FTC v. Microsoft: all the news from the big Xbox courtroom battle

Microsoft’s new disc-less Xbox Series X is far from the only news that just leaked out of the FTC v. Microsoft case. The documents may also reveal Microsoft’s far future plans for 2028 — by which the company believed it could achieve “full convergence” of its cloud gaming platform and physical hardware to deliver “cloud hybrid games.”

“Our vision: develop a next generation hybrid game platform capable of leveraging the combined power of the client and cloud to deliver deeper immersion and entirely new classes of game experiences.”

Microsoft Gaming CEO Phil Spencer would really like to buy Nintendo someday. In an August 2020 email to two top Microsoft marketing executives, Spencer wrote that “Nintendo is THE prime asset for us in Gaming” and that “getting Nintendo would be a career moment and I honestly believe a good move for both companies.”

The emails were revealed as part of a tranche of leaked documents from the FTC v. Microsoft lawsuit. One executive, Takeshi Numoto, asked Spencer and Chris Capossela in an email titled “random thought” about why Microsoft isn’t finding acquisition targets like Nintendo a “more attractive” way to “increase our consumer exposure and relevance.” (At the time, Microsoft was in discussions to acquire TikTok, and Numoto didn’t feel it would be the best match.)

Microsoft is planning to refresh its Xbox Series X console in 2024 with an all-new design and features. Codenamed Brooklin, the unannounced console refresh has been accidentally revealed in new FTC v. Microsoft documents this week.

The new Xbox Series X design looks a lot more cylindrical than the existing console and will ship without a disc drive. Internal confidential Microsoft documents reveal it has 2TB of storage (up from 1TB), a USB-C front port with power delivery, and an “all-new, more immersive controller.”

A document released as part of the FTC v. Microsoft case confirms what was long expected: The Elder Scrolls VI isn’t going to launch for a few years, and it isn’t coming to PlayStation. According to the new chart, which Microsoft produced for the FTC, the next Elder Scrolls game isn’t expected to launch until at least 2026 — something a Microsoft lawyer also mentioned in the court case. And much like Bethesda’s most recent games — Starfield and Redfall — it’ll be available on both PC and Xbox when it does launch.

In a statement about exclusivity attached to The Elder Scrolls VI section of the chart, which comes from an interview with Xbox head Phil Spencer in GQ, Spencer said, “In order to be on Xbox, I want us to be able to bring the full complete package of what we have. And that would be true when I think about Elder Scrolls VI.”

Rumors of a Nintendo Switch 2 announcement have grown recently after reports of developer demos at Gamescom last month. Now, we know that Activision was briefed on a next-generation Nintendo Switch last year, thanks to internal emails from the FTC v. Microsoft case.

Activision executives, including CEO Bobby Kotick, met with Nintendo executives in December 2022 to discuss a next-generation Switch. In an internal email chain, Chris Schnakenberg, head of Activision’s platform strategy and partner relations, prepared a summary of the “Switch NG” (Switch next-generation) inside a document labeled “NG Switch Draft.pdf.”

Microsoft has been planning to stream PC games over the cloud, internal emails from the FTC v. Microsoft case show. Microsoft currently streams games through its Xbox Cloud Gaming service, but it’s limited to Xbox titles as the servers run specialized Xbox Series X chips. Microsoft has been working on leveraging its Azure servers to stream PC games over Xbox Cloud Gaming.

Microsoft CEO Satya Nadella emailed Xbox chief Phil Spencer, Kareem Choudhry, head of cloud gaming at Microsoft, and Sarah Bond, head of Xbox creator experience, in July 2021 after rumors emerged of Google turning Stadia into a white-label cloud gaming service for developers to run their games on.

Microsoft and Activision Blizzard have agreed to extend their merger agreement pending the outcome of negotiations with UK regulators. Both parties will now have until October 18th to finalize the transaction, after missing yesterday’s original deal deadline.

“The recent decision in the US and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming,” tweeted Lulu Cheng Meservey, Activision Blizzard’s CCO and EVP of corporate affairs. “Given global regulatory approvals and the companies’ confidence that CMA now recognizes there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the deal until after October 18.”

The Federal Trade Commission (FTC) has lost what may be its final attempt to block Microsoft from buying Activision Blizzard. It’s the second loss for the FTC after a US federal judge denied its request for a preliminary injunction earlier this week to block Microsoft from acquiring Activision Blizzard until the conclusion of a separate FTC administrative case.

The FTC appealed the decision by Judge Jacqueline Scott Corley, and now the Ninth Circuit Court of Appeals has denied its request for emergency relief to prevent Microsoft from closing the deal until the result of the FTC’s appeal is complete.

The Federal Trade Commission (FTC) is appealing a recent US federal court order that cleared the way for Microsoft to purchase Activision Blizzard. The FTC filed its opposition to Judge Jacqueline Scott Corley’s decision, asking for the deal to be paused once more, this time by the Ninth Circuit Court of Appeals.

Microsoft won a grueling fight with the FTC earlier this week, with a federal judge denying a preliminary injunction request from the US regulator. “The Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition,” Judge Corley wrote in the ruling. “To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content.”

Microsoft just won a big legal fight with the Federal Trade Commission (FTC) to allow it to close its $68.7 billion Activision Blizzard acquisition. After a grueling five days of evidence and testimony, a US federal judge has sided with Microsoft to prevent the FTC from securing a preliminary injunction to halt Microsoft from buying Activision Blizzard.

The hearing involved key Xbox executives, including Microsoft Gaming CEO Phil Spencer. The Xbox chief has written to Microsoft employees about today’s FTC result, noting that the company’s focus is now on resolving the situation with the UK’s Competition and Markets Authority (CMA). Both Microsoft and the CMA have agreed to pause their legal battle to negotiate a potential remedy after the CMA initially blocked the deal over cloud gaming concerns earlier this year. Here’s Phil Spencer’s memo in full:

Microsoft and the UK’s Competition and Markets Authority (CMA) have both agreed to pause their legal battle over the proposed Activision Blizzard acquisition in order to further negotiate. Microsoft has just won a separate ruling with a US federal court against the Federal Trade Commission (FTC), and the CMA is the last regulator preventing the Xbox maker from completing its $68.7 billion Activision Blizzard deal.

The UK regulator moved to block Microsoft’s proposed acquisition in April, and Microsoft was due to appeal that decision with a hearing set to start on July 28th. Microsoft has now agreed with the CMA to pause its appeal process to look at how the transaction could be modified to address the CMA’s cloud gaming concerns.

A California judge is allowing Microsoft to close its acquisition of Activision Blizzard after five days of grueling testimony. Microsoft still faces an ongoing antitrust case by the Federal Trade Commission, but Judge Jacqueline Scott Corley has listened to arguments from both the FTC and Microsoft and decided to deny the regulator’s request for a preliminary injunction.

In a ruling submitted today, Judge Corley said the following:

Microsoft thinks we’re getting a PS5 Slim model later this year that might be priced at $399.99. The software giant is currently waiting a ruling in the FTC v. Microsoft hearing and as part of the case Microsoft has filed documents which reveal it thinks a PS5 Slim is on the way “later this year.” Here’s exactly what Microsoft says:

Insider Gaming reported last year that Sony was preparing for a PS5 with a detachable disc drive for September 2023. The console is rumored to be sold on its own without the disc drive or in a bundle, which suggests Sony could be considering making the slimmer version of the PS5 the default. This would allow people to pick with or without a bundled drive, with the option to add a drive later on if needed. Currently you have to either buy a $399 PS5 Digital Edition or the $499 PS5 with a disc drive, but there’s no option to connect an optional drive at a later date.