Microsoft's acquisition of Activison Blizzard

24 Jun 2022
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It was interesting to me that Brad Smith somewhat dodged the question when a reporter asked him about how the actual hearing went. Basically, he says that he thinks the license agreements they made give him more confidence for the deal than anything that was said in the hearing.

I also wonder why they think trotting out dudes like Bobby Kotick to make vague threats to the UK economy in interviews will endear them with regulators.

If that's his opinion, then they've already failed. Just ask yourself this: what 3P publisher tells a platform holder how long they intend to publish games on their system? And tries signing a legally-binding contract to enforce that? When the deal is literally just the 3P publisher bringing the game to a system they were already intending to bring to that system anyway?

If Microsoft weren't trying to play both sides of the same coin, they could have just came out and said to regulators "We are acting on behalf as a third-party, multiplatform publisher and will be bringing all ABK games to all existing platform brands, under all the terms and conditions in which ABK games currently operate on various platform brands. ABK will function as a fully independent subsidiary under Microsoft Gaming, in perpetuity. We will also ensure that ABK games find their way onto even more platforms, including Nintendo Switch and Nvidia GeForce Now."

Now THAT'S probably a behavioral remedy regulators would probably be okay with, because they know there are things Microsoft would have to legally perform in order to honor that type of statement. But the reason Microsoft didn't say that, is because they want to kind of be a third-party publisher, but also kind of want to compete as a platform holder against Sony, and kind of compete as a cloud & subscription-based provider against Google & Amazon (two companies they did NOT provide a contract with similar to what they've done with Nvidia), all simultaneously.

They don't want to commit to one path so they're giving the bare minimum of promises in soft behavioral remedies and hoping that'll be enough.

Seems like somebody in the FTC called Take Two.



Maybe they'll get the real Game Pass numbers from them 😂



This is really making me wonder if Microsoft's way of doing MAUs is similar to how companies talk about player counts in GaaS titles. You know, when they always give cumulative lifetimes, but the concurrent amounts are always significantly lower?

TBF it slightly makes me wonder how Sony calculates theirs in ways but at least Sony have actual transparency on PS+ sub counts, so we know their MAUs are at least whatever the PS+ sub counts are in the fiscal reports. And that is a metric ton more transparency than anything Microsoft provides when it comes to sub counts (because even when they did give Game Pass numbers, they never gave Game Pass revenue 😉)

The general vibe I'm getting from those in favor of the deal is that Sony are doing too well in the gsming industry and had too many games last gen, therefore they need to be brought to heel and humbled by Microsoft. It's about beating / embarrassing Playstation for a lot of them.

And I guarantee you 100% those same people don't do this with Nintendo. The same Nintendo, that's been dominating Japan with the Switch....why do these same people downplay any talks of a new Sony portable? Don't they want Nintendo to be humbled?

They did the same thing with Steam Deck too; Nintendo's been having a ton of success in gaming and has too many games with the Switch but, you won't hear these hypocritical idiots argue about Nintendo needing "competition" to be humbled, and if you do, it's never in the manner of a competitor buying up publishers like Sega, or companies with IP that could counter Nintendo's (such as Disney) to "compete" with them, the way they're more than fine with MS buying up 3P publishers that generate the majority of their revenue on PlayStation to "compete" with Sony.

These people have gaming opinions worth less than used toilet paper stuck to someone's ass, they don't need to be seriously considered. Merely entertained for being laughed at. It's their sheer hypocrisy and double standards simply to bend flimsy logic one way for another at a moment's notice, that makes them this way.
 
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KiryuRealty

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Where it’s at.
If that's his opinion, then they've already failed. Just ask yourself this: what 3P publisher tells a platform holder how long they intend to publish games on their system? And tries signing a legally-binding contract to enforce that? When the deal is literally just the 3P publisher bringing the game to a system they were already intending to bring to that system anyway?

If Microsoft weren't trying to play both sides of the same coin, they could have just came out and said to regulators "We are acting on behalf as a third-party, multiplatform publisher and will be bringing all ABK games to all existing platform brands, under all the terms and conditions in which ABK games currently operate on various platform brands. ABK will function as a fully independent subsidiary under Microsoft Gaming, in perpetuity. We will also ensure that ABK games find their way onto even more platforms, including Nintendo Switch and Nvidia GeForce Now."

Now THAT'S probably a behavioral remedy regulators would probably be okay with, because they know there are things Microsoft would have to legally perform in order to honor that type of statement. But the reason Microsoft didn't say that, is because they want to kind of be a third-party publisher, but also kind of want to compete as a platform holder against Sony, and kind of compete as a cloud & subscription-based provider against Google & Amazon (two companies they did NOT provide a contract with similar to what they've done with Nvidia), all simultaneously.

They don't want to commit to one path so they're giving the bare minimum of promises in soft behavioral remedies and hoping that'll be enough.



Maybe they'll get the real Game Pass numbers from them 😂



This is really making me wonder if Microsoft's way of doing MAUs is similar to how companies talk about player counts in GaaS titles. You know, when they always give cumulative lifetimes, but the concurrent amounts are always significantly lower?

TBF it slightly makes me wonder how Sony calculates theirs in ways but at least Sony have actual transparency on PS+ sub counts, so we know their MAUs are at least whatever the PS+ sub counts are in the fiscal reports. And that is a metric ton more transparency than anything Microsoft provides when it comes to sub counts (because even when they did give Game Pass numbers, they never gave Game Pass revenue 😉)



And I guarantee you 100% those same people don't do this with Nintendo. The same Nintendo, that's been dominating Japan with the Switch....why do these same people downplay any talks of a new Sony portable? Don't they want Nintendo to be humbled?

They did the same thing with Steam Deck too; Nintendo's been having a ton of success in gaming and has too many games with the Switch but, you won't hear these hypocritical idiots argue about Nintendo needing "competition" to be humbled, and if you do, it's never in the manner of a competitor buying up publishers like Sega, or companies with IP that could counter Nintendo's (such as Disney) to "compete" with them, the way they're more than fine with MS buying up 3P publishers that generate the majority of their revenue on PlayStation to "compete" with Sony.

These people have gaming opinions worth less than used toilet paper stuck to someone's ass, they don't need to be seriously considered. Merely entertained for being laughed at. It's their sheer hypocrisy and double standards simply to bend flimsy logic one way for another at a moment's notice, that makes them this way.
The CMA has already said that no behavioural remedy requiring any monitoring or enforcement from them to manage is acceptable, so no deals or contracts or promises are going to get MS anywhere.
 

AshHunter216

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If that's his opinion, then they've already failed. Just ask yourself this: what 3P publisher tells a platform holder how long they intend to publish games on their system? And tries signing a legally-binding contract to enforce that? When the deal is literally just the 3P publisher bringing the game to a system they were already intending to bring to that system anyway?

If Microsoft weren't trying to play both sides of the same coin, they could have just came out and said to regulators "We are acting on behalf as a third-party, multiplatform publisher and will be bringing all ABK games to all existing platform brands, under all the terms and conditions in which ABK games currently operate on various platform brands. ABK will function as a fully independent subsidiary under Microsoft Gaming, in perpetuity. We will also ensure that ABK games find their way onto even more platforms, including Nintendo Switch and Nvidia GeForce Now."

Now THAT'S probably a behavioral remedy regulators would probably be okay with, because they know there are things Microsoft would have to legally perform in order to honor that type of statement. But the reason Microsoft didn't say that, is because they want to kind of be a third-party publisher, but also kind of want to compete as a platform holder against Sony, and kind of compete as a cloud & subscription-based provider against Google & Amazon (two companies they did NOT provide a contract with similar to what they've done with Nvidia), all simultaneously.

They don't want to commit to one path so they're giving the bare minimum of promises in soft behavioral remedies and hoping that'll be enough.



Maybe they'll get the real Game Pass numbers from them 😂



This is really making me wonder if Microsoft's way of doing MAUs is similar to how companies talk about player counts in GaaS titles. You know, when they always give cumulative lifetimes, but the concurrent amounts are always significantly lower?

TBF it slightly makes me wonder how Sony calculates theirs in ways but at least Sony have actual transparency on PS+ sub counts, so we know their MAUs are at least whatever the PS+ sub counts are in the fiscal reports. And that is a metric ton more transparency than anything Microsoft provides when it comes to sub counts (because even when they did give Game Pass numbers, they never gave Game Pass revenue 😉)



And I guarantee you 100% those same people don't do this with Nintendo. The same Nintendo, that's been dominating Japan with the Switch....why do these same people downplay any talks of a new Sony portable? Don't they want Nintendo to be humbled?

They did the same thing with Steam Deck too; Nintendo's been having a ton of success in gaming and has too many games with the Switch but, you won't hear these hypocritical idiots argue about Nintendo needing "competition" to be humbled, and if you do, it's never in the manner of a competitor buying up publishers like Sega, or companies with IP that could counter Nintendo's (such as Disney) to "compete" with them, the way they're more than fine with MS buying up 3P publishers that generate the majority of their revenue on PlayStation to "compete" with Sony.

These people have gaming opinions worth less than used toilet paper stuck to someone's ass, they don't need to be seriously considered. Merely entertained for being laughed at. It's their sheer hypocrisy and double standards simply to bend flimsy logic one way for another at a moment's notice, that makes them this way.
A situation where ABK stays a 3rd party publisher for all practical purposes but with MS collecting the revenue, similar to Sony with Bungie may be acceptable, but I doubt MS does that, as they want to gain more of a competitive edge out of this deal than that.
 

AshHunter216

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So when the response to the CMA's findings in March is released, is that just a summary of what Microsoft had to say about what the CMA proposes for the deal so far?

Basically, are the final reports what we have to wait for to see what the CMA and EC think about what MS are offering?
 
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AshHunter216

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Not acceptable to the CMA.
Maybe not, but the EU seem less against the deal than the CMA. Something like this might be the strictest stance they could be convinced to take against it. Basically a behavioral remedy that requires nothing ABK puts out be made exclusive.
 

KiryuRealty

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Where it’s at.
So when the response to the CMA's findings in March is released, is that just a summary of what Microsoft had to say about what the CMA proposes for the deal so far?

Basically, are the final reports what we have to wait for the see what the CMA and EC think about what MS are offering?
The CMA’s final report is basically the verdict on whether the deal goes through or not, it’ll just outline what MS proposed to them and why they rejected it.

If it does come down to the issue of the CMA demanding divestiture of COD and the related studios and MS refusing, it wouldn’t even be worth the price of the paper and toner used for MS to try to appeal it.
 
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AshHunter216

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The CMA’s final report is basically the verdict on whether the deal goes through or not, it’ll just outline what MS proposed to them and why they rejected it.

If it does come down to the issue of the CMA demanding divestiture of COD and the related studios and MS refusing, it wouldn’t even be worth the price of the paper and toner used for MS to try to appeal it.
Ah, I guess I'm just curious to see what the regulators think of all this going on with MS public display before the final reports drop though.
 
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FatKaz

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A situation where ABK stays a 3rd party publisher for all practical purposes but with MS collecting the revenue, similar to Sony with Bungie may be acceptable, but I doubt MS does that, as they want to gain more of a competitive edge out of this deal than that.
That's an interesting solution. Assuming Microsoft go with it, wouldn't it still require some form of monitoring from CMA to make sure they don't use it to their advantage.

The thing with bungie is they themselves want freedom to publish where they want. So whatever contract with Sony they have bungie themselves will make sure it is adhered to.

While with abk that isn't the case, so CMA will need to get involved and monitor it to make sure no hanky panky is going on. Something that they probably won't have the means to do long term.
 
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Satoru

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The general vibe I'm getting from those in favor of the deal is that Sony are doing too well in the gaming industry and had too many games last gen, therefore they need to be brought to heel and humbled by Microsoft. It's about beating / embarrassing Playstation for a lot of them.

The thing is, if Sony had reached their status by acquiring half the industry and were forcing their product on people one way or another, I could get behind that argument. The problem is that Microsoft, and their fandom by extension, want nothing more than reducing the amount of games Playstation owners have. It's not about making yourself better, it's about making others worse.

Then you can break those in favour in a couple of groups - Those that don't care / are not informed, and those that support a toxic brand like a footbal team. The former seem to not understand that this acquisition will lower their choice, not increase it, and will increase the bar for entering the game business even further. The later are just sad individuals that think they've been forced to eat shit, and therefore believe all others must eat shit as well.
 

Shmunter

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Nobody likes the stench of failure. Many will leave Xbox after this showing.

As if vr isn’t enough reason. You buy RE8 on ps5 and you get som much more for your money… etc.
 
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AshHunter216

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Idas finally with some new insights on scheduling and likelihood of success. I'm not wading through that garbage thread anymore for awhile. Someone else wade through that mess in my place.

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Divestiture is not out of the deal, especially for the CMA. I appreciate reposting that, but that comment makes the very wrong assumption that both the EC and CMA are ok with behavioural remedies when in fact, we don't know about the first and the second has said that they do not like that option.
 

AshHunter216

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Divestiture is not out of the deal, especially for the CMA. I appreciate reposting that, but that comment makes the very wrong assumption that both the EC and CMA are ok with behavioural remedies when in fact, we don't know about the first and the second has said that they do not like that option.
I interpret the post as saying divestment is something MS refuse to do, and that they'll need stronger behavioral remedies to stand a chance since they won't divest.

Edit: On a side note, it was pretty wild but not surprising to see resetera adopt a double standard with regards to harassment concerning Chris Dring in that thread since he didn't speak favorably about the deal. Anyone who said that it wasn't cool was met with "What about Jez Corden getting hate?"
 
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FatKaz

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Idas finally with some new insights on scheduling and likelihood of success. I'm not wading through that garbage thread anymore for awhile. Someone else wade through that mess in my place.

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Even though he as been playing to one side, it's a reasonable post. They have a long way to go to please the CMA and EC will still have concerns.

Also nice one for posting this stuff. Era is a trashfire, i know i wouldn't want to wade through the garbage.
 
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nongkris

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I wouldn't call Idas reasonable, he's had a very clear pro acquisition bias, just with a more informative slant. The chances of CMA + EU passing this deal with no concessions is slim to none.
 

daniel5043

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I interpret the post as saying divestment is something MS refuse to do, and that they'll need stronger behavioral remedies to stand a chance since they won't divest.

Edit: On a
side note, it was pretty wild but not surprising to see resetera adopt a double standard with regards to harassment with Chris Dring in that thread since he didn't speak favorably about the deal. Anyone who said that it wasn't cool was met with "What about Jez Corden getting hate?"
They harrass anyone who disagree with them. Hell they probably sent abuse to Chris themselves
 

AshHunter216

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I wouldn't call Idas reasonable, he's had a very clear pro acquisition bias, just with a more informative slant. The chances of CMA + EU passing this deal with no concessions is slim to none.
Oh yeah, concessions are a given, the question is whether or not MS can convince them with these behavioural remedies that don't really require them to sacrifice much of anything. EC might, but the cma, probably not.
 

KiryuRealty

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Where it’s at.
Divestiture is not out of the deal, especially for the CMA. I appreciate reposting that, but that comment makes the very wrong assumption that both the EC and CMA are ok with behavioural remedies when in fact, we don't know about the first and the second has said that they do not like that option.
Reading the CMA’s initial findings through the lens of government-speak, the only way they approve the deal is if the Call of Duty business is divested.

It’s worded as a suggestion, but when a regulator “suggests” a remedy, it’s like Don Corleone making an offer you can’t refuse. They’re dictating terms without appearing to dictate the terms, an iron fist in a velvet glove.

The wording is softer to avoid the opening for MS to see grounds to appeal on procedural impropriety, which they would have a window for if the preliminary finding was “Fuck you, no deal”.