game news Activision Xbox: For the CEO of Microsoft, it’s the PS4 and PS5 that dominate. So we have to compete with them.
The case of Activision/Xbox/Playstation continues to animate the news. After the announcement of the takeover bid issued by Microsoft at the beginning of the year, the subsequent drop in Sony’s share price and the first opinions of the regulatory authorities, the time has come for tense laughs and media battlefields. Today, it is the CEO of the Redmond firm who sounds the trumpet at a time when the markets doubt the consummation of the takeover bid.
Xbox vs PlayStation: the power of words
We talked to you a few days ago about strong exchanges between Sony and Microsoft over the proposed acquisition of Activision-Blizzard. As a reminder, this historic $68.7 billion merger is debated in regulatory authorities. Recently, the British and New Zealand competition authorities have expressed a desire to further examine this merger which could lead to “a substantial decrease in competition in one or more marketsaccording to their reports. Initial opinions inevitably welcomed by Sony, which has declared that “Giving Microsoft control of Activision games like Call of Duty would have significant negative consequences for gamers and the future of the industry.”. “Removing Call of Duty from PlayStation consoles would not make commercial sense given Sony’s leadership position in the console market.” answered Phil Spencer, the head of Microsoft Gaming.
“Let’s be real competitors”
competition and market share. Precisely on these two points, Satya Nadella, the current CEO of Microsoft, recovered during an interview with Bloomberg. After recalling that in the video game sector, Microsoft’s turnover placed the company largely behind Sony – making the Japanese group a leader in the sector – Satya Nadella insisted that Xbox was only ‘in “fourth or fifth position”. In addition, he specifies that the Japanese company continues to grow, having taken over Savage Game Studios, Bungie or even Haven during this year 2022 “.So if it’s competition, let’s make it competition“He laughs. With these words, the CEO of Microsoft torpedoes the arguments that would like Xbox to have a dominant position in case of marriage with Activision-Blizzard. Of quick calculations show that if given the green light by regulators, Microsoft could become the world’s second-largest video game company (by revenue), slightly ahead of Sony but still behind Tencent. “Of course, any acquisition of this size is subject to intense scrutiny, but we are very, very confident in our ability to pull through.“adds Satya Nadella.
Reassuring statements against market skepticism
As Bloomberg reminds us, questions from regulators that will lead to in-depth analysis seem to have rattled investors. Before Satya Nadella spoke, Activision-Blizzard’s share price was $75.32, well below the $95 per share Microsoft offers in the event of a validated acquisition. Which shows the doubt of the financial markets. We point out that the day before the announcement of the planned marriage between the two giants, the Activision-Blizzard share amounted to $65, and that it had jumped to $82.31 the day the Redmond firm released its statement. Ever since the Microsoft CEO spoke to Bloomberg and confirmed his confidence that the acquisition will go through, Activision-Blizzard’s stock price has been on the rise.. It closed at $77.03 (+2.27%) on Thursday, September 22. It remains to be seen whether the trend will continue in the coming weeks.