What kind of statement is also known as a profit and loss statement quizlet?

Microsoft has responded to a list of concerns regarding its ongoing $68bn attempt to buy Activision Blizzard, as raised by the UK's Competition and Markets Authority (CMA), and come up with an interesting statistic.

In response to continued questions over whether Microsoft owning Call of Duty would unfairly hobble PlayStation, Microsoft claimed that every COD player on PlayStation could move over to Xbox, and Sony's playerbase would still remain "significantly larger" than its own.

Microsoft does not go into detail on its mental arithmetic here, but does note elswhere in its comments that PlayStation currently has a console install base of 150 million, compared to Xbox's install base of 63.7 million.

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That claim is part of a range of comments given to Eurogamer sister site GamesIndustry.biz in response to the CMA's latest report, which otherwise mostly repeats many of the same concerns raised by the UK regulator - and others around the world - already.

For those following the case, the CMA's latest intervention will not come as a surprise - it is the next step on the regulator's recent roadmap for how and when it will weigh in with its final ruling. This month, we were due the CMA's October "issues statement" - and it seems that this is the document to which Microsoft has now publicly responded.

The usual topics are covered - surrounding the potential for the deal to harm competitors should Microsoft gain too much of an advantage owning Activision Blizzard franchises (mainly, Call of Duty) and therefore being able to leverage their brand power to become a dominant market leader in the console market and cloud streaming.

Specifically, the CMA sees potential for the deal to harm Sony but also other streaming services such as Google (perhaps a moot point now), Amazon and Nvidia.

"Having full control over this powerful catalogue, especially in light of Microsoft's already strong position in gaming consoles, operating systems, and cloud infrastructure, could result in Microsoft harming consumers by impairing Sony's – Microsoft's closest gaming rival – ability to compete," the CMA wrote, "as well as that of other existing rivals and potential new entrants who could otherwise bring healthy competition through innovative multi-game subscriptions and cloud gaming services."

In response, Microsoft said such "unsupported theories of harm" were not enough to even warrant the CMA's current Phase 2 investigation - which was triggered on 1st September.

"The suggestion that the incumbent market leader, with clear and enduring market power, could be foreclosed by the third largest provider as a result of losing access to one title is not credible," Microsoft told GamesIndustry.biz.

"While Sony may not welcome increased competition, it has the ability to adapt and compete. Gamers will ultimately benefit from this increased competition and choice.

"Should any consumers decide to switch from a gaming platform that does not give them a choice as to how to pay for new games (PlayStation) to one that does (Xbox), then that is the sort of consumer switching behavior that the CMA should consider welfare enhancing and indeed encourage. It is not something that the CMA should be trying to prevent."

The CMA is due to notify Microsoft of its provisional findings in January 2023, at which point it can seek possible remedies to any sticking points raised. The regulator's final report - and overall ruling - will then be published no later than 1st March next year.

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Microsoft and Sony are both battling behind the scenes over the Activision Blizzard deal, and Microsoft is no longer pulling its punches with regulators

By Tom Warren / @tomwarren

Oct 12, 2022, 6:23 PM UTC|

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What kind of statement is also known as a profit and loss statement quizlet?

Illustration by Alex Castro / The Verge

Microsoft isn’t happy with Sony and the UK’s Competition and Markets Authority. The UK regulator signaled an in-depth review of Microsoft’s $68.7 billion deal to acquire Activision Blizzard last month, and the CMA has now published its full 76-page report (PDF) on its findings. The CMA says it has concerns that Microsoft’s Activision Blizzard deal could lessen competition in game consoles, subscriptions, and cloud gaming, but Microsoft thinks the regulator has simply been listening to Sony’s lawyers too much.

Microsoft pleaded for its deal on the day of the Phase 2 decision last month, but now the gloves are well and truly off. Microsoft describes the CMA’s concerns as “misplaced” and says that the regulator “adopts Sony’s complaints without considering the potential harm to consumers” and “incorrectly relies on self-serving statements by Sony which significantly exaggerate the importance of Call of Duty.” Microsoft even accuses the CMA of adopting “Sony’s complaints without the appropriate level of critical review,” suggesting that the regulator is simply just listening too much to what Sony has to say.

At the heart of all the back and forth is access to Call of Duty and concerns around the future of game subscriptions. “The CMA recognizes that ABK’s newest games are not currently available on any subscription service on the day of release but considers that this may change as subscription services continue to grow,” says the UK regulator. “After the Merger, Microsoft would gain control of this important input and could use it to harm the competitiveness of its rivals.”

Microsoft’s full response to the CMA, seen by The Verge, also includes parts where the company tries to, comically, make it look like it somehow sucks at gaming and it can’t compete. Microsoft says Xbox “is in last place in console” and “seventh place in PC” and “nowhere in mobile game distribution globally,” and Microsoft argues it has no reason to harm or degrade rival cloud gaming services as it wants to “encourage the major shift in consumer behavior required for cloud gaming to succeed.”

Microsoft might well be in last place in console sales during the previous generation, but it’s certainly investing billions of dollars to ensure any future Xbox sales aren’t less than half of the PlayStation and that its Xbox Game Pass bet pays off.

Sony and Microsoft have also been battling it out over Call of Duty, and the CMA recognizes this by revealing it’s concerned about Sony’s future revenues related to Call of Duty. “PlayStation currently has a larger share of the console gaming market than Xbox, but the CMA considers that Call of Duty is sufficiently important that losing access to it (or losing access on competitive terms) could significantly impact Sony’s revenues and user base.”

What kind of statement is also known as a profit and loss statement quizlet?

Call of Duty is at the center of Sony and Microsoft’s battles.Image: Activision

Sony has shown how significant Call of Duty is after it labeled Microsoft’s offer to keep Call of Duty on PlayStation “inadequate on many levels.” The Verge revealed last month that Microsoft Gaming CEO and Xbox chief Phil Spencer made a written commitment to PlayStation head Jim Ryan earlier this year to keep Call of Duty on PlayStation for “several more years” beyond the existing marketing deal Sony has with Activision. “After almost 20 years of Call of Duty on PlayStation, their proposal was inadequate on many levels and failed to take account of the impact on our gamers,” said PlayStation head Jim Ryan in response.

Now Microsoft says keeping Call of Duty on PlayStation is a “commercial imperative for the Xbox business and the economics of the transaction.” Microsoft says it would put revenue at risk if it pulled Call of Duty from PlayStation and that “Microsoft has been clear that it is counting on revenues from the distribution of Activision Blizzard games on Sony PlayStation.”

Microsoft also accuses Sony of not welcoming competition from Xbox Game Pass and that Sony has decided to block Game Pass on PlayStation. “This increased competition has not been welcomed by the market leader Sony, which has elected to protect its revenues from sales of newly released games, rather than offer gamers the choice of accessing them via its subscription, PlayStation Plus.” This comes just months after Microsoft claimed, in legal filings, that Sony pays for “blocking rights” to keep games off Xbox Game Pass.

If the UK battles are anything to go by, this acquisition could get messy as Microsoft and Sony battle it out behind the scenes to sway regulators. Microsoft even has a dedicated website to highlight its arguments as it seeks to convince regulators that its giant deal isn’t a bad one for gamers. We’re still months away from final regulator decisions, but get ready for this battle to continue to spill out onto the internet’s streets.

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What kind of statement is also known as a profit and loss statement?

A profit and loss statement, also known as an income statement or P&L statement, is a financial statement that sets out a business's revenue and gains, and expenses and losses, over a specific period of time (generally a reporting period such as a quarter or a year), and then calculates the business's net income based ...

Is profit and loss account also known as income statement?

The income statement is also known as a profit and loss statement, statement of operation, statement of financial result or income, or earnings statement.

What is another name for the profit and loss report quizlet?

Another name for the Profit and Loss report is the Income Statement.