- There several key points I want to highlight about this deal.
- Activision put themselves for sale. MS approached, but were rejected. They went to facebook, instead. Facebook rejected Activision deal. Activision went back to MS, and the sale happened.
- This wasnt a hostile takeover. This was a business that was up for sale, and anyone could have made the sale.
- Same thing happened to Bethesda. Bethesda were up for sale. MS bought them. There was no hostile take over.
- As such, both deals werent done by MS big money, in order to hurt the competition. They were companies who were on the market, and MS had the means to buy them.
- B:
- Activision deal isnt just about COD, like people here make it out to be. Its about 3 division of activision.
- 1A: Activison with COD, and other IPs
- 1B: Blizzard, which opens the windows store for PC player through WOW, and battlenet integregation with windows store.
- 1C: King with candy crush, and COD mobile. This opens the door for MS to open Mobile store, by utilizing King, and in hopes of porting their games to mobile through King.
- This deal wont hurt Sony, as COD needs playerbase. By excluding PS users, MS is essentially undercutting COD growth. There is also the fact, that MS has tons of FPS shooters, which would also hurt COD revenue on Xbox. Hence, why MS wont remove the game from PS.
- This deal wont give MS leverage through cloud gaming. Cloud gaming is early experiment. It needs time, and tools to replace the traditional consoles. There are major players in cloud gaming. Players such as,
- 4A: Amazon with luna.
- 4B: Sony with PS Now, or as we call it now PS+ premium. Which includes a high catelog of library, which are much bigger than MS own cloud gaming library.
- 4C: Geforce, which offers the ability to play owned games on their service.
- As such, Activision purchase wont hurt the competition in this avenue.
Would this deal pass?
Yes, it would, since there are no major problems with this acquision.
MS/Xbox is last in console race in term of userbase, sold hardware, and 2nd in term of revenue. While MS has enermous amount of money under their belt, this acquision wont put them in advantage mode, due to userbase not being enough. Currently, Xbox has half of PS userbase, and 75% of nintendo userbase.
While this deal wont be a problem, there are future problems if this deal is passed, which would put MS in anti competitive range, should they acquire publishers like EA and take 2. If this happens, MS should face the scrunity for monopolistic tactic, as those publishers would give them alot of advantages.