Activision Xbox: For the CEO of Microsoft, it’s the PS4 and PS5 that dominate. So we have to compete with them.

Game news Activision Xbox: For the CEO of Microsoft, it’s the PS4 and PS5 that dominate. So we have to compete with them.

The Activision / Xbox / Playstation case continues to animate the news. After the announcement of the takeover proposal issued by Microsoft at the beginning of the year, the subsequent fall in Sony’s share price and the first opinions from the regulatory authorities, the time has come for tense laughter and media battlegrounds. Today, it is the CEO of the Redmond firm who is sounding the bugle at a time when the markets doubt the completion of the takeover.

Xbox vs PlayStation: the power of words

We were talking to you a few days ago about the heated exchanges between Sony and Microsoft about the proposed takeover of Activision-Blizzard. As a reminder, this historic merger weighing 68.7 billion dollars is debated within the regulatory authorities. Recently, the British and New Zealand competition authorities have expressed their wish to deepen the examination of this union which could lead to “a substantial lessening of competition in one or more marketsaccording to their reports. Early reviews were bound to be well received by Sony, who stated that “giving Microsoft control of Activision games, like Call of Duty, would have major negative consequences for gamers and the future of the industry”. “Removing Call of Duty from PlayStation consoles wouldn’t make commercial sense given Sony’s leading position in the console market” answered Phil Spencer, the boss of Microsoft Gaming.


“Let us be real competitors”

Activision Xbox: For the CEO of Microsoft, it's the PS4 and PS5 that dominate.  So we have to compete with them.

competition and market share. It is precisely on these two points that Satya Nadella, the current CEO of Microsoft, bounced back during an interview with Bloomberg. After recalling that in the gaming sector, Microsoft’s turnover placed the company largely behind Sony – making the Japanese group an industry leader – Satya Nadella insisted that Xbox was only ‘in “fourth or fifth position”. In addition, he specifies that the Japanese company continues to grow, having taken over Savage Game Studios, Bungie or even Haven during this year 2022. “So if it’s competition, let’s make it competition“He laughs. With these words, the CEO of Microsoft torpedoes the arguments that would like Xbox to be in a dominant position in the event of a marriage with Activision-Blizzard. Of quick calculations show that if given the green light by regulators, Microsoft could become the world’s second-largest video game company (by revenue), coming in a short head ahead of Sony, but still trailing Tencent. “Of course, any acquisition of this size is subject to intense scrutiny, but we are very, very confident in our ability to pull through.“adds Satya Nadella.

Activision Xbox: For the CEO of Microsoft, it's the PS4 and PS5 that dominate.  So we have to compete with them. Activision Xbox: For the CEO of Microsoft, it's the PS4 and PS5 that dominate.  So we have to compete with them.

Reassuring statements against market skepticism

Activision Xbox: For the CEO of Microsoft, it's the PS4 and PS5 that dominate.  So we have to compete with them.

As Bloomberg reminds us, the questions from regulators that will lead to in-depth analyzes seem to have cast a chill over investors. Before Satya Nadella spoke, the Activision-Blizzard share price was $75.32, an amount well below the $95 per share offered by Microsoft in the event of a validated acquisition. What demonstrate the doubt of the financial markets. We specify that the day before the announcement of the marriage envisaged between the two behemoths, the action of Activision-Blizzard amounted to 65 dollars, and that it had jumped to 82.31 dollars the day the Redmond firm released its statement. Since the Microsoft CEO spoke to Bloomberg and confirmed his confidence that the takeover will be completed, Activision-Blizzard’s share price has been on the rise. It closed at $77.03 (+2.27%) on Thursday, September 22. It remains to be seen whether the trend will continue in the coming weeks.

Activision Xbox: For the CEO of Microsoft, it's the PS4 and PS5 that dominate.  So we have to compete with them.

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