The recent devastating Insomniac Games leak has revealed information about more than just game information, but has also revealed internal documents from Sony. Slides have revealed that Sony is expressing concerns internally over Microsoft’s strategy for Xbox following the mega $69 billion acquisition of Activison Blizzard.
Sony has described the acquisition as giving Microsoft the ability to “leapfrog [Sony’s] current pillars.” The buyout puts massive IPs like Call of Duty, Overwatch, and World of Warcraft under Microsoft’s ownership. It also pointed out how Microsoft benefits from strong live service games, mobile games, and the PC storefront Battle.net.
Sony noted that Microsoft is working on building its own mobile app store in a bid to rival Google Play and Apple’s App Store. Phil Spencer has spoken about this move multiple times in the past. By owning Activision Blizzard, Microsoft already has a head-start on this project.
Call of Duty–which has been a pressing topic surrounding this acquisition since it was first announced–is also a concern of Sony’s. Microsoft and Sony signed a 10-year deal that would allow for guaranteed Call of Duty releases onto PlayStation until 2027. However, once 2027 comes, that deal ends. Sony is predicting that this could serve as a “massive” threat to its subscription service, PlayStation Plus.
PlayStation Plus currently rakes in approximately $1.5 billion in annual revenue and is required to play online multiplayer games. With the extreme popularity of Call of Duty, most people are buying the subscription to get access to Call of Duty’s multiplayer. Without Call of Duty, Sony would certainly see revenue losses.
The Game Pass Angle
Microsoft is currently planning to release Activision Blizzard games right onto its subscription service, Game Pass. Although games like Call of Duty Modern Warfare 3 and Diablo 4 won’t be on Game Pass until 2024, next year’s Call of Duty game, Black Ops: Gulf War, will likely launch immediately onto Game Pass.
Sony has admitted in internal documents that its “pillars are already dated and behind the competition,” but that its central approach will continue to remain the premium sales model and not a subscription service like Game Pass.
Microsoft and Sony’s strategies were also noted in the internal documents, revealing how Microsoft goes for a full release across multiple platforms like Xbox, PC, and immediately onto Game Pass while Sony launches first to PlayStation and then releases years later onto PC.
Back in June 2023, PlayStation head Jim Ryan had said that video game publishers are not fans of Xbox Game Pass and that it is “value destructive.” He also said that Game Pass is unprofitable for Microsoft because “Microsoft appears to be losing a lot of money on it.” However, it is apparent that their view has changed with the recent acquisition by Microsoft of Activision Blizzard.
Sony has been pushing more for live-service games lately, as evidenced by its acquisitions of Destiny 2 developer Bungie. Sony president Hiroki Totoki said last month that the company was doing a review of 12 live service PlayStation games currently in development. One has already been taken out of the equation, which was the canceled The Last of Us multiplayer game by Naughty Dog.
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Zainah Yousef
Zainah Yousef is the author of The Fallen Age Saga and specializes in gaming, social media advice, and reviews. She's been writing all her life and she probably won't stop anytime soon.
