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Home > Gaming News


EPIC GAMES CEO SAYS SONY IS THE REASON THEY CAN’T LOWER PRICES

Epic Games says that Sony is the reason they can't pass savings onto the user,
and we've got the information here!
By: Jorge A. Aguilar - Last Updated: November 21, 2023, 7:55am MST
Image: Epic Games
Follow us on Google NewsShareTweet




Epic Games CEO Tim Sweeney has said that Sony is the reason why the company is
unable to offer Fortnite at a lower price on the PlayStation Store. Sweeney
commented during the Epic v. Google trial, showing how aggressive Sony is when
making deals with publishers and developers.

Sweeney said that the reason for this is a Most Favored Nations (MFN) clause in
the contract between Epic and Sony (Thanks The Verge). Sweeney said that this
clause is standard in PlayStation contracts, which makes sense overall since
Sony doesn’t want players to go to other platforms due to pricing.

Tech and Gaming


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> “We cannot sell out of PlayStation at a lower price than we sell on
> PlayStation.”
> 
> Epic Games CEO Tim Sweeney

Google has suggested that the MFN clause is shady, given Sony is now an Epic
Games shareholder. However, Sweeney has denied this, saying that the clause is
simply a standard part of PlayStation contracts.

The Verge used to have Spotify’s MFN clause with Sony up but took it down.
However, we can still use their summary of it as an example:



> “Section 13 [of the clause] essentially makes every major aspect of the
> contract amendable if any other label has a better deal or interpretation of
> that aspect than Sony Music. Section 13(2) lists the provisions which can be
> amended in Sony Music’s contract if a better deal is obtained by another music
> label, including what constitutes an “active user,” the definition of gross
> revenue, and any improved security provisions. Sony Music can call on an
> independent auditor once a year to determine whether Spotify has struck a more
> agreeable deal with any other labels.”



The MFN clause is just one of several issues that Epic Games has raised in its
antitrust lawsuit against Google. Epic is also challenging Google’s 30%
commission on in-app purchases, which it argues is excessive and
anticompetitive. Sweeny isn’t usually as forthcoming with issues around deals
with platforms but must be honest when asked questions in the lawsuit. The
outcome of the lawsuit could have significant implications for the future of the
app store ecosystem.

This is getting less popular over time as many have found it to be unfair. For
example. The EU once went after Hollywood studios for similar clauses and only
stopped when those studios withdrew those clauses from their contracts.

Generally, an MFN clause refers to a status conferred by a clause promising to
treat another country equally to those receiving preferential treatment. With
this clause in their deals, Sony will always get a good deal and this can only
get better for Sony if Epic Games tries to get a better deal elsewhere. Based on
their deal with Spotify – and Sweeny’s testimony – this is the same with every
other partner Sony has.

Whether it is unfair or not allowing businesses to prosper is up to the jury to
decide. However, the fact that Sony was brought up at all shows that Epic Games
may not just stop at Google and Apple. If multiple partners for Sony want to,
they could probably put an end to that clause in the contracts. Since Microsoft
wasn’t mentioned at all, it seems like this may be a thing only Sony does.


Leave a Comment
Related: Epic Games, Industry, Sony


JORGE A. AGUILAR

Jorge A. Aguilar, also known as Aggy, is the current Assigning Editor.

He started his career as an esports, influencer, and streaming writer for
Sportskeeda. He then moved to GFinity Esports to cover streaming, games, guides,
and news before moving to the Social team where he ended his time as the Lead of
Social Content.

He also worked a writer and editor for both Pro Game Guides and Dot Esports, and
as a writer for PC Invasion, Attack of the Fanboy, and Android Police. Aggy is
the former Managing Editor and Operations Overseer of N4G Unlocked and a former
Gaming editor for WePC.

Throughout his time in the industry, he's trained over 100 writers, written
thousands of articles on multiple sites, written more reviews than he cares to
count, and edited tens of thousands of articles. He has also written some games
published by Tales, some books, and a comic sold to Telus International.

Jorge A. Aguilar's Twitter Profile Jorge A. Aguilar's LinkedIn Account


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