If Microsoft goes all out, the PlayStation could soon be history

There was a real bang in the gaming industry last week: Microsoft is buying Activision Blizzard for around 69 billion US dollars. At Sony, this message should have caused a lot of excitement – and rightly so! Because the way I see it now, Microsoft’s console crown is within reach. A thought experiment.

What if… Microsoft just keeps shopping?

Anyone who previously thought that the gaming division was just a side note for Microsoft has known since last week at the latest that this is not the case. proud $69 billion the huge corporation behind Windows, Xbox, Skype and Co. jumps for the takeover of Activision Blizzard and thus catapults itself into third place of the world’s largest gaming publishers – right behind Sony and Tencent.

But that’s enough for a while now, isn’t it? It may be that Microsoft is now taking things a little easier and refueling its war chest. But I think the company behind the Xbox could do a lot more damage to the PlayStation if it would just keep shopping.

Ubisoft, EA, Square Enix, Take-Two – if you look at the market capitalization of these also incredibly well-known publishers and compare them with that of Activision Blizzard, you will see that that they are only worth a fraction of the corporation behind Call of Duty, WoW and Candy Crush.

And since Microsoft’s war chest is around $140 billion (Source: CNBC), there would still be enough money left after buying Activision Blizzard to swallow maybe two or even three more companies – and that could have far-reaching consequences if Microsoft subsequently plays a trump card, which really alienates most of the players.

Colleague Maxi explains in the video what consequences the takeover of Activision Blizzard could really have for you:

What if… Microsoft made everything Xbox exclusive?

Let’s take the thought further. In a fictional parallel universe, Microsoft actually bought Ubisoft, EA, Square Enix and Take-Two in addition to Activision Blizzard. What now? Well, while Phil Spencer has already announced that Call of Duty fans will still be able to play the shooter on PlayStation for years to come, let’s face it: What would stop him from breaking that promise again? A few contracts? Then you just pay the corresponding fine and on you go!

Sure, Microsoft would just add all the games from the studios it bought in one fell swoop offer exclusively for the Xbox, the outcry in the gaming community would initially be gigantic – a shitstorm of unprecedented proportions. But between us: If GTA 6 is only available on the Microsoft console, will the GTA fan really not get an Xbox? Will the FIFA fan say goodbye to the football series? And will the longtime Assassin’s Creed player turn his back on the series? A small part maybe, yes. The majority, on the other hand, will bite the bullet and get an Xbox – assuming Microsoft doesn’t move its entire gaming offering to the cloud within the next few years.

Would Microsoft lose massive amounts of revenue in the first few years? No question! But if the company cross-finances this project with its other products, it could certainly be financed financially. And why all this? Simple: to get people off PlayStation and into Game Pass. If that alone isn’t enough, you could also reduce the price of Xbox consoles to create another incentive for players to buy them. And if the Xbox not only offers significantly more popular games than the PlayStation, but is also cheaper than the Sony console, the choice should be easy for many gamers.

The die-hard PlayStation fans who only bought the console for exclusive games for Uncharted, The Last of Us, Horizon, God of War and Co. will most likely remain loyal to Sony – however, the general public would likely dump the PlayStation in such a scenario. And since the Nintendo Switch would not be an adequate alternative for many players either, Microsoft would have the reins in hand.

What if … the Cartel Office does not intervene?

But that would probably never happen. After all, the antitrust authorities would have to give their blessing to the takeovers in advance and would Microsoft put a stop to it at some point, right? Probably yes. After all, one of their tasks is to prevent the formation of a monopoly.

But what exactly would count as monopoly or quasi-monopoly in this context? The PlayStation could still be part of the market, even if it only plays second fiddle. And then there’s the Nintendo Switch, which has also attracted tens of millions of players. In addition, Microsoft also has the argument on its side that the incorporation of all these publishers is only about the acquisition of suppliers with whom one does not compete anyway and therefore does not damage the competition. That would be a bit like BMW buying a company that used to build certain parts for their cars. Is that perhaps already enough to let the cartel authorities wave the matter through?

Yes? No? Perhaps? Honestly, I do not know. But I know that if Microsoft actually went all out and my thought experiment came true, Sony would be in a really bad position. Because to put on a fight with Microsoft, Sony, to put it simply, lacks the wherewithal. Well, let’s keep our fingers crossed that all my considerations remain just that: considerations – otherwise I see black for the PlayStation.