London Daily

Focus on the big picture.
Thursday, Jul 30, 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
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Prince Harry Faces Significant Legal Costs After Insurance Shortfall
FirstGroup Sells Rail Software Business to Tracsis for £48 Million
Victoria and Albert Museum Staff Vote for Strike Action
Norwegian Teenager Convicted Over Contract Killing Plot in Britain
Royal Mail Raises Bulk Mailing Prices by 30%
Immigration Remains Britain's Top Public Concern, Ipsos Survey Finds
Prime Minister Says Social Care Reform Must Precede Assisted Dying Legislation
Ofgem Proposes Steep Grid Connection Charges for New Data Centers
Major Cyberattack Compromises UK Education and Police Data
Government Reviews Jurisdiction Over Crimes Involving US Military Personnel
England Declares Widespread Drought After Record Dry July
UK Commits £8.4 Billion to Dreadnought Nuclear Submarine Program
Zuckerberg Opposes US Ban on Chinese AI Models and Warns of Regulatory Capture
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
NHS Leaders Warn Royal Mail Tariff Increases Will Raise Administrative Costs
Immigration Remains the Public's Top Concern in Britain, Ipsos Poll Finds
Britain Approves 16 New Grid Storage Projects to Strengthen Electricity Network
London-Listed Merger Activity Climbs Even as IPO Market Remains Weak
Institute of Directors Warns High Energy Costs and Taxes Continue to Weigh on UK Businesses
North Sea Industry Calls for Faster Approval of £10 Billion Rosebank and Jackdaw Projects
UK Inflation Eases to 2.6% but Higher Energy Costs Could Renew Price Pressures
Burnham Holds Talks With Saudi and Qatari Leaders on Middle East Security and Energy
Burnham and Zelenskyy Announce UK Electronic Warfare Technology Cooperation During London Visit
Prime Minister Andy Burnham Launches Cross-Party Push for Social Care Reform in England
Trump says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
×