazil (CADE) in which the proposed acquisition of Activision BlizzardMicrosoft claims that this is about it Call of Duty is going exclusive to Xbox and that it is no longer published on PlayStation is unfounded because “simple it would not be profitable” by Microsoft.

“However surprising Sony’s criticism of content exclusivity is – given that PlayStation’s entire strategy over the years has centered around exclusivity – the reality is that making Activision Blizzard games exclusive by not distributing them on competing consoles will simply not be profitable for Microsoft,” the company claims in documents.

“Such a strategy would only be profitable if Activision Blizzard’s games could attract a sufficiently large number of players to the Xbox console ecosystem and if Microsoft could earn enough from the sales of the games to offset the losses resulting from the non-distribution of those games. games on competing consoles,” the company adds.

Call of Duty: Modern Warfare II

“As if that were not enough, the exclusivity strategies involves specific costs for the securities,” the document reads: however, further information has been omitted, probably for confidentiality reasons.” These costs added to the estimated lost sales […] above, indicates that Microsoft will not be able to make up for the losses by earning more revenue in the Xbox ecosystem as a result of implementing exclusivity.”

“This is especially true if you (i) the player-centered strategy – as opposed to the ‘device-centric’ one – that Microsoft experienced with Game Pass, and (ii) the fact that PlayStation has users who remain loyal across its various generations.”

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Continuing to support its argument, Microsoft says that even if Call of Duty’s Xbox exclusivity turns out to be profitable, its implementation “would have no impact on competition”, partly due to “intense competition in the publishing market. games ” , the fact that exclusivity strategies are commonly adopted in the gaming industry and the fact that competing consoles enjoy a high degree of player loyalty.

“In summary”, the document concludes, “the hypothetical adoption of any content interruption strategy would not be profitable for Microsoft and, even if implemented, that strategy would have no impact on competition, for the reasons described above”.

Additionally, Microsoft is accusing Sony of paying to prevent games from making it to Xbox Game Pass.



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