Microsoft's Call of Duty Commitment to Nintendo: A Strategic Move

The recent announcement that Microsoft will be releasing Call of Duty on Nintendo consoles for ten years has been well-received by the public, but it raises more questions than answers. This move can be seen as a strategic PR maneuver, aimed at alleviating concerns about the company's proposed acquisition of Activision Blizzard. By committing to release Call of Duty on Nintendo Switch, Microsoft is attempting to demonstrate its willingness to maintain the game's availability on multiple platforms, thereby addressing concerns about exclusivity. However, this commitment may not be as significant as it seems, given the time and resources required to develop a AAA Call of Duty game for the Switch, and the uncertainty surrounding Nintendo's future plans. Microsoft's experience in bringing Minecraft to Nintendo consoles is often cited as evidence of its capability to do the same with Call of Duty, but it's worth noting that Activision Blizzard has also successfully ported several games to the Switch, suggesting that the demand for Call of Duty on the platform may not be as high as anticipated. The statement about Nintendo comes amidst a flurry of media reports about regulatory concerns, including the possibility of the US regulator, the FTC, blocking the deal. Microsoft's response to these concerns, including a 111-page document submitted to the UK regulator and an article by Microsoft president Brad Smith, highlights the company's efforts to address the concerns and present its vision for the deal. Nevertheless, the commitment to release Call of Duty on Nintendo consoles only addresses one aspect of the regulatory concerns, leaving other issues, such as games subscriptions and streaming, unaddressed. The fact that Microsoft argues that streaming and subscriptions are not a significant market, and that the company's vision is to make games more accessible, similar to Netflix, raises questions about the potential impact of the deal on the gaming industry. If the deal were to ignite subscriptions and streaming, would Microsoft become the industry leader, and if so, what would be the extent of its lead? These are complex questions, and the endless noise surrounding the deal makes it challenging to navigate the issues. Ultimately, the latest announcements from Xbox have done little to alleviate concerns, and the analogy drawn by Brad Smith between Sony and Blockbuster has raised more questions than answers.