Microsoft may sell Xbox division if deal fails - Tweaktown

anonpuffs

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LMAO. It's amazing that so many people (mainly PlayStation fanboys and extremists) are truly thinking this. If it's not this, it's Microsoft is becoming Sega and going third party. It's almost as if no one has been paying attention since 2018 with all the money and investments that Microsoft have made for Xbox. ABK fell into their laps and while it would be disappointing for the acquisition to be blocked, that's not going to stop Microsoft from still spending money and investing into Xbox. SMH.
The main thrust of those investments have failed to pan out. Gamepass was at 15 million subs in april 2020. Let's give it about 1 million subs per month increase from april to june, when their financial statements were. So 17 million in june 2020. MS was targeting 48% yoy increase by june 2021. That's a 25 million target. They only got 37%, so 23 million in june 2021. In 2022 they were targeting 73% growth (40 million) but only achieved 28% (~29.5 million). Then 2022 was basically all horrible news for xbox and we have Phil hinting that gamepass growth has been stalled out on console. Shit's not looking good at all. If xbox is only alive due to gamepass, which is what Phil has stated previously, and gamepass is pretty much stalled out, and ABK falls through, that could thoroughly shake investor confidence enough that the investors give Nadella an ultimatum.
 

Dr Bass

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I think things are getting a bit reactionary. The deal hasn't yet "failed" and people are already saying Xbox is done.

Let's say the deal is not approved. Who would, or could, buy Xbox? I can't think of anyone that would even want it. MS is stuck with it. It's not going anywhere for awhile IMO.
 
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ksdixon

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22 Jun 2022
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The amount of money in play by MS is just sickening. Normally if ABK fucked up, it'd get chopped up at auction like THQ so people could buy teams/game IPs.

Only issue with that idea, is again due to money, I think it'd be a dead heat between Embracer, Tencent, Saudi, MS. The others just wouldn't get a look-in. So it doesn't seem like "THQ auctioning" ABK is a good idea either.
 

ksdixon

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I can't tell what's going on here?
 
P

peter42O

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The main thrust of those investments have failed to pan out. Gamepass was at 15 million subs in april 2020. Let's give it about 1 million subs per month increase from april to june, when their financial statements were. So 17 million in june 2020. MS was targeting 48% yoy increase by june 2021. That's a 25 million target. They only got 37%, so 23 million in june 2021. In 2022 they were targeting 73% growth (40 million) but only achieved 28% (~29.5 million). Then 2022 was basically all horrible news for xbox and we have Phil hinting that gamepass growth has been stalled out on console. Shit's not looking good at all. If xbox is only alive due to gamepass, which is what Phil has stated previously, and gamepass is pretty much stalled out, and ABK falls through, that could thoroughly shake investor confidence enough that the investors give Nadella an ultimatum.

Those investments were never for the short term. They were for the long term. This generation as I have said before is a "reset". Nothing more and nothing less. It's not about this generation. It's about future generations and this generation being where Microsoft sets up everything for the future.

Game Pass will grow this year easily. Why would 2022 grow when they had almost no games? They will gain a lot of subscribers to Game Pass this year. Also, the numbers soared due to Covid so expectations were higher than they should have been. No subscription service outside of Disney+ has ever exploded quickly. It takes years if not over a decade to get it all going. June will only be 6 years.
 

KiryuRealty

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28 Nov 2022
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Where it’s at.
You can’t sell something nobody wants to buy!

More likely they’ll just shut down the hardware aspect of Xbox and just make XBGS a publishing label.
 

KiryuRealty

Cambridge Dictionary High Priest of Grammar
28 Nov 2022
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Where it’s at.
I think things are getting a bit reactionary. The deal hasn't yet "failed" and people are already saying Xbox is done.

Let's say the deal is not approved. Who would, or could, buy Xbox? I can't think of anyone that would even want it. MS is stuck with it. It's not going anywhere for awhile IMO.
There’s no way the deal is going through.

It’s done.
 

Yurinka

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Nah, if the acquisition is blocked (something I highly doubt) they'll simply try to buy someone else like EA or Take 2 and some other big mobile gaming company. And won't sell Xbox.

I think that they'll stop making their own consoles and will complete their Sega-like transition to becoming full multiplatform 3rd party publishers on consoles (while keeping their digital store in PC and if allowed in mobile), and wil stop giving away their games day one on GP.

But not today, several years in the future. Because they invested several billions on the acquisitions and the dumb 'all our games and a few AAA more day one on GP' idea, so they'll wait at least 5 years to see if it works even if they always knew it won't.

MS is not on sale even if the deal fail and nobody has interest in buy Xbox.
Yeah, nobody would buy it and I highly doubt they ever consider to sell now the division.

But if some day MS does it, if not overpriced Tencent would be interested on buying a few dev studios and IPs, Sony other ones, same with EA, Take 2, Embracer, etc.

But nobody would want to buy the Xbox brand itself and the console. If Apple, Tencent, Samsung etc some day want to have a console they'll create a new one.
 
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D

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Never mind Microsoft, what will happen to ABK? If they want to sell they have to split up. If they remain together their value just tanked because they can't be purchased as one entity.

The weight now placed on CoD and it's supposed popularity will mean that the next time CoD drops in popularity, it will cause an avalanche that could potentially kill the series.

ABK be sweatin more than phil
 

Shmunter

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Never mind Microsoft, what will happen to ABK? If they want to sell they have to split up. If they remain together their value just tanked because they can't be purchased as one entity.

The weight now placed on CoD and it's supposed popularity will mean that the next time CoD drops in popularity, it will cause an avalanche that could potentially kill the series.

ABK be sweatin more than phil
They can sell as a single entity to a 3rd party, just not a platform holder capable of foreclosing on competing platform holders
 

BigMclargeHuge

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I doubt they'll sell it off. Most likely they'll ride this generation out, go third party with their games, start to wind down things with hardware and concentrate on streaming.
 

VillaiN

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It wont happen. Even if AB deal doesnt go through they ll continue as long as Salty Nutella s there. They might go after Ubisoft or T2.

Also they re filthy rich and dont care about cc 20B for division.