' Umar Chaudhary | MTTLR

Sony and Microsoft: An Arms race for Domination of the Video Game Industry and its Relevant Antitrust Concerns

It’s no secret that both Sony and Microsoft have been rivals in the video game industry for decades. This arms race between the two competitors has resulted in independent gaming studios releasing timed exclusive content on either Playstation or Xbox consoles. However, over the last decade, this competition has evolved. Instead of lobbying for platform-exclusive games, both Sony and Microsoft have made the leap to acquiring independent game studios they believe have promising new and legacy IPs. Microsoft’s latest acquisition of Activision for $68.7 billion brings global titles like “Warcraft,” “Diablo,” “Overwatch,” and “Call of Duty” to their side of the gaming isle. On the heels of this acquisition, Sony announced its own acquisition of Bungie Studios. However, these two deals are just the latest in a long list of acquisitions for both gaming giants. Sony has developed or acquired numerous studios over the past decade including Bluepoint, Insomniac Games, Naughty Dog, Santa Monica, and Sucker Punch studios just to name a few. Likewise, Microsoft now boasts big name studios like 343 Industries, Ninja Theory, Obsidian Entertainment, and Bethesda entertainment. These recent moves by both Sony and Microsoft are an indication that both companies see the future of their respective platforms to be determined by first-party games. Interestingly, the third gaming giant, Nintendo, has long been employing this strategy. As of the end of 2021, Nintendo’s top 10 games on the Nintendo Switch comprise of well-known series such as Mario Kart, Animal Crossing, Super Smash Bros., Zelda, and Pokemon. Without exception, every single game is either directly published by Nintendo or exclusive to the Nintendo Switch system. When comparing...