Microsoft hit a snag with their Activision Blizzard acquisition when the Federal Trade Commission (FTC) filed restraining order on their merger. Today, new evidence has come to light which indicates Microsoft’s true motives for the Activision deal.
Several hours ago, Axios shared reportedly internal Microsoft email from a separate antitrust lawsuit filed by the group of gamers suing Microsoft over the acquisition. The gamers’ lawyers broached the email in an appeal to the U.S. 9th Circuit Court, describing it as “uncontroverted evidence that Microsoft had the intention to put its main competition, the Sony PlayStation, out of the market.”
Although the email’s contents are redacted, the plaintiffs argue it was sent by Matt Booty, Head of Xbox Game Studios, to Tim Stuart, Xbox Chief Financial Officer. The passage above purportedly originates from Exhibit K, which is a confidential document lawyers from both sides have disputed. In legal documents, Microsoft designated the email as “an internal exchange” that should remain under seal. Despite this revelation, Microsoft’s lawyers commented this document won’t affect the court’s ruling.
Nonetheless, the FTC’s antitrust lawsuit against Microsoft overshadows these legal proceedings. Both parties released their witness lists for this month’s case hearings; this includes Microsoft CEO Satya Nadella, Bethesda Head of Publishing Pete Hines, Activision CEO Bobby Kotick and several Xbox executives including Booty and Stuart. PlayStation Chief Jim Ryan will also testify through video link. However, Microsoft disparaged Sony based on Ryan’s virtual court appearance.
“Unlike Sony, our most senior executives will testify in person to answer any questions about our business strategy,” David Cuddy, Microsoft General Manager of Public Affairs, told The Verge. “This deal means more choice for gamers, a fact that only becomes clearer the more you look at the case.”
The FTC case hearings will occur throughout the rest of June. As for the gamers’ lawsuit, there’s no new information available at this time.