Microsoft's acquisition of Activison Blizzard

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Darth Vader

Darth Vader

I find your lack of faith disturbing
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I didn't say that they'd want MS being market leader. I said they'd prefer MS to be more competitive, closer to (but still behind) Sony.

They don't need more studios to be competitive, so acquiring a publisher to be competitive is stupid. They need to release good quality products, which they don't. Their consoles are subpar, their games are mediocre, and the only thing they are actually good at is paying astroturfers to push their narrative. They already have more studios than Sony, put them to work.
 

Yurinka

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They don't need more studios to be competitive, so acquiring a publisher to be competitive is stupid. They need to release good quality products, which they don't. Their consoles are subpar, their games are mediocre, and the only thing they are actually good at is paying astroturfers to push their narrative. They already have more studios than Sony, put them to work.
True, they could be way more competitive with the resources they already have by doing a better job.

Acquiring the biggest 3rd party publisher wouldn't be stupid, it would give them a lot of popular names of brands and studios and would highly increase their revenue and game sales in console, PC and specially mobile. And also would help them reduce their loses thanks to the profitability of the acquired.

But that would be if they don't take the stupid decision of making the ABK games Xbox console exclusive and putting them day one on GP, which would kill a huge chunk of the ABK revenue and profits.
 
OP
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Darth Vader

Darth Vader

I find your lack of faith disturbing
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20 Jun 2022
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Acquiring the biggest 3rd party publisher wouldn't be stupid, it would give them a lot of popular names of brands and studios and would highly increase their revenue and game sales in console, PC and specially mobile. And also would help them reduce their loses thanks to the profitability of the acquired.

They already increased their revenue with Bethesda and managed to be even less competitive. Buying another publisher to dump their games in a non-profitable business model will just make that publisher not profitable.

They should focus on making good games and appealing hardware. It's very simple.
 

Yurinka

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They already increased their revenue with Bethesda and managed to be even less competitive. Buying another publisher to dump their games in a non-profitable business model will just make that publisher not profitable.
It's too early to see the results of Bethesda, AAA games take a lot of time and they were bought relently. Barely have been able to release a few games and some of them had exclusivity with Sony.

And well, the top Bethesda teams still have to release their games: Starfield, ESVI, the next Doom or even Indiana Jones could be great (but I wouldn't bet on them after watching what they did with ESO and Fallout 76).

We also have to consider that all these games will be games that they already had in the works before joining MS. We'll have to wait a lot to see these ones, and we'll have to wait even more to see big AAA Zenimax / Bethesda games developed from the scratch inside MS.

They should focus on making good games and appealing hardware. It's very simple.
I agree, but they aren't capable to do so, so try to patch it with acquisitions to see if someone who buy them achieve it. It did work for them with Minecraft, it keeps making a lot of money.
 
OP
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Darth Vader

Darth Vader

I find your lack of faith disturbing
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20 Jun 2022
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It's too early to see the results of Bethesda, AAA games take a lot of time and they were bought relently. Barely have been able to release a few games and some of them had exclusivity with Sony.

It's not too early. Their meddling with Redfall (as demonstrated by studio members) fucked the game beyond oblivion. Other games will follow.

I agree, but they aren't capable to do so, so try to patch it with acquisitions to see if someone who buy them achieve it. It did work for them with Minecraft, it keeps making a lot of money.

If they aren't capable to do so, no acquisition will fix the issue, it will only exacerbate it by killing beloved IP. Even Minecraft is a poor example: The OG game is pretty much the same pre-acquisition, and the new game was a critically panned flop.
 

Gediminas

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They already increased their revenue with Bethesda and managed to be even less competitive. Buying another publisher to dump their games in a non-profitable business model will just make that publisher not profitable.

They should focus on making good games and appealing hardware. It's very simple.
Phil said that good games doesn't change a thing and isn't helping to sell hardware :D
 
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Gods&Monsters

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Unbelievable how many gaming companies support Microsofts acquisition of Activision Blizzard. Ungrateful Bastards
Another one that wants Microsoft to win "for the good of the industry". Is he going to give them GTA6 exclusivity too?

What's going on with all these publishers that make no money on Xbox but they are rooting for them to dominate? Zero support for Sony tho.

Is there something we don't know? It makes no sense to me.
 
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Gods&Monsters

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I didn't say that they'd want MS being market leader. I said they'd prefer MS to be more competitive, closer to (but still behind) Sony.
Xbox is already strong enough (about 20 millions consoles) and these publishers don't even sale any fucking games on their platforms and make no money. Sony by itself is enough for them to make record profits.

I'm sure Bethesda is very happy with Redfall reception. Nice competition. Every publisher is looking at them with envy I'm sure 🤣
 
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Gediminas

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Xbox is already strong enough (about 20 millions consoles) and these publishers don't even sale any fucking games on their platforms and make no money. Sony by itself is enough for them to make record profits.

I'm sure Bethesda is very happy with Redfall reception. Nice competition. Every publisher is looking at them with envy I'm sure 🤣
Redfall is was so good and profitable because they had good competition - Playstation.

oh, i am sorry, non existent in console market Apple and Google is their competition, i was told.

so which is it?
 
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OP
OP
Darth Vader

Darth Vader

I find your lack of faith disturbing
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20 Jun 2022
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Another one that wants Microsoft to win "for the good of the industry". Is he going to give them GTA6 exclusivity too?

What's going on with all these publishers that make no money on Xbox but they are rooting for them to dominate? Zero support for Sony tho.

Is there something we don't know? It makes no sense to me.

It's actually easy. If Microsoft acquires a publisher it's a certainty that that IP will die sooner or later, opening market space for those companies. They want that acquisition because they know microsoft will kill their competitor.
 
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Sony has over 2:1 advantage wordwide, and 4:1 in Europe. For AAA publishers it would be better to have a stronger Xbox that offers more competition to Sony.

That would be a bigger market for them so they could sell more games, and also would pretty likely to have more opportunities of getting deals with platform holders and in better conditions.

It would be even better for Sony fanboys, because a Sony with stronger competition would work harder and bet harder so would deliver more and better games, hardware and services in terms of quality or pricing etc.

I mean, Take 2 would prefer to have two console makers for who is profitable to pay a huge amount of money for the GTA6 marketing. They would bid and Take 2 would get more money for the deal. But if that chunk of money is only worth it for only one of them then they'll get less money.

A separate topic would be what Take 2 or the big publishers think about the 'day one on GP/could gaming' strategy, pretty likely all of them are against it and putting their games there, but they understand that MS may want to do so.

So uh how about that "competition" for Nintendo in the portable/handheld space, then? You know, if MS being a stronger competitor is "needed" for Sony to do better, then shouldn't we want say Sony to come back to the portable/handheld space, or Sega or whomever, to make Nintendo do even better than they currently are?

Here's the truth: Sony does not "need" Microsoft in console gaming at all in order to want to do better. Their own shareholders will expect them to keep performing better with market performance, which naturally creates the need for Sony to keep delivering big games and work with 3P partners to do the same. Yes a stronger MS/Xbox would be a nice-to-have, but it's not a necessity whatsoever. And Nintendo's been putting out some of their best games ever on a system that has no natural competitor in the market, so the notion PlayStation "needs" Xbox around is hogwash.

I would like Xbox to become a better brand, and to get back to what made the OG Xbox and first half of the 360 great systems. But that doesn't in any way, shape, or form require buying up 3P publishers. We have zero idea how an ABK under MS would grow and prosper in terms of creativity, and MS's past acquisitions haven't exactly given a lot of hope (mostly) on that note. Nothing from Phil Spencer's mouth WRT ABK so far has shown he has any interest or inclination to actually get creative with legacy ABK IP outside of Guitar Hero, and that one was simply brought up because it was a huge cash cow in the '00s.

Take-Two are probably in support of the deal because it means less competition for them in the 3P market space. It means a likely reduction of total ABK game content output by volume, meaning less games Take-Two's offerings have to compete with. It also means they are even more favorable in the eyes of Sony in terms of being a priority for marketing deals, exclusivity agreements etc. since there's one less 3P publisher they have to worry about.

Your idea that a more "competitive" MS by way of acquiring ABK would lead to them and Sony bidding higher on Take-Two games is also pretty flawed, because with an asset like ABK under their ownership MS have less of a reason to seek out bidding wars for big 3P games. A MS with ABK ironically strengthens ties between Take-Two and Sony to where the latter is more likely to get deals, as Microsoft has less of a need for deals on Take-Two properties.

You should probably read the thoughts of Xbox France's ex-executive on Twitter; @Dabaus has a post with the text and a link in case you're interested. They point out a lot of insights into the unfavorable market conditions Microsoft's current acquisition strategy paint and the element of fear in place for indie developers who rely on services like Game Pass to speak out. It is somewhat related to the rest of this topic, but I think it would help if you're more informed on how this aspect of "competition" you seem to either favor or be condoning of, isn't the net benefit to the market or even Microsoft you irrationally feel it is.
 

AshHunter216

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Another one that wants Microsoft to win "for the good of the industry". Is he going to give them GTA6 exclusivity too?

What's going on with all these publishers that make no money on Xbox but they are rooting for them to dominate? Zero support for Sony tho.

Is there something we don't know? It makes no sense to me.
I guess they feel like they would make more money if two consoles were super popular instead of just one. I just take issue with the implication that the only way to improve Xbox is by weakening Playstation and permanently reducing the number of games available on it in order to feed the Xbox.
 

Nhomnhom

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Another one that wants Microsoft to win "for the good of the industry". Is he going to give them GTA6 exclusivity too?

What's going on with all these publishers that make no money on Xbox but they are rooting for them to dominate? Zero support for Sony tho.

Is there something we don't know? It makes no sense to me.
There is no reason for them to be against the deal. To them it's even better if all their competitors crash and burn pushing services that they are not involved with. There is also the benefit of knowing that if they were ever to be acquired they wouldn't run in the same problems.

Take-Two along with Activision, out of the bigger publisher, were always the ones most resistant to Gamepass.
 
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Yurinka

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So uh how about that "competition" for Nintendo in the portable/handheld space, then?
Most of the Switch game sales are Nintendo game sales, for big publishers 3rd party sales on Switch are a very small market compared to AAA gaming in high end home consoles+PC or specially to mobile.

This is why most of them don't support or almost don't it. But yes, for publishers it would be better to have competition there, specially if doesn't require specific games or ports for it: this is why all of them support Steamdeck, because they can use with a few minor tweaks their PC version.

Here's the truth: Sony does not "need" Microsoft in console gaming at all in order to want to do better.
Obviously Sony like any company would love to have a monopoly with no competition, or to have their competition as weak as possible. But that would make them too overconfident, lazy, arrogant and pretty likely abusive. It's better for them and specially us to have good competition.

Take-Two are probably in support of the deal because it means less competition for them in the 3P market space.
Good point, they would become the top grossing console 3rd party publisher.

Your idea that a more "competitive" MS by way of acquiring ABK would lead to them and Sony bidding higher on Take-Two games is also pretty flawed, because with an asset like ABK under their ownership MS have less of a reason to seek out bidding wars for big 3P games.
Without ABK as 3P, there would be less big 3P games to bid for, so T2 would have more chances of being one of them. 1st and 3rd party are different things and budgets, having more 1st party doesn't mean investing less in 3P: during decades Sony had more 1P than MS and Nintendo combined and they got more 3P deals than MS and Nintendo combined.

A MS with ABK ironically strengthens ties between Take-Two and Sony to where the latter is more likely to get deals, as Microsoft has less of a need for deals on Take-Two properties.
Yes, as mentioned now with less big 3P it's more likely that both Sony and MS would bid for Take2.

They point out a lot of insights into the unfavorable market conditions Microsoft's current acquisition strategy paint and the element of fear in place for indie developers who rely on services like Game Pass to speak out. It is somewhat related to the rest of this topic, but I think it would help if you're more informed on how this aspect of "competition" you seem to either favor or be condoning of, isn't the net benefit to the market or even Microsoft you irrationally feel it is.
I think what it's awful for publishers from the top AAA ones to small indies is the 'day one on a subscription' potentially becoming the standard: that would kill most big and small publishers, devs and platform holders. I think it's very toxic and it hope it fails and never becomes the standard.

And for the platforms with cloud gaming, the abusive conditions that MS puts to give them CoD during 10 years. I think these conditions of giving 0% instead of 30% of the revenue must kill the acquisition.

But outside these two things, I think that the acquisition would help MS be in a better shape, even if still behind Sony, and Sony having stronger competition would do an even better job.
 

On Demand

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Publishers are saying they want the deal to go through just so they can look nice and continue to be able to make big purchases of their own. The CMA and FTC blocking MS from Activision sets up a precedent for the future.

Nothing shocking about what Take Two said.
 
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Nhomnhom

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I really can't believe he said that lol. It's like, I don't know, Netflix saying good shows don't matter lmao
He is just saying because he doesn't have them. Sure they wouldn't save Xbox now, but that is after 15 years of not having them (mostly because of Phil himself).
 
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It's too early to see the results of Bethesda, AAA games take a lot of time and they were bought relently. Barely have been able to release a few games and some of them had exclusivity with Sony.

And well, the top Bethesda teams still have to release their games: Starfield, ESVI, the next Doom or even Indiana Jones could be great (but I wouldn't bet on them after watching what they did with ESO and Fallout 76).

We also have to consider that all these games will be games that they already had in the works before joining MS. We'll have to wait a lot to see these ones, and we'll have to wait even more to see big AAA Zenimax / Bethesda games developed from the scratch inside MS.


I agree, but they aren't capable to do so, so try to patch it with acquisitions to see if someone who buy them achieve it. It did work for them with Minecraft, it keeps making a lot of money.

What did Minecraft do for their CREATIVE OUTPUT!? Man, you only think about this in terms of money; if getting Minecraft was such a boon for them besides being a cash farm, you'd think MS's 1P output outside of Forza and a (very small) handful of others had any impact or staying power, or consistent quality, to where they didn't need to turn to acquiring big 3P publishers.

A hint: the games still need to be appealing to the larger market in order to generate the required revenue. Minecraft accomplished that, but it being owned by MS did not benefit Quantum Break, Halo 5, Crackdown 3, State of Decay 2 etc. to achieve anything near similar.

Bringing up the fact we haven't had enough time to judge the results of the Zenimax purchase, only strengthens the argument that MS are moving into buying more publishers way too quickly. Look at the issues many of the XGS studios still have. Issues that potentially some of the Zenimax studios are now having. If Zenimax ends up like Mojang then what's the net benefit for Xbox outside of folding that revenue into the Xbox division's? Because the games you're getting are still the exact same you'd have gotten if Zenimax stayed independent. The quality is (maybe) the same, nothing improved there. Xbox gets a branding/perception boost but that could've been achieved with paying for marketing rights, and cost much less than $7.5 billion.

And you want them to replicate that with ABK? You're just getting COD still, Diablo, Overwatch etc. Do any of them get better? Maybe they end up worst. Maybe Zenimax and ABK end up like Rare, basically a shell of their former selves that has no connection to their legacy whatsoever.