The “console wars” may sound like a Star Wars knockoff, but it is one of the biggest stories in the world of video games. Thanks to a sexual harassment scandal, the war has escalated dramatically.
Microsoft, which makes the Xbox, has reached a $68.7 billion deal to acquire video game developer Activision Blizzard. Activision Blizzard’s sexual harassment issues, which brought on an anti-discrimination lawsuit from the state of California, likely helped spur the deal. With Microsoft’s Xbox Game Pass subscription service humming and the company previously acquiring Bethesda Softworks, the added possibility of more exclusive content with Activision Blizzard will change the video game landscape.
That’s bad news for Japan’s Sony Corporation, the maker of the PlayStation. While Sony consistently leads Microsoft in sales and exclusive games, Sony shares dropped 13% after the news of Microsoft’s power moves — the biggest drop since 2008. At this rate, Microsoft will announce its Xbox Death Star by the end of the year.
For the industry, this could mean Sony pursues more deals in an effort to stave off Microsoft. Major video game titles may become more exclusive, as Call of Duty may become exclusive to Xbox. The federal government may even get involved in an antitrust case, as Microsoft is likely preparing for.
Normally the goal of antitrust law is to protect the consumer by making mergers don’t raise prices or reduce output. But considering how much time grown men waste on video games these days, maybe some reduced output wouldn’t be such a bad idea.
