London Daily

Focus on the big picture.
Monday, Jul 20, 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
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Jingye Demands Full Compensation After Britain illegally Nationalized British Steel
Police Block Cockroach Janta Party’s March to Parliament as Education Protests Intensify
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
Josh Kerr Breaks Twenty-Seven-Year World Mile Record at London Diamond League
Thames Water Crisis Deepens as South East Water Outages Hit Thousands in Kent
EU Ban on Destroying Unsold Clothing Forces British Fashion Brands to Change Operations
UK Government Confirms Existing North Sea Oil and Gas Licences Will Be Honoured
UK Covid Inquiry Finds Nearly Ten Billion Pounds Lost in Pandemic Protective Equipment Procurement
Thames Water Moves Toward Possible Temporary Nationalisation Amid Rescue Plan Dispute
Andy Burnham Cancels One Point Eight Billion Pound Digital ID Programme After Taking Office
UK Government Takes British Steel Into Full Public Ownership to Protect Jobs and Supply Chains
Andy Burnham Becomes UK Prime Minister and Pledges Focus on Living Costs and Public Services
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Singapore Considers Lower Taxes for Fund Managers as Hong Kong Intensifies Talent Contest
US Retaliates Against Iran After Two American Troops Killed in Jordan
Bank of Asia BVI Enters Court-Supervised Liquidation After Regulators Find It Insolvent
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Bank of England Warns Climate Shocks Could Trigger Sudden Asset Repricing
UK Treasury Places Microsoft, Google, AWS and Oracle Under New Financial Resilience Rules
Scottish Government Faces Pressure Over Delays in Vulnerable Group Background Checks
Crown Prosecution Service Authorises Additional Charges Against Andrew and Tristan Tate
NHS Approves At-Home Cancer Treatments for Rare Blood Disorders
Bank of England Gains Oversight of Major Cloud Providers Supporting UK Financial System
UK Government Plans Major Overhaul of English Local Councils Through New Unitary Authorities
British Steel Nationalisation Dispute Escalates as Chinese Owner Jingye Seeks Compensation
Bank of England Signals Interest Rates Will Stay High as It Warns of Financial Risks From Climate and AI
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
Key Trends to Watch
Financial Conduct Authority Warns Cloud and Digital Risks Are Becoming a Financial Priority
Jeffrey Donaldson Appeals Sexual Abuse Conviction as Democratic Unionist Party Opens Review
Welsh Health Authorities Launch Emergency Meningitis Vaccination Programme for Students
Scottish Business Activity Falls for Third Month as Companies Face Rising Costs
Bank of England Regulators Demand Better Access to Digital Banking Services
United Kingdom Cuts Bilateral Aid to Several African Countries by Up to Ninety Per Cent
×