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FTC docs reveal Nintendo briefed Activision on plans for upgraded 'next gen' Switch to better compete with Xbox and PlayStation

  • Documents from the FTC investigation reveal Activision executives were briefed by Nintendo on a new "next generation" Nintendo Switch console.

  • The new console will likely have upgraded technical capabilities to match PlayStation and Xbox, allowing it to run more third party games like Call of Duty.

  • An email from Activision's CFO said the company could make "something compelling" for the new Switch and wanted early access to prototypes.

  • Nintendo showed the successor console to developers behind closed doors at Gamescom 2022, suggesting a wider effort to court third parties.

  • The FTC investigation documents provide insight into both Nintendo's new console plans and the regulator's battle to block Microsoft's acquisition of Activision.

forbes.com
Relevant topic timeline:
The main topic is the history of competition and business models in the video game industry. 1. The industry has seen a shift from vertical integration to modularization, with the first video game console being the Magnavox Odyssey. 2. Atari's 2600 introduced the concept of self-contained game cartridges, allowing players to use the same system for different games. 3. Activision's emergence as a third-party developer marked a major restructuring of the industry, leading to a flood of poor quality games and the video game crash of 1983. 4. Sony's PlayStation and Nintendo's Famicom/NES implemented strict control over third-party developers, with Sony later pivoting to focus on exclusives. 5. Microsoft's acquisition of Activision raises concerns about competition, but it is actually a move to build a new business model based on subscription services, which challenges Sony's exclusive strategy.
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