Well, it seems like things have taken a turn in recent times, according to a new report from Axios regarding the state of affairs in Japan between PlayStation and Xbox. According to policymakers that are currently pressing the Biden administration, Sony's business practices are actively blocking US Companies from competing in the gaming market. They have, subsequently, hurt the Xbox stand in this particular market because of these underhanded tactics.
During a trade hearing, Senator Maria Cantwell pressed the US Trade Representative Katherine Tai on this issue. The Biden administration then received two letters that aimed to bring the imbalanced Japanese video game market into the spotlight. According to the letters, PlayStation has unfairly gained a 98% stake in the high-end console market in Japan and has signed multiple deals to keep Japanese games from Microsoft's Xbox.
Considering the latest demands from Sony regarding "fair competition" that have been argued with the FTC and the CMA, this is certainly not a concern that can be easily dismissed, especially with Xbox being on the path of acquiring Activision Blizzard and the Call of Duty IP over in the west. According to the letter penned by the Republican side, the deals that Sony has made in Japan may even violate Japan's antitrust laws.
The Japanese government’s effective policy of non-prosecution when it comes to Sony appears to be a serious barrier to U.S. exports, with real impacts for Microsoft and the many U.S. game developers and publishers that sell globally but see their earnings in Japan depressed by these practices.
Both sides of the political aisle have penned the letters. In other words, both Democrats and Republicans are demanding an investigation
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