Microsoft's acquisition of Activison Blizzard

anonpuffs

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Xbox brings revenue, but little to no profit.

Also, MS’ use of guerilla marketing and giving incentives to friendly press was exposed on the 1999-2000 FTC action, so yes, expect more extremely dirty laundry to come out.

This whole situation is basically MS’ worst nightmare, and it’s going to be a massive, F5 shitstorm.
Yeah but you have to spend the revenue on -something-, otherwise it becomes profit. Like let's say you have 10 billion in revenue, you only get 0 profits if there's 10 billion in expenses or investments. I want to know what portion of those expenses is spent on buying influence.
 

KiryuRealty

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Where it’s at.
Yeah but you have to spend the revenue on -something-, otherwise it becomes profit. Like let's say you have 10 billion in revenue, you only get 0 profits if there's 10 billion in expenses or investments. I want to know what portion of those expenses is spent on buying influence.
No.

Revenue is simply money brought in. Income in a money-losing business is still revenue. It is not profit.

Xbox brings in revenue, but it is not even with what MS has expended to keep the division going.

They’ve only had a few profitable quarters, the division historically is a money pit already, before they started blowing billions trying to monopolize games publishing.

That is why Xbox is not a fully separate division for accounting purposes. Investors would see just how much of a waste of resources and drain on profit the Xbox venture is if MS didn’t roll it up with other lines of business to obfuscate the picture.
 

KiryuRealty

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Where it’s at.
Yeah that’s why so many corps are spreading around so much money in the industry even when they don’t have enough for a straight acquisition. They just want to block anyone else from doing it. Sony invested directly in from and bought shares in Kodakawa just like Tencent. Together they have enough controlling interest in From to block anyone else from getting them.
Sony could buy Kadokawa outright, they have the money. They would rather have a share in them and partner up than absorb them totally.

I really don’t know where the notion that Sony is broke comes from. They have resources, not on the level of MS or Apple, but they ain’t broke. They just don’t try to own everything on the planet.
 

shrike0fth0rns

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Sony could buy Kadokawa outright, they have the money. They would rather have a share in them and partner up than absorb them totally.

I really don’t know where the notion that Sony is broke comes from. They have resources, not on the level of MS or Apple, but they ain’t broke. They just don’t try to own everything on the planet.
Yeah Sony has had oppressed
Yeah but you have to spend the revenue on -something-, otherwise it becomes profit. Like let's say you have 10 billion in revenue, you only get 0 profits if there's 10 billion in expenses or investments. I want to know what portion of those expenses is spent on buying influence.
xbox need to pay influencers and media for positive press otherwise it would barely have none at all. Look at pall the 🤡 telling the faithful everything is great despite the Xbox output being 🐕💩 for years. I just saw several new threads on resetera posted since the goty awards saying how great gamepass is and how next yr is going to be great for gamepass. Sht like this always appears in forums and social media when ever the game audience starts to heavily criticize Microsoft and Xbox.
 
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anonpuffs

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No.

Revenue is simply money brought in. Income in a money-losing business is still revenue. It is not profit.

Xbox brings in revenue, but it is not even with what MS has expended to keep the division going.

They’ve only had a few profitable quarters, the division historically is a money pit already, before they started blowing billions trying to monopolize games publishing.

That is why Xbox is not a fully separate division for accounting purposes. Investors would see just how much of a waste of resources and drain on profit the Xbox venture is if MS didn’t roll it up with other lines of business to obfuscate the picture.
Why are you being so combative lol, that's exactly what I'm saying. I want to know what the bolded portion means and how much they spent to buy influence and mindshare. They aren't spending 10+b a year on wages and benefits, and I doubt they're spending that much on gamepass content (just look at the trash they've been filling it with this year). Zenimax was a one time purchase that is probably going to be amortized in the accounting. So there must be some marketing budget for where the rest of the money is going.

Xbox brings in revenue, but it is not even with what MS has expended to keep the division going.
 

Sircaw

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Why are you being so combative lol, that's exactly what I'm saying.
cries GIF
 

KiryuRealty

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Where it’s at.
Why are you being so combative lol, that's exactly what I'm saying. I want to know what the bolded portion means and how much they spent to buy influence and mindshare. They aren't spending 10+b a year on wages and benefits, and I doubt they're spending that much on gamepass content (just look at the trash they've been filling it with this year). Zenimax was a one time purchase that is probably going to be amortized in the accounting. So there must be some marketing budget for where the rest of the money is going.
It isn’t marketing expenses, it is that the division’s regular daily business costs more than the division earns.

As a hypothetical, imagine that Xbox brings in 10 million dollars a day in sales, subscription fees and licensing fees. That is revenue.

At the same time, the costs of staffing, taxes, manufacturing, facility overheads and shipping of physical goods adds up to $20 mil a day.

You are still generating $10 mil in revenue, but you are still eating $10 mil in losses on top of it. That hole is filled by MS funnelling money in from their profitable ventures, and by combining the Xbox numbers with Surface and other things, the losses XBox generates are less visible, because it isn’t being reported before being mixed in with the rest.

Microsoft is burning profits from their OS, Office and Cloud business lines to keep the lights on for Xbox, because market penetration at any cost is all that division is for. They don’t profit from it, but by propping it up, it takes profit away from other players in the console space.

Yes, it is insane, yes it is bad business. It is what a monopoly does to perpetuate itself.
 

shrike0fth0rns

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Why are you being so combative lol, that's exactly what I'm saying. I want to know what the bolded portion means and how much they spent to buy influence and mindshare. They aren't spending 10+b a year on wages and benefits, and I doubt they're spending that much on gamepass content (just look at the trash they've been filling it with this year). Zenimax was a one time purchase that is probably going to be amortized in the accounting. So there must be some marketing budget for where the rest of the money is going.
 

Gods&Monsters

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The messenger is Warren, I'd shoot him any day. What a joke, Mr "Market Participant A".

I have no qualms with you, friend.
Is Tom Warren allowed to be a market participant and submit documents to the CMA? He's just press.

Epic already said it's not them. Nintendo wouldn't write something pro-Cloud like this. It would be against their business.
 
D

Deleted member 223

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Lol at that blatant cloud push... couldn't flash a more vested-interest, compromised position if you tried.

Definitely interested in seeing who this participant is. If it's a bottom of the barrel corp... good lord!

Sony should just leak who this is with a media plant. Let the horde do the rest.
 
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KiryuRealty

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Where it’s at.
I just don't get the people who say "Just play it all on XCloud!" as if the whole issue isn't Microsoft trying to force all gamers into their ecosystem.

I have actually seen people trying to paint Sony as the villain, because they don't have a web browser on PS5. so PS5 owners are locked out of cloud games.:oops:
 
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Gediminas

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I just don't get the people who say "Just play it all on XCloud!" as if the whole issue isn't Microsoft trying to force all gamers into their ecosystem.

I have actually seen people trying to paint Sony as the villain, because they don't have a web browser on PS5. so PS5 owners are locked out of cloud games.:oops:
native always better. so why i would play inferior version?
 

laynelane

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P.S Don't shoot the messenger.


I wonder which vested interest wrote this. Hopefully, it will come out eventually. The fact that they feel the need to bring Sony into it it, and the way they do it, seems a little suspicious - particularly in light of Phil's recent comments on how Sony is trying to shrink MS' market share. Things like saying the CMA's job is to protect consumers and not the status quo of competitors is something I've seen warriors saying, as well. All that rhetoric does is attempt to steer attention away from the actual issues at hand which are the ones the CMA are investigating.
 
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laynelane

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I just don't get the people who say "Just play it all on XCloud!" as if the whole issue isn't Microsoft trying to force all gamers into their ecosystem.

I have actually seen people trying to paint Sony as the villain, because they don't have a web browser on PS5. so PS5 owners are locked out of cloud games.:oops:

All those people so concerned about PS players. Bless them and their altruistic hearts. 😄
 
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OP
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Darth Vader

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I find your lack of faith disturbing
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Seems like there's an update to this whole charade. Since the link below is pay walled, I'm copying the text from reddit:


In a bid to win regulatory approval for its $69 billion purchase of Activision Blizzard Inc., Microsoft Corp. has offered rival Sony Group Corp. the right to sell Activision blockbuster Call of Duty as part of its gaming subscription service.

Microsoft has publicly stated that it offered Sony a 10-year deal to make Call of Duty available on the Japanese company’s PlayStation console. The proposal, which Sony hasn’t accepted, also includes rights to sell the title on the PlayStation Plus service, which gives gamers access to a catalog of games for a monthly fee, according to a person familiar with the negotiations who declined to be identified because the talks are confidential.

Microsoft’s Xbox Game Pass is the leader in the video game and cloud gaming subscription market and is a top concern of regulators in the US, UK and European Union. Last week, the US Federal Trade Commission said it’s seeking to block the merger on grounds that it would “enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.”

Cloud gaming, which Microsoft sells as part of the highest tier of Game Pass, is still in its infancy. But some expect the technology, which allows subscribers to stream certain games onto any device, even tablets and phones, could eventually make consoles less relevant. Subscriptions offer gamers access to a wealth of games for a low price of about $10 to $15 a month, compared with single game titles that cost about $70 each.

Sony didn’t immediately reply to a request for comment. Microsoft declined to comment on the specific terms of its offer to Sony.

Sony has been a staunch opponent to Microsoft’s bid for Activision, accusing the company of seeking to “lock in many consumers to Xbox” and leveraging its other products to “foreclose cloud gaming at a critical point of its evolution.” Analysts question whether Sony’s criticisms come from insecurity that the Japanese tech company lags behind Microsoft in diversifying away from console gaming. Sony typically releases its best first-party games onto PlayStation long before they appear anywhere else.

Game Pass, which launched in 2017, has grown quickly and now has more than 25 million subscribers, far more than Sony’s similar offering. Microsoft added cloud gaming to Game Pass in 2020 and, according to the FTC, more than 20 million gamers have streamed games from the cloud with the service. Microsoft has said that cloud gaming subscription services are essential to reach its goal of expanding to 3 billion gamers worldwide, and its vision of enabling gamers to play games across Windows, Xbox and smartphones.

Microsoft last week struck a 10-year deal for Call of Duty with Nintendo Co. Microsoft declined to say whether that agreement also included subscription service rights.