Microsoft's acquisition of Activison Blizzard

[Yurinka]

Of course you do, because I'm going to bet you didn't even read the documents. I'll make this simple:

A big corporation buying its way into controlling most of a nascent market will only stifle competition by raising the entry-level. Less competition means higher prices and less innovation.

A child can understand why they did this, and it's based on standard economic theory.

I did read the docs and have a good knowledge of the market, and this is why I knew that the potential CoD on consoles wouldn't stop the acquisition.

I also know that cloud gaming is a tiny portion of the gaming market, because even adding the other game subs are still in single digits of the market, and there are several reasons, including tech limits and laws of physics, that prevent cloud gaming being mainstream worldwide in at least 10 years.

I also know that Sony's game subs have twice the size of the MS one and generate way more moeny, so I didn't expect that a regulator would block this because of cloud gaming. And I think they are wrong because of this.

And I keep saying the same now and before reading the reasonings from both Sony and MS to the regulators, who both mentioned solid points and both played the drama queen card obviously defending their own interests.

The gaming market revenue generated $184.4B in 2022 according to Newzoo. MS gaming division generated almost 8.8% of that ($16.2B). Activision Blizzard King around 4% of that ($7.53B). That would be less than 13% market share combined (not counting that ABK would lose a big chunk of that if goes console exclusive).

Cloud gaming maybe or maybe not could have a good potential for the very long term, decades in the future. But right now it's basically nothing in the gaming market and Sony is better positioned in cloud gaming than MS, even if MS gets CoD.

Can someone please do a short version of what is happening? Did I miss anything ? Or is it the same MS PR and fanboys doing a lot of noise?

The UK regulator killed the ABK acquisition because they are concerned it would affect the competition in the cloud gaming market, market with potential for some decades in the future but still tiny and not relevant at all right now, maybe 1% or less of the total gaming market revenue.

MS and ABK obviously said that aren't happy with that and that will go to court to appeal the decision, a process that I assume will take years. As mentioned in the acquisition deal, MS will have to pay again some extra Billions this summer to the ABK stakeholders as compensation for not having completed the acquisistion before I think was July 2023.

 

[daniel5043]

Pachter is stirring the pot as usual

 

[ethomaz]

Did Lulu delete all her previous tweets related to this deal ?

Yes... she did that some days ago.

 

[Swift_Star]

Pachter is stirring the pot as usual

These people, and twitter, are irrelevant. One day they'll realize that.

 

[ethomaz]

Official response by Activision/Blizzard

Seems like she wrote it.



Why the embeed shows the old text and not the new?

 

[anonpuffs]

For only $9.99 a month you could sponsor a poor, starving xbox player

 

[Airbus]

Bro this is officially the biggest failure not just in gaming but entire mankind history 68 billion wasted for nothing

That 68b should just donated to UNICEF WHO or many poor people in needs instead of wasted for nothing like this

Heck Xbox should just gave all those money to SenjutsuSage for all the time and energy he spends for them

What a colossal fckd up

 

[Swift_Star]

Bro this is officially the biggest failure not just in gaming but entire mankind history 68 billion wasted for nothing

68 should just donated to UNICEF WHO or many poor people in needs instead of wasted for nothing like this

What a colossal fckd up

Maybe now they get this money and reinvest in themselves? They have 23 studios, they should use that money on them.

 

[ethomaz]

What's crazy is seeing how so many forums on the internet are reacting in anger, even those that are not gaming sites have users having full blown melt downs in the abk deal threads.View attachment 1091

View attachment 1092
View attachment 1093

How's Adamsapple, remji and elder legend taking this?

They hate Sony so they will write anything against Sony.

 

[Dick Jones]

Jim can look to make contact for COD partnership now. I give zero shits about COD but I'm sure Bobby will be happy. He voiced his displeasure on Sony not interfering with ABK while the acquisition was in progress.

 

[Satoru]

Cloud gaming maybe or maybe not could have a good potential for the very long term, decades in the future. But right now it's basically nothing in the gaming market and Sony is better positioned in cloud gaming than MS, even if MS gets CoD.

You are so off base it's not even funny. Microsoft not only owns the second biggest cloud provider in the world, they also have a bigger cloud market share than Sony.

 

[Swift_Star]

@ChorizoPicozo we told you the deal would get blocked.

 

[FIREK2029]

 

[PropellerEar]

I did read the docs and have a good knowledge of the market, and this is why I knew that the potential CoD on consoles wouldn't stop the acquisition.

I also know that cloud gaming is a tiny portion of the gaming market, because even adding the other game subs are still in single digits of the market, and there are several reasons, including tech limits and laws of physics, that prevent cloud gaming being mainstream worldwide in at least 10 years.

I also know that Sony's game subs have twice the size of the MS one and generate way more moeny, so I didn't expect that a regulator would block this because of cloud gaming. And I think they are wrong because of this.

And I keep saying the same now and before reading the reasonings from both Sony and MS to the regulators, who both mentioned solid points and both played the drama queen card obviously defending their own interests.

The gaming market revenue generated $184.4B in 2022 according to Newzoo. MS gaming division generated almost 8.8% of that ($16.2B). Activision Blizzard King around 4% of that ($7.53B). That would be less than 13% market share combined (not counting that ABK would lose a big chunk of that if goes console exclusive).

Cloud gaming maybe or maybe not could have a good potential for the very long term, decades in the future. But right now it's basically nothing in the gaming market and Sony is better positioned in cloud gaming than MS, even if MS gets CoD.

They shot them selves in the foot with this CoD to XxxM more players on the cloud marketing BS.

 

[Swift_Star]

Patcher keeps telling lies to xbots, and they keep eating them:

 

[Dabaus]

The best outcome of this is that Michael Pachter continues his losing streak.

 

[FatKaz]

Next step is for sony is to work on their own cod competitor and possibly put marketing deals into xdefiant, they have all the time in the world to do this now.

Time to slowly choke out COD and put abk in the dustbin.

 

[Nhomnhom]

Patcher keeps telling lies to xbots, and they keep eating them:

Imagine sabotaging themselves in their second biggest market where they are already getting destroyed as is.

 

[Gediminas]

 

[ARCANE]

laughing in Sting