Microsoft's acquisition of Activison Blizzard

Swift_Star

Veteran
2 Jul 2022
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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.
Good. Fuck Microsoft. They don't deserve and are not entitled to lead in every market segment. It's enough as it is.
 

Gods&Monsters

Veteran
21 Jun 2022
5,527
11,247
@Bryank75

Can we have another meme focused solely on the acquisition? Allow non-original memes so we can all have a great laugh.
Face app her with Jim Ryan
Taylor Not Replying GIF by VH1
 
24 Jun 2022
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You forgot to mention they also own an Xbox fridge, it's as relevant to this topic than MS being a cloud provider.

Sony has their own cloud gaming platform that doesn't need MS at all, and their own servers that doesn't need MS at all. In fact, some time after the acquisition ends it's something that Jim Ryan could consider: to remove them access or to highly increase MS the money they ask for allowing them to use them.

But since Xbox cloud gaming is a PS Now ripoff, for the existance of Xbox cloud gaming MS has to pay Sony to get their approval for using Sony's cloud gaming patents. So if desired Sony could block MS access to the usage of these patents, meaning that MS cloud gaming market share would go to 0%.

And who cares if MS has more cloud gaming market share in UK, globally Sony has twice the game subbers and generates way more money from game subs than MS. And game subs are only 7-9% of the global market revenue and cloud gaming must be a very small fraction of that. Cloud gaming market isn't relevant at all.

No matter what cloud resources Sony has, they are limited to PlayStation, whereas Microsoft's cloud infrastructure is the entirety of Azure and serves MANY markets from their Xbox cloud gaming, hosting, databases and systems, to Office, to Windows, to custom solutions with other businesses etc. Sony's share in the cloud market is massively behind the likes of Microsoft, Google, and Amazon, and pretending otherwise is just hilarious.

You are also forgetting that it wasn't just cloud gaming under consideration here; mobile was also a factor, and interestingly we saw no self-driven concessions by Microsoft for 10-year deals to other mobile storefronts for COD content. You didn't even see them make COD offers to Luna (Amazon) or Stadia (Google; and yes MS could have made that offer well earlier in 2022 while Stadia was still alive, if they wanted their offerings to seem more genuine. After all, they had already made offers to Sony by that point, which Sony rejected. But I highly doubt Google would have rejected a 3-year COD offer for Stadia).

Let me treat like as if you're very dumb.
  • Microsoft owns the second biggest cloud service provider (Azure)
  • Microsoft owns the biggest Cloud Gaming Service (XCloud)
  • Microsoft controlling IP that sells tens of millions of copies per year to stick them in their cloud service impacts not only the gaming market, where they would control the price of admission for that IP, but also the Cloud market, since they would be able to move hundreds of millions of users that rely on online services to enjoy ABK products, to their own cloud service provider, boosting its numbers.
The cloud SLC not only causes issues in the gaming landscape, but also the cloud landscape overall

Not just cloud; mobile as well. Phil let the mask slip when he talked about that mobile storefront as a main reason they wanted to buy ABK. It's like laying all their pieces out to string together the clues.

They wanted Apple & Google to open up their storefronts, because they (Microsoft) themselves wanted to expand onto their storefronts without paying Apple or Google any money, and seemingly that also would have included a mobile gaming storefront of their own driven by ABK content.

Phil Spencer's put his foot in his mouth so much now, he should be wearing dentures.

Fuo2fQbX0AIFfOv


Bobby's response.... so basically they want to bribe the UK to make them agree. He basically says that outright there.... they don't even try to hide their corruption.

Their appeal fail if it's based around questioning the CMA's process, because the CTA's decision to approve appeals does not base any of that on the investigative process of the CMA. It is not a judgement review on that, especially after a decision by the CMA has been made.

Some people are trying to bring up Apple's appeal win with the CTA as indication MS can win an appeal for ABK, but the Apple case was in regards to the investigative process itself, not a final decision after the investigation phase concluded, and did not involve a M&A.
 
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Nhomnhom

Banned
25 Mar 2023
8,414
11,558
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!
This shit is so scary, MS and other big tech messing with AI need to be nuked out of existence.

Sophy is the only AI I trust.
 

nongkris

Veteran
14 Feb 2023
1,325
2,158
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.
Truthfully, MS should've been broken up during their first anti-trust lawsuit regarding Netscape in the 80s. That precedent basically allowed big tech to become the de facto rulers of society and the subsequent social media companies that followed have done untold harm. What's funny is that you can tell how unnecessary of a deal this was for MS, cuz their stock is up because the rest of their trillion dollar company is just fine. They are still too big to fail, the CMA just stopped them from getting EVEN bigger. Yet Xbots are still crying.
 

One eyed jacks

Active member
10 Feb 2023
138
305
This hate towards the UK is crazy from MS and ABK

1. It's xboxs second biggest market
2. It's one of the biggest gaming markets in europe. I swear i read a while back it overtook germany to be the biggest?
3. UK is a huge market for COD
4. One of Microsofts best studio is in the UK, Playground.
Showing how desperate and pathetic they are once again. What a bunch of scumbag companies!
 
24 Jun 2022
3,925
6,802
The funny thing is, it was Microsoft that leaned on the Cloud angle, not the CMA. They used it to defend the acquisition, and it screwed them. And I disagree, Microsoft will make acquisitions, but they won't (as no company should) be able to buy massive companies just to bolster their offering.

Yeah, I still see MS going after Certain Affinity, Avalanche Studios, and maybe if Embracer offers them up, IO Interactive and Crystal Dynamics. They should theoretically have zero issues acquiring those developers if they want to sell.

But it does cast serious implications on them purchasing almost any gaming publisher from here on out, at least for a really long time. The fact they factored Windows and Azure into their decision for cloud, and considering the content MS wanted to acquire for cloud growth happens to also be content made for the core console gaming market itself, presents a new complication for Microsoft.

Gonna take a little bit for me to wrap my head around a lot of these implications, still kind of processing the megaton of this decision. TBH Microsoft should have just agreed to the divestiture and work out a favorable divestiture scenario for themselves. Ego and greed got the better of them.

Truthfully, MS should've been broken up during their first anti-trust lawsuit regarding Netscape in the 80s. That precedent basically allowed big tech to become the de facto rulers of society and the subsequent social media companies that followed have done untold harm. What's funny is that you can tell how unnecessary of a deal this was for MS, cuz their stock is up because the rest of their trillion dollar company is just fine. They are still too big to fail, the CMA just stopped them from getting EVEN bigger. Yet Xbots are still crying.

Yep, their stock is flying high and that's off both this news AND the fiscal results that weren't very good for Xbox. Although I think the real reason MS have been adamant for the deal isn't so much about Xbox, or even just cloud gaming, but to gain a big gaming client for Azure and hopefully attract more publishers to leveraging Azure & MS tools for their development pipelines, tying them to the hip of Azure, Office & Windows.

So the deal getting blocked kind of puts a dent into a growth sector for one of their main pillars. They probably also see the deal as valuable for their AI growth ambitions too, games would be an easy outlet for major demonstrations of refined AI technologies, with big revenue and profit margins, particularly if they could apply that tech into some of the most popular gaming products like COD.

Now it's very likely they won't get that chance whatsoever, at least with ABK. Time to hunker down with the XGS and Zenimax teams, they should be more than enough to compete anyway.
 
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