Photo Credit: PlayStation 656mm
PlayStation CEO Jim Ryan
Activision Blizzard. He stated that Microsoft's business model for Game has some challenges, and it isn't profitable for the company. He further claims to have spoken to publishers whose titles are currently available on the service, and they seem to dislike it as well.
“I talked to all the publishers and they unanimously do not like Game because it is value destructive,” Ryan said in his testimony (via next-gen in 2028.
Ryan added that when Microsoft announced its acquisition in early 2022, Spencer reached out to him with a ‘potential letter of agreement,' alongside a list of games that Xbox is committed to keeping in parallel with PlayStation. However, it appears as though the agreement did not address the concerns Ryan had about Activision titles on PlayStation and therefore, a counter-proposal was sent. He claimed that Spencer's response “set the alarm bells ringing,” creating big concerns for Sony. The contents of the interaction were not shared in court, but it all circles back to Call of Duty potentially being added to Game — a fairly cheap alternative — that could move over PlayStation players to the other side.
The hearing also addressed Microsoft's previous acquisition i.e., Starfield becoming locked to the rival platform, he doesn't consider it anti-competitive. He doesn't share similar views about Call of Duty, though.
Earlier this week, Spencer testified that Microsoft learnt that Starfield was going to skip Xbox — possibly as a timed exclusive for the ZeniMax Media. “So the discussion about Starfield… when we heard that Starfield was potentially also going to end up skipping Xbox, we can't be in a position as a third-place console where we fall further behind on our content ownership so we've had to secure content to remain viable in the business,” Spencer said during the cross-examination (via The Verge).
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