The Federal Trade Commission’s request for an injunction stopping that acquisition heads toward opening arguments this week, the federal regulator cites one piece of what it calls “powerful evidence” that it can’t trust Microsoft’s assurances. In short, as the FTC puts it, “Microsoft’s actions following its 2021 acquisition of ZeniMax speak louder than Defendants’ words.”
All this really does is seem to encourage the way Sony does business which is to just buy exclusivity agreements with third party studios. Both methods (buying established studios outright and buying exclusivity agreements) seem highly anticompetitive and bad for gamers overall.
If this deal does end up getting blocked, I can see MS taking their bag and money hatting any third party game that isn’t locked down yet as a timed or permanent exclusive. If it’s fine for Sony to do things that way, why not MS?
If we actually want to solve that problem though, the solution isn’t to just stop the purchase and call it a day. And I doubt the FTC is going to lobby legislators to actually do their jobs.
Right. For the FTC to properly do their job here they need to take into account how the industry is using contracts to circumvent anti-trust.
Or they could nurture growing studios and develop new IP under their own management?
So could Sony, instead of locking down stuff like Final Fantasy. They had plenty of developers in Japan to work on a JRPG, but they downsized those studios to focus on their big AAA western Devs.
This is about Microsoft’s options to build a better quality library, not a defense of Sony’s timed exclusivity practices (practices which Xbox also used when on top during the 360 era).
Still, Sony did nurture the studios they acquired and developed quality titles through those studios that pushed them ahead and gave them the reputation of having a “prestige” library. Even recently, Returnal is an example of such nurturing.
Nothing prevented Microsoft from competing except their own poor management decisions to milk franchises dry from the 360 era without adequate quality controls and a general incompetence at developing a comparably prestigious library since that generation.
Microsoft being blocked from throwing their much larger bags of money at acquiring one of the biggest publishers in the industry does not mean their only option is to do timed exclusivity deals.