Microsoft says that the Xbox is losing out to its rivals, which will likely “continue to dominate,” according to the recent FTC court battle.
Sony and Nintendo are ahead
Microsoft is currently embroiled in a court case over its acquisition of Activision Blizzard. The purchase is costing the conglomerate a staggering $68.7 billion, but the Federal Trade Commission is seeking to block the deal.
In a recent report (via The Verge), Xbox has “lost the console war,” with the company saying that it’s third behind rivals Sony and Nintendo. The statement goes on to say that the Microsoft consoles have always been behind since joining the gaming landscape more than 20 years ago.
Back in August 2022, the Microsoft/Activision deal was approved by Saudi Arabia. However, there are still some concerns about the acquisition, hence the court case in front of the FTC.
According to IGN, Microsoft is “betting on a different strategy” seeing as it’s trailing behind in the console wars. This is in defense of the Activision deal, which the Trade Commission is actively trying to block.
The idea seems to be that if Xbox is third behind the likes of PlayStation and Switch, the merger is vital to making sure Microsoft can stay afloat in the cut-throat world of the gaming industry.
However, the FTC has concerns that Xbox would be at an advantage by acquiring the studio responsible for Call of Duty, one of the most lucrative franchises in video game history.
The court case began on June 22 and is ongoing for the next few days. Microsoft has until July 18, 2023, to close the deal.
