Xbox Executive Reveals Microsoft’s Concerns About PlayStation’s Dominance in the Gaming Industry
An internal email shared during the legal proceedings between Microsoft/Activision and the Federal Trade Commission (FTC) has shed light on Xbox executive Matt Booty’s discussion about Microsoft’s efforts to push PlayStation out of the gaming business. The email was originally sealed but has now been made public despite the company’s attempts to keep it confidential.
Xbox’s Desire to Prevent PlayStation from Becoming the “Disney of Games”
In December 2019, Booty responded to an email from CFO Tim Stuart, and their conversation seemed to revolve around Game Pass and Xbox’s future content strategy. In his email, Booty introduces a “different view” suggesting that Microsoft could financially overpower Sony to eliminate them from the competition. He highlights Microsoft’s significant financial resources as an advantage in this regard.
Booty expresses the viewpoint that it might be worth the company losing billions of dollars on content acquisitions to prevent potential rivals like Tencent, Google, Amazon, and Sony from establishing a dominant position akin to Disney’s success in the entertainment industry.
Microsoft, however, clarifies that Booty’s suggestion did not officially become the company’s adopted strategy, and the email predates the Activision Blizzard merger. Critics, on the other hand, point out that Microsoft has indeed made significant acquisitions, starting with ZeniMax Media, following Booty’s email.