- The FTC disagreed that the Nintendo Switch is relevant in the console market in contrast to the other two major brands, arguing that the handheld does not compete with the PS and Xbox.
- Judge Jacqueline Scott Corley and Phil Spencer disagreed and stated that the Switch is indeed a relevant competitor to both brands whether the FTC wants to accept it or not.
- The ruling accepted that the consoles cost a couple of hundred dollars more than the Switch, but the Xbox Series S price was reduced to compete with the console.
The FTC vs. Microsoft trial has finally ended after a long legal battle, with the giant conglomerate emerging as the final winner. A lot of prominent details were discussed in the courtroom, but one of the major particulars brought up by the FTC was the status of the Nintendo Switch’s relevancy in the market in contrast to the other two brands. The watchdog group thought that the handheld did not compete with PlayStation and Xbox consoles.
As reported by IGN, Judge Jacqueline Scott Corley and Phil Spencer noted that the Nintendo Switch is indeed a relevant rival to the PlayStation and Xbox brands whether the FTC wants to accept it or not. Both the head of Xbox and the judge were in agreement and argued against the claims made by the FTC.
FTC claims almost every witness in the case says Switch is not the same as high-performance console.
Judge Corley not impressed by the fact that it's not the same.
— Florian Mueller (@Florian4Gamers) June 29, 2023
The Federal Trade Commission argued that the Switch is quite different than the current generation of Xbox and PlayStation consoles. The watchdog group insisted in a recent ruling that “the Nintendo Switch’s pricing, performance, and content make it an improper substitute at least for purposes of its preliminary injunction motion.” Phil Spencer found it incorrect to claim that Switch “isn’t a competitor.”
There are functionality differences between the Switch and the PlayStation and Xbox consoles – the Switch is portable, and it has its own screen and less powerful hardware. However, neither the FTC nor its expert consider the extent to which the Switch’s differentiated features including its price, portability, and battery are factors the customer balances when deciding which console to purchase,” mentions the ruiling.
The ruling accepted that the PlayStation and Xbox consoles cost a couple hundreds of dollars more than the Nintendo Switch. Regardless, that is why the Xbox Series S price was lowered to compete with the well-renowned portable console.
The “content differences” between the Nintendo Switch and the other two brands were also a major point of discussion in the FTC vs. Microsoft trial. The judge accepted that many entries playable on the PlayStation and Xbox consoles are available for consumers using the Switch like Fortnite, Minecraft, Rocket League, Lego Star Wars, Fall Guys, and FIFA.
The FTC seemingly met the minimum requirements to show that the Switch is not included in the relevant market. Regardless, the court and the FTC remained in disagreement about the console’s status. It was claimed that if the court had the final hearsay, then it would find the Nintendo Switch as part of the relevant market.
With the latest trials being concluded, Microsoft is another step closer to finally closing the huge acquisition with Activision Blizzard. As revealed in the trials, Microsoft also expects that the next-gen consoles will arrive in 2028, and the PlayStation 5 Slim is likely slated to arrive later this year. Take a look at our detailed video ahead, encapsulating all the efforts that Microsoft has made so far to secure its $68.7 billion deal.
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