Editor’s note: This article is part of Day 3 (June 27, 2023) of the FTC vs. Microsoft and Activision Blizzard trial.
In the ongoing trial between Microsoft and the Federal Trade Commission (FTC), the spotlight recently shifted to PlayStation’s top executive, Jim Ryan. As the head of PlayStation, Ryan took the stand and addressed the issue of console exclusivity, specifically in relation to Bethesda Game Studios’ highly anticipated title, Starfield, being exclusive to Xbox. In his testimony, Ryan admitted his personal displeasure but firmly stated that he did not consider this exclusivity to be “anti-competitive.” These remarks shed light on an important aspect of the gaming industry’s dynamics and provide insights into the ongoing legal battle between Microsoft and the FTC.
During the trial, the FTC raised concerns about Microsoft’s proposed acquisition of Activision Blizzard and its potential impact on competition. One of the key arguments presented by the FTC revolves around console exclusivity, particularly in relation to the highly popular Call of Duty franchise. To support their claim, the FTC pointed to Starfield, a space role-playing game developed by Bethesda, which will be exclusive to Xbox consoles. The FTC argues that Microsoft’s behavior post-acquisition of ZeniMax, Bethesda’s parent company, exemplifies anti-competitive practices.
When asked about his views on console exclusivity, Ryan expressed his personal aversion to the practice. However, he clarified that he did not consider Starfield‘s exclusivity on Xbox to be anti-competitive. Ryan’s stance reveals the complexities surrounding console exclusivity and highlights the subjective nature of evaluating its impact on competition. As the head of PlayStation, Ryan’s remarks carry weight and provide valuable insight into the industry’s dynamics.
The fate of the multiplatform Call of Duty franchise remains a significant concern for Jim Ryan. If Microsoft gains control over Activision Blizzard through the acquisition, Ryan expressed apprehension about the future of Call of Duty‘s availability on PlayStation consoles. In response to these concerns, Microsoft has made commitments to keep Call of Duty multiplatform for at least the next ten years, aiming to assure regulators that the franchise’s availability will not be compromised. The outcome of the trial will have far-reaching consequences for the gaming community, as it may shape the future landscape of major franchises across different platforms.
Jim Ryan’s comments during the trial came on the third day, coinciding with the revelation of intriguing information about Microsoft’s plans to address content gaps. Reports indicate that Microsoft is actively exploring the possibility of acquiring studios like Bungie, IO Interactive, and Sega. Such acquisitions would bolster Microsoft’s portfolio and expand its content offerings, providing more exclusive titles and potentially reshaping the competitive landscape of the gaming industry.
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