mckmas8808
Mckmaster uses MasterCard to buy Slave drives
It's interesting to see so much back and forth about Microsoft's smaller install base and this being the reason for their inability to equally negotiate for third-party exclusives versus Sony.
While there is some logic to this, that Sony is in a better negotiating position for these types of deals, everyone keeps making it seem like it's shady business practices by Sony that are the cause. But the real cause is Microsoft's decision to focus their strategy on game pass which has clearly led to a decrease in their market share and more importantly significant decreases in traditional software sales on their platform.
They chose to go that route and publishers and developers are just aligning themselves with the business model that best suits them. It's not merely a matter of traditional market share anymore. And Microsoft's only way out is to buy up everything, because who the hell else is going to make expensive software and put it on a loss leading platform except for heavily monetized GAAS games, Indies trying to get eyes on their software, and those Microsoft is willing to throw big dollars at while they try and artificially grow their platform.
It's a war of business models not simply install base and to argue otherwise is disingenuous. The exclusives are going where the money is because game pass IS 'value destructive' and anyone with opposable thumbs can see that it's an unsustainable business model for almost everyone in the industry except Microsoft.
The bolded is the underlining truth that this FTC vs. MS case has shown us. Anybody not talking about it or saying it's wrong are straight lying to themselves and others. kungfuian is 100% right on this point.
Don't think you read my whole post.
I'm well aware of the realities of their market share. What I said is that Sony using their market share to get deals that Microsoft can't afford to is also anti-competitive. It's a barrier to competition. Just as much as Microsoft (parent) swopping in and making a purchase that Sony can't compete with.
It's pretty complicated actually.
https://www.justice.gov/archives/atr/competition-and-monopoly-single-firm-conduct-under-section-2-sherman-act-chapter-8#:~:text=Exclusive dealing describes an arrangement,of its requirements from it.&text=Exclusive dealing is common and can take many forms.
You're supposing that MS "aren't" buying exclusives at the moment. They are! They 100% still are buying exclusive rights to 3rd party games. It just so happens that Sony is picking the better games this time around. So, yes MS can compete on some 3rd party exclusives. The question you need to ask yourself is, will Microsoft allow that exclusive that they bought to NOT be a day one GamePass game?