4 Big Revelations From the FTC and Microsoft Trial
The court case between the Federal Trade Commission (FTC) and Microsoft over its acquisition of Activision Blizzard proved to be full of unexpected twists and turns. But you may not have predicted the court case to have revealed massive details about individual platforms and the industry.So what were some of the biggest revelations rising from the court case between the FTC and Microsoft that could pique your interest as a gamer? Let’s take a look.
1. Nintendo’s Next Console Is Likely Only as Powerful as the Xbox One
One of the most surprising announcements from the FTC court case regards the next mainline Nintendo console. Specifically, the court case revealed Nintendo’s next console to potentially only be as powerful as the last generation of Xbox and PlayStation consoles.
As reported byMetro, when Activision Blizzard CEO Bobby Kotick took the stand, part of his testimony included a reference to how the next Nintendo console was in “closer alignment” to “Gen 8 platforms”. In other words, the Nintendo console after the Switch will only match the Xbox One and PlayStation 4 in specs.
While this announcement may disappoint you, if youcompare all models of the Nintendo Switchand the specs of each, boosting performance to Gen 8 console standards is a significant improvement.
This was an unexpected, yet satisfying side effect of the trial. While the core elements of the proceedings focused on acquisitions and Cloud Gaming, huge details regarding the industry slipped through. And with this, the trial provided you with concrete details on Nintendo’s console after the Switch.
2. Microsoft Was Looking to Buy as Many Studios as Possible
One avenue that you would’ve expected the trial to explore, but perhaps not reveal as many examples as it did, was Microsoft’s desire to acquire gaming studios. What came as a revelation was the extent to which Microsoft was willing to buy studios to out-compete Sony.
As the trial focused on anticompetitive concerns around Microsoft’s acquisition of Activision Blizzard, purchasing game studios as a method of competition was bound to take center stage.
And as a result of the trial, new details regarding Microsoft and its acquisitions came to light. As reported byMetro, Xbox looked to buy companies like Sega, Bungie, and IO Interactive before settling on Activision Blizzard.
But even with huge names like Sega on the list, you’ll be even more surprised to hear that Square Enix, a studio historically associated with Sony, was also a potential Microsoft acquisition.
As a result of the trial, Microsoft had the curtain pulled back on itself, shining an ugly light on its intent to out-buy Sony. But Sony wasn’t free from scrutiny either, and revelations relating to PlayStation were equally insightful.
3. Starfield Was Going to Be a PlayStation Exclusive
While Xbox faced an introspective look into its business practices, Sony and its relation to exclusives was also examined throughout the trial.
Phil Spencer, the Head of Xbox, stated that PlayStation regularly pays competitors to “skip our platform” when speaking on Xbox’s behalf at the trial. As examples of this, numerous Bethesda games were referenced, including Starfield, as reported byThe Verge.
Spencer also explained that preventing Starfield from skipping Xbox incentivized Microsoft to purchase Bethesda. However, you may be quick to point out that it allowed Microsoft to offer a better range ofXbox-exclusive gamesto withhold from Sony.
But with Xbox historically behind PlayStation in console sales, preventing games like Starfield from skipping Xbox via the acquisition of Bethesda could be seen as a reaction to Sony’s business practices.
So while Sony paying for exclusivity is a well-known facet of the industry, the effect Sony’s exclusivity has on the industry is a core insight provided by the trial. You could even see Sony’s exclusivity as influencing the acquisition of Activision Blizzard, providing a striking revelation.
4. PlayStation Spends a Lot on First-Party Exclusive Games
Another reveal from the FTC trial associated with exclusivity and industry trends was revealed in true soap drama fashion when Sony failed to redact a document. If you have ever wondered how much Sony spends on its impressive lineup of first-party games, it accidentally revealed it to you.
It’s not a mystery thatthe rising cost of game development is affecting the industry. But the specific effort going into first-party exclusives, something we know may have pushed Xbox to one-up Sony by purchasing Activision Blizzard, has never been well-defined.
But from this document, you can see that Sony spent $220 million on developing The Last of Us II over around six years with over 200 staff members. Similarly, for Horizon Forbidden West, Sony spent $212 million over five years with 300 staff members.
These figures work with other revelations, like Xbox’s intent to out-exclusive Sony with acquisitions, to present a clearer picture of a secretive industry. From Xbox’s acquisitions and Sony’s exclusivity deals, it’s clear that both companies faced intrusions because of the trial.
The Microsoft and FTC Trial Pried Into Xbox and PlayStation
While the FTC trial provided you with an insight into a new Nintendo console, the bulk of revelations focused on Xbox and PlayStation’s relation to exclusivity.
And with announcements suggesting that Xbox use acquisitions to play Sony at its own game and Sony paying for console exclusivity, the FTC trial offered insights to an industry that keeps its cards close to its chest. In the end, you may end up seeing PlayStation and Xbox’s practices as being just as bad as each other.
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