Sony fought Microsoft’s purchase of Activision Blizzard tooth and nail, dragging their rivals in front of every regulator in the world, but now that the deal is all tied up, Team PlayStation has remained largely mum on the subject. That’s to be expected – they don’t want to come off as sore losers – but it seems behind the scenes Sony is still very concerned about what Microsoft’s big purchase could mean to them.
As part of the recent massive Insomniac Games ransomware leak, which uncovered the studio’s full lineup for the next decade amongst other things, an internal PlayStation strategic slide expressing concern that Microsoft will be able to “leapfrog” Sony’s current “pillars” following the acquisition of Activision Blizzard was revealed. In the document, Sony admits Acti-Blizz will be a big strategic value, particularly when coupled with Game Pass. Sony sees the combination as a “massive threat to PS Plus,” expecting it could result in a $1.5 billion annual hit to the revenue Sony makes from their service. Sony also expects Acti-Blizz to give Microsoft a big boost in the PC, mobile, and live service markets.
Somewhat surprisingly, Sony admits that their PlayStation pillars are “already dated” and “behind the competition,” but also says the “perfect game subscription” remains elusive. The cost of developing major AAA PlayStation exclusives just can’t be covered by subscription revenue. As such, it doesn’t sound like Sony plans to use the subscription model to combat Microsoft, but rather, will continue to focus on and expand their premium sales model.
It will certainly be interesting to see what might happen over the next few years and whether Sony’s concerns are well-founded. While it may not seem like much has changed right now – if anything, the Xbox brand has continued to struggle in 2023 – Sony seems to have earmarked 2027 as the timeframe when Microsoft’s chickens will really come home to roost. A lot can change in three or four years, so I’ll refrain from making any definitive predictions.
That said, what do you think? Do you think PlayStation is in danger of being leapfrogged? What can Sony do to head off the coming Activision-powered challenge from Microsoft?
