Microsoft confess that Xbox "lost the console wars"

A trial is underway as Microsoft continues to embark on their mission to acquire Activision Blizzard for a whopping $68.7 billion. After facing a block from the UK’s Competition and Markets Authority (CMA), it’s now the US’ Federal Trade Commission (FTC) who are attempting to block the deal.

In the UK, the CMA’s decision to block the potential acquisition means that without a successful appeal, Microsoft won’t be able to put forth the business proposal in the country for a further decade. Now, the United States’ FTC has launched an injunction, adding that “both a temporary restraining order and a preliminary injunction are necessary because Microsoft and Activision have represented that they may consummate the proposed acquisition at any time.” The FTC are concerned that Microsoft will close the deal on 18 July, but worry about what this means for the games industry.

Xbox recently announced an updated Series S with enlarged storage.

Already, the FTC has explained how Starfield’s Xbox exclusivity has massively damaged the deal. One of Microsoft’s key arguments is that it would continue to allow Call of Duty to be a multi-platform release. The FTC countered that by saying that following their acquisition of Zenimax, both Redfall and Starfield were made to be Xbox exclusives. The FTC suggested that history could repeat itself.

In the latest development, Microsoft appears to be playing the sympathy card confessing that Xbox lost the so-called “console wars”. As reported by The Verge, Microsoft was keen to show that Xbox was a third-place console. In 2021, Microsoft confirmed that Xbox accounted for just 16% of total console sales, adding that they had just 21% of the total console ‘installed base’. It’s not specified whether this is a global figure, or specific to the US.

Both PlayStation and Nintendo’s figures were blocked out, so we don’t know who came out on top. PS5 availability was low in 2021. Then again, elsewhere in the court documents, Microsoft wrote that “Sony is the dominant player in consoles.” The trial continues.