Tom Warren

If you missed Xbox CFO Tim Stuart’s earlier testimony then we have a recap right here. Let’s recap what Stuart said since then:

• Microsoft has Xbox Game Pass strategy tiers

• The Xbox mobile store gets a mention

• Microsoft has been contemplating the financial gaps of Xbox exclusivity

• The FTC accidentally lets slip that Xbox Game Pass would need to grow by 2 million subs a year to help offset Call of Duty exclusivity

• Nintendo Switch impacted Xbox Series S pricing

• The Xbox oil company and a mobile future

• Minecraft is a “significant” revenue driver for Microsoft, but not thanks to Xbox.

We’ll be back at 2:30PM PT / 5:30PM ET for closing arguments.

Microsoft has now responded, making it clear the formal period for Canada’s regulator to prevent the deal from closing has already passed:

Obviously the oil part here is consoles. He clarifies his comments:

That doesn’t mean Microsoft thinks Xbox consoles are about to die, but it sure means they don’t see much revenue opportunity there compared to the mobile market.

Stuart confirms the Nintendo Switch is an Xbox competitor and has impacted the price of Xbox Series S:

It’s still not clear how much revenue Microsoft would lose in this scenario though, but it’s a surprise piece of data we weren’t expecting to hear today.

This has to be something that Microsoft commonly looks as with these acquisitions, but the FTC points out that Xbox CFO Tim Stuart asks “What happens if revenue that Activision earns on PlayStation declines?” and then “Let’s calculate Game Pass subs and how much revenue would have to move over to Xbox to offset that gap.”

The FTC is implying here that Microsoft could take Call of Duty or other Activision games exclusive and try to make up the revenues with Xbox Game Pass subscriptions.

A colleague of Stuart’s, Jamie Lawver, a finance director at Xbox, ran the numbers to create a table that would show many subscribers Microsoft needed for Game Pass or how much Activision revenue would need to shift to console to make up for lost revenues from Sony.

“It assumes we are able to monetize the store on iOS and Android,” Xbox CFO Tim Stuart admits.

Companies like Microsoft and Spotify are hoping the EU’s Digital Markets Act will force Apple and Google to change how they distribute apps on mobile devices, and ultimately open their platforms and stores up to competition. Microsoft argues purchasing Activision is key to a mobile opportunity.

Xbox CFO Tim Stuart has been questioned for 90 minutes now, so let’s recap:

• FTC sets the stage with “Dump trucks of money” comment

• Xbox Game Pass pricing vs. Sony

• Xbox pricing changes

• The financial models for Bethesda and Activision Blizzard are key here

• Bethesda content first, better, or best on Xbox?

• “Wish we could come out and say we’re taking it all exclusive”

• Microsoft had five scenarios to pick for Bethesda games

• All Bethesda games exclusive? “Wow”

• A shift in Xbox sales?