Gerry Palmers Tech 08.10.2022 21:Aug PM EDT

Microsoft Claims That Sony Pays for 'Blocking Rights' to Prevent Developers From Adding Games to the Xbox Game Pass

Microsoft dropped an explosive claim against gaming console rival Sony, charging that the PlayStation maker pays for "blocking rights" to prevent game developers from adding their titles to Xbox Game Pass.

Microsoft's claims was part of its filings with Brazil's national competition regulator and likewise formed part of a review of Microsoft's acquisition of Activision Blizzard.

Sony 'Hampered' Xbox Game Pass Expansion, Claims Microsoft

Microsoft said its "ability to continue expanding Game Pass has been hampered by Sony's desire to inhibit such growth," in a filing to the Brazil's Administrative Council for Economic Defense (CADE) on August 9, as translated from Portuguese.

The Xbox maker charged that Sony pays game developers 'blocking rights' to prevent them from adding content to Game Pass and other competing subscription services.

Microsoft's accusations may be part of a complicated aarangement Sony dealt with developers as part of its dole outs for developers as part of exclusive righnts in its own streaming service, PlayStation Now, or this could be part of publishing clauses that prevent developers from making titles available on competing streaming services, The Verge noted in its report.

Those "blocking rights" seem to be among those exclusive pacts Sony made with developers. GBut such publishing agreements, which are considered common business practice, are truly complex, especially for streaming and subscription services.

In the Epic Games vs Apple trial last year, Microsoft had considered seeking a lower share from PC games just to acquire exclusive streaming rights.

Microsoft Also Sought Game Exclusivity for Streaming Service

Had Microsoft pursued this, it would have secured exclusive streaming rights to games, and these would be prohibited from publishing on competing services as well, just like what it is accusing Sony of.
In fact, both Microsoft and Sony regularly ink exclusives with developers for scheduled releases and console availability that involve millions of dollars.

Regulators Reviewing Microsoft's $68.7-B Acquistion Bid for Activision Blizzard

Microsoft is seeking to have Brazil's regulator CADE regulator that it should approve the company's proposed acquisition of Activision Blizzard for $68.7 billion. While the Federal Trade Commission (FTC) is reviewing documents from Microsoft on its Activvision Blizzard acquisition in the US, those documents are private.

But in Brazil, where its competition regulator offers such correspondences to the public, offering uinsight into the intense competition between the gaming console market leaders, Microsoft and Sony.

Brazil's CADE has been asking for comments from Sony and other Microsoft competitrs about the Activision Blizzard acquisition. Sony responded, claiming that it would be challenging for other developers to create a gaming franchise that rivals Activision's "Call of Duty," which it said distinguishes itself "as a gaming category on its own."

Microsoft disagreed, saying Ubisoft, Riot Games, Bandai Namco, and Google have all released competition to "Call of Duty" with such titles as "Apex Legends," "Battlefield," "PlayerUnknown Battlegrounds (PUBG)," and more.