In the ongoing legal battle between Microsoft and the FTC, a new court document sheds light on Xbox’s strategy to minimize the financial impact of making Starfield and Indiana Jones console exclusives.
Microsoft Gaming Chief Financial Officer Tim Stuart’s testimony, as cited by the FTC in their final findings of fact, reveals that Microsoft initially anticipated “more than 10 million” sales on the PlayStation platform for both Starfield and Indiana Jones. However, the company shifted gears and made the decision to keep these highly anticipated titles exclusive to Xbox.
Varied Exclusivity Approach and Market Dynamics
Xbox’s approach to exclusivity has been multifaceted. In a recent interview with IGN France, it was disclosed that Arkane Studios had been working on a PlayStation 5 version of Redfall prior to Microsoft’s acquisition of ZeniMax. However, following the acquisition, the development focus shifted to “Game Pass, Xbox, and PC” platforms, highlighting the company’s strategic alignment towards its own ecosystem.
During the trial, the FTC argued against the exclusivity of these games, claiming it to be anti-competitive. Interestingly, even PlayStation boss Jim Ryan conceded that the exclusivity of Starfield and Redfall to Xbox was not considered “anti-competitive,” acknowledging the market dynamics at play.
In the midst of these discussions, Xbox made a public commitment to maintain Call of Duty on as many platforms as possible. Supporting this stance, nearly one million documents were submitted to the court, underlining the importance of broader accessibility for the popular franchise.
In summary, Microsoft’s strategic plan revolves around leveraging its Game Pass subscription service and bolstering console sales to counterbalance the potential revenue losses resulting from the exclusivity of Starfield and Indiana Jones.
By capitalizing on their own ecosystem and emphasizing the value proposition of Game Pass, Xbox aims to mitigate the impact of these exclusive titles and maintain a competitive edge in the gaming market.
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