In his recent testimony during the trial involving Microsoft and the US FTC, PlayStation CEO Jim Ryan expressed his concerns about the value of Xbox Game Pass. Ryan claimed that video game publishers unanimously view Game Pass as “value destructive.” He mentioned that he had spoken with publishers whose games are available on the service and they shared the same sentiment.
Contradicting Ryan’s statement, Microsoft Gaming CEO Phil Spencer had previously stated that Game Pass is a sustainable and profitable subscription service. This was supported by the fact that many returning publishers announced their titles for Game Pass at Xbox’s showcase this year, indicating a level of trust in the platform. However, Xbox did increase the prices for its Game Pass subscriptions worldwide. Sony is particularly concerned that once the acquisition of Activision by Microsoft is complete, the popular franchise Call of Duty may become exclusive to Xbox. Xbox, on the other hand, is open to a 10-year agreement that would ensure the release of Call of Duty games on PlayStation consoles as well.
Ryan revealed that when Microsoft announced the acquisition, Spencer reached out to him with a potential agreement and a list of games that would be kept in parallel with PlayStation. However, Ryan’s concerns about Activision titles on PlayStation were not adequately addressed, leading to a counter-proposal. Ryan expressed that Spencer’s response raised alarms for Sony. Details of the interaction were not disclosed in court, but it all comes back to the possibility of Call of Duty joining Game Pass, which could entice PlayStation players to switch sides due to the cheaper alternative.
The trial also discussed the impact of Microsoft’s previous acquisition of Bethesda Softworks on Sony. It was revealed that Redfall and Starfield, originally planned as multi-platform games, became exclusive to Xbox and PC following the acquisition. Ryan had initially expected Starfield to be available on PlayStation consoles, considering the developer’s history of releasing games on both platforms. However, Deathloop and Ghostwire: Tokyo were exceptions, as they were made available on PlayStation for a year before heading to Xbox. While Ryan doesn’t consider Starfield’s exclusivity anti-competitive, he disagrees when it comes to Call of Duty.
Spencer testified that Microsoft acted swiftly to secure Bethesda’s parent company, ZeniMax Media, after learning that Starfield might skip Xbox and become a timed exclusive for the rival PlayStation 5. According to Spencer, as a third-place console, Xbox couldn’t afford to fall behind in terms of content ownership, which led to the acquisition.
In conclusion, Ryan’s remarks about Game Pass being viewed as value destructive by publishers and his concerns regarding the future of Activision titles on PlayStation highlight the ongoing tensions between Sony and Microsoft. The trial also shed light on the impact of Microsoft’s acquisitions on Sony’s access to exclusive games. Both companies are navigating the competitive landscape of the gaming industry to secure their positions and attract players.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
