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"Game Pass does not have any market power," Microsoft claims

The huge statement frequently attempts to convince the regulatory body that neither Xbox nor Game Pass are dominant market forces that could stand to stifle competition should the deal go through, with repeated claims as to PlayStation's considerable market lead — calling it "the largest console platform for over 20 years, with an installed base of consoles and market share more than double the size of Xbox" — and even going so far as to claim that "Game Pass has no market power today."

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Jin_Sakai11d ago

Game Pass has no market power? The stuff these companies are saying is bizarre.

RpgSama11d ago (Edited 11d ago )

The type of crap MS is saying to get this deal through is amazing "Games Pass has no market Power" "Sony games are better" "Elder Scrolls Is a Mid-Tier Game" "We are the little guy in this fight" "COD is not that big of a game" "My name is Phil Spencer and I assure you COD will be either forever on PlayStation or 10 years max, whichever happens first",

I dare you people to find the one I made up...

Tricky question, they are all real.

notachance11d ago

Xbox is a fine example of a bunch of finance dudes trying to tap into that yummy game industry. All they can think about is services and more services, while the games itself they can just buy or pay someone else to make.

ActualEngineer10d ago

Modern MS was built on services, azure, and .net ... what did you expect?

Sonic188111d ago (Edited 11d ago )

They're in a desperate mode right now. At first I was confident that this acquisition would go through, now I'm not so sure.

-Foxtrot11d ago

Everyone of Microsoft’s counter claims against Sony are just bizarre and are trying desperately to downplay themselves rather than give good counter points to shut them up

I mean they called Elder Scrolls a mid sized game…like what…come on

enigmaticheretic10d ago

When I read the Microsoft comments like "Games Pass has no market Power" "Sony games are better" "Elder Scrolls Is a Mid-Tier Game" "We are the little guy in this fight" "COD is not that big of a game" "My name is Phil Spencer and I assure you COD will be either forever on PlayStation or 10 years max, whichever happens first"

I always think to myself, then why did you buy those companies in the first place? If these games are "mid" or "not must have games" then you literally spent billions of dollar for in your terms "mid" tier games. Thats not very cost affective if these games are just "mid".

Just come out and say why you bought those companies, you wanted now first party games to compete with Sony and your own original first party companies are not pumping out games fast enough. And in the grand scheme of things Microsoft doesnt have a huge library of exclusive to pull from. Now they do.

neutralgamer199211d ago

it's phil and MS pr team man. It's absurd

they see the writing on the wall this deal isn't going to go through

343_Guilty_Spark10d ago (Edited 10d ago )

You are a liar.

Game Pass accounted for ca. [0-5]% of digital distribution of gaming content globally.
if cod improves gamepass, Sony could improve their service by including "day and date" games
cod isn't that important to xcloud when it's a game that requires minimal latency
microsoft says cloud gaming is small and uncertain to succeed
Microsoft has a global share of less than [5-10]% in PC game publishing, as well as PC game distribution
this deal centered around mobile, and breaking up the duopoly of storefronts (iOS/Android)
Phil Spencer talks about a next generation game store that operates everywhere ("universal store"), but is risky and depends on proposed regulations
CMA concerned Microsoft could not abide contractual obligations, like cod marketing rights, by terminating them early. This is despite even Sony saying they expect MS to abide contract obligations
"Sony is also perusing an aggressive mobile strategy"
"the next new generation of consoles are not expected to be released before the fall of 2028 at the very earliest"
Microsoft expects their subscription revenue in 2030 to account for the same share it does today
82% of Activision’s revenue is generated from just three titles (Call of Duty, World of Warcraft – which is only available on PC – and Candy Crush – not available on consoles)
"If Sony were indeed worried about a hypothetical withholding of Activision content, it would have at the very least six years to prepare a competitive response in time for the launch of the next generation of console."

ActualEngineer10d ago

I have no idea why you are downvoted so much ... I guess most users in here are children-like clueless adults ...

DarXyde10d ago

The thing about Microsoft that you have to realize is this is a pattern with them. Remember Rise of the Tomb Raider? "Coming exclusively to Xbox One in 2015". They are masters of pedantry. They're hoping their words are taken in a very specific context in mentioning it has no power "today".

I 100% guarantee you that, if this acquisition goes through, the requirement to get Call of Duty and other titles (in fact, why not all of them) would be to allow XGP on their hardware. I suspect that would kill off competing services (i.e., Playstation Plus).

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11d ago Replies(3)
Profchaos11d ago

Elder scrolls is a small niche franchise, cod isn't a hugely popular monster of a game, Xbox isn't a competitive power and are just the little guy and now gamepass isn't influential.

Microsoft are trying to sing whatever's tune they need to in order to get this over the line it's looking a little desperate now as oppose to the confident front they were presenting a few months earlier.

Most of these statements are all contrary to previously statements made by Microsoft themselves who constantly boast about gamepass and the franchises they own.

Welshy11d ago (Edited 11d ago )

The size of Gamepass, whether it be "the future" as MS would have you believe before, or "no market power" as they claim now are both irrelevant.

The point is that if I'm a trillionaire (as MS is) and I start "Welshy's Cool Games Sub" tomorrow and have zero customers, if I then use said trillions to acquire multiple huge publishers and exclusively put them all on "WCGC" I am forcing literally everyone to use me and only me to access that content where they didn't have to before.

That is the contentious issue here, not the past, present, or future size of Gamepass or the Xbox division of MS. It's incredible how MS are trying so hard to push this narrative that Xbox is this poor betrodden independent games business and not a branch of one of the richest corporations in history in MS.

Profchaos11d ago (Edited 11d ago )

It's also laughable that they continue to compare these games to the mobile market in order to skew the numbers this game was played on gamepass by 20 million players it's our biggest releases yet but is only 1% of the mobile market so candy crush is really where the money is at so really we're in this for the gaming community were really trying to save them

porkChop11d ago

"if I then use said trillions to acquire multiple huge publishers and exclusively put them all on "WCGC" I am forcing literally everyone to use me and only me to access that content where they didn't have to before.

That is the contentious issue here, not the past, present, or future size of Gamepass or the Xbox division of MS."

Xbox doesn't put games exclusively on GP though. They still sell games on both Xbox and PC. No one is being forced to use GP.

Welshy11d ago (Edited 11d ago )

@porkchop

You know what I mean, you're really plucking out and focusing on something you know I wasn't saying. I was just using that as an example scenario to showcase the issue, i know games aren't GP exclusive and never said that.

Good job entirely swerving the bigger picture that I was referencing though, what are your thoughts on being forced to move to another platform to maintain access to a product/IP you have and have always had on your existing platform?

porkChop10d ago

I think it sucks. I've said before that I'd rather MS not make COD exclusive. I didn't like when MS made Dead Rising 3 or Rise of the Tomb Raider exclusive, nor did I like when Sony made FF7R or SFV exclusive.

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Godmars29011d ago

*facepalm*

Wasn't that the whole point in Game Pass?

Thundercat7711d ago (Edited 11d ago )

And Sony achieved all that by working hard, investing in studios and their first party games... Not buy buying the whole industry just to take an unfair advantage.

Microsoft wants to pay to achieve what Sony has done with quality hard work and passion.

shinoff218311d ago

I've said it before. Probably in atleast 6 different articles today. They are trying to strong arm the industry.

Profchaos10d ago (Edited 10d ago )

Sega had bigger problems that just Sony there was major conflict ongoing between the Japan and US arm of sega causing problems with so many games most famously the Japan arm refusing to let the US arm use their proprietary game engine to build sonic Xtreme for the Saturn after the team was forced to shift focus to the Saturn instead of making a 2d sonic swansong on the genisis.
Japan wanted the US arm shutdown and to regain majority control and they didn't care if they caused chaos with customers expectations
Also refusal to let game deadlines slip and their willingness to ship a dud because of arbitrary dates like anniversaries

zaanan10d ago (Edited 10d ago )

So sick of hearing this bullshit about Sony destroying Sega by paying for exclusivity for one game. Here is the real history:

Sega paid Eidos to make Tomb Raider exclusive to Sega Saturn for a month. Sales were disappointing on Saturn, but excellent on PS.
https://seganerds.com/2016/...

Core said that Saturn could not handle the sequel, due to the cancellation of the Saturn 3D cartridge. Eidos then signed an exclusive agreement with Sony. The sequels were eventually ported to the Dreamcast.
https://en.m.wikipedia.org/...

Sega destroyed themselves by being fucking idiots.

Profchaos10d ago

@zaan
Totally agree they launched the 32x with console equivalent pricing on the back of the cd then out of no where dropped the Saturn and when that did poorly rushed out the Dreamcast.
Nobody wanted to buy a Sega system anymore because there was always the threat they would simply give up and push out something else if it didn't do genises/mega drive 2 numbers.

I find that whole era fascinating to be honest I grew up in that but I didn't know politics and drama of it all until much later it's a great example of how arrogance can sink even the sturdiest ship.

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