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Microsoft has Closed the Activision Blizzard King Deal

James Sawyer Ford

Gold Member
I agree with your opinion that regulation is needed. In saying that, there is only one definition of a free market, and regulation has no place in that definition. If you mean something else, that is fine.

My pushback boils down to semantics, but when discussing these things, it kind of matters to get the terminology correct so that your opinion makes sense.

Of course it's semantics, but to me the truest sense of "free markets" are those where industries are allowed to compete organically without the undue influence of external factors distorting those industries. A company that derives 10x the revenues through other divisions, being able to go on a whole sale buying spree to exert control/dominance due to their financial position in other industries is such an example.

You're never going to have truly free markets because governments, laws, and political power will always exist, and without them there'd be utter chaos so that's a good thing.
 
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And with their current management, they will still struggle to get a foothold in the industry and their current studios will continue to pump out mediocre games. It's all about quantity, not quality.
Xbox doesn’t have a foothold in the industry apparently 🤣 I thought everyone said Xbox didn't have any games? but now it's quantity over quality 🙄 Is the rubbish I have to endure on here?
 

Gambit2483

Member
No. I’m thinking of revenue. Charts of Activision revenue splits show console contributing not much more than a third of the total revenue. And that includes revenue from Warzone that isn’t a paid title.
And they are still poised to lose a ton of Revenue from COD when they switch to throwing it on a subscription service. Or are we now pretending that COD doesn't make a shitton of money in its first launch month/days (off sales alone)?

 
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Mozza

Member
See they closed the deal approval thread, not sure why anybody thought this deal would not go through, far too much money involved. ;)
 

MarkMe2525

Gold Member
Of course it's semantics, but to me the truest sense of "free markets" are those where industries are allowed to compete organically without the undue influence of external factors distorting those industries. A company that derives 10x the revenues through other divisions, being able to go on a whole sale buying spree to exert control/dominance due to their financial position in other industries is such an example.

You're never going to have truly free markets because governments, laws, and political power will always exist, and without them there'd be utter chaos so that's a good thing.
I stand behind my original statements, but if we are going to take this conversation down this path, I'll give you my take.

If you exclusively game on Sony hardware, you are going to get the best from Sony because of this monumental shift in IP ownership. You can look forward to more investment in original IP, more consumer friendly pricing (even if that means they hold at their current price points), and more ambitious investments in hardware. For example, since Sony signed a deal for marketing rights to Activision's biggest fps games in 2014, they have completely abandoned serious development in that genre. This will no longer be the case (hopefully).

This is not without downsides. MS will undoubtedly withhold select major releases from PlayStation, but Sony will be incentivised to play to their strengths. Honestly, their platform is better when this is their strategy.
 

Ozriel

M$FT
And they are still poised to lose a ton of Revenue from COD when they switch to throwing it on a subscription service. Or are we now pretending that COD doesn't make a shitton of money in its first launch month/days (off sales alone)?


It makes a lot of money. Across Xbox, PC and PlayStation. With the Xbox component probably the smallest.
PlayStation isn’t affected by GP, and it’s be bulk of PC gamers prefer to stick with Steam. At least for now
 

James Sawyer Ford

Gold Member
I stand behind my original statements, but if we are going to take this conversation down this path, I'll give you my take.

If you exclusively game on Sony hardware, you are going to get the best from Sony because of this monumental shift in IP ownership. You can look forward to more investment in original IP, more consumer friendly pricing (even if that means they hold at their current price points), and more ambitious investments in hardware. For example, since Sony signed a deal for marketing rights to Activision's biggest fps games in 2014, they have completely abandoned serious development in that genre. This will no longer be the case (hopefully).

This is not without downsides. MS will undoubtedly withhold select major releases from PlayStation, but Sony will be incentivised to play to their strengths. Honestly, their platform is better when this is their strategy.

This assumes Sony will continue to exist. Of course, based on leaked emails, it's quite clear that Microsoft's long-term objective is to run them out of business, and the acquisition of Activision is the first step in that strategy. Microsoft doesn't want the industry to grow, they just want to control the distribution of content and take their cut. Quality isn't a concern. Competition isn't a concern. Control the cloud, let the consumers get what THEIR market now allows, and everyone else cannot compete with that platform/ecosystem so they naturally die off. To microsoft, it truly doesn't matter if the industry is a shell of its former self as long as their yearly CoD placates the masses and they get their ongoing sub fees.
 

MarkMe2525

Gold Member
This assumes Sony will continue to exist. Of course, based on leaked emails, it's quite clear that Microsoft's long-term objective is to run them out of business, and the acquisition of Activision is the first step in that strategy. Microsoft doesn't want the industry to grow, they just want to control the distribution of content and take their cut. Quality isn't a concern. Competition isn't a concern. Control the cloud, let the consumers get what THEIR market now allows, and everyone else cannot compete with that platform/ecosystem so they naturally die off. To microsoft, it truly doesn't matter if the industry is a shell of its former self as long as their yearly CoD placates the masses and they get their ongoing sub fees.
I try to have a reasonable conversation with you, and you dive headfirst into hyperbole once more. No thank you, have a good Saturday.
 

Gambit2483

Member
It makes a lot of money. Across Xbox, PC and PlayStation. With the Xbox component probably the smallest.
PlayStation isn’t affected by GP, and it’s be bulk of PC gamers prefer to stick with Steam. At least for now
Hence why I said Activision may end up depending on Sony (and PC) to actually profit from COD moving forward...and if MS' goal is to have as many switch to playing in on Gamepass that still ultimately only eats into its revenue potential.

Bobby Kotick himself even said as much that he doesn't believe in putting games on Gamepass as it doesn't make business sense when you go from $1B a week to $15/month (per sub)
 

Riky

$MSFT
Hence why I said Activision may end up depending on Sony (and PC) to actually profit from COD moving forward...and if MS' goal is to have as many switch to playing in on Gamepass that still ultimately only eats into its revenue potential.

Bobby Kotick himself even said as much that he doesn't believe in putting games on Gamepass as it doesn't make business sense when you go from $1B a week to $15/month (per sub)

Probably because he wasn't getting the $15 a month from the sub.
 

Forth

Neophyte
As much as I'm really enjoying my Series X, this acquisition does nothing for me.
There absolutely nothing in any of their franchises I would be interested in. That money could have been put towards far better purchasing.
Also wtf are double fine up to?
 

Topher

Identifies as young
Congrats to Michael Pachter, he called one right.

He called it right that the deal would eventually go through. Most said that though. But he got everything else wrong especially this absurd theory that everyone kept throwing around based on what he said that Microsoft would "carve out" UK and somehow treat it differently than the rest of the world. Not what happened at all. So really he this more wrong than he got it right.......as always.
 
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Gambit2483

Member
You think he wouldn't want 40 million customers paying $15 a month for his game?
I'm sure he'd like that, yes, but it's not happening (anytime soon), and what they do have now isn't going to cover the 10 or more 80+ million dollar budgeted AAA games on the horizon either.
 
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Ozriel

M$FT
Of course it's semantics, but to me the truest sense of "free markets" are those where industries are allowed to compete organically without the undue influence of external factors distorting those industries. A company that derives 10x the revenues through other divisions, being able to go on a whole sale buying spree to exert control/dominance due to their financial position in other industries is such an example.

You're never going to have truly free markets because governments, laws, and political power will always exist, and without them there'd be utter chaos so that's a good thing.

I mean, this is all kinds of absurd. If you’re going to throw up walls between divisions, you should also be arguing against Sony using Sony Pictures movies and anime in PlayStation plus extra. Or even speaking against SIE’s plan to use their anime IP in games. Or making movies from gaming IP. Or any overlap between Sony Music and PlayStation.


You get the picture.
 

adamsapple

Or is it just one of Phil's balls in my throat?
I have it on good authority that Microsoft are gonna buy Xbox next.

Hit The Woah Freaking Out GIF
 

skit_data

Member
Sony dev on Twitter/X saying Sony full on 100% buying Namco and several other studios by this time next year o_O
I assume you mean this dude?



Don't know, seems a bit wierd he would know something like that and even more wierd to leak it.

Edit: Going through his tweets he comes off as less of an actual developer and more of some type of "what will Playstation buy next"-account. I very much doubt this an actual dev tbh.
 
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I still don't understand how this could happen. Maybe someone with serious knowledge can explain:

Sony's market cap is $100 bn. Sony only generates 30% of revenue with its gaming division.

Activision Blizzard market cap is $75 bn. Activision Blizzard generates 100% of its revenue with gaming.

How the fuck can officials allow Microsoft, a software monopolist with a market cap of $2500bn, to buy Activision Blizzard?

I know we all have our preferences of which brand we prefer and which we dislike. But this deal is a serious problem for the entire gaming industry including every single die-hard Xbox fanboy in the darkest corner of the internet.
You missed one part of this comparison. What percentage of Microsoft's market cap is gaming?

They allowed it because revenue wise Microsoft is smaller than both Sony or Nintendo, and adding Activision does not make them a monopoly or even close.
 

splattered

Member
Really disappointed you’re falling for that. Especially when that person clearly isn’t a Sony developer

I didn't say I fully believed it, sorry I should have said "someone claiming to be a Sony dev" haha

Yeah I just saw it and thought it was worth mentioning even if it's total bs
 

MarkMe2525

Gold Member
People weren't even really around for that and invent all kinds of crazy conspiracies about it. The reality is that Windows Phone never took off due to their store and because developers weren't releasing Windows Phone versions of major apps. Big ones like Snapchat and Gmail were never made on the OS. That's what happened to Windows Phone/Nokia. Not some nutbar conspiracy of MS intentionally torpedoing it.


I was managing a cell phone store at this time, and that was by far the biggest issue windows phones had. People would love the hardware, but would quickly change their tune when they found out they couldn't download their pinterest, Instagram, etc.
 
I was managing a cell phone store at this time, and that was by far the biggest issue windows phones had. People would love the hardware, but would quickly change their tune when they found out they couldn't download their pinterest, Instagram, etc.
I was an owner of a Windows Nokia phone and had high hopes for it. MS not being able to get developers on board was the nail in the coffin for it. Hardware wise it was a really good phone and had the best navigation app at the time.
 
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