Activision and Microsoft clash head-on on their stance on Xbox Game Pass

2023-06-28 18:45:16

Microsoft wants to buy Activision Blizzard, but the managers of both clash head-on on one fundamental thing: the Call of Duty company is not interested in subscription services, at least with Bobby Kotick at the helm, but it is allowed to “agree to disagree” .

These days the first confrontation between Microsoft and the FTC is taking place over the proposed purchase of Activision Blizzard (There might be more, as we explain here, and that would not be good for Microsoft: the Xbox ones need to win here and now.)

Today has declared Bobby KotickCEO of Activision Blizzard, who defends that the purchase is carried out due to the commitment to investors, but it seems clash head-on with the philosophy of Microsoft to bring all your games to Xbox Game Pass.

And it is that Bobby Kotick is closer to the opinion of Jim Ryan, CEO of SIE (PlayStation): he does not like subscription services, and he has no intention of putting Activision games on Game Pass.

So why sign a deal with Microsoft if there is so much friction between their business strategies? Kotick doesn’t seem concerned… and gives the impression that he wants to sell as soon as possible.

Bobby Kotick doesn’t want to put Call of Duty games on Xbox Game Pass

“I have one general dislike to the idea of ​​gaming subscription services“Kotick declared today.

“Maybe part of this is from being in Los Angeles surrounded by big media companies moving their content onto these subscription streaming services and suffering in their business results.”.

So why make a deal with Microsoft, which would likely get all your games, both old and new, out on day 1 on a service like Xbox Game Pass?

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Judge Jacqueline Scott Corley, in federal court in San Francisco, asked him if Call of Duty would have been put on Game Pass before this transaction.

“No, we haven’t put a single game on Game Pass.” And he adds that Activision currently does not generate any income from these kinds of services.

This is a curious thing, especially today, when Call of Duty Black Ops Cold War It has been announced for PS Plus… although with the difference that it enters as a free game of the month, and does not enter the PS Plus Extra/Premium catalog.

Kotick clarifies that would evaluate possible optionsbut adds that “In general, I don’t agree with the idea that multi-game subscription services (o sea, Game Pass y PS Plus Extra) be the best business model model for video games“.

He is also not interested in streaming, and despite having experimented in the past, he also has no plans to put their games on streaming services (such as GeForce Now) in the future.

And if Microsoft offered them attractive commercial conditions, might these games come out on Game Pass? “We would have to evaluateBut he says such terms would be “harsh,” and he doubts there is any company out there that can offer them enough to make them consider that kind of business deal.

So why did Bobby Kotick agree to the Microsoft deal?

As we also read in Windows Centralthe judge asked why she agreed to the agreement if Kotick and Phil Spencer (CEO of Xbox) disagree on something as fundamental as subscription services.

And the truth is that Kotick does not seem very enthusiastic. “I don’t agree with subscription services as a business model, but Activision and Microsoft can agree to disagree“, said.

Kotick added that it is due to shareholders. “98% of shareholders support this transaction. My responsibility is to meet the demands of investors.”

though maybe Bobby Kotick have other reasons for wanting to close the deal with Microsoft as soon as possible… and probably jump ship, still haunted by the discrimination and sexual harassment allegations that surfaced in 2021.

And Call of Duty ends in Game Passeven if Bobby Kotick doesn’t like it, it will be someone else’s problem.

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