Sony Uses Xbox Revenue for Exclusives
Introduction
Sony has been in a long-standing fight with Microsoft over the acquisition of Activision Blizzard. Sony accuses Microsoft of using Activision Blizzard games for Xbox exclusives by not keeping their promise of cross-platform compatibility. In this article, we will delve deeper into Sony’s complaints regarding Bethesda games, specifically Starfield’s exclusivity to Xbox.
Background Information
Microsoft acquired Activision Blizzard in January 2022 for $68.7 billion, acquiring some of the most popular gaming franchises such as Call of Duty, Overwatch, and Candy Crush. Microsoft’s acquisition came as a shock to many gamers and industry experts, with some considering it a strategic move to dominate the gaming industry. Sony, the leading console maker, has been critical of the acquisition, fearing it will lead to Xbox exclusives.
The Argument
The heart of Sony’s argument is Microsoft’s promises regarding cross-platform compatibility. Sony says they are “extremely skeptical” of Microsoft’s promises, and Phil Spencer’s comments after the acquisition of Bethesda further validate their claims. Microsoft’s head of gaming, Phil Spencer, announced that Starfield and Elder Scrolls would be Xbox exclusives despite promising availability on competing platforms.
Quotes from Sony’s Statement
| H2 | “Microsoft shouldn’t be trusted when it says it would make sure Activision Blizzard games like Call of Duty would remain on competing platforms.” |
|---|---|
| H2 | “Microsoft-focused incentives to see consumers choose to play games on Xbox instead of PlayStation.” |
| H2 | “The deal should be prohibited or subject to a structural remedy.” |
| H2 | “Commercially destroy SIE’s (Sony Interactive Entertainment’s MGS (multi-game subscription) business model” |
The Implications of Exclusives
Exclusives can lead to a significant revenue increase for Xbox. When gamers are forced to buy a specific console to play their favorite games, the console sales typically increase, resulting in additional revenue for the company. Xbox exclusives like Halo, Forza, and Gears of War have shown significant revenue increases in the past, and Sony fears that Xbox will use Activision Blizzard games for a similar effect.
The Payment
Sony’s document regarding their complaints did not reveal the exact payment Microsoft had proposed for cross-platform compatibility. Only a redacted portion of the document was released, leading to speculation about the payment’s value.
Quotes Regarding Microsoft’s Quote on Cross-Platform Compatibility
| H2 | “Microsoft also publicly stated to investors that ‘we highly encourage cross-platform play [because] if it’s good for the gaming ecosystem, it’s good for us.” |
|---|---|
| H2 | “We don’t have intentions of just pulling all of Bethesda content out of [competitor platforms]’” |
| H2 | “But soon after the acquisition closed, Xbox’s head Phil Spencer revealed that, all along, the deal was about “delivering great exclusive games” for Xbox.” |
Conclusion
Sony’s complaints against Microsoft’s acquisition of Activision Blizzard show no end in sight. Sony claims that they won’t trust Microsoft to keep its promises regarding cross-platform compatibility and fears that Xbox’s exclusivity of Starfield and Elder Scrolls will lead to a higher revenue increase for Xbox at the expense of PlayStation.
FAQs
What is the controversy about?
The controversy is about Microsoft’s acquisition of Activision Blizzard, with Sony accusing Microsoft of using Activision Blizzard games for Xbox exclusives by not keeping their promise of cross-platform compatibility.
What games are exclusive to Xbox?
Starfield and Elder Scrolls are exclusive to Xbox, according to Phil Spencer’s announcement after the acquisition of Bethesda.
Why does Sony fear exclusives?
Sony fears exclusives because when gamers are forced to buy a specific console to play their favorite games, console sales typically increase, resulting in additional revenue for the company. Xbox exclusives like Halo, Forza, and Gears of War have shown significant revenue increases in the past.
What did Microsoft promise regarding cross-platform compatibility?
Microsoft had promised cross-platform compatibility for games like Call of Duty and stated that they highly encourage cross-platform play because it’s good for gamers and the gaming ecosystem.
What was the value of the proposed payment?
The redacted portion of the document did not reveal the exact payment Microsoft had proposed for cross-platform compatibility, leading to speculation about its value.