FTC Targets Bethesda in Xbox Trial, Microsoft’s Response Awaited

Growing Up to Be Just Like Zenimax

The FTC’s strategy in the Xbox-Activision trial hinges on the Zenimax acquisition. They argue that Xbox’s acquisition of Zenimax in 2021 resulted in the exclusivity of several games, like Starfield and Redfall, which were previously available on other platforms. They believe the same scenario will play out if Xbox acquires Activision, making Call of Duty exclusive to Xbox.

• The FTC presented evidence that Bethesda, acquired by Xbox, shifted its game releases to Xbox exclusivity after fulfilling its prior commitments to PlayStation.
• The FTC examined Pete Hines, Bethesda’s head of global publishing, about the exclusivity of Starfield and Indiana Jones, highlighting that these games were initially intended for multi-platform releases.
• Hines’ testimony revealed that he was directed by Zenimax to seek clarification from Xbox regarding exclusivity, implying that the decision was out of their hands.

Will Xbox be able to complete the Activision Blizzard merger?

The FTC’s attempt to block the Activision Blizzard merger raises a crucial question: Will Xbox be able to complete the acquisition? The FTC’s arguments center around the potential exclusivity of Call of Duty, a major concern for PlayStation players. However, Xbox has presented convincing arguments in their legal filings regarding the potential harm to their own business if Call of Duty becomes exclusive. This conflict raises uncertainty about the merger’s outcome.

The Inevitable Call of Duty Conundrum

The FTC’s main concern is that Xbox will follow the same pattern as Zenimax, ultimately making Call of Duty exclusive. Despite Xbox’s promises and agreements to keep Call of Duty available on other platforms, the FTC believes that future games will inevitably become exclusive, mirroring the Starfield and Indiana Jones scenarios. This fear is fueled by the FTC’s belief that Xbox will ultimately prioritize its own platform over multi-platform releases.

Starfield v. Minecraft

While the FTC argues that Xbox will treat Activision like Zenimax, Microsoft aims to demonstrate that they will manage Activision more like Minecraft, a franchise that enjoys cross-platform support. The FTC’s focus on Zenimax’s shift to exclusivity highlights their fear of the same happening with Activision. However, Microsoft emphasizes that they will maintain multi-platform support, drawing a parallel with Minecraft’s success in the cross-platform market. This comparison underscores the contrasting visions for Activision’s future under Xbox.