
Xbox's ongoing pursuit of Activision Blizzard has been the centre of attention in the gaming sphere for months now, as Microsoft continues to try and secure approval for its huge deal. This has meant we've spent plenty of time following court proceedings as of late, and recent comments from a US senator mean we're back (at least virtually) in some sort of committee hall once again.
Now, we must say that we don't think this discussion relates directly to the ActiBlizz deal, but it does touch on video game monopolies, specifically on the other side of the spectrum with Sony. Basically, Democratic Senator Maria Cantwell has made some interesting comments this week about the PlayStation maker's performance in its home nation of Japan.
As part of talks on 'The President’s 2023 Trade Policy Agenda', Cantwell claims she's heard that Sony "controls a monopoly of 98% of the high-end game market" in Japan, and that the PlayStation owner has partaken in "blatant anti-competitive conduct through exclusive deals and payments to game publishers". Those are some bold claims!
"I'm told that Sony controls a monopoly of 98% of the high-end game market, yet Japan's government has allowed Sony to engage in blatant anti-competitive conduct through exclusive deals and payments to game publishers..."
The senator says that she's merely been "told" these facts, so we're not sure how accurate the claims are to be honest. The 98% figure seems to only count Xbox Series X|S and PlayStation 5 related games (if the senator is using this recent FTC definition of the market), so that does cut off a huge portion of gamers in the region.
However, if even remotely accurate the stats do make for interesting reading, and could certainly help Microsoft's case for expanding its gaming division with the merging of Xbox and Activision Blizzard. Sony clearly has a much bigger percentage of the 'high-end' market in its home nation vs. Xbox's market hold in the US, so there's an argument there to be made about Xbox trying to further compete.
For now, we don't know if these discussions will leak out into the ongoing ActiBlizz proceedings - we'll have to wait and see how the FTC handles its case in the coming months. At the time of writing, the US regulator is scheduled to present its findings at a court hearing on August 2nd, 2023.
What do you think to these bold comments? Let us know your thoughts on the matter down below.
[source subscriber.politicopro.com, via kotaku.com]
Comments 57
This reminds me of something out of the programme Veep lol
You just need to look at a lot of recent games out of Japan. The list of Japanese games which are 'PS4/PS5/Swtich' is MUCH longer than the list of games which include XBOX, and usually Steam is a higher priority by far.
Look, I'm a fan of Compile Heart and Nippon Ichi games, and every single one of them requires for me to own 'something else' to buy even one of them.
How is that not anti-competititve?
That 98% is only between playstation and xbox console sales, she has not factored in Nintendo or PC.
And as this article has left it out, Microsoft has donated half a million dollars to this senator over the years, so take this statement with a pinch of salt.
@UltimateOtaku91
There is nothing like a good ole bit of political fun.
Out of interest when is this all meant to be over and we get the final verdict, yes or no?
@UltimateOtaku91 the regulators have said that only PS5 & Xbox Series are high end consoles 🫤 they class PC differently & Switch is classed as low end with PS4 & Xbox One.
@UltimateOtaku91 that is quite the omission, those donations!
She’s not wrong. Sony dominates Japan.
well it's actually 93% for PS5 & 7% for Xbox Series X S
@ValentineMeikin this is the sad truth. xbox always got left behind
@Kezelpaso Also the CMA has said it's no longer concerned about console market impact, only cloud (CMA link is in first reply):
https://mobile.twitter.com/HazzadorGamin/status/1639236823766683648
Edit: direct CMA link https://www.gov.uk/government/news/cma-narrows-scope-of-concerns-in-microsoft-activision-review
@Hexamex-Tex Nintendo has entered the chat....
@ValentineMeikin surely that's compile hearts decision to not put their games on xbox, no way playstation or nintnedo is paying to keep much games from them from xbox.
@cragis0001 I understand that but nintendo is the market leader for consoles in Japan by a long shot so surely should be taken into consideration. They even get the biggest multiplayer games on their console now with overwatch, fortnite, apex and rocket league etc
@Widey85 that is a megaton update from the CMA. Pretty huge news to be honest. I'm going to read it properly now. That's both the CMA and the EU dropping the console SLC.
I notice there's some pretty key details missing from this article, notably that the it's the senator for the state that Microsoft is based in and Microsoft has donated to their campaigns so it's hardly likely to be an unbiased opinion.
I don't think sony has monopoly in japan where's it's (nearly) all nintendo games on the japanese chart lol.
@ValentineMeikin And a PlayStation or Switch user would be required to own 'something else' to play Redfall or Starfield. That's just as unconsumer-friendly
@Kevw2006 all you'll need is a browser, that same browser you used to type that comment.
@Widey85 Yup. Gonna be a lot of hurt feelings when this deal goes through. You'll see the usual haters popping off in here. Can't wait!
I have no dog in XBOX v. PlayStation. I have both, like both, and have other consoles besides.
These statements are nonsense, leaving out a big part of the picture, from a politician accepting donations from Microsoft. All statements from our leaders need to be approached with critical thinking and a large grain of salt, but this one is just eyeroll worthy on its face.
Defining the market segment of high end consoles was the best thing to happen to xboxs case for the acquisition. That plan backfired completely and ended up supporting Microsoft case.
@J_Mo_Money Ignoring the fact that I typed that comment on my mobile phone and there's no way I'd be playing a game the scale of Starfield or Redfall on a phone screen, how do I do about purchasing either of those games to play on my mobile phone without needing to own 'something else' (i.e. game pass)?
Well Japan doesn't like things not Japanese, there's nothing MS can do about Japan as they will always side with PS and whatever Nintendo console is out.
@Kevw2006 that's your problem if you don't wanna use it on your mobile phone, but claiming you need to OWN something like you would a switch or ps5 game is funny to see. You can still find deals of game pass for a buck, or heck, free trials if you want so you pay nothing. Play it, and then unsubscribe. What's cheaper, $300-$500 console to play a game or something you can play for $1 or free on a console, a PC, or on a browser?
I'll let you do the math on that one.
@J_Mo_Money I can't think of many examples out there at the moment of any games that would make me actually go out and buy a new console specifically to play but if the situation did arise then that is probably the option I would settle on. Although on the subject or math, if you are in a position where you have to pay full price for your game pass sub and you subscribed to it solely to play a single game you are required to retain your sub for the duration that you are playing that game. If the game is an online multiplayer, live service or just a large scale game such as Starfield that you could conceivably be paying for a very long time, after you pass the 6-7 month stage of being subbed to game pass that game is now costing you more money than it would have been to buy the game outright when it released. One of the many reasons why I would prefer to buy my own console and buy games outright rather then signed up to a sub.
@Kevw2006 purchase the game on Steam, remote play on the phone. Will definitively need a controller in such a scenario because you won’t have touch controls.
Edit:
As for your math, im not sure who plays any single game for 7 months, but the minute you bring two games, that falls apart. Hell, the minute you bring buying a whole console just got that, it all falls apart.
You can defend Sony as much as you want but this part is absolutely true:
@WallyWest Japan not liking things that are not Japanese is not entirely true, they love iPhones over there, for instance.
Anyways these trade talks are usually serious business, there is a long history of encouraging American car sales in Japan and many other products, because a healthy trade relationship can’t be too one-sided. Obviously they can’t force Japan to buy American consoles (there is a funny story about rice that is bought from America and simply stored away, should look that up, but that won’t do any good for consoles.)
But pointing the third party deals could be a big thing. If this is taken seriously, by both sides of the pond, a resolution could be reached to forbid third party exclusivity deals, or at least limit their duration. I have next to zero hope of it getting there, but that would be fantastic for all of us.
@Rafie sure but that doesn’t negate the accuracy of the statement. Sony somehow has a good rep lol.
@Banjo- Sigh, do you genuinely believe that Microsoft, or Nintendo for that matter, have NEVER done that themselves? They all do it so you can't just point the finger at one.
@Tharsman CoD, FIFA and GTA are all games that I've been playing for way longer than 6 months just as a few examples. Plus I tend to buy a lot of games and start playing them and then duck in and out periodically. I have some games with save file spanning years that still aren't completed so I could easily fall into the scenario of subbing for more than a few months just for a particular game.
@Microbius It's prudent to provide all of the facts when something is being reported so that people can make up their own opinions. In this case the senator does have ties to Microsoft and that should be taken into account when opinions are formed. Of course politicians are renowned for their honesty so I'm sure everything is above board here 😉
@Kevw2006 but you just listed 3 games. None of them are in game pass (CoD likely will next year) but once you hit 3 titles, it’s cheaper to pay for game pass for the full year.
Mind you, I am not against ownership or for pushing a subscription, it’s just the math you are presenting that is making me scratch my head.
I honestly doubt there are many savy gamers that subscribe to game pass and only play one or two games a year.
MS HAS DONATED 500K TO THIS SENATOR.
She can say what she wants but when someone is receiveing payments from a company and then they try to defend said company then surely her opinion is majorly biased.
I would much prefer to hear from someone who isn't financially tied to either company.
Banjo- wrote:
I AGREE! But then what of Microsoft and Nintendo paying for exclusive deals with publishers? Same thing right...
@Valgore If they pay me over half a million dollars I just might start singing the praises of this deal too /s
@themightyant Me too, hell for 500k I would turn up to court butt naked and painted green with the xbox logo haha.
Apologies, I think we seem to have confused each other somewhere. You said that you weren't sure who would play a single game for more than 7 months I never said anything about it being the only game you played, just the only one that you were needing to sign up for a subscription to play if that was your only realistic option. I just had e some examples of games that I have played for more than 7 months to show that it is perfectly possible to be playing a game for more than 7 months. Although I do have some friends where Call of Duty is the only game that they play all year round so perhaps that's a better example? And just to be slightly cheeky, CoD WILL be on game pass, GTA HAS been on game pass and isn't EA Play available through game pass? Not the current version but FIFA is on their list of games. My point really is that if you are in the position where you are forced so subscribe to game pass to play a game that you can't play otherwise and that subscription needs to run past the point where you've paid more money for the sub than you would have buying the game outright then that's where my math is coming from. It's a hypothetical scenario for sure but also possible. I would have bought both Starfield and Redfall if they released on PS but neither of those interest me enough to invest in anything else just to play them so I guess that's one sale they've lost out on 😂
Not a good look for a company that is trying to block competitor's acquisitions under the guise of "we won't be able to compete"
"High end console market." So we ignore that mobile is were most of all gaming in Japan is, ignore that Nintendo is the next biggest by far, and ignore that PC is where most "high end" gaming in Japan happens and go for a battle between who controls 98% of the 5% of the market that remains.
I've heard it on good authority that Microsoft has a total monopoly on Dolby Atmos enabled consoles on Japan. They account for 100% of them! Someone should think of the children!
What a silly qualifier "high end consoles". Especially while Series S is in the mix that's whole purpose is to be a low-end console!
@Kevw2006 @themightyant And what pathetic justification is that anything can be wrong if it has been wrong before?
themightyant wrote:
Manipulating as always... When have I said that Nintendo and Microsoft should do this? You know very well that I haven't but you just can't help it, can you? It really hurts you behind your four-branded mask when someone is not defending Sony. Every single time.
Well, Jim how does it feel?
@Banjo- I wasn't trying to justify anything and certainly wasn't trying to suggest that you had said either Nintendo or Microsoft should do it. I was merely pointing out that all three have, and still do, engage in it. Your comment made it sound like Sony are the only ones that do it and that is blatantly false.
If you're going to call out one for it, at least call out them all.
@Kevw2006 What's the topic, sir? I just quoted the part I agree 100% with. I didn't even add anything of my own.
Kevw2006 wrote:
That's your wrong assumption.
@Banjo- The comment you quoted from the Senator is clearly implying that they think Sony are the only ones that do this since it's singling them out.
@Kevw2006 They're just evaluating the current situation.
@UltimateOtaku91 but Microsoft already explained your point of view to the regulators & they weren't interested. so Microsoft came up with the figures based on regulators argument that the high end console market is a two horse race to prove there point.
Wonder if Sony is in deep discussions with Ftc about dropping the lawsuit ? Pretty sure they don't want to turnover all those documents now.
What is Sony doing that is anti-competitive in Japan? It pisses me off too that so many third party games come out for everything except XBox, but isn't that due to lack of users on XBox?
And like someone else already commented, Japan is biased towards their own console companies, so Microsoft is fighting an even more uphill battle over there.
@Moonglow Considering this was a hearing not relating to the takeover and had no bearing in the conversation, I think it's very revealing.
@UltimateOtaku91 You have proof support your claim of donation ls received?
@UltimateOtaku91
They said high end, and PC gaming is not a massive aspect.
Are you upset that they said 97% vs 85%?
The statement is fairly accurate.
@UltimateOtaku91 high end consoles Nintendo hasnt made a HIGH end one since gamecube the switch is not high end by any definition of the term.... i think she meant consoles as that would add up to nearly 98% if you only counted sony and MS which i think is fair if your gonna say high end cause i dont feel as if Nintendo competes with sony or MS they are off doing their own thing and most i iknow own a switch they own something else.
@GuyinPA75 yeah I do
https://www.opensecrets.org/members-of-congress/maria-cantwell/summary?cid=N00007836&cycle=CAREER
Scroll down to top contributors.
There is both truth and exaggeration here. The 98% comment, pertaining to only Xbox series and ps5, doesn’t reflect the whole market in truth. However, the part where the JFTC allows Sony, as market leader, to engage in monopolistic practices without regulation is most likely fact. The deals to buy rights (at reduced cost due to market position) on third party games for both marketing and exclusivity, and then include preventions for gamepass, or in some cases even coming to Xbox at all, is obvious manipulation of the market from a market leader. That’s about as close to the nineteenth century monopolistic power plays as you can get (thinking about the railroad and oil industries and how they reinforced their dominant position through practes like this but for their own markets).
Now do I think we need to go down the rabbit hole and go after Sony? Eh not entirely. But it sure is nice to see this stuff finally being acknowledged. And now I can start to get excited, as it very well looks like this deal is going to go through.
@UltimateOtaku91 all that donations mean is that most likely MS talked to this Senator. But is the argument wrong? The 98% is an obvious misrepresentation of the market. But the fact that the JFTC allows Sony to, as market leader, engage in anticompetitive practices, is obvious to anyone paying attention to the info that’s been leaking on these “deals” they make with third parties.
@UltimateOtaku91 I 100% agree Nintendo should definitely be a factor. But like I said before Microsoft's original argument included them & the regulators ignored them. As a console being number 1 pretty much worldwide with little to no Activision Blizzard support destroys there arguments against the deal going through.
Looks like the senators are just as clueless as the regulators were at the start of this process.
@UltimateOtaku91 Sony and regulatory bodies were the ones that eliminated Nintendo and PC from the equation, in an attempt to block the ABK deal in the first place. Somehow some people conveniently gloss over this, or contract selective amnesia.
Not that it is an outrageous concept — Sony has been more effective (or focused on) at blocking 3rd party games from Xbox than PC lately. Additionally, I have a PC and a Series X. If there was no Series X, I would buy a PS. There is no world where I buy a Switch.
Either way the previous quote we heard was 96% vs. 4%. Not much better. It will always amount to upwards of 20-40x MS's market share in Japan.
As for the senator, she is a senator for Washington (MS's home state), speaking at 'The President’s 2023 Trade Policy Agenda', and the $500k was over 30 years. Even if she got it all last week, even if they asked her to speak up, is there validity to what she says?
Are there anti-competitive practices in place in Japan exacerbating this imbalance? Is the FTC scrutinizing a U.S. company's acquisition of another U.S. company while protecting or favoring a foreign company's interests?
Leave A Comment
Hold on there, you need to login to post a comment...