The video game industry is facing an interesting situation as Sony and Microsoft continue to battle over the latter’s proposed $69 billion dollar purchase of Activision Blizzard. While the topic of the acquisition has been hotly debated, more and more people are being drawn into the debate, including Democratic Senator Maria Cantwell representing the state of Washington.
During a Senate finance committee hearing on “The President’s 2023 Trade Policy Agenda,” Cantwell raised the spectre of Sony’s monopoly of the “high-end game market.” She accused Japan’s government of allowing Sony to engage in anti-competitive conduct through exclusive deals and payments to game publishers, creating games that are among the most popular in Japan. Cantwell then called on US trade representatives to discuss the issue with Japan as part of ongoing digital trade negotiations.
While it’s not unusual for politicians to speak on topics they may not be experts on, Cantwell’s comments are truly bizarre. Her “98% of the high-end game market” statistic is very carefully selected to exclude the PC, Nintendo, and mobile games, and pits PlayStation against Xbox, which is true in Japan, but not on a global scale. In reality, the video game market is much larger and more complex than just two consoles.
Sony doesn’t even have a 98% share of the God of War market, a series they own, since Steam is getting 30% of every sale on PC. Companies like Epic and Microsoft also offer exclusive deals and payments to game publishers all the time. If Cantwell wants to talk about monopolies, the latest Steam stats for the PC show that 96% of the platform’s install base is using Windows.
It’s surprising that Cantwell chose to attack the Japanese government with inaccurate statistics when there are actual and credible ways she could be criticizing Sony’s opposition to the deal. It’s also interesting to note that Microsoft employees have been her biggest individual contributors of campaign finances over the course of her political career.
The situation between Sony and Microsoft over the proposed acquisition of Activision Blizzard is ongoing, and it’s unclear how it will ultimately play out. However, Cantwell’s comments have certainly added an interesting twist to the debate, drawing attention to the video game industry and its role in international trade and diplomatic relations.
Another potential impact of the ongoing battle between Sony and Microsoft over the latter’s proposed purchase of Activision Blizzard is on the future of the video game industry itself. If the acquisition goes through, it would create a behemoth in the gaming world, potentially stifling competition and innovation.
On the other hand, if the deal falls through, it could leave the door open for other companies to step up and challenge the established players. This could be particularly beneficial for smaller, independent game developers who may find it easier to compete in a more diverse market.
It’s also worth considering the impact on consumers. If the acquisition goes through, it’s possible that gamers could see fewer options and higher prices for games, as the new company would have a near-monopoly on the high-end game market. Conversely, if the deal falls through and competition remains strong, consumers could benefit from more options, lower prices, and a greater variety of games to choose from.
The ongoing battle between Sony and Microsoft over the proposed acquisition of Activision Blizzard has the potential to significantly impact the video game industry, from competition and innovation to consumer choice and pricing. As the debate continues to rage on, it will be interesting to see how it all plays out, and what the future holds for the world of gaming.