FTC v. Microsoft: all the news from the big Xbox courtroom battle
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I knew the Nintendo Switch would come back to haunt us once again.
Judge Corley: Why is the Xbox Series S priced at $299?
The FTC calls back to Xbox CFO Tim Stuart and the evidence where Microsoft’s Xbox Series S strategy price was to “get an entry level gen 9 system.” He says:
“When they were pricing it [at launch]... they didn’t say let’s try and triangulate with the Switch. Even if your honor there is some substitution on the Xbox Series S... we don’t think it’s enough to defeat the market we’ve put forward.”
Microsoft’s lawyer cuts in and says that Judge Corley “gets it” and that the $299 price shows they compete when a consumer is making a choice in a store like Best Buy.
The FTC then argues that “you can play video games on your phone, you can play a video game on the console,” but that they’re different. FTC once again says Microsoft didn’t look at Switch pricing during launch.
Microsoft’s lawyer fires back that “they both can do the same thing... but they’re also pricing off what’s in the market to look like it’s an alternative.” Microsoft cites Dr. Bailey’s charts that show games like Fortnite, Apex Legends, Rocket League, and other top games are available on both the Nintendo Switch and Xbox.
