Microsoft expects next-gen Xbox, PS6 to launch in 2028
Microsoft is locked in a legal tussle with the US Federal Trade Commission (FTC) over its $69 billion bid to acquire Activision Blizzard. FTC in federal court has argued that Microsoft’s acquisition of FTC will hurt competition in the gaming market. Microsoft, on the other hand, has argued that it doesn’t plan to make Call of Duty, a game that on the surface level has been the bone of contention since the beginning, Xbox exclusive at any point. The ongoing court hearings have revealed a lot of details, including when the expects the next-generation gaming consoles to hit the market.
According to the documents submitted by Microsoft in the court (first reported by IGN), the company expects the next-generation of gaming consoles, which includes both next-gen Xbox and Sony’s PlayStation 6, to arrive in the market sometime in 2028, which is roughly eight years after the Xbox Series X and the PlayStation 5 arrived in the market.
Talking about the draft proposal that Microsoft sent to Sony, like it did with Nintendo and Nvidia, Microsoft in the court documents said that the 10-year term would ‘go beyond the starting period of the next-generation of consoles’.
Here’s what the court documents say:
“The duration of Microsoft’s commitment to Sony is a 10-year term, to take effect upon completion of the Transaction. This term would in any case go beyond the expected starting period of the next generation of consoles (in 2028). Thus, Call of Duty will be published on successor PlayStation consoles should one be released during the term of the agreement. The agreement also would ensure that Call of Duty console games are offered on PlayStation at parity with Xbox.”
Furthermore, Microsoft in the documents submitted in the court said that it has no reason not to provide games by Activision on Sony’s platform as doing so would cost it billions on dollars. “There is no reason for Xbox to not make this deal with Sony, as discontinuing distribution of Activision’s titles on other platforms would cost Microsoft billions in revenue,” the company wrote.
Furthermore, the company said that Activision’s SEC filings reveal that after Google and Apple, Sony is the platform with the next largest share of Activision revenues and that “Activision’s sales on the Xbox platform were too low for Activision to break out”. And so, financially, it makes more sense for Microsoft to keep offering CoD and other games on PlayStation.
“Because Xbox loses money on each console sold, Xbox is actually better off financially having a PlayStation gamer purchase Call of Duty for PlayStation (for which Xbox would collect royalties) than having a PlayStation gamer purchase an Xbox console for the sole purpose of playing one Call of Duty game (because the subsidy loss would be greater than the profit from the game),” Microsoft added.
The post Microsoft expects next-gen Xbox, PS6 to launch in 2028 appeared first on Techlusive.
Microsoft is locked in a legal tussle with the US Federal Trade Commission (FTC) over its $69 billion bid to acquire Activision Blizzard. FTC in federal court has argued that Microsoft’s acquisition of FTC will hurt competition in the gaming market. Microsoft, on the other hand, has argued that it doesn’t plan to make Call of Duty, a game that on the surface level has been the bone of contention since the beginning, Xbox exclusive at any point. The ongoing court hearings have revealed a lot of details, including when the expects the next-generation gaming consoles to hit the market.
According to the documents submitted by Microsoft in the court (first reported by IGN), the company expects the next-generation of gaming consoles, which includes both next-gen Xbox and Sony’s PlayStation 6, to arrive in the market sometime in 2028, which is roughly eight years after the Xbox Series X and the PlayStation 5 arrived in the market.
Talking about the draft proposal that Microsoft sent to Sony, like it did with Nintendo and Nvidia, Microsoft in the court documents said that the 10-year term would ‘go beyond the starting period of the next-generation of consoles’.
Here’s what the court documents say:
“The duration of Microsoft’s commitment to Sony is a 10-year term, to take effect upon completion of the Transaction. This term would in any case go beyond the expected starting period of the next generation of consoles (in 2028). Thus, Call of Duty will be published on successor PlayStation consoles should one be released during the term of the agreement. The agreement also would ensure that Call of Duty console games are offered on PlayStation at parity with Xbox.”
Furthermore, Microsoft in the documents submitted in the court said that it has no reason not to provide games by Activision on Sony’s platform as doing so would cost it billions on dollars. “There is no reason for Xbox to not make this deal with Sony, as discontinuing distribution of Activision’s titles on other platforms would cost Microsoft billions in revenue,” the company wrote.
Furthermore, the company said that Activision’s SEC filings reveal that after Google and Apple, Sony is the platform with the next largest share of Activision revenues and that “Activision’s sales on the Xbox platform were too low for Activision to break out”. And so, financially, it makes more sense for Microsoft to keep offering CoD and other games on PlayStation.
“Because Xbox loses money on each console sold, Xbox is actually better off financially having a PlayStation gamer purchase Call of Duty for PlayStation (for which Xbox would collect royalties) than having a PlayStation gamer purchase an Xbox console for the sole purpose of playing one Call of Duty game (because the subsidy loss would be greater than the profit from the game),” Microsoft added.
The post Microsoft expects next-gen Xbox, PS6 to launch in 2028 appeared first on Techlusive.
