Tom Warren

The FTC is arguing here that Activision doesn’t have the experience to make Call of Duty on mobile, so why would Microsoft be able to create a version for Switch?

Kotick responds:

The FTC then reveals Kotick only found out about the Nintendo Switch version of Call of Duty from news reports, and that the agreement also purports to bring a future Call of Duty game to a future Nintendo console.

But in Kotick’s previously testimony he says:

Judge Corley intervenes. “If the merger doesn’t go through, you said you made a mistake with the Switch, you’re not going to make that mistake again. What would be a reason not to?

Judge Corley: So you’d like to be able to put Call of Duty on the Nintendo Switch?

In an internal Activision 2020 email, Kotick discusses a potential commercial agreement to bring Activision games back to GeForce Now. The email is full of talking points for a meeting with Bobby Kotick and Nvidia CEO Jensen Huang.

Kotick says he never used the talking points, but the FTC is painting a picture here that Activision would put its games on subscription services and cloud services if the price was right, if it could negotiate favorable commercial terms.

The FTC is catching Kotick out with his previous testimony as he’s being evasive here at answering questions he’s previously discussed in his investigational hearing.

Judge Corley cuts in:

FTC points out that Activision hasn’t made a formal decision about not putting its games on subscriptions. “We’d evaluate,” says Kotick and that Activision has experimented. “Generally speaking I don’t believe that a multi-subscription service for games is the best way to enable players to make their investments.”

FTC points out that in previous testimony Kotick mentioned some themes are on Sony’s subscription service and that no formal decision had been made to offer other content.

Kotick agrees there could be a strategic reason to offer content on game subscriptions “for a small duration of time, but not something sustainable.”

The FTC points out that Call of Duty was the “number one selling console game” for 13 years in a row. Kotick confirms this is correct. He also confirms Call of Duty Modern Warfare II made $1 billion within 10 days of launching in 2022. It was also the highest grossing entertainment opening, that includes games, TV, and movies, but Kotick says it’s more comparable to box office figures.

FTC points out there aren’t other console games that have had a more successful launch. “I think we’ve generally been the most successful of those games,” says Kotick.

FTC points out that Call of Duty: Vanguard was a rare disappointment for Activision. “It was disappointing in the commercial results,” says Kotick. But it was still the number one selling game for consoles in 2021.

He confirms he wouldn’t put Call of Duty on a subscription service and that currently Activision is generating no revenues from these kind of services. Kotick also says the company has “experimented with a few streaming services,” but has no plan to put games on streaming services.

Microsoft’s lawyer points out there are “different maps and weapons” on platforms and Kotick says not having these isn’t degrading a game and it’s marketing. Sony currently has a marketing deal with Activision for Call of Duty.

“It’s probably the second biggest video game system of all time,” says Kotick, with deep regret.

More here.