Microsoft CEO Nadella Aims to Remove Xbox Exclusives, Blaming Sony for Defining Market, Competition

Microsoft CEO Nadella revealed that he would love to eliminate the console game exclusive arrangements between video games and popular gaming consoles. He then blames Sony for defining the market and competition.

Removing Exclusive Deals

When Microsoft Chief Executive Officer Satya Nadella was asked regarding his opinion on the console games exclusive, he stated that he has no love for this specific type of arrangement. According to a report from The Verge, larger gaming rivals like Nintendo and Sony often release exclusive titles on their devices, which is a way to attract people and compete in the market.

"That's not for me to define especially as a low-share player in the console market. The dominant player there (Sony) has defined market competition using exclusives, so that's the world we live in. I have no love for that world," he stated. Despite his dedication to running the Xbox business, he shared that he is fully aware that exclusives drive console adoption and sway subscription numbers.

While the company employs the same strategy, Nadella argued that Microsoft is a low-share player in the console market and that the company's rivals should be the ones to blame for it. These comments were discussed during his testimony in federal court in San Francisco for the FTC v. Microsoft lawsuit.

Aside from these statements, Nadella also shared that Microsoft has been facing challenges when it comes to gaming and cloud service that is available in Game Pass Ultimate Subscription. These are not just good enough for the company as an alternative to the current platforms that Microsoft offers.

This perspective regarding consoles reflects his broader approach to technology platforms. A spokesperson from the company supported Nadella's comments and stated that the CEO already made it clear that it will honor its commitments to its partners and the gaming community in an effort to bring more games to current and potential players.

These comments discussed on the court come a day after Sony's PlayStation Chief Executive Officer Jim Ryan revealed that Xbox exclusives were not anti-competitive. He claimed that publishers think Xbox Game Pass is value destructive and that it was far more important for Sony to invest in first-party development as an edge.

Ever since he became the new CEO of the company in 2014, CNBC reported that Nadella has been changing the culture at the company which is long known for closed systems. This is an attempt to ensure that its software can work well on multiple devices and just on its own hardware.

Activision Acquisition

Activision Chief Executive Officer Bobby Kotick shared his skepticism regarding the multi-game subscription services in general. He stated that his company has already experimented with them, even working with Nvidia's GeForce Now during its testing and developing phase.

Wall Street Journal reported that Kotick is currently based in Santa Monica, California, and said that he still wants to get the deal done with the company even if holds a differing opinion on subscriptions and whether they present a big opportunity that he cannot miss.

As per Kotick, "Maybe part of it is being in Los Angeles and having watched the big media companies move their content to these subscription streaming services, and the business results have suffered.