Today the United States District Court Northern District of California has published a joint statement listing the industry professionals and consultant called to testify by both the FTC and the Microsoft/Activision Bloc during the upcoming hearing to rule on the preliminary injunction requested by the regulator on the proposed acquisition of Activision Blizzard by Microsoft.
Besides a couple of expert witnesses not directly involved in the industry and one representing a company the performance of which hasn't been exactly stellar, this endless saga is certainly going to see its climax with an all-star cast including Microsoft's own Phil Spencer, Satya Nadella, Matt Booty, Sarah Bond, and more, PlayStation boss Jim Ryan (albeit he will intervene only via video deposition), Nintendo's VP of publisher and developer relations Steve Singer (also via video deposition), and Activision Blizzard CEO Bobby Kotick.Â
The document starts with the witnesses summoned by the FTC.
Phil Eisler (Vice President and General Manager of GeForce NOW Cloud Gaming at Nvidia Corp.).
Plaintiff is calling Mr. Eisler by video deposition designation to testify about the video game industry, competition in the high performance and broader video game console markets, cloud gaming, video game subscription services, Nvidia’s GeForce NOW cloud gaming service, PC gaming, Nvidia’s agreements with Microsoft, and any topics as to which he previously testified. Direct examination 10 mins. Cross-examination 5 mins.
Jeff Fisher (Senior Vice President of GeForce at Nvidia Corp.).
Plaintiff is calling Mr. Fisher by video deposition designation to testify about the video game industry, competition in the high performance and broader video game console markets, cloud gaming, video game subscription services, Nvidia’s GeForce Now cloud gaming service, PC gaming, Nvidia’s agreements with Microsoft, and any topics as to which he previously testified. Direct examination 10 mins. Cross-examination 5 mins.
Pete Hines (Group Senior Vice President and Head of Publishing at Bethesda Softworks LLC (a Microsoft subsidiary).
Plaintiff is calling Mr. Hines as an adverse witness to testify live about Microsoft’s acquisition of ZeniMax Media / Bethesda Softworks (“the ZeniMax acquisition”), Microsoft Gaming decisions about video game content, and any topics as to which he previously testified. Direct examination 20 mins. Cross-examination 15 mins.
Robin Lee (Professor of Economics, Harvard University).
Plaintiff is calling Dr. Lee as an expert witness to testify about the relevant antitrust markets in this case, the combined firm’s ability and incentive to foreclose competition, the harms to competition and consumers rom foreclosure, potential pro-competitive effects, the likely effects of the Proposed Acquisition in the relevant markets, and any of the material disclosed in his expert reports served in connection with this matter. Plaintiff intends to present Dr. Lee’s direct testimony by declaration. Cross-examination 90 minutes. Redirect examination 45 minutes.
Dov Zimring ((Former) Director of Product Management for Stadia at Google LLC).
Plaintiff is calling Mr. Zimring live to testify about the video game industry, cloud gaming, Google’s Stadia cloud gaming service, and any topics as to which he previously testified. Direct examination 20 mins. Cross-examination 10 mins.
Next, we find the witnesses brought forth by Microsoft and Activision.
Liz Bailey (PhD, Vice President, Charles River Associates).
Defendants are calling Dr. Bailey as an expert witness to testify about the opinions and conclusions of Plaintiff’s experts Robin Lee particularly regarding the gaming industry, the relevant markets alleged, the competitive significance of Activision content, and the ways in which the transaction will increase output.. Direct examination 90 minutes. Cross examination 45 minutes.
Sarah Bond (Corporate Vice President of Gaming Ecosystem, Microsoft).
Defendants are calling Ms. Bond live to testify about Xbox’s content strategy, partnerships with publishers, subscription offering for consumers, expanding distribution of Xbox games, benefits associated with the Activision acquisition, negotiations and agreements with third parties to bring Activision content onto competitor services, the remedy Xbox agreed to with the European Commission, and any topics as to which she previously testified. Direct examination 60 minutes. Cross examination 40 minutes.
Dennis Carlton (David McDaniel Keller Professor of Economics Emeritus at the Booth School of Business at the University of Chicago; Senior Managing Director, Compass Lexecon).
Defendants are calling Dr. Carlton as an expert witness to testify about the opinions and conclusions of Plaintiff’s expert, Dr. Robin Lee, particularly regarding the potential anticompetitive effects of the acquisition, and the procompetitive efficiencies arising from the acquisition. Defendants intend to present Dr. Carlton’s direct testimony by declaration. Cross examination 45 minutes. Redirect examination 60 minutes.
Amy Hood (Chief Financial Officer, Microsoft).
Defendants are calling Ms. Hood to testify about Xbox’s current gaming business, Xbox’s financial analyses and projections, Xbox’s responsibility for its financial performance; the proposed acquisition of Activision, including but not limited to, the rationale and strategy for the acquisition and approval; and any topics as to which she previously testified. Defendants intend to present Ms. Hood’s direct testimony by declaration. Cross-examination 15 minutes. Redirect examination 30 minutes.
Bobby Kotick (Chief Executive Officer, Activision Blizzard, Inc.).
Defendants are calling Mr. Kotick live to testify about Activision’s gaming business, future plans, and strategies, including but not limited to, Activision’s development and publishing of first-party gaming content, distribution strategy, evaluation of potential partnership opportunities, and any topics as to which he previously testified. Direct examination 45 minutes. Cross-examination 30 minutes.
Steve Singer (Senior Vice President, Publisher and Developer Relations, Nintendo).
Defendants are calling Mr. Singer by video deposition designation to testify about Nintendo’s position in the gaming industry, Nintendo’s agreement with Microsoft, and any topics as to which he previously testified. Direct examination 10 minutes. Cross examination 10 minutes.
Lastly, here are the witnesses called by both parties.
Matt Booty (Head of Xbox Game Studios at Microsoft).
Plaintiff is calling Mr. Booty as an adverse witness to testify live about the video game industry, Microsoft Gaming’s strategy and business, other Microsoft Gaming acquisitions, Microsoft Gaming decisions about video game content, Microsoft’s first-party game development business and strategy, the Proposed Acquisition, Microsoft’s acquisition of ZeniMax Media / Bethesda Softworks (“the ZeniMax acquisition”), competition in the high performance and broader video game console markets, cloud gaming, video game subscription services, and any topics as to which he previously testified.
Defendants are calling Mr. Booty to testify live about the game development process; Xbox Game Studios’s development, publishing, and licensing of firstparty content; the competitive landscape of the gaming industry, and any topics as to which he previously testified. Plaintiff’s examination (including direct and cross) 45 mins. Defendants’ examination (including direct and cross) 20 mins.
Jamie Lawver (Senior Finance Director at Microsoft).
Plaintiff is calling Ms. Lawver as an adverse witness to testify live about video game industry, Microsoft Gaming’s strategy and business, the ZeniMax acquisition, other Microsoft Gaming acquisitions, Microsoft Gaming decisions about video game content, competition in the high performance and broader video game console markets, cloud gaming, video game subscription services, the Proposed Acquisition, other topics regarding Microsoft’s incentive and ability to foreclose competition in the relevant markets, and any topics as to which she previously testified.
Defendants are calling Ms. Lawver to testify about the Xbox deal models and analyses, and any topics as to which she previously testified. Plaintiff’s examination (including direct and cross) 30 mins. Defendants’ examination (including direct and cross) 15 mins.
Satya Nadella (CEO of Microsoft).
Plaintiff is calling Mr. Nadella as an adverse witness to testify live about the video game industry, Microsoft Gaming’s strategy and business, the Proposed Acquisition, and any topics as to which he previously testified.
Defendants are calling Mr. Nadella live to testify about Microsoft’s gaming business, Microsoft’s approach to software distribution, the acquisition of Activision, and any topics as to which he previously testified. Plaintiff’s examination (including direct and cross) 30 mins. Defendants’ examination (including direct and cross) 15 mins.
Phil Spencer (CEO of Microsoft Gaming).
Plaintiff is calling Mr. Spencer as an adverse witness to testify live about the video game industry, Microsoft Gaming’s strategy and business, the ZeniMax acquisition, Microsoft Gaming decisions about video game content, the Proposed Acquisition, competition in the high performance and broader video game console markets, cloud gaming, video game subscription services, and any topics as to which he previously testified.
Defendants are calling Mr. Spencer to testify about Xbox’s gaming strategy, offerings, and services, Xbox’s proposed acquisition, including but not limited to the rationale and strategy for the acquisition, and Xbox’s negotiations and agreements with thirdparties to bring Activision content onto competitor services. Plaintiff’s examination (including direct and cross) 60 mins. Defendants’ examination (including direct and cross) 45 mins.
James “Jim” Ryan (CEO of Sony Interactive Entertainment).
Plaintiff is calling Mr. Ryan by video deposition designation to testify about competition in the relevant antitrust markets, the video game industry, competition in the high performance and broader video game console markets, cloud gaming, video game subscription services, the effects of the Proposed Acquisition, and any topics as to which he previously testified.
Defendants are calling Mr. Ryan by video deposition designation to testify about the gaming industry, including console gaming, subscription gaming, cloud game streaming, mobile gaming; Sony and Xbox’s negotiations regarding the distribution of Activision content, and any topics as to which he previously testified. Plaintiff’s examination (including direct and cross) 45 mins. Defendants’ examination (including direct and cross) 60 mins.
Tim Stuart (CFO of Microsoft Gaming).
Plaintiff is calling Mr. Stuart as an adverse witness to testify live about the video game industry, Microsoft Gaming’s strategy and business, the ZeniMax acquisition, other Microsoft Gaming acquisitions, Microsoft Gaming decisions about video game content, the Proposed Acquisition, competition in the high performance and broader video game console markets, cloud gaming, video game subscription services, and any topics as to which he previously testified.
Defendants are calling Mr. Stuart live to testify about Xbox’s first-party content strategy, including platform expansion and distribution, Xbox’s financial strategy for console sales and subscription services, including Game Pass’ streaming feature, Xbox’s proposed acquisition, including but not limited to the deal valuation and strategy for the acquisition, and any topics as to which he previously testified. Plaintiff’s examination (including direct and cross) 45 mins. Defendants’ examination (including direct and cross) 30 mins.
Lori Wright (Corporate Vice President at Microsoft).
Plaintiff is calling Ms. Wright as an adverse witness to testify live about competition in the high performance and broader video game console markets, cloud gaming, video game subscription services, Microsoft Gaming’s strategy and business, and any topics as to which she previously testified.
Defendants are calling Ms. Wright to testify live about Xbox’s negotiations and agreements with third parties to bring Activision content onto competitor services, and any topics as to which she previously testified. Plaintiff’s examination (including direct and cross) 15 mins. Defendants’ examination (including direct and cross) 15 mins.
Incidentally, TechRaptor received a statement from a Microsoft spokesperson about the hearing, mentioning that the company's most senior executives will testify in person, calling out Sony for appearing exclusively via video deposition.
Unlike Sony, our most senior executives will testify in person to answer any questions about our business strategy. This deal means more choice for gamers, a fact that only becomes clearer the more you look at the case.
The FTC has recently obtained a temporary restraining order against the acquisition until the federal court rules on the possible preliminary injunction, and the evidentiary hearing will be held between June 22 and June 29.
Interestingly, the case will be handled by the same Judge who denied a preliminary injunction in the so-called "Gamer's Lawsuit." Yet, this doesn't mean that she will come to the same conclusion this time around.Â
On the other side of the Atlantic Ocean, Microsoft's appeal against the British CMA's decision to block the acquisition is ongoing, with the hearing starting on July 28.Â
Recently, the European Union approved the deal including proposed remedies to level the competitive playing field on the cloud market, which Microsoft agreed to. A few weeks ago, we learned that the deal was approved by the Chinese authority, while earlier this week, South Korea's regulator also cleared the deal, bringing the number of countries that officially cleared the acquisition to 38.
Earlier this morning, the authority of New Zealand asked for further information addressing its possible concerns on the case in order to come to a conclusion in mid-July.
In an interview published a few days ago, Activision Blizzard CEO Bobby Kotick mentioned that Microsoft is “by far the best place" for the publisher, adding that the acquisition is "the right thing for the industry."
