Sony Interactive Entertainment CEO Claims Publishers Oppose Xbox Game Pass Subscription Model

Sony Interactive Entertainment Boss Claims Publishers Oppose Xbox Game Pass

Sony Interactive Entertainment (SIE) boss Jim Ryan has claimed that publishers are opposed to Xbox’s Game Pass subscription model. Ryan made these comments during a video deposition aired on Tuesday as part of Microsoft’s ongoing court case against the US Federal Trade Commission. The FTC is seeking to block Microsoft’s proposed $69 billion acquisition of Activision Blizzard.

During the deposition, Microsoft’s lawyer asked Ryan about comments he made to PlayStation investors about a month after Microsoft announced its plans to acquire the Call of Duty maker in January 2022. In the discussion, Ryan reportedly told investors that Game Pass had “driven them to make the large acquisition.”

Ryan continued, stating, “I talked to all publishers, and they unanimously do not like Game Pass because it’s value destructive.”

When asked if this statement was true, Ryan responded, “I believe it to have been true.”

Microsoft’s lawyer pressed further, asking if Ryan had actually spoken to all the publishers. Ryan replied, “I talk to publishers all the time, and this is a very commonly held view over many years by the publishers.”

Xbox Game Pass launched in June 2017 and has become central to Microsoft’s gaming business. As of January 2022, the service has attracted over 25 million subscribers, according to the company.

Xbox Game Pass offers members access to over 100 titles, including all first-party games at launch, for $11 / £9 per month on console or PC. For $17 / £13, users can access the games on console, PC, and mobile devices, including through Xbox Cloud Gaming.

Microsoft CEO Satya Nadella has claimed that Xbox Game Pass subscribers play approximately 40% more games and spend 50% more than non-members, benefiting game publishers.

Jim Ryan expressed his expectation that Game Pass would have attracted a larger subscriber base, given the amount of money Microsoft had spent on the service.

In his deposition, Ryan was also asked about his thoughts on recent Bethesda games being released as Xbox exclusives following Microsoft’s acquisition of the publisher’s parent company ZeniMax Media for $7.5 billion in 2021. He stated, “I don’t like it, but I have no quarrel with it” regarding Redfall being released in May for Xbox Series X/S and PC. As for the upcoming Starfield not releasing on PlayStation, Ryan said, “I don’t like it, but I don’t view it as anticompetitive.”

Furthermore, Ryan mentioned that if Microsoft acquires Activision, SIE would withhold details about its next console from Activision.