Interesting… FTC listed the companies that are not fair game to be purchased.
EA, Take 2, Ubisoft and Activision are the blocked ones.
I'm glad they actually addressed this because it's something I also recognized as very important, tho not at the start of all this. There's an inherent value in the independent free market of 3P developers & publisher, and you can even say it acts as a checks-and-balances of sorts to the vertical integration of 1P teams under platform holders (be they hardware, services, or both). I think a balance (figuratively speaking) has to be present with that in the market.
Compare it to say how the movie/studio industry is. Remember when studios also fully owned the movie theaters? Yeah that got stopped for good reason. Studios can actually have ownership of theaters today thanks to a recent overturn of the 1948 law, but I'm sure that is not going to suddenly allow studios to buy up all the major 3P theater chains, otherwise it'd create the same problems seen during the '30s and '40s that required regulation in the first place.
In that example, the major studios would be the platform holders and the theaters would be 3P game developers, a theater chain being a 3P publisher. But back to the point, yes some kind of steady 3P presence in the market that can operate more or less independently of platform holders (outside of needing to provide content on products of those platform holders, obviously) is a requirement IMO, and if MK's purchase of ABK were allowed to go through with no issue, what would have prevented further consolidation of the bulk of the 3P publisher market?
When a company like Activision accounts for something like a whole 1/5ths of 3P market monetary valuation, suddenly having 20% of the independent 3P market be owned by a platform holder wholesale who is still operating on the traditional console business model (to some notable extend) AND fully subsidizing a services business model on top of that, I can see how that can create problems of concern. Because what excuse then would regulators have to stop, say, Apple from purchasing EA (which has been rumored), or Tencent purchasing a huge 3P publisher? No other 3P publisher is as valued or large as ABK, and companies like Apple have virtually no presence in the console gaming industry. Tencent would have a tougher time considering the revenue they already make through gaming, but they don't have a hardware console or subscription service that purchased IP could be used to effectively heavily subsidize for market share, now do they?
There were always so many landmines for MS to navigate through with this acquisition and I also think them making offers and deals for content they did not even legally own yet (and sharing that on Twitter, no less) may've also bit them in the ass.
Listened to Hoag lawyer. Interesting point made, this going to court and MS fighting it will take years leaving them in limbo. He also got asked on a personal level if he supports the merger, he said no - does not like major consolidation and what effects it has.
Anyway from my own assessment either ms walks away or be stuck in court for years fighting it - the limbo does not sound appealing. Maybe heavy concessions can still be accepted, but it’s feeling like all or nothing here by FTC.
Didn't think about the time it'd take to fight this in court for them. I heard they can't even begin the process until July 2023, and I'm guessing it would take them a good 2-3 years in court for it.
Which for Microsoft will probably not even be worth it if the CMA also blocks the deal, which is highly likely at this point. So that would now be them fighting multiple cases in multiple courts, all with their own fees, splitting legal staff & resources, etc. It's more likely that Microsoft just walks away from the deal and pays ABK the $3 billion.
Poor Phil, guy is getting roasted on twitter, like he might need to get off that sm shit, close off his sm accounts and do what Jim Ryan does and only show up to announce games from here on out.
Today was more embarrassing for Xbox than what Jack Tretton did to em in June 2013. How do you show your face ever again, today was a horrible day for them. No show at tga, blocked from competing by gov regulators, politicians calling them out on sm..... ouch
On the one hand I do feel kinda bad for them given the obliteration of confidence & ego I think anyone in his position would've felt yesterday. On the other hand, I think ego and hubris got to their head, as well as Satya's (somewhat less so) and Brad Smith's, and this is a way they're being humbled.
I don't understand why they were going public with commitments for COD to Nintendo & Valve for content they did not even legally own yet. I can see how that would've been interpreted as arrogance by the regulators, even manipulative to a degree, to influence their decision process with overt public pressure that could act as interference. At least, that's one possible thing that may've happened.
Honestly tho I'm a LOT more surprised that MS had no game updates or reveals for the TGAs. They've made it a habit to do stuff for the TGAs since 2019 but suddenly they have nothing? I still feel Sony not having a Showcase this year was a bit of a missed opportunity but they made up for it with actual releases, obvious tie-ins to other big reveals (SH2 Remake for example), and throwing a couple fat juicy bones at the TGAs with HFW expansion and Death Stranding 2, among other stuff.
I mean MS just announced a price increase to $70 for 2023, but they couldn't show some brief new footage for Starfield, RedFall or Forza along with release dates and preorders? Are they not H1 2023 releases? We got release dates and preorders for SF VI, FF XVI etc. at the show for H1 2023 (June, specifically). Heck, we got a release date for the HFW expansion and we only saw confirmation/reveal of that last night! We didn't even get an update for Hellblade II, Avowed or Perfect Dark, so I'm pretty much resigning that Hellblade II or Avowed are 2023 games whatsoever (particularly surprising in the case of Hellblade II).
I think they will use this to force congress to regulate the industry more. 4 AAA pubs is not enough imo and the FTC sees it that way too.
Personally I'd hope the industry could self-regulate while acting with some communication with government regulators. It could get almost too restrictive if government regulatory bodies directly regulate matters in the industry, but having them act as overseers of regulatory rules agreed upon between them and industry representatives of the various platform holders & 3P publishers.
So, something more like the ESRB or CERO but with more direct government regulatory oversight and communication (and enforcement of certain stipulations, practices etc. agreed upon by all industry corporations).