Microsoft boasted it could «put Sony out of business» ahead of $69 billion takeover deal

Head of Xbox Games Studios Matt Booty said Sony is the only company that can compete with Microsoft in game streaming products. Photo: Patrick T. Fallon/Bloomberg

According to recently released emails, a senior Microsoft executive said the US tech giant could «put Sony out of business» in its fight to control the video game market.

Microsoft, which develops the Xbox Console, is fighting both UK competition regulators and the US Federal Trade Commission, which have tried to block a $69bn (£54bn) takeover of Activision, the creator of Call of Duty.

The FTC has taken legal action to try to stop the deal for fear it would hurt competition in the video game market.

Recently released emails uncovered as part of the case revealed that Microsoft executives had previously discussed ways to gain an edge over rival Sony. Matt Booty, head of tech giant Xbox Games Studios, urged CFO Tim Stewart in 2019 to spend billions of dollars to put pressure on Sony's position.

Mr. Booty said: «We (Microsoft) are in a very unique position to be able to spend Sony outside of business.» The comments were made two years before Microsoft filed to acquire Activision.

Sony, the Japanese tech company, has insisted that a takeover by Microsoft would result in it being cut from the lucrative Call of Duty franchise. Microsoft claims it has no incentive to make the game exclusive to Xbox.

1605 Microsoft's 10 Biggest Acquisitions

Mr. $2 billion to $3 billion in 2020 to avoid Tencent, Google, Amazon or even Sony becoming Disney.» games and own the most valuable content.

He added that «Sony is really the only other player that can compete» with Microsoft's game streaming products.

A Microsoft spokesperson told The Verge website: «This letter is three years old and predates the announcement of our acquisition for 25 months.

«It relates to an industry trend that we have never pursued and is not related to the acquisition.»

Activision has heavily criticized CMA's decision to block the deal, alleging , indicating that the UK is «closed for business.»

Activision CEO Bobby Kotick accused the CMA of being a «tool» for the FTC. The CMA denied these claims.

Additional documents released during the US court case show that Microsoft was also seeking to buy game maker Bungie, which has developed several games for the popular Destiny game franchise, and Sega.

p>

Bungie was later bought by Sony in 2022 for $3.6 billion.