Microsoft thinks we're getting a PS5 Slim model later this year that might be priced at $399.99. From a report: 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: "PlayStation likewise sells a less expensive Digital Edition for $399.99, and is expected to release a PlayStation 5 Slim later this year at the same reduced price point."

VentureBeat is enjoying "secrets that spilled out" in the Microsoft/Activision Blizzard antitrust hearings. "Whether the Federal Trade Commission wins its antitrust case or not, its attempt to stop Microsoft's $68.7 billion acquisition of Activision Blizzard has revealed a trove of new data for everyone." The FTC has argued in a federal court that the merger would harm competition in the game industry and be bad for consumers, as Microsoft could pull Activision Blizzard's games like Call of Duty away from the Sony PlayStation, despite Microsoft's stated intention of not doing so for at least 10 years. In this case, the FTC might not have had an obvious winning hand, as the industry has an odd situation. Microsoft has the highest value ($104 billion in cash alone, versus $13.4 billion for Sony) at $2.49 trillion as a company compared to $115 billion for Sony, and yet it is in third place behind Sony and Nintendo.

Hence, there's some significance to Microsoft's Xbox first-party head, Matt Booty, sending an ill-advised email in 2019 saying Microsoft "has the ability to spend Sony out of business." That was long before the deal was announced 17 months ago, but it could be used as a sign of intent. Microsoft said it never pursued this strategy. While competing fiercely is fine, using monopoly power to drive a rival out of business so you can raise prices later is a no-no...

Did the FTC prove its case? I can't say just yet. Microsoft makes a decent point in saying all the regulators of the world except the U.S. and the United Kingdom have approved the deal. But I hope to have more reasons to binge on popcorn.
In January Ars Technica noted Microsoft's contract set July 18th as the deadline for closing the deal — or else paying a $3 billion "breakup fee". The Verge spotted that some of Sony's documents were poorly redacted. While looking at the lines that were crossed out with black pens, they could see that The Last of Us Part 2 cost the company $220 million to make, with 200 people working on it, while Horizon Forbidden West cost $212 million to make, with 300 working on it for over five years. Both games made considerably more money... In the unSharpied documents, Sony also revealed that a million Call of Duty players spent 100% of their time playing Call of Duty in 2021. It also said that Call of Duty generated $800 million for PlayStation in 2021 alone in the U.S. and perhaps $1.5 billion globally. It also looks like Sony's exclusive marketing deal with Activision for Call of Duty will expire in late 2023. Sony went on to say half of PS5 owners also have a Nintendo Switch.

Microsoft also failed to redact some of its acquisition targets. Those were later marked up, but not before Axios noted that the list included Thunderful, Supergiant Games, Niantic, Playrix, Zynga, Bungie, Square Enix, Warner Bros., Sega, IO Interactive and Scopely... Among the secrets revealed among the companies Microsoft acquired: Microsoft bought Ninja Theory, maker of Hellblade: Senua's Sacrifice, for $117 million.
Thanks to Slashdot reader ole_timer for sharing the news.

Sony highly confidential information about its PlayStation business has just been revealed by mistake. As part of the FTC v. Microsoft hearing, Sony supplied a document from PlayStation chief Jim Ryan that includes redacted details on the margins Sony shares with publishers, its Call of Duty revenues, and even the cost of developing some of its games. From a report: It looks like someone redacted the documents with a black Sharpie -- but when you scan them in, it's easy to see some of the redactions. Oops. The court has scrambled to remove the document, but the damage is done; reporters and Sony's competition have already downloaded all the documents while they were in the public domain. Among other things, the document shows that Horizon Forbidden West apparently cost $212 million over five years with 300 employees, and The Last of Us Part II cost $220 million with around 200 employees.

It's not just how much games cost to make that's been revealed here, either. Sony says 1 million PlayStation gamers play nothing but Call of Duty. My colleague Sean Hollister has analyzed the document, and it appears to show: "In 2021, over [14?] million users (by device) spent 30 percent or more of their time playing Call of Duty, over 6 million users spent more than 70% of their time on Call of Duty, and about 1 million users spent 100% of their gaming time on Call of Duty. In 2021, Call of Duty players spent an average of [116?] hours per year playing Call of Duty. Call of Duty players spending more than 70 percent of their time on Call of Duty spent an average of 296 hours on the franchise."

An anonymous reader shares a report: Sony's PlayStation chief, Jim Ryan, believed that Microsoft's proposed acquisition of Activision Blizzard wasn't about locking games as Xbox exclusives, according to a newly unsealed email. Microsoft counsel revealed the exchange between Ryan and Chris Deering, former CEO of Sony Computer Entertainment, discussing the announcement of the deal last year. "It is not an exclusivity play at all," said Ryan. "They're thinking bigger than that and they have the cash to make moves like this. I've spent a fair amount of time with both Phil [Spencer] Bobby [Kotick] over the past day and I'm pretty sure we will continue to see Call of Duty on PlayStation for many years to come."

The surprise revelation runs counter to Sony's arguments against Microsoft's Activision Blizzard deal and its filings with regulators. Sony has maintained it fears Microsoft could make Call of Duty exclusive to Xbox or even sabotage the PlayStation versions of the game. Ryan went on to say, "We have some good stuff cooking," referring to Sony's Bungie acquisition which Sony announced just days after the email exchange. "I'm not complacent, and I'd rather this hadn't happened, but we'll be OK, we'll be more than OK." Microsoft initially offered Call of Duty on PlayStation for three years after the current agreement between Activision and Sony ends. Ryan called that offer "inadequate on many levels." Microsoft eventually offered Sony a 10-year deal for Call of Duty on PlayStation, but the company has refused to sign this so far.

An anonymous reader shares a report: The courtroom showdown between the FTC and Microsoft over the tech company's proposed acquisition of Activision Blizzard kicked off this morning. First announced in early 2022, the pending transaction has been scrutinized by various global regulatory bodies. Xbox has frantically worked to appease their concerns. While addressing its potentially dominant position, Microsoft lamented its third-place position and admitted defeat in the ongoing "console wars."

Part of Microsoft's current legal strategy is demonstrating the domineering lead PlayStation and Nintendo have established in the gaming industry. Xbox entered the market in 2001, and according to Microsoft's own documentation, their consoles have been outperformed by Nintendo and Sony by a "significant margin." Despite hard-fought success in the Xbox 360 generation and notable financial gain in recent quarters, Xbox claims it's never stopped "losing the console wars." As it stands, Xbox is confidently one of "big three" players in the console market, alongside PlayStation and Nintendo. However, Microsoft states its market share is trailing notably behind the most prominent competition.

The U.S. Federal Trade Commission on Thursday argued in federal court for a preliminary injunction to temporarily block Microsoft's acquisition of videogame maker Activision Blizzard, which would stop the deal from closing before the government's case against it is heard by an administrative judge. From a report: "If this deal is completed, the combined company ... is likely to have the ability, an incentive, to harm competition in various markets related to consoles, subscription services and the cloud (for gaming)," FTC lawyer James Weingarten said in the government's opening arguments in what is expected to be a five-day evidentiary hearing.

The FTC argues it needs a judge to block Microsoft and Activision Blizzard from closing their $69 billion merger until the agency's in-house court gets to rule on whether the combination hurts competition in the videogame industry. The FTC says the combination would give Microsoft's Xbox videogame console exclusive access to Activision games, leaving Nintendo consoles and Sony Group's PlayStation out in the cold. "I think you will see that every piece of evidence shows that it only makes sense for Xbox to make these Activision games to as many people on as many platforms as possible," Microsoft lawyer Beth Wilkinson said in opening arguments, adding that if an injunction is granted it could result in a three-year administrative proceeding that would kill the deal.

Sony says it has started testing the ability to stream PS5 games from the cloud. The PlayStation maker says it's testing cloud streaming for PS5 games and is planning to add this as a feature to its PlayStation Plus Premium subscription. From a report: "We're currently testing cloud streaming for supported PS5 games -- this includes PS5 titles from the PlayStation Plus Game Catalog and Game Trials, as well as supported digital PS5 titles that players own," says Nick Maguire, VP of global services, global sales, and business operations at Sony Interactive Entertainment. "When this feature launches, cloud game streaming for supported PS5 titles will be available for use directly on your PS5 console." A cloud feature for PS5 games would mean you'll no longer have to download games to your console to stream them to other devices. Sony currently supports streaming PS5 games to PCs, Macs, and iOS and Android devices, but you have to use your PS5 as the host to download and stream titles to your other devices.

Sony's chief executive has warned that cloud gaming is still technically "very tricky," playing down the risk to the console maker of the industry quickly converting to a technology on which its rival Microsoft has bet heavily. From a report: In an interview with the Financial Times, Kenichiro Yoshida said the PlayStation creator would still study "various options" in the future for streaming games over the Internet itself, adding it could utilize GT Sophy, its artificial intelligence agent, to enhance cloud gaming. "I think cloud itself is an amazing business model, but when it comes to games, the technical difficulties are high," said Yoshida, citing latency -- the fast response times demanded by gamers -- as the biggest issue.

"So there will be challenges to cloud gaming, but we want to take on those challenges." Despite various attempts to remake the gaming industry around the cloud, many users have yet to switch from a console or high-end gaming PC to streaming games entirely over the Internet, fearing the lags that can be caused by slowing Internet connectivity and server speeds. Publishers have also not been fully supportive.

An anonymous reader quotes a report from Ars Technica: Amid a plethora of game trailers, Sony dedicated a single minute of its more-than-an-hour-long PlayStation Showcase livestream on Wednesday to reveal two new hardware products. The most buzzworthy of these is surely Project Q -- that's the internal name, as the final name is still pending. Whatever it is called in the future, Project Q confirms a long-standing rumor: It's a new PlayStation handheld.

The device will be focused on streaming; Sony says it will allow users to stream any non-VR game from a local PlayStation 5 console using Remote Play over Wi-Fi. In fact, it won't be able to play games on its own; it's all about the streaming functionality. As for Project Q's specs, it has an 8-inch HD screen and "all the buttons and features of the DualSense wireless controller." Release dates and pricing for these haven't been announced [...]. Ars notes that Sony has been offering Remote Play for a while on other devices. "You can sync a DualSense controller with your macOS, Windows, iOS, or Android device and stream your games over Wi-Fi or the Internet, though the latter is laden with latency challenges."

In addition to Project Q, Sony also announced plans to launch Bluetooth earbuds that can simultaneously connect to a PlayStation console, mobile device, and PCs, similar to AirPods.

An anonymous reader shares a report: CEO of Sega, Haruki Satomi, and CFO Koichi Fukuzawa have alluded to raising the price of specific titles to bring them in line with other AAA titles published by the likes of Xbox, PlayStation, and Nintendo. "In the global marketplace, AAA game titles for console have been sold at $59.99 for many years, but titles sold at $69.99 have appeared in the last year," Satomi and Fukuzawa said in a financial earnings call. "We would like to review the prices of titles that we believe are commensurate with price increases." Sega is slightly late to the price-raising party as multiple publishers have already shifted top AAA games to the heights of $70. PlayStation first advertised God of War Ragnarok for $70 on the PS5, and Xbox will also price Starfield at this amount for the Xbox Series X|S. It seems as if this is the new norm for the gaming industry.

While claiming that "the console is the core of the Xbox brand," Microsoft's head of gaming has reiterated the company needs to focus on the wider gaming market if it's to be successful. From a report: During the Kinda Funny Games Xcast podcast, Spencer was asked if Xbox has taken its eye off the console market by focusing too much on PC. In response, Spencer said Microsoft would be wrong to think that just building great console titles could help it overtake Sony and Nintendo in terms of hardware sales. Instead, it has chosen to pursue a different strategy to the Japanese companies, one focused on fulfilling developers' vision of enabling customers to play their games on any screen. "We're not in the business of out-consoling Sony or out-consoling Nintendo," Spencer said. "There isn't really a great solution or win for us. And I know that will upset a ton of people, but it's just the truth of the matter that when you're third place in the console marketplace and the top two players are as strong as they are, and have in certain cases a very, very discrete focus on doing deals and other things that kind of make being Xbox hard for us as a team, [and] that's on us, not on anybody else."

He added: "I see commentary that if you just built great games everything would turn around. It's just not true that if we go off and build great games then all of a sudden you're going to see console share shift in some dramatic way. We lost the worst generation to lose in the Xbox One generation where everybody built their digital library of games. So, when you go and you're building on Xbox, we want our Xbox community to feel awesome, but this idea that if we just focused more on great games on our console that somehow we're going to win the console race, I think doesn't really lay into the reality of most people." Spencer claimed that 90% of the people who buy a console every year already own a PlayStation, Nintendo or Xbox console, and their digital game library lives on that ecosystem.

Sony says it sold a total of 38.4 million PlayStation 5 consoles, according to the company's latest earnings release. In the first three months of the year, it shipped 6.3 million units -- "more than triple what the company shipped in the same quarter the previous year (2 million)," reports The Verge. From the report: On the software side things were more mixed, Bloomberg notes. Revenue from game software was up overall, but units shipped fell from 70.5 million in the fourth quarter of 2021 to 68 million in the same quarter of 2022. PlayStation Network monthly active users were up slightly from 106 million to 108 million, but the number of PlayStation Plus subscribers were flat at 47.4 million.

This disparity partly reflects the lack of major first-party games releases in the quarter. But there are also concerns that the PS5's earlier hardware supply issues are having a knock on effect on software sales and subscriptions, which are important if the company wants to build a "virtuous cycle" of mutually reinforcing console and game sales. CNBC notes that the company reported an operating profit of a record 1.21 trillion yen (around $8.9 billion) for the year, with revenue in the quarter rising 35 percent to 3.06 trillion yen (around $22.5 billion).

An anonymous reader quotes a report from MIT Technology Review: Last spring, engineers in Barcelona packed up the sperm-injecting robot they'd designed and sent it by DHL to New York City. They followed it to a clinic there, called New Hope Fertility Center, where they put the instrument back together, assembling a microscope, a mechanized needle, a tiny petri dish, and a laptop. Then one of the engineers, with no real experience in fertility medicine, used a Sony PlayStation 5 controller to position a robotic needle. Eyeing a human egg through a camera, it then moved forward on its own, penetrating the egg and dropping off a single sperm cell. Altogether, the robot was used to fertilize more than a dozen eggs. The result of the procedures, say the researchers, were healthy embryos—and now two baby girls, who they claim are the first people born after fertilization by a "robot."

The startup company that developed the robot, Overture Life, says its device is an initial step toward automating in vitro fertilization, or IVF, and potentially making the procedure less expensive and far more common than it is today. Right now, IVF labs are multimillion-dollar affairs staffed by trained embryologists who earn upwards of $125,000 a year to delicately handle sperm and eggs using ultra-thin hollow needles under a microscope. But some startups say the entire process could be carried out automatically, or nearly so. Overture, for instance, has filed a patent application describing a "biochip" for an IVF lab in miniature, complete with hidden reservoirs containing growth fluids, and tiny channels for sperm to wiggle through.

"Think of a box where sperm and eggs go in, and an embryo comes out five days later," says Santiago Munne, the prize-winning geneticist who is chief innovation officer at the Spanish company. He believes that if IVF could be carried out inside a desktop instrument, patients might never need to visit a specialized clinic, where a single attempt at getting pregnant can cost $20,000 in the US. Instead, he says, a patient's eggs might be fed directly into an automated fertility system at a gynecologist's office. "It has to be cheaper. And if any doctor could do it, it would be," says Munne.

PlayStation has agreed to acquire Firewalk Studios, the AAA multiplayer developer that is working on a live service game for PS5 and PC. From a report: If the name sounds familiar, it's because Sony had already announced it would be publishing Firewalk's first game back in April 2021. It is the third dedicated live-service game studio that PlayStation has acquired over the last 18 months, alongside Bungie and Haven Studios. Firewalk was set-up in 2018 as part of ProbablyMonsters (a collective of AAA game developers). It was formed by a number of Bungie veterans, including studio head Tony Hsu (previously general manager and senior vice president of Destiny at Activision) and game director Ryan Ellis (previously creative director at Bungie). It now boasts almost 150 employees. Firewalk is the 20th developer to join PlayStation Studios.

An anonymous reader quotes a report from Ars Technica: Late last month, UK regulators said they no longer believed a proposed Microsoft-owned Activision would bar Call of Duty games from PlayStation platforms, a reversal of earlier preliminary findings. Even if you grant that premise, though, Sony says that it's still worried Microsoft could give PlayStation owners a "degraded" version of new Call of Duty games in an effort to make the Xbox versions look better.

In a newly published response (PDF) to the UK's Competition and Markets Authority, Sony says the regulators' recent turnaround is "surprising, unprecedented, and irrational." The company takes specific issue with the regulators' "lifetime value" modeling, which Sony says heavily undervalues what an Xbox-exclusive Call of Duty would be worth to Microsoft. Beyond those technical concerns, though, Sony says it worries that Microsoft might subtly undermine PlayStation "simply by not making it as good as it could be." That could include small changes to the game's "performance [or] quality of play," but also secondary moves to "raise [Call of Duty's] price [on PlayStation], release the game at a later date, or make it available only on Game Pass." Microsoft would also "have no incentive to make use of the advanced features in PlayStation not found in Xbox," Sony says, an apparent reference to the PS5 controller's advanced haptics and built-in audio capabilities.

In its own newly filed response (PDF), Microsoft reiterated that it has "no intention to withhold or degrade access to Call of Duty or any other Activision content on PlayStation." That follows on a March filing where Microsoft promised Sony parity on Call of Duty's "release date, content, features, upgrades, quality, and playability." But Sony's response reflects a continued lack of trust in such promises. The company cites detailed analyses from the likes of Digital Foundry in saying that "the technical quality of Modern Warfare II was similar across platforms" in today's market. After a merger, though, Sony argues that "Microsoft would have different incentives because degrading the experience on PlayStation would benefit Xbox, PlayStation's 'closest rival.'" "This kind of 'partial foreclosure' strategy might 'trigger fewer gamer complaints' than full Xbox exclusivity for Call of Duty, Sony says, while also allowing Microsoft to 'still secure revenues from sales of Call of Duty on PlayStation for a transitional period,'" reports Ars. "But Sony says the long-term results of this kind of 'degraded' PlayStation version would be the same as a full PlayStation ban: Call of Duty players abandoning Sony and moving to Microsoft's platforms."

"Such a move would 'seriously damage our reputation,' Sony Interactive Entertainment CEO Jim Ryan told the CMA in a recent hearing. 'Our gamers would desert our platform in droves and network effects would exacerbate the problem. Our business would never recover.'"

The UK's Competition and Markets Authority (CMA) has now sided with Microsoft over concerns the software giant could remove Call of Duty from PlayStation if its proposed Activision Blizzard deal is approved. From a report: The regulator still has concerns about the deal's impact on the cloud gaming market and will complete its investigation by the end of April. "Having considered the additional evidence provided, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action," says Martin Coleman, chair of the independent panel of experts conducting the CMA's investigation. The CMA had originally provisionally concluded that a Microsoft strategy to withhold Call of Duty from PlayStation would be profitable. Microsoft wasn't happy with that conclusion and publicly criticized the regulator's math earlier this month, arguing that the CMA's financial modeling was flawed.

Microsoft is preparing to launch a new app store for games on iPhones and Android smartphones as soon as next year if its $75bn acquisition of Activision Blizzard is cleared by regulators, according to the head of its Xbox business. From a report: New rules requiring Apple and Google to open up their mobile platforms to app stores owned and operated by other companies are expected to come into force from March 2024 under the EU's Digital Markets Act. "We want to be in a position to offer Xbox and content from both us and our third-party partners across any screen where somebody would want to play," said Phil Spencer, chief executive of Microsoft Gaming, in an interview ahead of this week's annual Game Developers Conference in San Francisco. "Today, we can't do that on mobile devices but we want to build towards a world that we think will be coming where those devices are opened up."

Microsoft is fighting with regulators in the US, Europe and UK, which have all raised concerns about the potential impact on competition from the owner of the Xbox console buying the developer of Call of Duty, one of the world's most popular games franchises. PlayStation maker Sony has been a vocal opponent of the deal. However, Spencer argues the deal can boost competition in what he called the "largest platform people play on" -- smartphones -- where Apple and Google currently operate what some antitrust authorities have called a "duopoly" over distribution of games and other apps. [...] While acknowledging it was hard to predict exactly when Microsoft will be able to launch its own store, Spencer said it would be "pretty trivial" for Microsoft to adapt its Xbox and Game Pass apps to sell games and subscriptions on mobile devices. Microsoft's current lack of mobile games was an "obvious hole in our capability" that it needed Activision Blizzard to fill, he added.

Microsoft said it would license Activision Blizzard's "Call of Duty" (CoD) to Sony for 10 years to address concerns raised by Britain over its $69 billion takeover of the games maker, according to a document published by the regulator. From a report: "Microsoft is proposing a package of licensing remedies which (i) guarantee parity between the PlayStation and Xbox platforms in respect of CoD and (ii) ensure wide availability of CoD and other Activision titles on cloud gaming services," Microsoft said in the document published on Wednesday.

An anonymous reader shares a report: The Federal Trade Commission (FTC) has largely denied Sony's request to quash a Microsoft subpoena requesting that it divulge confidential documents. Microsoft served Sony with the subpoena in January as part of its defence-building process ahead of an FTC lawsuit regarding its proposed acquisition of Activision Blizzard. The subpoena included 45 separate requests for Sony documents, including copies of every third-party licensing agreement Sony has, and "all drafts of and communications regarding" SIE president Jim Ryan's declaration to the FTC. Sony attempted to quash or limit the subpoena, arguing that a number of the requests were either irrelevant to the case or too time-consuming and expensive to carry out.

However, in a newly filed order made by the FTC's chief administrative law judge, most of Sony's arguments have been rejected. Most notable among Sony's requests was that an order to produce a copy of "every content licensing agreement [it has] entered into with any third-party publisher between January 1, 2012 and present" be quashed, a request which has been denied. Sony had argued that this information had no apparent value, and that compiling the documents would mean an "unduly burdensome" manual review of over 150,000 contract records to find which ones were relevant. Microsoft's argument, which the FTC has agreed with, was that since much of the Activision Blizzard acquisition case revolves around whether gaining access to its IP could result in Xbox-exclusive titles that could negatively impact competition, it was important to understand the full extent of Sony's own exclusivity deals and "their effect on industry competitiveness." One request the FTC did grant Sony, however, was to limit the date range of documents being requested -- as such, only documents dated from January 1, 2019 to the present date will be required.

The Motion Picture Association (MPA) issued a DMCA notice to a GitHub repo that contained a playlist that let viewers watch Pluto TVs streams on their own apps, such as VLC, MPV, and Tvheadend. From a report: The move was first noticed by TorrentFreak, and GitHub has complied and removed the repo, which ultimately does nothing. If you still have a tiny text file, you can still do exactly what the MPA tried to stop. Pluto TV, for those who do not watch it, is a service owned by Paramount that allows users to legally stream movies and TV shows free of charge on many devices. They have a mobile app, apps for Xbox and PlayStation, smart TVs, and dongles. Users do not even need to sign up to use it. In turn, Pluto's business model is predicated on serving ads and tracking user behavior. It's part of a newer breed of streaming product called free ad-supported television, or FAST. The GitHub repo in question contained M3U playlists to watch Pluto TV's content via an app like VLC. The repo basically took links that were already available and gathered them in one place. It should be noted that M3U files aren't torrent files; it's just a simple playlist file that can direct to local files and web sources.