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[feynoob]

So if game sales are being cannibalized by a subscription service, then that subscription service needs to compensate for all those other costs as well for it to be profitable.

The cost of those games is already accounted to the money.

I think you need to separate the profit vs covering the cost.

Gamepass covers the cost first, before showing the profit.

The profit happens after they deduct all the cost.

Even at that stage, MS can't declare it as profit, as those money goes back to gamepass games (new 3rd party deals).

Which is why it's hard to gauge profit as of now. Until it reaches a level, in which MS can keep those money, gamepass won't be profitable, but it will be sustainable and can cover all the cost.

 

[feynoob]

Tbh the entire Premier League have a advantage over every other league when we talk about money, the fact that midtable clubs like Westham could spend over 100m$ it's ridiculous btw.

That is all due to the TV deals that premier league has.

Other league don't do deals like premier league. Even laliga is having issues with their TV revenue, due to their management.

 

[POKEYCLYDE]

All those costs add up, and then it is game sales that ultimately turn the division profitable. MTX helps, but the majority of games by first-party studios are not MTX games.

So if game sales are being cannibalized by a subscription service, then that subscription service needs to compensate for all those other costs as well for it to be profitable.

It has to cover the cannibalization costs but outside costs don't have to be covered by Gamepass. What I'm looking at is "Does subscriber revenue cover development cost?"

It's the easier metric because we can relatively guess what development costs are and we can relatively guess how much Gamepass brings in sub revenue wise.

Marketing, administrative costs, loss on consoles sold, cannibalization costs. These can't be estimated by us. Neither can B2P sales and MTX (unless we got a detailed financial report).

It's easy to say these costs that we can't possibly know when factored in outweigh Gamepass sub revenue. But then we don't account for B2P sales or MTX, and the justification is "because those are the profitable models". The only way that weighing all current costs associated with the Microsoft gaming division against Gamepass' sub revenue is if Microsoft intends to remove the B2P option. That's a false narrative I'm sure some of you would like to spread, but it's just not true.

 

[wolffy66]

Why do people look at the idea of leaving the UK as MS in entirety leaving. Any business with a conflict could spun of, in the UK only, and the whole rest the company could continue as is.

MS would go ahead and buy Activision with no spinoff in the rest of their markets.

It seems like a pain but if they really want Activision it's not a tactic that is unheard of.

 

[XesqueVara]

That is all due to the TV deals that premier league has.

Other league don't do deals like premier league. Even laliga is having issues with their TV revenue, due to their management.

Yeap, but because of this advantage the Top Clubs end's snowballing over that, and it's not like the UK government gives a fuck to foreign investment on the clubs if it means that the Premier League stays on the Top btw.

 

[feynoob]

It has to cover the cannibalization costs but outside costs don't have to be covered by Gamepass. What I'm looking at is "Does subscriber revenue cover development cost?"

It's the easier metric because we can relatively guess what development costs are and we can relatively guess how much Gamepass brings in sub revenue wise.

Marketing, administrative costs, loss on consoles sold, cannibalization costs. These can't be estimated by us. Neither can B2P sales and MTX (unless we got a detailed financial report).

It's easy to say these costs that we can't possibly know when factored in outweigh Gamepass sub revenue. But then we don't account for B2P sales or MTX, and the justification is "because those are the profitable models". The only way that weighing all current costs associated with the Microsoft gaming division against Gamepass' sub revenue is if Microsoft intends to remove the B2P option. That's a false narrative I'm sure some of you would like to spread, but it's just not true.

For development cost, you need to make an estimate.

For example, if we estimate each AAA cost between 100m-300m, that means we can estimate around 400m-1.2b cost for 4 AAA games a year.

That would come around 2b-6b in 5 year time line for 20 AAA games.

That would be the math, if MS has 20 AAA games for these 5 years. the lower the games, the less the cost.

With game sales from steam, the cost will be lower. 1m steam sale at 60$ is 42m (30% goes to steam/valve). In this case, you subtract the sales numbers from production cost, and you can get your estimate numbers.

 

[Bernoulli]

some were saying COD would be on gamepass the day the deal goes through

Call Of Duty Would Still Not Be On Game Pass Until 2025, Should Deal Go Through

This comes by way of a recent UK CMA report.

www.gamespot.com

 

[DeepEnigma]

some were saying COD would be on gamepass the day the deal goes through

Call Of Duty Would Still Not Be On Game Pass Until 2025, Should Deal Go Through

This comes by way of a recent UK CMA report.

www.gamespot.com

And there were those of us saying this due to the marketing rights with Sony. But oh you know, hubris and ignorance by certain fanatics on here and abroad.

 

[feynoob]

some were saying COD would be on gamepass the day the deal goes through

http://[URL]https://www.gamespot.co...til-2025-should-deal-go-through/1100-6513733/

[/URL]

That was known, due to marketing agreement.

 

[Varteras]

Poor Klobrille put his heart and soul into this wank piece back in January.

Spoiler: Wank

 

[FrankWza]

And I have an uncle at Nintendo.

Burden of proof is on you, since you claim to "factually know it is not profitable".

That's a legal term isn't it? If anything, it would apply to the publicly traded company that doesn't disclose it's numbers of this division and further clouds(hehe) their numbers by combining the revenue with gold subs. It's very simple for them to stop any speculation. They don't want to.

 

[Bojanglez]

Yeap, but because of this advantage the Top Clubs end's snowballing over that, and it's not like the UK government gives a fuck to foreign investment on the clubs if it means that the Premier League stays on the Top btw.

Well they are planning a football regulator. At that point English football will be closed for business and security at all grounds will be compromised.

Owners will appeal, and some random blogger will claim he can influence the decision because he knows the appeal judge and he reads his blog.

 

[IllegalLemon]

Our boy is having a meltdown and also trying to say he was playing 5d chess all along

Oh and btw senjutsu, i know you'll read this: you're shit at FIFA.

Dude literally created an entire thread comprised of nothing but verbal diarrhea, thinking it would make him look like some highly intelligent individual having his gotcha moment. Instead of a gotcha moment, it's literally a truckload of L's one after another and around at least 200+ of those words in that thread have him basically lollygagging, repeating the same thing over and over again and basically running circles around himself failing to make a point or get an existing point across. What an embarrassment, the coping & seething has reached an all time with the dude it seems. Nothing more, but a relentless troll with too much time and more brawn than brains. Twitter is his only validation at this point.

 

[jm89]

Oh and btw senjutsu, i know you'll read this: you're shit at FIFA.

Who does he support? I might forgive his insanity depending on the answer.

I'd like to believe to tottenham, so i can continue pointing and laughing.

 

[DForce]

Why do people look at the idea of leaving the UK as MS in entirety leaving. Any business with a conflict could spun of, in the UK only, and the whole rest the company could continue as is.

MS would go ahead and buy Activision with no spinoff in the rest of their markets.

It seems like a pain but if they really want Activision it's not a tactic that is unheard of.

That's what they're saying on Resetera but I haven't seen it for myself under the anti-trust laws to confirm it. I would assume they would be breaking antitrust laws if they tried to continue business in the UK, and since Microsoft would be tied to ABK, then that would mean MS altogether.

 

[Sleepwalker]

Who does he support? I might forgive his insanity depending on the answer.

I'd like to believe to tottenham, so i can continue pointing and laughing.

One of the spanish 2 pretty sure. I wanna say Barcelona because thats who he used to put clips here playing as

 

[Banjo64]

Our boy is having a meltdown and also trying to say he was playing 5d chess all along

Oh and btw senjutsu, i know you'll read this: you're shit at FIFA.

‘I had been asked (diarrhoea) why I’m not subscribed to GAF’

I really wish this guy all the best and hope he can get the mental health treatment he so desperately needs.

 

[IllegalLemon]

Damn, I did make fun of him burying so much money on ATVI shares some months ago. But like all moderate approaches to gambling I assumed he was spending money he could live without.

I hope he lands on his feet.

If he stops acting like a delusional fanboy living in a fantasy land and gets his head straight and out of his ass, perhaps he will. His current mindset ain't getting him anywhere.

 

[IllegalLemon]

Why would it matter if a judge knows him or his blog?

Because this delusion makes him think he has more power than he actually does. Dude doesn't seem to realise that a judge's opinion will never be affected by some retarded fact that the person has family ties ,relations or is a friend that knows you. The dude's insane. Going by that logic, a person has a "get out of jail free" card after committing a crime because the judge is a friend or family member. Jesus Christ, the mental gymnastics and sub zero iq logic of individuals on twitter is astounding.

 

[feynoob]

He won't stop shilling.

 

[James Sawyer Ford]

He won't stop shilling.

I still cannot believe people think pulling out of uk is an option

 

[Captain Toad]

Xbone launch was a fucking disaster, ABK deal falling isn't in the same level.

3 billion dollar payment and a year plus of the company's time for nothing?

 

[PaintTinJr]

Plot twist: they will find that he already owns one.


The bolded part is exactly why DirectX development will still happen, Xbox existing or not. Unlike Xbox, Windows is a profitable service and a facilitator for all their other products, so anything that strengthens it will continue to be made.

Microsoft and Nvidia would try to keep it alive, yes, but without Xbox developers would all flock to Vulkan/opengl as their games would automatically become platform agnostic by rendering API, and could then drop expertise for that defunct API, so there would be a huge benefit if DirectX died off. Xbox losses are their cost to keep DirectX in place on Windows, because before Xbox, 3dfx's Glide API and OpenGL were the main graphics APIs by a long way.

 

[reinking]

I still cannot believe people think pulling out of uk is an option

Wouldn't that require a whole new deal anyway? Good luck getting the shareholders from either company on board.

 

[Dick Jones]

Wouldn't that require a whole new deal anyway? Good luck getting the shareholders from either company on board.

If he owns Activision stock, I want to see the tweets when MS shareholders pull out of the deal in July.

 

[FrankWza]

If he owns Activision stock, I want to see the tweets when MS shareholders pull out of the deal in July.

He said he owns 15k worth. He was going to be able to buy a new TV with his profits. He wasn't getting rich on that deal.

 

[demigod]

Dude literally created an entire thread comprised of nothing but verbal diarrhea, thinking it would make him look like some highly intelligent individual having his gotcha moment. Instead of a gotcha moment, it's literally a truckload of L's one after another and around at least 200+ of those words in that thread have him basically lollygagging, repeating the same thing over and over again and basically running circles around himself failing to make a point or get an existing point across. What an embarrassment, the coping & seething has reached an all time with the dude it seems. Nothing more, but a relentless troll with too much time and more brawn than brains. Twitter is his only validation at this point.

He thought he trolled us but in reality he played himself typing out those longass gibberish essays.

 

[bitbydeath]

I still cannot believe people think pulling out of uk is an option

The repercussions would be enormous, they would literally fall out of being a trillion dollar company and all for COD.

 

[The Pleasure]

Poor Klobrille put his heart and soul into this wank piece back in January.

Spoiler: Wank

 

[Heisenberg007]

Poor Klobrille put his heart and soul into this wank piece back in January.

Spoiler: Wank

 

[Bernoulli]

Game on as UK steals a march on Brussels over Activision merger

The Competition & Markets Authority’s decision to block the planned $68.7 billion merger between the tech giant Microsoft and the games maker Activision will h

www.thetimes.co.uk

 

[Thirty7ven]

He said he owns 15k worth. He was going to be able to buy a new TV with his profits. He wasn't getting rich on that deal.

He’s a liar though. First he said 40K.

I remember him from the IGN forums way back in the day. He was a Dreamcast fanboy who clearly got touched in the head when Sega called it quits.

 

[b6a6es]

http://[URL][URL]https://www.thetimes.co.uk/article/0a85eb52-e841-11ed-bf4a-7aba37244b0f

[/URL][/URL]

What does it say

 

[Bernoulli]

What does it say

By contrast, Brussels merger rules are still dictated by a conservative framework that prioritises the here and now impact on consumers, rather than foreseeing the threat of future monopolies.

A recent study found that the Brussels competition unit relies on a small band of external economic consultancies who lobby on behalf of their corporate clients on merger and competition decisions. The European Commission is also poised to appoint a former Obama-era enforcer who had side jobs consulting Amazon and Apple as its chief competition economist. Both US giants have been the subject of antitrust and state-aid tax investigations in recent years.

One EU official says the CMA's disruptive decisions are causing "fear and resentment" in Brussels.

The dreaded divergence can work both ways, then. Despite an understandable fixation on "perfidious Albion", Brussels and EU capitals failed to account for the strength of the UK's system of independent regulators, which can act as a bulwark against the deregulatory instincts of governments and, in the CMA's case, gazump the EU in the process.

"The UK is getting way ahead of the European Commission on mergers," Zach Meyers, research fellow at the Centre for European Reform, says. Influential member states such as France talk tough on tech companies but Brussels' powerful competition authority remains gripped by old orthodoxies when deciding on multinational mergers in the digital sector.

 

[Heisenberg007]

Game on as UK steals a march on Brussels over Activision merger

The Competition & Markets Authority’s decision to block the planned $68.7 billion merger between the tech giant Microsoft and the games maker Activision will h

www.thetimes.co.uk

Unless EU is willing to match CMA's big dick energy, doesn't it also mean that they are too chicken to follow the CMA and make the same decision? Or am I reading it wrong?

 

[Bernoulli]

Unless EU is willing to match CMA's big dick energy, doesn't it also mean that they are too chicken to follow the CMA and make the same decision? Or am I reading it wrong?

to me it reads as the EU totally belived all the PR and lobbying from Microsoft but after the CMA decision they are rethinking about why they only look at the market now instead of thinking about the future

 

[reksveks]

3 weeks til the EC deadline but should hopefully get it earlier.

 

[Heisenberg007]

to me it reads as the EU totally belived all the PR and lobbying from Microsoft but after the CMA decision they are rethinking about why they only look at the market now instead of thinking about the future

That'd be good. EU will look stupid if they approve the acquisition after the CMA blocks it for such logical reasons.

Hopefully the EU also blocks it and we can end this drama from dragging any further.

 

[Elios83]

Unless EU is willing to match CMA's big dick energy, doesn't it also mean that they are too chicken to follow the CMA and make the same decision? Or am I reading it wrong?

They were probably afraid to be the first or only one to block although they have the same concerns as CMA. That is also because they fear to look weak and powerless in case of appeal.
The fact that CMA has blocked first and FTC wants to block has put them in an awkward position.
Either they look weak by showing that they're willing to compromise coming up with a complex solution based on a set of behavioural remedies to try to please a big tech company or they can block and score what at this point are just easy antitrust points.

 

[Unknown Soldier]

The EU is entirely run by weak politicians so it will be interesting to see just how much power and influence on the EU that MS has been able to buy or bully. The EU regulators aren't in a good place here, they have been paid handsomely by MS to reach the decision MS wanted but now they don't want to look weaker and more corrupt than their UK peers who literally left the EU because of long standing concerns about corruption (among other issues).

 

[Drell]

The EU is entirely run by weak politicians so it will be interesting to see just how much power and influence on the EU that MS has been able to buy or bully. The EU regulators aren't in a good place here, they have been paid handsomely by MS to reach the decision MS wanted but now they don't want to look weaker and more corrupt than their UK peers who literally left the EU because of long standing concerns about corruption (among other issues).

That's the first time I see the Brexit as a good thing.

 

[GHG]

He said he owns 15k worth. He was going to be able to buy a new TV with his profits. He wasn't getting rich on that deal.

He's behaving like a wallstreetsbets degenerate who is grasping on to the last scrap of c(h)opium.

It was options, they expire soon. He stands to lose all of his invested capital.

 

[Alex Scott]

The CMA will not cave now but double down.
You guys heard it here.

 

[Topher]

The CMA will not cave now but double down.
You guys heard it here.

I made it two minutes into that video.......

 

[Unknown Soldier]

That's the first time I see the Brexit as a good thing.

Nothing in the world is 100% good or bad. Even Brexit has some good things about it. Turns out fiercely independent regulators who don't kowtow to the EU regulators is one of them.

 

[Thirty7ven]

Hoeg suddenly having trouble creating content around ABK.

 

[FrankWza]

He’s a liar though. First he said 40K.

I remember him from the IGN forums way back in the day. He was a Dreamcast fanboy who clearly got touched in the head when Sega called it quits.

Wow

He's behaving like a wallstreetsbets degenerate who is grasping on to the last scrap of c(h)opium.

It was options, they expire soon. He stands to lose all of his invested capital.

Oh OK. I thought he owned shares. So yeah, he really gambled it.

 

[Banjo64]

He's behaving like a wallstreetsbets degenerate who is grasping on to the last scrap of c(h)opium.

It was options, they expire soon. He stands to lose all of his invested capital.

A lesson to all - don’t invest based on feefees.

 

[SEGAvangelist]

The CMA will not cave now but double down.
You guys heard it here.

He makes some good points, but yeah. Pachter curse and all...

 

[GHG]

Wow

Oh OK. I thought he owned shares. So yeah, he really gambled it.

I'm assuming based on his behaviour.

Because the reality is that if he has shares the most he could be down right now is ~10% (worst case scenario), and if you have shares there's the silver lining that ATVI is a company with solid fundamentals, so time will be on your side and there's no need to panic. He's panicking.