by
William D’Angelo
, posted 34 minutes ago / 469 Views
Sony Interactive Entertainment President and CEO Jim Ryan in the company’s response to the UK regulator, the Competition and Markets Authority (CMA), Addendum stated PlayStation “would never recover” if Microsoft were to release a degraded version of Call of Duty on PlayStation if its acquisition of Activision Blizzard were to be approved.
Ryan said a degraded version of Call of Duty on PlayStation would “seriously damage our reputation. Our gamers would desert our platform in droves and network effects would exacerbate the problem. Our business would never recover.”
Sony says the Addendum from the CMA ignored this testimony from Ryan and assumed that even a degraded version of the series on PlayStation would not cause gamers to switch from PlayStation to Xbox.
“The Addendum appears to ignore this testimony, together with other evidence showing the sensitivity of gamers, and assumes that, even though Call of Duty is acknowledged to be important for console competition, it could be degraded without causing gamers to switch,” reads the response from Sony Interactive Entertainment. “This speculation is unsubstantiated, inconsistent with the facts, and cannot rationally support a decision to find that no SLC will arise in consoles.”
Sony concluded that the “Addendum does not justify the CMA’s U-turn on the consoles theory of harm. The revised LTV model is vitiated by errors that bias the model to finding no incentive to Microsoft to foreclose. The Addendum jettisons, without sound reason, the PFs’ thorough analysis of other evidence establishing Microsoft’s incentives. And the Addendum’s partial foreclosure discussion is based on pure speculation, rather than evidence. To reach a robust decision, the CMA should revisit its analysis of Microsoft’s incentives and partial foreclosure, correcting for the errors identified in this paper.”
A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
