Microsoft's acquisition of Activison Blizzard

Nhomnhom

Banned
25 Mar 2023
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11,558
Gamepass fucked them in this regard. They have 50 million xbox owners, but they can't sell games to them as they promised everything on Gamepass day one. Hence, it's impossible to win 3rd party exclusivity deal unless developer/ publisher is desperate.
What's worse for them is that so many of those own Xbox One and Series S consoles. Most of those consoles will be retired pretty quickly and I doubt they'll be replaced by Series X consoles.

Their position is laughably poor right now, everything is on Sony favor and the only weapon MS had, money, that now aren't allowed to use as freely as people assumed they would.
 
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SLB1904

Actually born in 1904!
22 Jun 2022
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1282657d36b480f1e29ac3be8fbe0e0a0d7a463e3c3770a74d01a60129745105.jpg


WFgoJuz.jpg
Best acquisition
 
24 Jun 2022
3,925
6,802
Killerrin from resetera made a great point here:

"Realistically Microsoft is out beteeen a rock and a hard place here. With these reasonings being given by the CMA theyll find it hard to buy anything in the future. Gaming or not, if Azure or Windows gets involved in any way it'll be blocked.

So this poses a problem for Microsoft. They expand their business mainly through aquisitions, so if they can't buy a company in a market where they are the last place competitor, because of issues in Cloud on a Beta Product that is a nascent market with barely any market power behind it, with Azure and Windows being the reason for the block, then they won't be able to buy anything.

So with that in mind, Microsoft may be in a situation where they are forced to fight. Just to prevent this precedent from being set."



Isnt this what xbox fantatics wanted to happen to sony because of the arbitrary "high end market" definition? Now Microsfts REAL monoply may be used agaianst them. I persoanlly dont think that precedent holds but man what a turn.

I bet some people at MS are wishing the company were broken up AT&T style back in 2000, after all. Would have avoided this problem they're facing now.

Looks like the monopoly MS built up with Windows (which could actually be argued was done through moves that'd be considered anticompetitive today, and certainly were considered such back in 1999/2000) is going to be more of a factor going forward. And just as well; MS's market power today was built off the back of their actions with Windows growth in the '80s and '90s, it's not like what happened then just "goes away". Whether current-day MS likes it or not, the legacy carries on in one form or another.

I think something else that might have been a factor here, is just how the Xbox division has managed to stick around despite losing so much money over the years. A smaller company lacking MS's resources would have been forced to shutter their gaming division much sooner. Even massive companies from back in the day like NEC shuttered their gaming division after a single console failure like the PC-FX. They didn't keep operating in the console space taking on perpetual losses for multiple generations the way Microsoft has. Even Sony considered shuttering PlayStation during the PS3 generation, and would've shuttered the division is the original PS could not establish itself as a profitable division of its own merits.

So how is Microsoft able to operate Xbox while taking on tens of billions of dollars in losses over the years and not generating a net profit on the division as a whole? Because of the massive profit streams from Azure, Office, and Windows. What were Azure and the Office product lines born from? The profits and market monopoly of Windows. When did Windows amass those massive profits? During the '80s and '90s? What business tactics did Microsoft use to grow those profits? Welp, enough of those were controversial enough to warrant a government investigation in the late '90s 🤷‍♂️.

Everything ties together.
 

Airbus

Veteran
30 Jun 2022
2,409
2,115
Do we know anything about xbox cheerleaders like destin? I wonder if they’re ok …
Forget about him

Hows the bigest badass xboxers on ign Ryan McAfrey doing

Anyway

Xbox have 24 studios

How about them stop being lazy and start cultivate games from those studios instead of taking away third party publishers like activision

Thanks
 
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Heisenberg007

Veteran
21 Jun 2022
1,255
2,567
So I asked ChatGPT to write a poem, a haiku, and a rap song on this. This is what it came up with 😄

POEM:

Microsoft and Activision
A merger that sparked great ambition
But CMA said, "Hold your horses!"
Blocked by regulators' forces

Aaron Greenberg, feeling fine
Dreamed of gaming worlds to combine
Phil Spencer, with grand schemes in mind
Had plans to level up and grind

Lulu Cheng Meservey, on the case
Investigating with great pace
CMA stepped in, said "Not today!"
And the deal was halted, come what may

Now gamers wait with bated breath
What's next for Microsoft? What's left?
Will they try again, a different way?
Or leave it be, just for today?

HAIKU:

CMA's call,
Microsoft and Activision stall,
Gamer's dreams appall.


RAP SONG:

(Verse 1)
Yo, listen up, here's the news of the day,
Microsoft and Activision in dismay,
Thought they'd merge, make a gaming craze,
But CMA blocked them with their regulatory maze.

(Chorus)
Aaron Greenberg, Phil Spencer, feeling the heat,
Lulu Cheng Meservey, investigating the beat,
CMA said, "Hold up, not so fast!"
Put a halt to the deal, made it a thing of the past.

(Verse 2)
Greenberg had plans, Spencer had dreams,
But CMA said, "Not as easy as it seems,
We're here to regulate, keep things in check,
No merging giants, without a thorough check."

(Chorus)
Aaron Greenberg, Phil Spencer, feeling the heat,
Lulu Cheng Meservey, investigating the beat,
CMA said, "Hold up, not so fast!"
Put a halt to the deal, made it a thing of the past.

(Bridge)
Now gamers wait, with curious eyes,
What's next for Microsoft, what's the surprise?
Will they try again, find a different way?
Or accept the decision, and call it a day?

(Chorus)
Aaron Greenberg, Phil Spencer, feeling the heat,
Lulu Cheng Meservey, investigating the beat,
CMA said, "Hold up, not so fast!"
Put a halt to the deal, made it a thing of the past.

(Outro)
So here's the tale of Microsoft's big plan,
Blocked by CMA, ain't that a span?
But hey, don't fret, there's still much to see,
In the world of gaming, it's always a spree!
 

Yurinka

Veteran
VIP
21 Jun 2022
7,654
6,518
Owning a CLOUD service provider is inconsequential for CLOUD gaming? Your attempts of Reductio ad absurdum fail straight away. Costs have no bearing in the business size, and Intelligent Cloud has a profitability of about 10B per quarter. PER QUARTER. That's about the same profit as Sony has PER YEAR.


Additionally, while XCloud uses different server racks, the business scope is the same. Like, you're trying to find excuses for something that's so in your face a blind man could see.
But again, it's a separate unrelated business that only have in common that they use servers.

It's like to say MS has an advantage in gaming because they have Excel and Excel runs in computers, like the game engines and tools that devs use to make games, and that some devs use Excel. That doesn't mean a shit for gamedevs, because whatever spreadsheet app they use or where do they have their servers stored, or to have another division in that business doesn't matter at all.

It would be like to say the same for Sony because they also make tvs and videogames use tvs to be played.

Offering server storage and an app (website) to manage them with some extra related services to other companies who may store them the servers of their website, app etc has nothing to do with cloud gaming. In this case it only saves MS a few bucks of renting space for storing the server racks, but they still have to pay which is by far the biggest related costs: its internet bandwith and electricity + maintenance.

XCloud is the biggest console Cloud service provider. Playstation Plus is not the same kind of service, and you, as someone that things they're so smart, should know this. Also, the UK not being the world has no relevance as a counter for my argument. Stop throwing shit in the hopes it sticks.
We have absolutely no data showing that Xcloud has more worldwide users than PS cloud gaming, we only know that PS Plus has twice the subs than GP and that worldwide Sony gaming subs generate way more money than MS gaming subs.

UK is a very small portion of the gaming market and console market, or even for Xbox and PS, so it isn't relevant to measure worldwide performance.

Irrelevant. Cloud marketing is a nascent market, with low barrier of entry. Allowing consolidation this early on will lead (if the market segment is successful) to less competition going forward. This shit is economics 101. Go back to school.
Cloud gaming started 20 years ago and its first 'important'/'relevant' player Gaikai for the modern cloud gaming -who filled some of the patents being used today, now owned by Sony- started in the late 2000s.

During decades the market didn't highlly scaled because there are some reasons that prevent it from scaling, that even if slightly improved since then and will continue slightly improving the main reasons will continue avoiding it to scale and become mainstream worldwide during at least a decade or two: the need of a technology available worldwide that allows enough speed and low enough latency plus also not blocked by internet data caps. Even the 6G experiments we're seeing, which will take a lot of time to have a great worldwide coverage (4G still doesn't have it).

So cloud gaming will continue being an irrelevant market as is today, at least for decades. So it's very hard to justify being corcerned about it.

And as I mentioned ABK only has a 4% market share, so its acquisition shoudn't be a concern regarding consolidation, specially when who buys it has only single digit market share and isn't at all a market leader in the main markets (mobile, PC and console), in fact in the platform more attached to cloud gaming it's the last one in the race and around 90% of the active players of their direct competitor don't buy the game that is causing the concern.

Another Reductio ad absurdum and Strawman? Fantastic. You should not only try and learn basic economic theory, but also philosophy.
I suggest you to at least go to wikipedia to know what these terms means, because I see you don't know it.

Tesla has almost 4% of the car market share. Florida is the biggest banana exporter in the US. Both of those are facts. They are also fucking irrelevant to this discussion.
Yes, they are almost as irrelevant as the Azure market position when talking about gaming or cloud gaming.

Did they? I wasn't aware, but seems to me that you are. Good for you. Ah, sorry, here's a funny gif that describes what you are

Sad Gordon Ramsay GIF by Hell's Kitchen's Kitchen
Yep, you can read a preview on Google Books: "Halo: The Official Cookbook - Recipes from across the galaxy". One of the most interesting Xbox releases combined with the Xbox nail polish, the Xbox Series X fridge, and Xbox Series S toaster. It would be interesting to sell them together in a bundle.
 

FatKaz

Veteran
16 Jul 2022
2,221
4,205
But again, it's a separate unrelated business that only have in common that they use servers.

It's like to say MS has an advantage in gaming because they have Excel and Excel runs in computers, like the game engines and tools that devs use to make games, and that some devs use Excel. That doesn't mean a shit for gamedevs, because whatever spreadsheet app they use or where do they have their servers stored, or to have another division in that business doesn't matter at all.

It would be like to say the same for Sony because they also make tvs and videogames use tvs to be played.

Offering server storage and an app (website) to manage them with some extra related services to other companies who may store them the servers of their website, app etc has nothing to do with cloud gaming. In this case it only saves MS a few bucks of renting space for storing the server racks, but they still have to pay which is by far the biggest related costs: its internet bandwith and electricity + maintenance.


We have absolutely no data showing that Xcloud has more worldwide users than PS cloud gaming, we only know that PS Plus has twice the subs than GP and that worldwide Sony gaming subs generate way more money than MS gaming subs.

UK is a very small portion of the gaming market and console market, or even for Xbox and PS, so it isn't relevant to measure worldwide performance.


Cloud gaming started 20 years ago and its first 'important'/'relevant' player Gaikai for the modern cloud gaming -who filled some of the patents being used today, now owned by Sony- started in the late 2000s.

During decades the market didn't highlly scaled because there are some reasons that prevent it from scaling, that even if slightly improved since then and will continue slightly improving the main reasons will continue avoiding it to scale and become mainstream worldwide during at least a decade or two: the need of a technology available worldwide that allows enough speed and low enough latency plus also not blocked by internet data caps. Even the 6G experiments we're seeing, which will take a lot of time to have a great worldwide coverage (4G still doesn't have it).

So cloud gaming will continue being an irrelevant market as is today, at least for decades. So it's very hard to justify being corcerned about it.

And as I mentioned ABK only has a 4% market share, so its acquisition shoudn't be a concern regarding consolidation, specially when who buys it has only single digit market share and isn't at all a market leader in the main markets (mobile, PC and console), in fact in the platform more attached to cloud gaming it's the last one in the race and around 90% of the active players of their direct competitor don't buy the game that is causing the concern.


I suggest you to at least go to wikipedia to know what these terms means, because I see you don't know it.


Yes, they are almost as irrelevant as the Azure market position when talking about gaming or cloud gaming.


Yep, you can read a preview on Google Books: "Halo: The Official Cookbook - Recipes from across the galaxy". One of the most interesting Xbox releases combined with the Xbox nail polish, the Xbox Series X fridge, and Xbox Series S toaster. It would be interesting to sell them together in a bundle.
Let it go man. It's over. Sheesh.