Sony Uses 30% Income From Xbox Titles To Harm The Brand

The FTC court hearings have divulged more enticing details.

Story Highlights

  • Sony reportedly uses 30 percent of the revenue generated from Xbox games to reduce “Xbox’s survival on the market,” as stated by Phil Spencer during FTC court hearings recently.
  • The Xbox Head sees Sony as an aggressive competitor and a market leader, replying in the affirmative when FTC questioned the figure about his view. 
  • Microsoft has reportedly tried to compete with Sony for the last 20 years but has failed to do that effectively. Phil has also previously claimed to lose the console wars, putting itself in third place.
  • Microsoft is currently engaged in a legal battle with FTC in court to preserve Microsoft’s massive Activision Blizzard acquisition, but it also revealed plenty of intriguing details.

Phil Spencer is currently engaged in a legal battle with FTC in court to preserve Microsoft’s massive Activision Blizzard acquisition, but it also has resulted in many details becoming public for the gaming industry to witness. For instance, Phil has recently pointed out the alleged aggressive practices of Sony, discussing how it uses the revenue generated by Xbox games on its platforms to reduce “Xbox’s survival on the market.

As revealed by the senior editor of The Verge, Tom Warren, the Xbox Head sees Sony as an aggressive competitor, replying in the affirmative when FTC questioned the figure about his view. Phil Spencer noted that Sony is a market leader and an aggressive rival, challenging Xbox on every level to reduce its footprint in the gaming ecosystem.

Every time we ship a game on PlayStation… Sony captures 30 percent of the revenue that we do on their platform and then they use that money among other revenue that they have to do things to try to reduce Xbox’s survival on the market,” says Spencer. 

Phil Spencer further confirms that Microsoft has tried to compete with Sony for the last 20 years but has failed to tackle its strategies effectively.

The Xbox Head also suggested that it has effectively lost the console wars, calling it a social construct amid the community. Microsoft is reportedly behind Sony and Nintendo when the global market shares are concerned. In some more details, Phil Spencer earlier unveiled that Sony’s Jim Ryan acknowledged in an email that its in-progress Activision Blizzard merger is not about Xbox exclusives.

The FTC vs. Microsoft court hearings are divulging juicy details about the inner workings of both conglomerates, with Microsoft trying to preserve its prominent merger with Activision Blizzard. FTC filed a temporary restraining order and a preliminary injunction against Microsoft in the past to stop the acquisition from going through. The Federal Trade Commission of the US is among the biggest remaining hurdles towering against the ABK deal.

Plenty of enticing tidbits have been revealed in the last two days since the court hearings started with the FTC, such as Microsoft’s unveiling that the next generation of consoles will begin in 2028. We also learned that Microsoft bought Bethesda to ensure Starfield does not become a PlayStation exclusive. 

All in all, we may see even more intriguing tidbits about Starfield or the other Microsoft IPs as the court hearings proceed the following week. Phil Spencer is calling out Sony for its predatory practices in court against the FTC, but the community has stated that the latest accusation goes both ways. Many gamers have pointed out that what Sony is doing is normal, and Microsoft has also engaged in the same strategy many a time in the past.

Similar Reads: Halo Infinite Introduces Infection Multiplayer Mode With Massive Season 4 Update.

Did you find this helpful? Leave feedback below.

Thanks! Do share your feedback with us. ⚡

How can we make this post better? Your help would be appreciated. ✍

Subscribe to our newsletter and get up-to-speed gaming updates delivered to your inbox.

We don’t spam! Read more in our privacy policy.

Subscribe to our newsletter and get up-to-speed gaming updates delivered to your inbox.

We don’t spam! Read more in our privacy policy.

Source
Twitter

Shameer Sarfaraz is a Senior News Writer on eXputer who loves to keep up with the gaming and entertainment industries devoutly. He has a Bachelor's Degree in Computer Science and several years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.

Experience: 4+ Years || Education: Bachelor in Computer Science.

Related Articles

Join Our Community

Enjoyed this article? Discuss the latest gaming news, get expert help with guides and errors, and chat about all things gaming on eXputer Forums and Discord Server. Connect with fellow gamers who share your passion by becoming a part of eXputer's community.