Ironically, Sony Interactive Entertainment is subpoenaed by Microsoft’s fight with the Federal Trade Commission (FTC).
Do you like co-op games? Well, Microsoft too. One of the opponents of the Microsoft-Activision-Blizzard merger is Sony, more specifically Sony Interactive Entertainment, the publishers of the PlayStation. Of course you don’t want to see the deal closed, after all it would make Xbox even stronger. Now there are interesting details on how Sony could even “help” Microsoft close the deal.
What does Microsoft want? The Xbox publishers want to receive internal information from PlayStation on business practices, exclusive deals with third party manufacturers, game releases and developments, etc., which Microsoft believes are relevant to the case.
how Gamedeveloper.com reported there is legal documents (via ftc.gov as PDF) showing that Microsoft recently subpoenaed its competitor in hopes that Sony would “defend” against the FTC. More or less.
The Federal Trade Commission (USA) filed a lawsuit against the Xbox manufacturer, as did the European Commission and even players from California. Sony had until January 17, 2023 to respond to the subpoena and has been granted a reprieve until January 27.
Confirmation that Microsoft has subpoenaed Sony Interactive Entertainment as it tries to defend itself from an FTC lawsuit against the MS bid for Activision
Sony notes MS first tried this on Jan 12 but had to re-do it on Jan 17. Sony will likely have a reply on the 27th pic.twitter.com/mWW6tyXML0
— Stephen Totilo (@stephentotilo) January 23, 2023
Microsoft: Sony is said to be quantifying the loss of sales for PlayStation 6
In the past, Sony indicated that Microsoft’s Activision-Blizzard deal would result in a significant loss of revenue for future generation consoles (PlayStation 6) could arise. So far, however, Sony has failed to state how high this failure can be quantified.
So Sony should give a number of how high the damage will be. Microsoft wants to know how badly the acquisition is really affecting PlayStation’s business.
How is Sony reacting to this?
Microsoft’s subpoena is no small matter for Sony, of course, but the Xbox publisher’s attorneys also made careless mistakes. According to information from Fosspatents.com was the subpoena in the first version to the wrong recipient. The second version had an incorrect date. Now it seems Sony can’t get by anymore. The “third letter” had to be accepted.
Sony’s objection to Microsoft’s Activision-Blizzard deal could blow their minds themselves. After all, Sony would have to put all its cards on the table in order to continue playing afterwards. Not a “good hand” if the opponent has seen everything. Not a good market position either, as PlayStation is a lot bigger than Xbox. Even after the deal.
So Sony has a choice between publicizing business practices that are likely to hurt them in the future, or accepting Microsoft’s offer: to live with Call of Duty for the next 10 years.
When is the FTC matter off the table for Xbox? Microsoft now has until April 7, 2023 to collect the relevant information. Sony itself said that its request for extension will not delay the process. But apparently they won’t participate either.