Judge Jacqueline Corley, who ruled in favor of Microsoft’s acquisition of Activision Blizzard in the United States, believes that the Nintendo Switch is a PS5 and Xbox competitor. In her detailed judgment denying the Federal Trade Commission’s (FTC) request for a preliminary injunction against the deal, Judge Corley sided with Microsoft on this debate.
Does the Switch really compete with the PS5 and Xbox?
The definition of console market has been hotly debated, with some defining a “high-end” console market where only PlayStation and Xbox compete with one another. It has long been said that the Switch targets a completely different audience than PlayStation and Xbox, but Microsoft says that its Xbox Series S is priced to compete with the Switch.
“There are functionality differences between the Switch and the PlayStation and Xbox consoles – the Switch is portable, and it has its own screen and less powerful hardware,” Judge Corley acknowledged. “However, neither the FTC nor its expert consider the extent to which the Switch’s differentiated features including its price, portability, and battery are factors the customer balances when deciding which console to purchase.”
Judge Corley also acknowledged “content differences” between the Switch and PlayStation/Xbox, but noted that many of the games available on Sony and Microsoft platforms are also available on Switch.
