How Sony PlayStation's attempts to block Xbox's deal with Activision Blizzard could jeopardize its own deals

Sony PlayStation has had a strong say about Xbox's potential deal to acquire Activision Blizzard ever since it was announced in January 2022.

Since then, the Japanese giants have fought their American counterparts as there have been bold discussions of potential exclusivity. While the scrutiny has been on Microsoft and its ambitions, there could be a chance for further scrutiny in other avenues.

The entire acquisition remains in fine balance at the time of writing, and a conclusion hasn't been drawn. However, Xbox has certainly managed to reasonably convince the FTC of its intentions in the US and CMA in the UK.

That being said, the deal with Activision Blizzard will likely still take some time. A greenlight to the acquisition will worry PlayStation, but they could have more things to worry about.

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Sony PlayStation's attempt to block Xbox's deal with Activision Blizzard has brought its deals under the scanner

2022 was a busy year for both PlayStation and Xbox as far as deals go. The former completed their takeover of Destiny-makers Bungie, but its potential valuation comes nowhere close to the reported $70 billion mark that Activision Blizzard could earn.

Scrutiny was expected, and it's justified to say that Xbox prepared accordingly. The last couple of months have witnessed them entering into decade-long deals with the likes of Nintendo Switch and Nvidia, among others.

Incidentally, Sony PlayStation has also been seen as a potential destination for a deal, but nothing materialized.

The tug of war has been about Call of Duty, as PlayStation has always wanted a long-term guarantee of the military shooter staying on the platform. Xbox has agreed, but only partially, as it looked to seal a similar decade-long deal that got rejected.

Since then, news has come out that Sony's platform might be looking to block the deal altogether. Nevertheless, the CMA and the FTC will make their own decisions, which will determine the success of the potential deal.

What Sony and PlayStation might not have expected is scrutiny of their own dealings. While they aren't part of any FTC or CMA investigation, several US senators have asked for transparency about their deals. This includes the Bungie acquisition and the exclusivity agreements with third-party publishers.

Final Fantasy is one of the largest video game franchises that has typically avoided the Xbox consoles. The same fate will await FFXVI, which is scheduled for release in 2023.

This is largely a result of the agreement between PlayStation and Square Enix. There could be more such agreements that Sony might have in place with other Japanese publishers.

These agreements are not illegal by any legal definition, and the parties involved have the right to make them. However, it does raise questions about anti-competitive practices. To explain in simpler words, Xbox users won't be able to play FFXVI on their consoles due to the agreement in the discussion.

It would have been understandable had Final Fantasy been a first-party title. There haven't been many questions about Redfall not being on PlayStation or God of War Ragnarok being an exclusive on Sony's console.

Recent investigations have hinted at many documents that have revealed Sony's agreements. The timing of these revelations has been less than pleasant for all parties involved. It also doesn't look good against Xbox's attempts to make its games available on as many platforms as possible.

At one point, things weren't looking too good for Xbox's deal with Activision Blizzard. However, recent weeks have been much more favorable for Microsoft and its gaming division. The conclusion is far from drawn; the result is anyone's guess.

However, things might continue for longer even if Activision Blizzard gets taken over. The recent pressure from the US Congress has been intense as they have sought answers from PlayStation. While the latter isn't liable to provide any answers, doing so could open up an avenue for a stricter line of questioning.