Page:Senator Kevin Cramer's letter to Sony.pdf/2

 replacement technology jobs will be needed in North Dakota over the next decade to support the growing tech industry.

Given the growing significance of the gaming industry to North Dakota, I am troubled by reports Sony appears to leverage its dominance to exclude competition rather than enabling choice for players and developers. According to published reports, Sony controls over 68% of the global market for gaming consoles and a shocking 98% of the Japanese market. Increasingly, it appears Sony’s dominance is attributable to exclusionary practices, including paying game publishers not to distribute their games on rival platforms.

Sony’s anticompetitive conduct has also included lobbying the FTC and competition regulators abroad to oppose Microsoft’s proposed acquisition of Activision, a transaction many legal and gaming industry experts believe would promote a more competitive gaming market. Even more troubling is the fact Sony’s lobbying of the FTC and other regulators began shortly after Sony itself acquired Bungie, another major gaming competitor. Sony’s efforts to block this transaction apparently include a refusal to accept an agreement that fully addresses its concerns and would expand consumers’ access to games.

Sony’s conduct hurts American consumers by leading to higher prices and reduced choice. Importantly, it also constrains economic opportunities for developers, including for small and independent developers.

To assure transparency regarding how Sony conducts its business, I ask you please provide unredacted copies of the following information:

1. All agreements that provide Sony with an exclusive right to distribute a game developed by an independent publisher;

2. All agreements between Sony and a game publisher that prevent the publisher from distributing its games on a rival’s subscription or streaming service;

3. All internal company documents describing the strategic rationale for Sony’s acquisition of Bungie, Inc.; and