Sony Interactive Entertainment Chairman and CEO Jim Ryan said in the company’s response to the UK regulator, the Competition and Markets Authority (CMA), that PlayStation “would never recover” if Microsoft will release a degraded version of call of duty in PlayStation after its acquisition of Activision Blizzard.
Ryan said that a downgraded version of call of duty in PlayStation “It would seriously damage our reputation. Our players would leave our platform in droves and network effects would compound the problem. Our business would never recover.”
Sony says the CMA Addendum ignored this testimony from Ryan and assumed that even a downgraded version of the series in PlayStation would not cause players to switch PlayStation to Xbox. “The Addendum appears to ignore this testimony, along with other evidence showing player sensitivity, and assumes that while it is acknowledged that call of duty is important to the console competition, it could be downgraded without gamers switching,” reads Sony Interactive Entertainment’s response.
“This speculation is unsupported, inconsistent with the facts, and cannot rationally support a decision to find that an SLC will not emerge on consoles.” Sony concluded that “the Addendum does not justify the CMA’s change of position on the harm theory on consoles. The revised LTV model is flawed by errors that bias the model to find that there are no incentives for Microsoft close the market.
The Addendum rules out, without good reason, exhaustive analysis of other evidence establishing the incentives of Microsoft. And the partial closing discussion of the Addendum is based on pure speculation, rather than evidence. To make a sound decision, the CMA should review its analysis of the incentives of Microsoft and the partial closing, correcting the errors identified in this document”.
Via: VG Chartz
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