From the CMA Phase 1 report:
133. The Parties told the CMA that, in upstream game publishing, ABK had a share by
value across PC, console, and mobile in 2021 of just [5-10]% globally and [5-10]%
in the UK.130 The Parties noted that focusing on console only, ABK’s share remains
at just [5-10]% by value globally and [10-20]% in the UK.131 Combined console
shares would be [10-20]% globally and [10-20]% in the UK,
134. According to the Parties, ABK’s lack of market power upstream can be seen from its
share of console based on MAU. Based on 2021 data, the Parties estimate that
ABK has a share of MAU of only [10-20]% globally, whilst other publishers are of
equal or comparable scale, including EA (eg FIFA, Apex Legends, Star Wars) at
[10-20]% globally, Epic Games (eg Fortnite), with a share of [5-10]% globally and
Take-Two (eg Grand Theft Auto, Red Dead Redemption) with a share of [5-10]%
globally.
136. According to the Parties, an analysis of CoD’s presence on Xbox
shows that, whilst Fortnite and CoD account for a significant proportion of game-
time played on Xbox ([10-20]% and [10-20]% in 2021, respectively),
141. One ABK internal document shows that ABK has six franchises generating
revenues greater than [] based on owned IP across platforms and demos,
including CoD, Candy Crush, World of Warcraft, HearthStone, Overwatch, and
Diablo. 141 Of these, CoD was the number one console franchise globally for []
years.
143 b).Another ABK internal document shows that ABK’s content played a pivotal role
in the success of PlayStation and would continue to do so. The document
explains that a six-year CoD partnership between Sony and ABK helped to
increase PlayStation 4’s console share from [], and ABK’s content drove
around [] PlayStation Plus engagement since the launch of PlayStation 4.146
The document concludes that ABK can have a large impact on Sony’s gaming
business in the next generation.
148 c) The report goes on to explain that CoD: Modern Warfare had the biggest launch of
2019, earning over USD 600 million in just three days, marking the twelfth year
in a row that a CoD game ranked as the best-selling game in its launch
month.1
170. As for the Merged Entity’s ability to foreclose Sony, consistent with ABK’s internal
documents discussed above, the CMA has received evidence that CoD has higher
levels of user engagement and revenue spend on PlayStation than the Parties
estimated. SIE submitted that it has the highest awareness and ownership levels of
all third-party franchises.181 In addition, CoD plays an important role in attracting
high-value gamers to the platform.182 These CoD gamers spend considerable
amounts of money on other PlayStation games and hardware, which substantially
increases the revenue impact of having CoD on the platform.
173. Based on the above evidence, the CMA has found that:
(a) The Merged Entity would have significant upstream market power in publishing
of games for consoles, with a share of [10-20]% by revenue and [30-40]% by
minutes played on console in the UK.185 ABK has a particularly high share in
shooter games ([30-40]% in the UK),
175. In relation to the Parties’ submissions on Sony’s contractual protections, the CMA
notes that the proposal to extend ABK’s agreement with Sony beyond 2024 is yet to
be formally agreed (with the terms of the proposed agreement under continuing
discussions).
190.The evidence suggests that
Microsoft has shown itself to be willing to make losses in the short term in order to
build scale and increase its user base
202. The Parties provided the example of
Marvel’s Spiderman: Miles Morales, which outsold all Xbox titles combined in the
week that PlayStation 5 launched.222
The CMA further understands that in
the second week following the launch of PlayStation 5, the top selling game for
the system was CoD: Black Ops Cold War.223
210. The Parties submitted that Microsoft’s share of supply in multi-game subscription
services across all platforms in the UK was [50-60]% in 2021, with the share on
console being [50-60]% and PC being [60-70]%.
260. Microsoft owns Windows OS, which is the market leader in the supply of PC OSs.
According to the Parties, Microsoft had a share of supply of OSs of approximately
[70-80]% worldwide and [60-70]% in the UK in 2022.315 The CMA has seen
evidence that Microsoft’s hypothetical market share of OS software for personal
computers used for gaming is even higher than this, upwards of 95%.
![[PC/PS5/XSX|S] Monster Hunter Wilds crosses 10 million units sold; new company's first-month...](/forums/data/news_thumbnails/0/98.jpg?1743408570)
