Microsoft claims Sony pays for ‘blocking rights' to keep games off Xbox Game Pass
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Loading... - Astrid Ebong
- 11 Aug 2022
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Microsoft has claimed Sony pays for “blocking rights” to stop developers from adding their content to Xbox Game Pass. The explosive claims are part of documents (Word doc) filed with national competition regulator and part of a review of Microsoft’s acquisition of Activision Blizzard.
“Microsoft’s ability to continue expanding Game Pass has been hampered by Sony’s desire to inhibit such growth,” claims Microsoft in an August 9th filing to the Administrative Council for Economic Defense (CADE), as translated . “Sony pays for ‘blocking rights’ to prevent developers from adding content to Game Pass and other competing subscription services.”
Does this mean Sony is evil and Microsoft is casually out here revealing some dastardly business practices? The reality is likely a little more complicated on both sides. Sony could simply be paying for exclusive rights for its own streaming services, or it may have clauses in some publishing contracts that prevent some games it publishes from being published on rival subscription services.
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It’s not clear exactly what Microsoft is referring to here, but contracts for publishing games can be complex, particularly when rights for streaming and subscription services are involved. Documents filed in the Epic Games v. Apple trial last year revealed Microsoft had been considering lowering the revenue split for PC games “in exchange for the grant of streaming rights to Microsoft.”
If Microsoft had proceeded with its plans, that could have led to the company securing exclusive streaming rights on some games, preventing them from being available on rival streaming services. It all depends on how publishing contracts are written, and both Microsoft and Sony regularly secure game exclusives that involve timed releases, console exclusivity, and lots of marketing dollars.
Microsoft is attempting to convince CADE regulator that it should waive through the company’s proposed acquisition of Activision Blizzard for 68.7 billion. While the Federal Trade Commission (FTC) is analyzing documents from Microsoft on its acquisition, that correspondence is private. That’s not the case, where its competition regulator offers up public documents that provide unique insight into the business competition between Microsoft and Sony. Read More...
