Phil Spencer says Sony uses Xbox game revenue for exclusive deals

Xbox chief Phil Spencer took the stand during Microsoft’s battle with the FTC, claiming that Sony uses revenue from Xbox games on PlayStation to sign exclusive deals.

Microsoft’s legal battle with the FTC has seen both Microsoft and Sony make headlines recently, with details regarding Bethesda’s originally multiplatform game Indiana Jones and the arrival of the next-gen Xbox surfaced. Now, Xbox chief Phil Spencer has suggested that Sony use the revenue from Xbox games on PlayStation to block third-party games coming to Xbox.

Phil Spencer says Sony uses the 30% it takes on Xbox games for exclusive deals

Xbox Game Studios has grown exponentially in recent years, thanks to Microsoft acquiring a number of studios and publishers, such as Mojang and Bethesda. This resulted in many Microsoft-owned games remaining (and still being played) on PlayStation consoles, which Microsoft continued to support rather than pull them off as Xbox exclusives. Games like The Elder Scrolls Online, Fallout 76, Minecraft, and Minecraft Dungeons continue to host large communities on Sony’s platform, and according to Phil Spencer, Sony gets a 30% split (via the edge), which Sony then uses to “try to reduce the Xbox’s market survival.”

During the FTC trial, the head of Xbox was asked about Microsoft’s feelings when launching games on PlayStation, to which Spencer replied: “PlayStation uses the money they make from Xbox games on PS5 to pay for other games to be banned on the Xbox platform” (Thanks, Windows Central). Due to third-party exclusive deals, we’ve seen several Square Enix games, most notably Final Fantasy, pass Xbox at launch, and even pre-acquisition Bethesda games like Deathloop got a one-year exclusivity deal with PlayStation. Other deals have banned content from Xbox users in recent years as well, like Hogwarts Legacy and Call of Duty.

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