Xbox points to PlayStation enforcing "blocking rights" by paying devs to keep titles off Game Pass

In a report submitted by Xbox to the Brazilian government regarding the acquisition of Activision Blizzard, the company responded to PlayStation's recent claims and refuted them in a lengthy document. The former claimed that Sony resorts to paying game developers for "blocking rights" to essentially keep those titles from appearing on the Xbox Game Pass.

Due to a prevalent practice in Brazil, PlayStation got to weigh in on Xbox's buyout of Activison Blizzard earlier this year for a price tag of $68.7bn. They pointed out that Call of Duty as a franchise is unrivaled and its popularity influences what console consumers will buy. They also discussed the implications of the Game Pass on the market and the future of its development.

In reply, Xbox submitted a 27-page response to these objections to the Brazilian government, where the company rebutted all raised claims.

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Xbox talks about Game Pass, Activision Blizzard signing, and more in their response to PlayStation's earlier objections

Sony's opinion regarding the Microsoft and Activision Blizzard deal was submitted along with statements from other such companies to the Brazilian government reviewing the multi-billion dollar deal, according to a ResetEra post. The post explains that the deal needs to be sanctioned by regulators all around the world for it to go through.

Brazil's review process invites other third parties to state what they think about the deal. To this end, these companies are sent a questionnaire to answer and the whole thing is put up on the internet for everyone to see, except certain redacted parts due to confidentiality.

In the 27-page document, which is available online for reading, Microsoft replied to the various answers and concerns raised by other companies in their answers to the questionnaire, with an emphasized focus on the statements made by PlayStation.

Regarding the Call of Duty franchise, Xbox reiterated that they won't be making the popular title as a console exclusive in the future, even beyond existing agreements. For example, the upcoming Call of Duty Modern Warfare II and Warzone 2.0 will be appearing on PlayStation.

Xbox stated that PlayStation's worries of a possible exclusivity of Activision are incoherent to their own device-centric and exclusivity focussed strategies over the years that have strengthened the latter's presence in the gaming industry. Furthermore, the report mentioned:

"Microsoft's ability to continue expanding Game Pass has been hampered by Sony's desire to inhibit such growth. Sony pays for 'blocking rights' to prevent developers from adding content to Game Pass and other competing subscription services."

Xbox went on to state in the document that Sony's statement that Call of Duty is a market of its own is erroneous and not substantiated by "any quantitative or qualitative analysis." The report noted:

"Call of Duty is just a game in the midst of a wide range of bestselling games, many of which are not even available on Xbox due to exclusivity strategies adopted by Microsoft's competitors."

Microsoft mentioned that their subscription service has managed to "attract and engage millions of players" which was already pointed out by Sony. Given that the Game Pass has managed to do so without any Activision Blizzard title available, the concerns regarding the addition of any such title to the Game Pass being a tipping point are not justifiable.

"The inclusion of Activision Blizzard content in the Game Pass does not undermine the ability to compete against other consoles, but increases competition in the gaming industry... to Sony's displeasure."

Microsoft further stated that Sony's resistance to the Game Pass model is "the usual resistance of traditional incumbents to the competition on merit represented by disruptive agents." The report mentioned that PlayStation's real fear is that "a business model innovation that gives access to high-quality content and lowers immediate costs threatens their standing leadership in the gaming industry."

Such statements from major companies grant players a rare chance to view what they think of each other's strategies and policies. Barring any legal hiccups or hurdles, the Microsoft Activision Blizzard deal is expected to be completed by June 2023.