C'mon broooo...smh
Sony claims that CoD is this behemoth sized property they can't keep sustained without, the onus is on them to prove it. Nothing scummy about it in the least bit. You guys are reaching....
They didn't say they couldn't sustain without COD, they said that their market share would be negatively impacted, which is true. Because it's impossible to reliably make a FPS that competes with COD in terms of revenue and market share.
Which is also true, otherwise MS wouldn't need to buy ABK in order to get their hands on COD's revenue for themselves.
Sony took this to the public so MS is doing the same thing. They want the world to see it all in an open forum. It could back fire but no matter what this is going to be one for the ages.
Actually MS made this public by talking about their BTS discussions with Sony publicly in order to look good to regulators on social media. Jim Ryan (and I assume others at Sony) didn't like that MS were using private discussions to try gaining public favor with regulators, and spoke out against it publicly.
MS tried buttering both sides of the bread before realizing they ran out of butter.
This is such a ridiculous statement from Nadella.
I'm all for competition. The thing is that Microsoft lost. There hasn't been a generation where they seem to be able to perform on their own merits. They have never been able to win on the foundations of: "Sell console, sell games". Now, they want to change the nature of the competition by buying up huge segments of the market and undercutting the value of games. They don't even want to compete, they want to control the industry entirely. It's been that way since day one.
I somewhat disagree with this, because MS did "win" the 7th generation, at least in the biggest markets, and certainly in terms of mindshare and what system 3P devs prioritized for the majority of the time, with the 360. PS3 did nudge it out in the end and finished that gen stronger in terms of mindshare with core gamers (as well as helping recover the PS brand's reputation), but in the periods before that, particularly in the markets where the majority of the big AAA games were being made? It was 360.
The problem is MS don't have people at the Xbox division with that type of drive or I'd even say appreciation for the industry that way, anymore. Phil Spencer may be a nice guy but he's not bringing that energy.
It has nothing to with how Sony makes games. This all stems from false statements Sony made in writing to the CMA about how they (the #1 console game publisher in the world) cannot compete against Call of Duty and losing it (again which they won't) will cause their business to contract.
MS knows that was bullshit, but since those statements caused regulators unfamiliar with the gaming industry to take this to the courts, MS is calling Sony to the carpet to prove their game production pipeline is not capable in competing.
Sony was being cocky and started a dick measuring contest and now MS is telling them to unzip.
How were the statements false? If COD accounts for some billions of PS's software revenue, and they lose access to it, that is some billions of software revenue now gone. That's a very clear cause-and-effect. If you subtract some sum from a number, the result is a smaller number. Basic math.
Could Sony "theoretically" make a COD competitor? Yes, as in they could make a FPS game with similar or better quality. But there is no guarantee that game gets anywhere near the market share or revenue of COD, which is the actual point. Epic stumbled into a massive hit with Fortnite after adding BR; Apex Legends had a lot of luck on its side even if it was building off TitanFall's mechanics and style of play (keep in mind that game came out in 2014, so it took ~5 years for it to finally find some footing as a completely different IP taking some of its concepts forward).
A scenario where Sony loses COD and has to stick it out with Killzone, or Resistance or some other FPS means they could be looking at 5 - 10 years of reduced revenue while trying to build that IP up into something of a big commercial success. Otherwise they have their marquee single-player AAA games but even games like GOWR and Spiderman don't have the revenue stream of annual COD & Warzone combined, and to match that Sony would have to make way more of those games and spend more in production costs as a result. If slagging 3P revenue sales (due to missing IP like COD) can't cover it, they'd have to siphon revenue from other parts of the company to do so, impacting those areas of operation.
The fact is a company like Sony can only sustain itself as they are in the areas they're in because each sector is pretty much self-sufficient and able to pull its own weight in revenue & profits without needing to draw resources from other sections of the company. Xbox as a division can operate in perpetuity of heavy losses and never have a need to be shuttered because it accounts for less than 10% of MS's annual revenue and even less of their annual profits, so their other sectors can spare resources to keep it going along for as long as upper brass are willing to entertain it.
At the end of the day, those are realities about the differences of the two companies MS still has to deal with as regulators scrutinize the deal, regardless of whatever they end up forcing Sony to share.
To demonstrate how easily Sony can be dragged into producing documents, just take a good look at the Epic vs Apple case. Sony was seen as barely relevant, and yet because parties involved found Sony and the way it does business relevant to the case, Sony was made to produce documentation they didn't want to. Remember that crossplay royalty document?
https://www.pcgamer.com/sony-charges-for-crossplay-support-to-protect-psn-revenue-documents-show/
Microsoft will want to have that document entered into evidence for this specific case also. That crossplay royalty or "fee" that Sony wants companies to pay them if a certain amount of game time happens on PlayStation without a sufficient amount of spending happening on Playstation can be viewed as a market leader forcing companies to offer greater incentives or bonuses and perks to Playstation customers over people who play on Xbox, just to encourage more spending on the Playstation side of things rather than Xbox. It might encourage game companies to enter into special agreements with Sony at the expense of Xbox. This is just one of many ways that Sony producing documents and other evidence can be relevant to this transaction.
The reason that royalty probably exists is because crossplay inherently benefits the less popular console in that relationship by providing its community access to a more popular system's community, off the work of the platform holder of the more popular console, for what is essentially "free" to the platform holder of the less popular system in that dynamic.
In other words, the platform holder of the less popular platform can use crossplay as a marketing element to essentially advertise
THEIR platform through the service of the competitor's platform, without paying the platform holder of the competing platform a fee for doing so. It also allows the owner of the less-popular platform to artificially grow their online userbase through a vector that is not earned by actually selling more of their hardware to customers.
Yes in some ways that can work both ways, i.e the platform holder of the more popular console can entice users on the less-popular console to come over, but the argument against that is, if the person on the less-popular console can play with people on the more popular console anyway, why would they need to switch over? So effectively, the holder of the more popular platform loses a sale because they've now lost a strong selling point, if a person can play with their friends "anywhere" regardless of what console they're on.
And sure, that message sounds find and liberating, pro-consumer and all the good buzzword feelies when you say it, but when you THINK about it, all of that is just a cover. More often than not the company expressing it wants a backdoor available to either stop bleed of userbase from their system to a competitor's, or to entice customers of the competitor to buy their product. I actually think if Sony & Microsoft had some official program where they agreed to some cut of shared services revenue for crossplay sessions of users in the two ecosystems, they would probably see Sony lax on their crossplay royalty.
So the question is, why hasn't Microsoft presented such an offer to Sony, if they
really want crossplay? Why do they want to benefit from Sony's work with their audience, at no additional cost, and why should Sony be punished for wanting to protect the work of the ecosystem they've built up for years/decades? The onus is on Microsoft to make appealing terms and somewhere that's going to involve a revenue-sharing model for revenue generated through crossplay sessions. Because another way Sony could phrase it is, 3P publishers are only forced to pay those crossplay fees because Microsoft doesn't want to enter a revenue-sharing model with Sony on crossplay, because (seemingly) Microsoft want to ride off Sony's audience for free.
It's very similar actually to the objections Sony tried raising about Sony blocking games into Game Pass, except in that case it was also about Sony protecting their investments and only enforcing it with games they have comarketing deals on (and as such, Microsoft stipulates broadly similar exclusivity clauses with 3P content they have deals for, too). In the case of crossplay, it's bit more complicated but it still boils down to Sony protecting their financial investments and Microsoft wanting to benefit off Sony's financial investments at no additional cost of their own, in spite of being a direct competitor.