- The video game industry has been shaped by arguments about IP and control since its inception, beginning with the Magnavox Odyssey and Atari 2600.
- The emergence of 3rd-party software companies, such as Activision, led to the video game crash of 1983.
- Nintendo’s tight control of the 3rd-party developer market was an early precedent for the App Store battles of the last decade.
- Sony’s partnership with Namco and its focus on 3D-graphics and CD-ROMs marked the peak of 3rd-party based competition.
- The emergence of game engines as the dominant mode of development has changed the industry landscape.
- Consoles became a commodity in the PS3/Xbox 360 generation, with Nintendo dominating the generation with the Wii.
- Sony retook the lead by leaning back into vertical integration, buying up several external game development studios and creating PlayStation 4 exclusives.
- The FTC attempted to block Microsoft’s acquisition of Activision, claiming it would lessen competition and create a monopoly.
- Microsoft is not looking to fight its own exclusive war, but rather to apply a new business model to existing games with the Xbox Game Pass subscription.
- Microsoft’s approach is actually a form of competition, offering consumers a better deal than Sony’s exclusive strategy.
Click HERE for original. Published December 12, 2022