Microsoft launches defense in court, claiming it “lost the console war”
By ForGeeks On Thursday, Microsoft opened the first day of its «court battle» against the Federal Trade Commission, saying it has officially «lost the console war». In proposed findings of fact presented on the first day of litigation over Activision Blizzard’s $69 billion acquisition, the company argues that «Xbox has lost the console war, and competitors can continue to dominate».
Other documents provided by IGN describe Microsoft’s previous consoles with similar negative language. The company claims that the original Xbox console was oversold by Sony and Nintendo by «significant margins» and claims that it has not stopped «losing» in the «console wars» since then.
«The Xbox console consistently ranks third (out of three) in sales after the PlayStation and Nintendo» —says the documents. «In 2021, Xbox had a 16% share, while Nintendo and PlayStation had [redacted] and [redacted], respectively».
Microsoft argues that it is now «betting on a different strategy» making profits through game and accessory sales rather than consoles. These arguments were made as part of Microsoft’s defense against a preliminary injunction imposed by the FTC, which is trying to suspend Activision’s proposed Xbox deal until a critical July 18 date, after which the parties can renegotiate.
Microsoft’s argument is that it is now ™ing a different strategy.
Microsoft CEO Satya Nadella, PlayStation head Jim Ryan, Bethesda publisher Pete Hines and Activision CEO Bobby Kotick will appear as witnesses at the hearing, which begins this week.
