Microsoft and the Competition and Markets Authority (CMA) of the United Kingdom have been trading punches over Activision and everybody’s (!) got questions…and answers. But its only Sony that has gone ALL IN.

Let’s go through it together…in Virtual Legality LIVE.

#Xbox #Activision #Sony

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CHAPTERS
00:00 Introduction/Executive Summary
1:00:00 Theory of Harm Number 1 (Console Market)
2:10:59 Theory of Harm Number 2 (Subscriptions)
2:32:37 Theory of Harm Number 3 (Cloud Gaming)
2:41:12 Conclusion (Q+A)

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Discussed in this episode:

https://assets.publishing.service.gov.uk/media/63494c7de90e0731a80088e7/Issues_Statement_-_Microsoft_Activision__final.pdf

https://assets.publishing.service.gov.uk/media/637cecede90e076b8043d8cd/Sony_Interactive_Entertainment.pdf

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“Virtual Legality” is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).

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DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.

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30 Comments

  1. You've been playing GoW? How's it feel hearing Christopher Judge's voice for Ol' Man Kratos in GoW? I'm curious what you think of it. Personally, I laugh and smile every time I hear his lines in the game. Especially the dad-jokes.

    Here's a video of him doing some that didn't make it into the game, if you'd like a wholesome laugh: https://www.youtube.com/watch?v=PWwvR6cSH4o

  2. There's a saying in Spanish: "El ladrón juzga por su condición." ("The thief judges based on their condition.") This is EXACTLY what Sony is doing here: saying that Microsoft will do the things they themselves have done and are still doing.

    "Microsoft will keep ABK games exclusive." Just like you do with 3rd party exclusives.

    "Microsoft will raise console prices." Just like you did.

    "Microsoft will do foreclosure." Just like you have done.

    "Microsoft will prevent cross-platform play and force players to migrate to play with friends." Just like you do!

    Somewhere in Jim Ryan's brain the alarm for hypocrisy must be ringing at max volume. And if any regulator does a half decent job here they could see that Sony has done all these things, yet the gaming industry is still alive.

    If it were me, I'd throw this argument in the trash.

  3. As someone who enjoys the Playstation, I would rather Sony to not get involved in this at all. The situation is already complicated wihtout them becoming part of the story. They don't have to give praise to the deal,they could just answer the regulators questions, say their worries, like they said to the Brazilian regulator and be done.

  4. @Hoeg Law,

    Excellent Show!

    Also, Shout out to Co – Counsel: Mrs. Hoeg Law,
    for allowing this Great Forum.

  5. There was a footnote under theory of harm 2 that said "in January 2021, Microsoft saw record engagement and monetization across it's platforms". Geeee, could there be something going on in January 2021 that could cause record engagement in electronic at home entertainment across the entire market that Sony is conveniently skipping over? Something other than Microsoft suddenly becoming a market share leader?

  6. DOOM really! DOOM is available on PS right up through DOOM Eternal, I just checked. On top of that Overwatch 2 isn't doing so well and Halo Infinite is arguably not doing any better.

  7. If the heyday of Halo (being the poster child of Xbox exclusives) when I can remember guys lining their lockers in senior hall at my highschool with countdowns to Halo 2 and spending hours lined up outside GameStop to get a copy didn't put playstation in the ground then Call of Do-Do sure as shit ain't gonna do it.

    I can understand a little of the pearl-clutching around cloud gaming. Microsoft does have a big leg-up in infrastructure there, but infrastructure does not a quality game make. Additionally rather than being some kind of anti-competition issue it just looks to me like Microsoft simply leveraging their core competencies towards the gaming space. It's not like there's no way for Sony to get access to other partners with amazing cloud capabilities who might see an opportunity in cloud gaming. Overall Sony just comes across as infinitely disingenuous here

  8. When I listen to educated content on this merger, I get the feeling that it could be blocked by one of these kangaroo regulating agencies, but if it were to go to court, Microsoft would figuratively beat them over the head with a tire iron. The arguments just don't back up Sony's claims very well.

  9. I must go to car dealer right away and lurk someone whos bying expensive asf car and then go to him like "yeah the things is i like that car you must let me drive it for free next 10year and on top of that buy me some gas"

  10. I keep having the same problem with these arguments: Sony is arguing that while Nintendo (and Valve and Epic apparently) have found parts of the game market to focus on and specialize in, Microsoft and Sony are competing for the same pool of gamers. If that's the case, then it must be because they decided to do things that way, since clearly other companies are able to do otherwise. And if they decided to do things that way, they can decide otherwise. Microsoft is pushing to do things differently with their Game Pass. They're trying to bring in gamers who don't already have hundreds of dollars sunk into gaming media who also want more than a mobile experience. Okay, fine. Then Sony can likewise pick a different pool and focus. I'm a fan of the "buy Squeenix and double down on your vast gorgeous first person titles and quirky JRPGs" plan. Go spend some money on the people who made Tactics Ogre and get the rest of the games remade. Buy up some other old Japanese games that never made it to the US, or hunt down some indie studios with mostly finished gold that they couldn't get a publisher to polish. Get those a proper launch, with or without a remaster. Sony chose to chase after Microsoft's heels in the subscription service and live service arenas. They can change course. And if they can capture a corner of the market that Xbox and Call of Duty can't, it will increase the incentives for Microsoft to keep Call of Duty on PlayStation for as long as it exists, so they can keep selling to gamers who they can't get by themselves.

  11. Lol you have reasons to dislike something about a company even though you support them and once you have one little negative thing about either Sony Nintendo or Xbox. Oh your a fanboy!!!! Fanboy! Good grief people don’t realize we complain about something so that they can improve DUH 🙄

  12. you are so disappointingly disingenuous… dozens of examples like comparing Sony games created from ground up that never were on Xbox making money to MS and creating hardcore communities on Xbox to any extent! Unlike COD that made billions to Sony and created hardcore COD communities on Sony… But you just equate all that! Even more, you call people stupid for submitting those arguments you don't like and that you spin on their head here. Have you lost self-respect? Do you have any material interest for acting that way?

  13. And you are lying that Sony is raising prices "because they are just abusing their superior market position"… they were forced to hurt their standing by raising prices, but they had to because of dadadada… INFLATION and NOT being 2 trillion $ corporation that destroys and undercuts competition.

  14. and are so mathematically challenged to call those PEOPLE IDIOTS for raising prices to cover for inflation – because you claim that they will get "higher return" by abusing "their market power"??? HOW can you get higher return when inflation is actually HIGHER then raising of those prices?!!! You are getting higher number of "coins" but their value is LOWER because of inflation – ACTUAL RETURN IS LOWER NOT HIGHER! …Breathe fanboy, try to remember you are a lawyer? Think of your self outside of this?

  15. Inflation in "your town USA" is actually quite different than in the rest of the world – your money printing and power projection across the world (military and financial) makes your market different in this inflation! Do you know that but just call people idiot because like to act like that or because you are just extra triggered? Or you are talking about THING YOU DO NOT COMPREHEND? (Idiot?)

  16. MS has greatest COD competitor in HALO. HALO is 20yrs old franchise (2 yrs. older than COD!) And for 10yrs they were totally superior to COD and absolute darlings of critics of gamers and industry… But what COD "did to" HALO in last 10 yrs is only thing ACTUALLY IMPORTANT and is proving Sony arguments! MS invested over 1,5 BILLION $ only in HALO franchise – just to get totally destroyed by COD, totally annihilated – newest HALO released lest then year ago and go compare those competitors now!? HALO got rekt in every way and metric inspite of 1,5 BILLION $ of investment into it and having legacy SUPERIOR to COD's … just stop turning Truth on its head – most agregigous is you calling people STUPID and IDIOTS and LIARS for their arguments

  17. Again you pretend not to comprehend that there is difference (when talking about kind of games suitable and crucial for SUBSCRIPTION services) between "single player, zero microtransaction, zero live support" games – versus – worlds BIGGEST multiplayer shooter with huge microtransaction store front and total live support game… c-c-c… and you accuse Sony of lying in that aspect, but you are the one twisting the Truth
    JUST ASK CEO's of PLENTY OTHER GAME PUBLISHERS LIKE 2K for example… They all support "down to a T" everything Sony claims here.

  18. Gamepas is NOT "100% substitutable" trough "pay to play" – because you are ignoring, surprisingly, that if game (COD for example) get to be ONLY available in subscription service, not available for any other kind of purchase – then you can't have any other choice but to subscribe to that EXCLUSIVE SERVICE… and biggest part of COD IS ALREADY "FREE TO PLAY" meaning you can't buy it even for all money of the world. Luckily it is still available on multiple platforms BUT IF IT GETS TO BE ONLY ON MS GAMEPASS that is anticompetitive and antigrowth

  19. Wasn't Sony trying to get exclusive rights to Starfield before the deal was announced for Zeni?! The hypocrisy is staggering.

  20. The same i said to destin, one thing its negotiate exclusive which microsoft could do also (and they did in the past), and other thing its buying one of the biggest publisher developer with many franchise including cod, regulators its doing its job i dont think that a bad thing. arguments of both side have been ridiculous.

  21. "Nintendo is focused in family-friendly stuff."
    Bayonetta, Mortal Kombat, Witcher 3, Doom, and a bunch more would like to have a word with those people.

  22. I love how Sony pretends indies don't thrive on pc when we have seen numeoiur indies go ham on pc. My just console and make do the best on nintendo

  23. Ingnoring these facts sony has killed their holy trinity of platformers rip jak and sly sony should trade those ip to get cod 😅

  24. Its funny that sony is dunking almost the whole industry just in one document

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