Today, it was announced that Microsoft has acquired Activision Blizzard for a stunning sum of nearly $70 billion. The ZeniMax acquisition last year was only a fraction of that, and this recent move is showing gamers once again that Microsoft is serious about investing in the Xbox platform. Activision Blizzard owns some of the biggest IPs in the gaming industry, including Call of Duty and World of Warcraft.

With the new console generation, Microsoft has proved itself to be an aggressive competitor. Phil Spencer, CEO of Microsoft Gaming, has been clear that his goal is to make Xbox the best and most accessible way for gamers to play. However, the vision is a double-edged sword. Just like the ZeniMax acquisition made Starfield Xbox console exclusive, the Activision Blizzard deal could lock PlayStation fans out of other favorite franchises. In order to keep up, Sony needs to respond in a big way.

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PlayStation Exclusives Might Not Be Enough

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PlayStation is known for turning out incredible and high-quality exclusives, there’s no doubt about it. However, with Microsoft’s recent acquisitions, that might not be enough anymore. PlayStation’s exclusives, as incredible as they are, might not be able to keep up with the massive established franchises Microsoft now owns. With the Activision Blizzard sale, Microsoft even controls Crash Bandicoot and Spyro the Dragon, which are frequently associated with the PlayStation brand.

When the Activision Blizzard deal is finalized, Microsoft will have no less than 32 first-party studios. Some of those studios are responsible for huge IPs in the gaming industry. Microsoft’s ZeniMax acquisition took the gaming industry by storm, resulting in future Bethesda titles like Starfield becoming Xbox console exclusive. The same could happen as a result of the Activision Blizzard deal.

The Activision Blizzard buyout puts IPs like Call of Duty, World of Warcraft, Diablo, Overwatch, and many others securely under Microsoft’s umbrella. Some fans have compared Microsoft’s acquisitions to Disney’s hold on the entertainment industry. Others have said that any future deals may not even be approved because it could be viewed as Xbox having a monopoly; that’s not great news for PlayStation.

While Sony does have some amazing exclusives, Microsoft is rapidly snatching up western RPGs and first-person shooters. Fans of those genres will probably be giving their business to Microsoft, whether it's through Xbox or PC. Adding Game Pass and its 25 million subscriber milestone into the equation only makes things more urgent for Sony.

How PlayStation’s Spartacus Could Help It Compete with Xbox

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Sony is reportedly working on some kind of competitive service, at least where Game Pass is concerned. Sony’s rumored response, known as Spartacus, will combine what are currently PlayStation Now and PlayStation Plus. Rumors state that it will launch in the spring, featuring a library of classic games players can access with a subscription, at three tiers of membership.

If rumors are correct, the first tier of membership will essentially be PS Plus. The second tier would be PS Plus with access to additional PS4 and PS5 titles, while tier three would include everything in addition to backward compatibility for PS1, PS2, and PS3 titles. So far, though, nothing has been officially announced and there is no news on what the pricing will look like. It sounds fine, but there’s one crucial area where Spartacus may fall short.

Day-one releases are a staple of Xbox Game Pass and make the service an incredible value unlike anything else in the industry. Game Pass makes enormous releases like Halo Infinite and Starfield accessible and affordable for fans, lowering the price of entry. In contrast, Sony’s PS5 exclusives have actually seen a $10 price increase.

Despite what a game-changer it is, reports suggest that Sony’s Spartacus service will not include day one releases for its exclusives; rather, new games will launch on the service several months after release. Again, this is all still rumors and speculation, but if correct, day one releases with Spartacus seem unlikely.

To really compete with Xbox Game Pass, though, that has to change. If all of Microsoft’s recently acquired IPs will be coming to Game Pass on day one, PlayStation will probably have to at least come close to matching that. Spartacus may not be a bad service, but Sony needs to be bold to stand out to consumers. If the rumors are true, Spartacus doesn't sound competitive enough.

RELATED: Xbox is Acquiring Activision Blizzard, Will Own Call of Duty, Warcraft, and More

PlayStation Should Continue Acquiring First-Party Studios

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The reality is that Sony doesn’t have the same resources that Microsoft does, so it won’t be able to make the same types of massive acquisitions. However, that doesn't mean that all is lost. Far from it. If PlayStation is smart, it can still compete with Xbox in a big way by strategically acquiring smaller first-party studios.

Sony has already been doing that, to some extent. In 2021, it acquired several studios including Bluepoint, which remade Demon’s Souls for PS5, Firesprite, which is developing the VR title Horizon Call of the Mountain with Guerrilla, and Housemarque, which developed Returnal for PS5. Sony also acquired Valkyrie Entertainment and Nixxes Software, which specialize in support and PC ports, respectively.

These acquisitions don’t compare to ZeniMax and Activision Blizzard, but they are a start and Sony could have plans to go bigger. Square Enix would be a good option for Sony, especially considering that the Final Fantasy franchise has been favoring the PlayStation platform recently.

Sony could also continue buying smaller studios that have had recent successes on the PlayStation platform, such as Ember Lab. Ember Lab is a small indie studio that was responsible for Kena: Bridge of Spirits, which was a stunning debut into the gaming industry. As a PlayStation first-party studio with a larger budget and creative freedom, there’s no telling what Ember Lab could create next.

PlayStation has a lot of sway in the Japanese market as well, so it might be worth Sony’s while to look into continuing to expand. Xbox may have a lot of western RPGs, but it hasn’t done as well with JRPGs. In contrast, JRPGs have become incredibly popular on PlayStation with Atlus’ Persona 5 being just one example.

If Sony continues to acquire smaller specialized studios that can consistently and regularly deliver high-quality exclusives, in addition to lowering the cost of entry, it could keep up with Microsoft despite Game Pass and big potential Xbox exclusives. If Sony chooses not to respond, its current offerings and prices may not be enough to keep players on the platform long term.

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