Sony Group Corp (NYSE:SONY) executive James Ryan has made it clear that the Japanese gaming giant will not stop in its fight to block Microsoft’s US$69bn acquisition of rival Activision Blizzard (NASDAQ:ATVI).
In a video deposition played in the San Francisco courts on Tuesday, Ryan warned the deal would result in a "degraded" experience for PlayStation gamers.
Sony fears that Microsoft (NASDAQ:MSFT) will ban or limit Activision Blizzard’s AAA franchise Call of Duty from its largest gaming console competitor.
"I believe this transaction is bad for competition," said Ryan, predicting that Microsoft might exploit Activision's highly popular shooting games in a way that would harm Sony, potentially through the "full foreclosure or partial foreclosure” of the franchise.
He accused Microsoft of using the game as a means to "disadvantage" Sony and redirect PlayStation users towards Microsoft's own services.
A spokesperson for Microsoft fired back at these claims, stating: "Microsoft wants to take gaming into the future by meeting gamers where they are across platforms, while Sony wants to protect its dominant position."
The spokesperson emphasised that Microsoft's leaders had testified in person to highlight the benefits of the merger for gamers.
The merger was controversially blocked following a ruling by the UK competition watchdog, a decision condemned by Microsoft president Brad Smith as “bad for Britain”.
“People are shocked, people are disappointed and people’s confidence in technology in the United Kingdom has been severely shaken,” Smith said at the time.
Microsoft has since tried to push the deal through, causing the US Federal Trade Commission to file a temporary restraining order in San Francisco.
Microsoft chief Satya Nadella and Activision chief Bobby Kotick are due to take the witness stand today.