Xbox admits defeat in ‘console wars

What you need to know  

• Microsoft is aiming to acquire Activision Blizzard for $69 billion. 
• The Federal Trade Commission hopes to secure a preliminary injunction that would temporarily prevent Microsoft from closing the deal. 
• In its proposing finding of facts Microsoft claims Xbox has never stopped “losing the console wars.” 

The courtroom showdown between the FTC and Microsoft over the tech company’s proposed acquisition of Activision Blizzard kicked off this morning. First announced in early 2022, the pending transaction has been scrutinized by various global regulatory bodies. Xbox has frantically worked to appease their concerns. While addressing its potentially dominant position, Microsoft lamented its third-place position and admitted defeat in the ongoing “console wars.”  

Part of Microsoft’s current legal strategy is demonstrating the domineering lead PlayStation and Nintendo have established in the gaming industry. Xbox entered the market in 2001, and according to Microsoft’s own documentation, their consoles have been outperformed by Nintendo and Sony by a “significant margin.” Despite hard-fought success in the Xbox 360 generation and notable financial gain in recent quarters, Xbox claims it’s never stopped “losing the console wars.”