Sony is dependent on the "Call of Duty" brand for its revenue. However, what impact would the loss have on Sony's investment opportunities?
Is it possible to pay for Sony's first-party games through Call of Duty? Such reports are currently making the rounds and are based on a number of months old document that was released in October 2022 as part of the CMA's review of Microsoft's acquisition of Activision Blizzard.
Sony's whole statement, rather than a small section, is worthwhile. In fact, the PS5 manufacturer admits that the Call of Duty series is a lucrative business for the company. Branded players contribute a certain percentage of hardware, peripherals, and subscription revenues.
Sony's capacity to invest in "hardware innovation and gaming technology" would also be harmed if this revenue was to dissipate.
It says: "In the document."
SIE would be unable to make additional investments because to Microsoft's foreclosure strategy, which would limit its ability to make additional investments. PlayStation users who play Call of Duty spend around [geschwärzt] percent of their total expenditure (around 1 billion) on hardware, peripherals, subscriptions, and other PlayStation services.
SIE's capacity and incentive to invest in future hardware innovations and gaming technologies would be severely hampered by the loss of all or a significant portion of these users.
Games will be affected by customer losses.
If some customers switch to other platforms, analysis companies anticipate profits would be reduced as a result. This would reduce Sony's ability to invest in new games.
The following excerpt from the publication is a brief explanation.
According to Cornerstone Research and RBB Economics, a conversion rate of [geschwärzt] percent to a decrease in SIE's profits of [geschwärzt] percent might lead to a reduction in SIE's ability and incentive to invest in new games.
Sony claims that the Call of Duty franchise will not cover its first-party games. Instead, it believes that a smaller install base that might result in diminished sales, decreased profits, and ultimately diminished investment opportunities.
More information about Activision Blizzard is available here.
The acquisition of Activision Blizzard is still unknown. However, PlayStation players will certainly not have to miss out on the "Call of Duty" series once it has been acquired.
Sony was offered a similar deal. Likewise, Microsoft has admitted in the past that "Call of Duty" would make no economic sense if there was no PlayStation console availability.
More info on Activision Blizzard and Sony.
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