Thus far, the ongoing saga of Microsoft’s near $70 billion purchase of Activision Blizzard is 2022’s most significant gaming story. However, the transaction still needs approval from several regulatory bodies, including the Federal Trade Commission (FTC) and UK’s Competition and Markets Authority (CMA), and Brazil’s Administrative Council for Economic Defense (CADE). Sony recently told CADE Call of Duty ownership could sway console sales in Xbox’s favor, and now Microsoft is responding with fresh accusations.
Microsoft has now filed a 27-page document stating that Sony pays publishers and developers not to put titles on rival subscription services such as Xbox Game Pass. CADE published the original paper online in Portuguese, with VGC providing English translations.
“Considering that exclusivity strategies have been at the core of Sony’s strategy to strengthen its presence in the games industry, and that Sony is a leader in the distribution of digital games, Sony’s concern with possible exclusivity of Activision’s content is incoherent, to say the least,” Microsoft said. “Indeed, Microsoft’s ability to continue expanding Game Pass has been obstructed by Sony’s desire to inhibit such growth. Sony pays for ‘blocking rights’ to prevent developers from adding content to Game Pass and other competing subscription services.”
It’s worth remembering that the Activision Blizzard buyout isn’t complete, even after company stockholders unanimously voted in favor of Microsoft’s acquisition. Still, Sony clearly isn’t keen on the deal.
“[Sony] does not want attractive subscription services to threaten its dominance in the digital distribution market for console games,” Microsoft continues in the filing. “In other words, Sony rails against the introduction of new monetization models capable of challenging its business model.”
Sony’s re-launch of PS Plus came out earlier this year as a competitor for Xbox Game Pass. Similar services like EA Play are available on the PlayStation Store as well.
Written by Kyle Campbell on behalf of GLHF.
