For some reason the FTC lawyer keeps calling the Xbox ecosystem the Xbox echo-system. But beyond that Phil Spencer is being questioned about revenue splits on Xbox between creators and Microsoft and those on PC.
“We talk about Xbox ecosystem as the platform where creators build games for players to play,” says Spencer.
We’re back after the courtroom was briefly sealed. Microsoft Gaming CEO and head of Xbox Phil Spencer is in court and ready to discuss the $68.7 billion proposed acquisition of Activision Blizzard. Judging by the exhibit list that both the FTC and Microsoft have submitted it looks like Spencer is going to have a busy day.
He’s come well prepared in a suit and tie, which is unusual attire for a gamer.
We might be about to hear more around Microsoft’s xCloud strategy, how the company’s Activision Blizzard deal came to be, and some details around PlayStation publishing agreements.
It’s been nearly an hour since Judge Corley sealed the courtroom and we’re still waiting for media and members of the public to be allowed back inside. Jamie Lawver, senior finance director at Xbox, is currently testifying about highly confidential Microsoft financial data.
Xbox chief Phil Spencer is due in court today as a witness and he’s apparently sporting a suit and tie. He wasn’t wearing a tie yesterday, so he’s upgraded for the ̶g̶r̶i̶l̶l̶i̶n̶g̶ witness stand today.
I can’t remember the last time I was in a suit, let alone Phil Spencer. He’s usually wearing a T-shirt that hints at an Xbox game.
Jamie Lawver, senior finance director at Xbox, is appearing now, but Judge Corley is sealing the courtroom. “There’s just no way to conduct this particular witness in open court,” says Judge Corley, due to highly confidential finance information. That means the courtroom will be sealed and not open to the public for around 45 minutes.
So a little delay to proceedings this morning.
It’s the second day of witness testimony and today we’re going to hear from the heads of both PlayStation and Xbox and Google’s former Stadia product lead. It’s going to be a busy day.
The hearing will start at 8:30AM PT / 11:30AM ET and we’ll have all the key details as we get them. Here’s the full list of today’s witnesses:
• Jamie Lawver, senior finance director at Xbox.
• Phil Spencer, Microsoft Gaming CEO and Xbox chief
• Jim Ryan, Sony PlayStation chief
• Dov Zimring, Google’s former Stadia product lead
Day one of the FTC v. Microsoft hearing was all about a surprise email, Xbox exclusives, and a costly cloud.
I love the chaos of this FTC v. Microsoft hearing, where confidential documents are dragged to court alongside a PS5. Philip Pacheco from Getty Images perfectly captures the mayhem outside a US courthouse building, as FTC attorneys juggle with a witness binder for Sarah Bond, head of Xbox creator experience, and a PS5 console.
Day two of the hearing kicks off at 8:30AM PT / 11:30AM ET and you can bet we’ll be covering the less chaotic proceedings inside the courtroom live right here.
We’ll get to hear from Xbox chief Phil Spencer during day two of the FTC v. Microsoft hearing. We’ll also hear from PlayStation chief Jim Ryan, via a prerecorded video deposition, Dov Zimring, former Stadia product lead, and Jamie Lawver, a senior finance director at Microsoft.
Judging by the exhibit list, it looks like Phil Spencer is going to have a busy day on the stand.
A full day of testimony is wrapped and we’ve had a lot of news in such a short space of time. Here are the key takeaways from today:
• PlayStation chief Jim Ryan knew Microsoft’s Activision deal wasn’t about Xbox exclusives
• Microsoft didn’t want its games on GeForce Now initially. “No effing way.”
• Indiana Jones is an Xbox and PC exclusive
• 76-year-old dads might just love a bit of Diablo
• Activision forced Microsoft into a Call of Duty revenue deal
• Microsoft has agreed to 80 / 20 Xbox revenue splits for certain games
• Microsoft was working on a separate “dedicated” version of Xbox Cloud Gaming
We’ll be back tomorrow to follow along live at 8:30AM PT / 11:30AM ET.