PlayStation executive describes the purchase of Activision Blizzard as a "bad deal"

The Activision Blizzard case hearings continue to reveal important information that will ultimately help authorities decide whether to enforce the preliminary injunction requested by the FTC or reject it. This is an all-or-nothing situation for Microsoft in its merger attempt, and the main opponent, Sony | PlayStation, takes center stage in this news article due to evidence that confirms that the company's private stance is different.

PlayStation finds Microsoft's purchase of King logical, but not the $70 billion for Call of Duty

Part of the material being used in the Activision Blizzard case comes from emails where executives have discussed the matter. Today, an email exchange from January 19 and 20, 2022, between Jim Ryan, head of PlayStation, and Christopher Deering, then President of Sony Interactive Entertainment Europe, was revealed. In the email, Jim Ryan initially informs Deering that he does not believe Microsoft's acquisition of Activision Blizzard will result in exclusivity for Call of Duty, and he mentions his meetings with Phil Spencer and Bobby Kotick to ensure the franchise remains on PlayStation.

here's the bombshell Jim Ryan email about Xbox exclusivity with Chris Deering, who says Microsoft would have been better off announcing an electric car than buying Activision🙃 More about the email here: https://t.co/733gxlp9ca pic.twitter.com/cUvV0Ywhmy

— Tom Warren (@tomwarren) June 28, 2023

Christopher Deering responds that, from his perspective, it is obvious that Microsoft's goal is King in order to gain a presence in the mobile gaming sector. He highlights the fact that Bobby Kotick supported the purchase of the company for $5 billion, which has now increased in value to over $50 billion.

In that regard, Deering speculates about Microsoft's objectives and believes that if one of them is to make Call of Duty exclusive to Xbox in exchange for $70 billion, it would be a bad deal. He thinks the company could have secured a deal for the next three years by paying $5 billion. Additionally, the executive considers the possibility that this merger aims to harm PlayStation and states: "If this were a move to end PS5, I think it was massively overvalued and will not have significant success. I suppose Microsoft can deal with that kind of valuation without being more harmed than helped, but I'm not losing sleep over the future of our baby."

Finally, Deering mocks the merger by suggesting that Microsoft would have been more successful announcing an "electric car."

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