Sony Worried About Microsoft’s Xbox Strategy After Activision Blizzard Deal

After the cyberattack on Insomniac Games, leaked documents reveal Sony’s worries about Microsoft’s strategy after acquiring Activision Blizzard for $69 billion.

Sony refers to this purchase as a “leapfrog,” consolidating well-known games such as Call of Duty, Diablo and World of Warcraft under Xbox. The leaked document imply that Microsoft is now positioned to outpace Sony’s present status.

Sony points out that the acquisition benefits Microsoft by giving it strong live service games, a foothold in mobile gaming, and a ready-made PC storefront through Battle.net. Sony also recognizes Microsoft’s effort to create its mobile app store, aiming to rival Apple’s App Store and the Google Play store.

To keep regulators happy, Microsoft and Sony struck a deal to keep Call of Duty on PlayStation, but the papers spill the beans that this arrangement is only good until 2027. Sony’s worried this could be a big problem for its cash cow, PlayStation Plus, which rakes in a cool $1.5 billion every year. Call of Duty is super popular worldwide, with new versions every year and the ongoing Warzone Battle Royale. Activision Blizzard also owns the big mobile game company King, famous for Candy Crush that makes billions yearly.

In the documents, Sony acknowledges that its pillars are “already dated and behind the competition”. It expresses frustration with the challenge of creating an ideal game subscription.

The document says the company needs to “grow,” but it’s not clear if this involves buying other companies. Sony says counting on free, top-notch games makes a model that doesn’t work because subscription money doesn’t cover the costs.