Title: Microsoft Reveals Activision’s Battle.net Plan for Call of Duty as a “Resounding Failure”
Subtitle: Xbox Maker’s Filing Sheds Light on Controversial Move and Its Impact on Steam
Date: [Date]
In a recent court filing, Microsoft has elucidated the details surrounding Activision’s decision to remove Call of Duty from Steam and make it a Battle.net exclusive. The move was part of a larger plan to expand the reach of Blizzard’s online gaming platform, however, Microsoft’s post-trial findings suggest that this controversial decision turned out to be a “resounding failure.”
The filing from Microsoft comes as part of its ongoing legal battle against the Federal Trade Commission (FTC), which aims to prevent Microsoft’s acquisition of Activision Blizzard for $69 billion. The document highlights two examples that illustrate how a platform’s success does not solely rely on the presence of Call of Duty or any single game franchise.
Activision’s announcement in 2018 that Call of Duty: Black Ops 4 would no longer be available on Steam infuriated fans. However, the company persisted with this strategy, attributing it to its goal of boosting Battle.net usage. Five years later, in 2022, Activision surprisingly reversed its course and launched Call of Duty: Modern Warfare II on Steam. According to Microsoft’s findings, this decision was driven by Activision’s acknowledgment that their plans to grow Battle.net using Call of Duty had failed.
Microsoft’s legal team argues that these examples prove that Call of Duty is not the sole determinant of a platform’s success, nor does its availability guarantee a surge in users. They specifically state that even if Microsoft were to acquire exclusivity rights for Call of Duty on Xbox, which it has consistently stated it won’t, it wouldn’t significantly impact the platform. The filing highlights Steam’s flourishing growth during the period when Call of Duty was exclusively on Battle.net, increasing its user count from 67 million in 2017 to 132 million in 2021.
To strengthen their argument, Xbox’s lawyers also point to the success of the Nintendo Switch, which thrived despite not having access to the Call of Duty franchise. Additionally, they raise the possibility that if Sony were to respond to an Xbox-exclusive Call of Duty by lowering prices or acquiring more third-party studios and publishers.
However, it is worth noting that even during its exclusivity on Battle.net, Call of Duty was still available to PC owners, unlike the scenario that would arise if it were an Xbox exclusive, limiting access to PlayStation users.
The legal battle between Microsoft and the FTC continues, with the FTC appealing a recent court decision allowing the merger of Microsoft and Activision to proceed. Furthermore, Microsoft is yet to obtain approval from the UK’s Competition and Markets Authority (CMA), signifying that the deal’s finalization is far from certain.
In conclusion, Microsoft’s court filing provides insights into Activision’s failed attempt to grow Battle.net through Call of Duty’s exclusivity, emphasizing that the success of a platform does not solely depend on a single game franchise. As legal proceedings continue, the future of the Microsoft-Activision merger remains uncertain, with regulatory hurdles and ongoing opposition still to be overcome.
[Image Source: Kotaku]