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Iune Y,2012

The Honorabie {Manna Gkun knternatianal Trade Cammission 588 EStreet, SW Washington, BC 20436

Re:

Certain Gaming Entemainment Cansoies, Related Software. and Components Thereof
investigation No. 337-TA~‘752

Dear Chafirman Okun:

We are writingto share our viaws in connection witfi a pending investigation before the lntematianai Trade Commission regarding Microsoffs mnovative Xbox360 ccmsoie. Fer the reascmsdiscussed below, we encourage you to cunsider the potentiai harm ta the pubiic interest af issuing an exciusion order in this case.

An exdusion nrdar against the Xb-ox consoie couid threaten high-paying American 360 jobs and continued aconomic gmwth in Washingtcmand throughout the nation. The Minrosoft Xbax356 is caneof three (tampering game consumesthat mrm the core of the U.S.entertainment software industry. Accerdingta data reieased by the Entertaiament Software Association in 2010, from 2005-2009,the antertainment software Industryin the UnitedStates grew at an annuai rate of mom than 19 parzent, whfle the U5. economy cverafl grew at a rate of fess than two percent. Duringthe same period, direct employment in the entertainment safiwara industry grew at a rate of 8.6 percent. Currenfiy,computer and videe game wmpanies diremy and irrdirectiyemploy mere than 120.690 pwpie in 34 states. in Washmgtnn, the inaiustryis Va ajor economic driver, m accmmting for more than 11,2£mobs and $525 mimon in direct and indineat campensation in 2009. An exclusionerder could cime the U5. market ta this inrwvativeand highiypaputar product and directly threaten the jabs bum around it. \

An exciusion order could destroy thirdmarty imiestmants. An exclusionorder banning the impurtation of Xbox360 gaming conscfiescouid harm rm’;unly Microseft, but 2 bread range uf companies - large and smafi -— have invested in developing and providing produnts and ésewices that for this piatform and whose businesses heavfly depend upen Xbnxsafes. These indude game éeveiopers and pubiishers, retaiiers, and manufacturers af controflers and other accessories. Aban on impertation of the Xbux36$ cansole souls!limitor eiiminate entiréiy the abifltv ef these cempanies ta offer products and sewiaes in new customers in the U5. '
An exciuskvnurdar could be detrimental ta U.$.consumers. exclusim af the Xbox maid substantialiy reduce competitiun and wnsumer came and has time potential to lead behigher prices for game consaies and reiated products. Consumars wha have already seiected Xfbaavz as 360
their gaming consoie have tvpicafly mvasted -- often hundreds and even t‘housands af deflam -—~ in

miated games and accessories that are not campatible Mth the two competing game systems.
Consumers who wished to reLp%ac»2, upgrade, er purchase a secand game consuls fur their mamas

mightnot be abie tn choase a new Xbox360 and couldsea mu hwastmem ciestrayedand their
choiaes far repiaaament fimited.
PNNTED GHi!§C’¥’QLE§3PAPER

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For these neasons, we urge vau to consider carefuliy the impiications a negative ruling in this matter wauid have an mar ewnamy, consumers, industry and jabs in WashingtxmState and thraughaut the country. ­
Sincereiy,

5%/if
GAVEREICHERT

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NORM oscxs

Member of Congress

Member of Congress

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ADAM SMITH

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Member of Ccmgrsss

Member BfCongress

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JAIME HERRERAazmaa

Member of Ciongmss

Member of Cwgress