The hearings concerning Microsoft's takeover of Activision Blizzard begin in the USA. With them come the first behind-the-scenes revelations from Nintendo, Xbox and PlayStation.
The story of Microsoft's takeover of Activision Blizzard continues to unfold. The trial between the FTC and Microsoft began in the United States with the first hearings. As a reminder, the two parties are battling in federal court over whether or not to issue an injunction prohibiting Microsoft from closing its takeover until the other case between the FTC and Microsoft, before an administrative court, has reached a verdict. If Microsoft wins, it will be able to absorb Activision without delay. Conversely, if the FTC wins its injunction, Microsoft will most likely abandon its project.
The lawyers for each party have now begun their work in front of the judge, unveiling a list of witnesses and evidence. Among the latter is a list of e-mails between Microsoft executives, the contents of which could prove very juicy.
The first revelations
The list of emails includes one concerning the possibility of allowing "multiple stores on Xbox" in a 2020 email written by Phil Spencer, head of Microsoft Gaming. The company has obviously discussed opening up its console to competitors, without going all the way with the project until now.
We can also find two e-mails sent by Phil Spencer to Jim Ryan, PlayStation's boss, in May and August 2022, a few months after the buyout was announced. These e-mails are entitled "content discussions" and probably concern negotiations to guarantee PlayStation access to Activision licenses. Sony has always refused to sign such an agreement.
But the most interesting is undoubtedly this series of e-mails between Jerret West and Matt Booty, respectively Head of Xbox Marketing and Head of Xbox Game Studios. The title is self-explanatory: "XGS titles to PlayStation and Switch". XGS titles are Xbox Game Studios titles, i.e. those developed by Microsoft's in-house studios.
It's dated January 2023 and December 2022, and clearly Microsoft is giving serious thought to the idea of offering its catalog of games on the two competing consoles. As with GeForce Now, the company would be willing to market its flagship licenses such as Forza, Gears, Halo or Sea of Thieves on other platforms to earn the right to swallow up the world's biggest video game publisher.
The witness list
These exchanges between the FTC and Microsoft concerning their trial also revealed the list of witnesses expected for the hearings. The least we can say is that the judge will be hearing from a number of high-profile executives. The list includes Microsoft boss Satya Nadella, Microsoft Gaming boss Phil Spencer, Activision Blizzard boss Bobby Kotick and other Microsoft executives such as Sarah Bond, Amy Hood, Tim Stuart and Lori Wright.
On the Sony side, only PlayStation boss Jim Ryan will be testifying at these hearings, and only through a video chat. Microsoft did not miss this opportunity to emphasize that "unlike Sony, our key executives will testify in person to answer all questions concerning our business strategy". Executives from Nvidia and Nintendo are also expected to testify in the case.
Hearings in this trial will open on Wednesday June 21 and run until Thursday June 29.
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