Sony Blackmailing Retailers Ahead of XBox Launch

We have received confirmation from several sources, some from the DC Tech Pages, one even from a TSSZ visitor who E-Mailed me with the information, that retailers are being told by Sony to take down X-Box promotions, or face potentially severe financial consequences.

Here’s the breakdown in the US: Sony approached Barnes and Noble, owner of #1 video game retailers Software Etc. and Babbages, and Electronics Boutique, the #2 retailer. Sony has obviously noted that promotions for the Microsoft X-Box, slated for release in 2001, have popped up in stores across the US. Now, the company demands that those promotions be taken down immediately. If they are not, Sony will not ship Playstation related products to those retailers. That would mean Playstations, PS2s, Sony manufactured memory cards, perhaps even first-party software would not go to EB and Software Etc. Both Barnes and Noble and EB have folded under the pressure, and have given in to Sony’s demands.

Was Sony’s hardball good or bad? For Sega fans, it’s good, because the Dreamcast can be promoted even further. But from a company’s financial perspective, such a threat is very dangerous to the well-being of that company. Sony’s Playstation and PS2 are still selling out fast (if you can find them, that is!), and if those products are pulled off store shelves, retailers will be in for a major loss in profit this crucial Holiday season. Is this Sony threat legal? We don’t know, but we’re sure to find out soon. Will the Dreamcast be Sony’s next target. It’s likely. Stay here for the absolute latest.