Should Sony Be Concerned About Call of Duty?

Sony is expressing concern over Call of Duty. Regulatory bodies worldwide are investigating Microsoft's acquisition of Activision, and competitors are being questioned. Sony has made its stance clear, considering Call of Duty's importance as unparalleled and deeply ingrained, making it impossible for competitors to replicate, even with substantial budgets. Essentially, Call of Duty has the power to influence consumers' console choices. However, this statement might be somewhat exaggerated, as Call of Duty, although a massive gaming franchise, does not stand alone. Other games, such as FIFA and Fortnite, are equally, if not more, significant. Moreover, in major gaming markets like Japan, Call of Duty has a relatively minor presence. The fear of Microsoft potentially making Call of Duty exclusive to the Xbox platform in the future is a significant concern, despite reassurances to the contrary. The precedent set by Microsoft's acquisition of Bethesda, which led to the announcement that future Bethesda games would not be released on Sony's consoles, fuels this fear. However, Bethesda's games are not comparable to Call of Duty in terms of commercial success, with the exception of games developed by Bethesda Games Studios, such as The Elder Scrolls and Fallout series. Call of Duty operates on a much larger scale. A more relevant comparison might be Minecraft, which Microsoft acquired eight years ago and has continued to support on all platforms, including Nintendo and PlayStation. The release of Minecraft Dungeons and the upcoming Minecraft Legends on multiple platforms further supports this. If Microsoft were to restrict Minecraft's availability, the game itself would likely suffer the most. Similarly, Call of Duty has a massive fan base on PlayStation, and preventing them from playing the game could drive some fans away from Sony, but others might abandon Call of Duty altogether, creating an opportunity for competitors like EA's Battlefield series. However, Call of Duty's presence on PlayStation actually benefits Xbox, as Microsoft's focus is on streaming and subscription services rather than console sales. Call of Duty is not a reason to buy an Xbox console but rather a reason to subscribe to the Game Pass service. This is where Sony's concern is valid, as Call of Duty is the most popular game on PS4 and PS5. If the deal goes through, Microsoft will own the most popular game on PlayStation, presenting a significant marketing opportunity. Microsoft could promote Game Pass directly to PlayStation's fan base, offering a more affordable alternative to purchasing the game annually, with additional in-game items and streaming capabilities on mobile devices. This would put Sony in a difficult position, either rejecting its console's most popular game or accepting a massive advertisement for Game Pass disguised as a first-person shooter. Sony recognizes the power Call of Duty holds, citing its deal with Activision, which granted PS4 owners early access to Call of Duty DLC, as a factor in the console's early success. Even in its current weakened state, Call of Duty remains a behemoth franchise, particularly in North America, where the competition between consoles is most intense. The decision now rests with regulators to determine whether one console manufacturer owning the Call of Duty IP is fair. The industry is also questioning Microsoft's intentions, despite the company's efforts to reassure the business community. Many developers and publishers have expressed positive sentiments about Microsoft's gaming initiatives, but there is always a caveat, acknowledging that things can change. Xbox boss Phil Spencer has mentioned potential competitors like Amazon, Google, and Meta, which could pose a risk to the gaming industry. However, this concern can also be applied to Microsoft, as its primary focus may not be on the gaming industry's interests. If Microsoft is correct about the future of gaming being in subscriptions and streaming, the acquisition of Call of Duty could be a pivotal moment, making Microsoft one of the most influential gaming businesses in the world, with a key product to drive changes in how games are paid for and distributed. It is understandable that Sony is worried.