Tom Warren

“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?

“Not just new IP but all games going forward? Wow,” says Xbox CFO Tim Stuart during the meeting, referencing a decision from Phil Spencer on Bethesda games. This would obviously differ hugely from the Bethesda deal model.

Microsoft had claimed three things its filings:

Canada’s regulator says:

Full exclusivity would impact the deal valuation and when discussing these options Jerret West, Xbox CMO, said there would be “significant upset” to full exclusivity and there’s an admission that some leaders at Bethesda won’t be happy seeing games being cut from PlayStation.

The FTC is clearly trying to show that Microsoft’s deal models are flexible where they can potentially offset losses.

Spencer responds: “we can’t say that.”

Another email between Stuart and Matty Booty, Xbox Game Studios chief, discusses making Bethesda’s games exclusives and the financial tradeoffs and concerns about valuation. The email mentions Xbox Game Pass subscriber growth, Xbox units, and offsetting these against the losses of taking games exclusive.

The FTC wants to make it clear that Microsoft would be willing to take a financial hit to boost Xbox Game Pass subscriber growth, sell more consoles, and ultimately bring more consumers to its Xbox platform.

The FTC wants Stuart to explain first, better, and best. He says first could be like Starfield, and FTC says better could mean better resolution? “Resolution is one thing, frame rate one thing. I was being pretty vague.”

Stuart argues that showing up in Game Pass could be a better experience. But Stuart also said previously that “better could be showing up in resolution.” He also said “I suspect you’ll continue to see us push for a first, better, or best approach on our platforms.”

This questioning clearly leans into the FTC and Sony’s concerns that Call of Duty could be “degraded” on PlayStation, or that games could be held back from competitor platforms.