Microsoft Had Plans To “Spend Sony Out of Business” To Boost Xbox, Reveals Internal Email

The FTC v. Microsoft case has been witnessing many shocking revelations lately. Ever since it commenced last week, lots of new information has emerged – even from the past. Now, ahead of the third day of the hearing, another crucial intel has been made public. Not to mention that it’s directly related to Xbox and Sony’s PlayStation.

This news dates back to 2019, even before Microsoft made the announcement to acquire Call of Duty publisher Activision in January 2022. Per the email’s content, the chief of Xbox Game Studios had revealed a strategy to beat Sony in the subscription-based market. Apparently, he wanted the Game Pass to outperform PlayStation’s service by making numerous game-based acquisitions. This plan intended to buy Sonic’s Sega and even Destiny studio Bungie!

Microsoft was looking to battle Sony with more acquisitions for Xbox Game Pass

The business email is from December 2019, when Matt Booty had an interaction with Xbox CFO Tim Stuart. “We (Microsoft) are in a very unique position to be able to go spend Sony out of business,” said Mr. Booty in the email. He wrote that it would have been “totally worth it to lose $2B or $3B in 2020” for preventing other competitors from going ahead in content.

“It is practically impossible for anyone to start a new video streaming service at scale at this point,” he said while mentioning names of rivals like Tencent, Google, Amazon, and also Sony.

Clearly, the email highlights Microsoft’s ambitious plans to acquire more studios in order to boost Xbox Game Pass. Since December 2019, it has ended up acquiring Zenimax, for $7.5 billion. For those who are unaware, Zenimax is the parent company of Starfield developer Bethesda. And now, Microsoft has been trying to get Call of Duty publisher Activision for $68.7 billion. The ongoing case between the FTC and the Xbox maker is connected to the proposed acquisition itself.

READ MORE: FTC v. Microsoft: Call of Duty Publisher Allegedly Forced the Xbox Maker for a Bigger Revenue Share Deal!

Additionally, Microsoft also considered purchasing Sega and Destiny’s developer Bungie. In fact, Xbox chief Phil Spencer had made efforts to ask CEO Satya Nadella for approval to approach Sega Sammy for a potential deal. All these attempts were made to bolster the Game Pass subscription service in front of Sony’s service for the PlayStation.

Source: The Verge

WATCH THIS STORY: The Best Horror Games of All Time on PC, Xbox, and PlayStation