Player Lawsuit Alleges Microsoft's Activision Bid Aims to Eliminate PlayStation.
In a recent lawsuit filed by ten American video game players, Microsoft has been subject to serious charges regarding their attempt to acquire Activision Blizzard. The plaintiffs claim to possess evidence suggesting that Microsoft's intentions behind the deal are to eliminate its main competitor, PlayStation, from the market. This private anti-trust action, which argue the $69 billion deal could result in a monopoly or substantially lessen competition, raises significant concerns within the gaming industry.
The lawsuit faced initial dismissal in March due to insufficient evidence supporting the plaintiffs' claims, as ruled by District Judge Jacqueline Scott Corley. However, the plaintiffs subsequently filed an amended lawsuit that included redacted information from Microsoft, such as a strategy memo, as well as new information provided by Sony Interactive Entertainment.
 |
| Image Source: Plaintiff's filing in appeal of Dante DeMartini, et al. v. Microsoft Corporation - Axios |
According to reports by Axios, a crucial piece of evidence presented by the plaintiffs is an alleged internal email sent by Matt Booty, Microsoft's head of Xbox game studios, to Tim Stuart, Microsoft's chief financial officer for Xbox. The email is described as "uncontroverted evidence" that Microsoft had the intention to push its main competition, Sony PlayStation, out of the market. This particular passage is said to be from 'Exhibit K,' one of the sealed documents under debate by opposing lawyers.
In response, Microsoft has referred to the email as an "internal exchange" that should remain sealed and claims it holds no relevance to the court's decisions. This lawsuit is different from Microsoft's defense against the US Federal Trade Commission, which is seeking a preliminary injunction to prevent the Xbox maker from acquiring Activision Blizzard.
Microsoft and the FTC have recently shared their witness lists for an upcoming evidentiary hearing, scheduled to commence this week. Notable figures on the lists include Microsoft CEO Satya Nadella, PlayStation boss Jim Ryan, Bethesda's publishing boss Pete Hines, and Activision CEO Bobby Kotick. The inclusion of these individuals indicates the high stakes involved and the impact this lawsuit could have on the gaming industry.
If the plaintiffs' claims are substantiated, the ramifications of Microsoft's alleged intention to eliminate PlayStation from the market would be far-reaching. PlayStation and Xbox have long been competitors in the gaming console industry, each with a dedicated and loyal fan base. The potential elimination of PlayStation would significantly alter the dynamics of the market, potentially resulting in reduced competition and fewer choices for consumers.
The alleged internal email, described as "Exhibit K," has become a central point of contention in the lawsuit. The plaintiffs argue that its contents provide undeniable proof of Microsoft's intentions to remove PlayStation from the market. However, Microsoft maintains that the email is simply an internal communication that should remain confidential.
The court will ultimately decide the fate of this sealed email and its admissibility as evidence. It may have a significant impact on the case and the lawsuit's outcome, as well as broad repercussions for the gaming industry as a whole, depending on its importance and relevance to the case.
The lawsuit brought forth by ten video game players against Microsoft raises serious concerns about the company's intentions behind the bid to acquire Activision Blizzard. The allegation that Microsoft seeks to eliminate PlayStation from the market has sparked a heated legal battle that could have significant consequences for the gaming industry.
It is still critical for the court to carefully consider the evidence presented by both parties as the legal proceedings progress. The future of gaming competition and consumer choice is in jeopardy, as a decision that will shape the industry's landscape for years to come is waiting.