London Daily

Focus on the big picture.
Friday, Apr 03, 2026

Xbox has been played for a fool by PlayStation and Activision Blizzard

Xbox has been played for a fool by PlayStation and Activision Blizzard

A reader thinks Sony will gain more from the acquisition of Activision Blizzard than Microsoft, as he lays out the problems ahead for Xbox.

The deal might not be signed yet but it’s now clear that Microsoft will be allowed to buy Activision Blizzard. I imagine Sony are secretly delighted. I know they’ve been trying to get it stopped publicly but while that didn’t happen they did force Microsoft to make lots of concessions, so my concessions that it’s now hard to understand what Microsoft even gets out of the deal. And I think that was Sony’s plan all along.

Consider the facts. Microsoft is having to pay $69 billion for Activision Blizzard. That’s their most expensive purchase ever, which is going to leave them counting the pennies for decades to come – and already has with all the layoffs they announced the other week. There will be a huge spotlight on the Xbox division now, from the heads of Microsoft, and if it’s not made clear why the purchase was worth it then very quickly heads are going to roll.

We’ve already seen something similar happen with Disney. Confused as to why they rushed out the Star Wars sequel trilogy so quickly, without a plan? It’s because Disney needed to prove to their investors why it was worth buying and how they could make their money back. And that was just $4 billion.

The biggest legal fight has been over Call Of Duty, which Microsoft now has to keep multiformat for 10 years and let Sony put on PS Plus if they want. That means, from Sony’s perspective, essentially nothing will change. Microsoft has paid $69 billion to keep the status quo and maybe make Call Of Duty an exclusive in 10 years. I don’t think it’s unreasonable to call that bad value for money.

There is the Blizzard side of things to consider but World of Warcraft is already PC only and there hasn’t been any talk of making Overwatch 2 an exclusive. Maybe Overwatch 3 will be but it’s not as if the game is that big and any sequel will be years away.

And all this is before you even consider the difficulties of actually owning and managing a company the size of Activision Blizzard. We’ve already seen what a terrible job Microsoft has done with the studios it already owns, with almost no new games being released and still no sign of Fable after all these years. In fact the opposite, with staff leaving developer Playground Games in droves to set up other studios.

Now consider how much more difficult Activision Blizzard is going to be than that, given that the whole reason they’re in this situation is that both companies were embroiled in scandals involving toxic work conditions, poor morale, and bad management. It is going to take 10 years just to sort all that out and then, at the end of all that, what have Microsoft gained?

Sony will have 10 clear years where Xbox is distracted by all the new studios they’ve bought. We’ve already seen how the purchase alone has slowed down Xbox’s productivity and it’s not going to get better any time soon.

You could argue that Sony has played their fiddle just a little too much at times, with this proclamation from the US Congress that they have an unfair monopoly in Japan. But really, can you imagine the American ambassador making a diplomatic incident out of Final Fantasy 7 Remake being a PlayStation console exclusive?

In the end Sony has gained much more out of this whole sorry mess than Microsoft has and if Xbox isn’t careful they will have set in motion their own demise. You don’t spend $69 billion and not have anything to show for it and yet Microsoft doesn’t seem to have any plan to make even a fraction of that money back. In fact, I think it may be impossible and that they will quickly come to regret spending all that money.

Sony, on the other hand, will be quietly pleased that their competitor has wasted all their cash reserves and will be distracted for years to come because of it. At the end of the day, which console you buy is still all about the games and Sony can just carry on as they were, while Microsoft seems certain to have just as much trouble as always.



Newsletter

Related Articles

0:00
0:00
Close
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
×