Microsoft's acquisition of Activison Blizzard

24 Jun 2022
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6,491
Sounds like Jim Ryan made a reference to a potential predatory pricing tactic by MS. SIE relies heavily on B2P sales revenue because PlayStation needs to be a self-sustaining unit in the company. Xbox does not have these needs/requirements, because money lost can be more than covered by profits the much larger segments of the company generate.

Therefore they can push a heavy loss-leading strategy like Day 1 Game Pass availability of software while smaller competitors can't do that. It's effectively a form of predatory pricing. And even if the tactic fails, MS still gets money from B2P sales off competitor platforms, and can use that 70% to "harm PlayStation" the way Phil Spencer said Sony uses their 30% to "hurt Xbox".
 

Nhomnhom

Banned
25 Mar 2023
8,414
11,551
Sounds like Jim Ryan made a reference to a potential predatory pricing tactic by MS. SIE relies heavily on B2P sales revenue because PlayStation needs to be a self-sustaining unit in the company. Xbox does not have these needs/requirements, because money lost can be more than covered by profits the much larger segments of the company generate.

Therefore they can push a heavy loss-leading strategy like Day 1 Game Pass availability of software while smaller competitors can't do that. It's effectively a form of predatory pricing. And even if the tactic fails, MS still gets money from B2P sales off competitor platforms, and can use that 70% to "harm PlayStation" the way Phil Spencer said Sony uses their 30% to "hurt Xbox".
This was always my point and the obvious anti-competitive thing Xbox has been doing. It the example you get in class when studying the concept of monopoly: a rich company buys a bunch of gas stations and operates at a loss until all the competition is out of business and after that happens they can freely jack up the price since there is no competition anymore and everyone is fucked except them.

MS was never doing this with money generated from the Xbox division, they are leveraging their massive size to buy up market share and change consumer behavior to take out direct competitors. The most surprising thing so far is how ineffective it has actually been in terms of growing their services.
 
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D

Deleted member 223

Guest
It's an easy one because then the follow up will be who are the publishers saying this? And Jim will be hard pressed to reveal what Take-Two or Ubisoft or other pubs say to him in confidence of the confidentiality of the verbal exchanges. All these pubs have working relationships with MS. What they say in private is not what they say in public.

Lawyer knows this so she presses, with a few cherry picks on the side.

Correct course of action by Jim is to simply stay firm on his statement and let that one go.
 

Nitro

Active member
10 Apr 2023
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573
North Pole
Ryan not volunteering any more information than he needs to. Short abrupt answers.

"That's my recollection, yes."

Knows they are looking to trip him over.
 

Gediminas

Boy...
Founder
21 Jun 2022
7,111
8,745
kinda surprised how Jim kept everything cool.

ms lawyer sounded pathetic, looking for gatcha moments and reaching, plus trying to make imaginary situations wasn't helping too.
 
24 Jun 2022
3,781
6,491
This was always my point and the obvious anti-competitive thing Xbox has been doing. It the example you get in class when studying the concept of monopoly: a rich company buys a bunch of gas stations and operates at a loss until all the competition is out of business and after that happens they can freely jack up the price since there is no competition anymore and everyone is fucked except them.

MS was never doing this with money generated from the Xbox division, they are leveraging their massive size to buy up market share and change consumer behavior to take out direct competitors. The most surprising thing so far is how ineffective it has actually been in terms of growing their services.

Well, in gaming it's been. And that's because gaming is a very creative-driven medium. MS and creativity software are sort of like oil and water, they don't really mix well. The times they have, are mainly because MS acquired those creatives and didn't get (too) much in their way.

Up to a point, anyway. I mean just look at Bungie getting fed up with them, Marcus Brown & several Playground staff leaving recently, Shinji Mikami bouncing out, etc.
 

Plextorage

Veteran
26 Feb 2023
2,193
2,142
kinda surprised how Jim kept everything cool.

ms lawyer sounded pathetic, looking for gatcha moments and reaching, plus trying to make imaginary situations wasn't helping too.

He is well old enough not to be bullied. This is what happens when you don't bark left and right and making bunch of interviews like Phil Spencer is doing and being exposed later