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CMA narrows scope of concerns in Microsoft – Activision Acquisition review

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If you're a Sony fan, then this can only be a good thing. How is Sony potentially being forced to create a 1st party fps a bad thing? These marketing deals with Activision are a big reason why we haven't had a big budget shooter from Sony since 2013.

It is interesting how Sony is the only one that is "pressured" to strive to create, when the other entity, which is significantly richer, is never held to such standards. Hey, Timmy, it's good Johnny has brought a gun to your fight...will teach you how to dodge like a master!
Anyway! Hopefully this charade is over quickly, that we may discuss more interesting stuff...
 
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Rykan

Member
Pennies for Microsoft. Neither situation would be make them uncomfortable financially
And the point you're trying to make is what, exactly?

They're a corporation trying to increase profits. Keeping Call of Duty multiplatform will result in more revenue than to make it exclusive. The same doesn't necessarily go for Bethesda games.
 
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Oh no, how will Sony ever compete?

Maybe they will start by putting their own damn games in their subscription service. Go ahead and thank Phil now for making gaming better for all consumers.

You realize MS is only doing that because they are eating losses like a champ since 2018, and can continue to do so without any concerns until their competition is phased out in a battle of attrition? A 5 years old kid would understand, but not adult fanboys for some reason...🤔
 
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MarkMe2525

Gold Member
Forced to create an FPS? Lol

A, they were already going out of their way to do that with Deviation. B, to what effect? You don't just shit out an FPS and have it be anywhere near CoD's success. The CMA made this point in their first report, and there's been nothing posed as to why it's no longer the case, but CoD can't be replicated. It doesn't matter how shit it is (it has been shit many times) or how good alternatives are in comparison or in themselves.

C, the time and money spent making obligatory FPS games because a trillionaire competitor is throwing their money around to take stuff away from your platform could be spent making other things that might actually appeal to some niche in the market.
From a customer stand point, I could give two shits if the product, they potentially develop, is as successful as CoD. All I care about is getting an awesome game.

It is interesting how Sony is the only one who is supposed to be forced to strive to create, when the other entity, which is significantly richer, is never held to such standards. Hey, Timmy, it's good Johnny has brought a gun to your fight...will teach you how to dodge like a master!
Anyway! Hopefully this charade is over quickly, that we may discuss more interesting stuff...
I'm not sure who is saying any of that but it's not a secret that they haven't put their first party studios on an fps since 2013. I want to see what they can make.
 
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Yoboman

Member
And the point you're trying to make is what, exactly?

They're a corporation trying to increase profits. Keeping Call of Duty multiplatform will result in more revenue than to make it exclusive. The same doesn't necessarily go for Bethesda games.
They've been running Xbox at a loss for 20 years, I don't think it's concerning them. In fact their revenue is going to increase substantially with or without Playstation
 

Rykan

Member
They've been running Xbox at a loss for 20 years, I don't think it's concerning them. In fact their revenue is going to increase substantially with or without Playstation
So the logic here is "They've been running Xbox at a loss for 20 years, so they're okay with losing even more revenue"?
 

Rykan

Member
Tell me what's changed? They clearly aren't in gaming for its profit margins I'll tell you that
You just keep thinking in absolute terms.

Microsoft is losing revenue on Xbox -> Microsoft doesn't care to lose out even more. That's not how any of that works. It's the exact same reason why they don't just go out and strike a deal for GTA exclusivity. There is absolutely a limit on how much MS is willing to spend/lose out on when it comes to Xbox.
 

Yoboman

Member
You just keep thinking in absolute terms.

Microsoft is losing revenue on Xbox -> Microsoft doesn't care to lose out even more. That's not how any of that works. It's the exact same reason why they don't just go out and strike a deal for GTA exclusivity. There is absolutely a limit on how much MS is willing to spend/lose out on when it comes to Xbox.
They just spent $70 billion on an acquisition. More than Nintendo has made on the entire Switch gen in profit

Tell me what's the limit?
 
They just spent $70 billion on an acquisition. More than Nintendo has made on the entire Switch gen in profit

Tell me what's the limit?

isnt that almost how much the entirety of sony is worth too? crazy amount of money. only apple and google can compete on that level.
 
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Rykan

Member
They just spent $70 billion on an acquisition. More than Nintendo has made on the entire Switch gen in profit

Tell me what's the limit?
I don't know what the limt is, obviously, but they are clearly not okay with losing out on a substantial amount.

Call of Duty made nearly 2B USD in 2020. Taking hardware splits into consideration, that could be up to 1B USD on just the Playstation platform alone. They're clearly not comfortable with missing out on that amount of money on a yearly basis.

The amount of players you're bringing over to Xbox by making it exclusive vs the amount of revenue lost simply isn't worth it.
 
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Hendrick's

If only my penis was as big as my GamerScore!
You realize MS is only doing that because they are eating losses like a champ since 2018, and can continue to do so without any concerns until their competition is phased out in a battle of attrition? A 5 years old kid would understand, but not adult fanboys for some reason...🤔

Everyone should just start giving out their games for free, it's gonna be so good for consumers!

These idiots are gonna be the reason the industry's fucked if it keeps going like this, it's mind boggling to see a select few who don't understand or pretend not to understand their loss-leader strategy & the end goal
FDSf7bd.gif
 
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3liteDragon

Member
You realize MS is only doing that because they are eating losses like a champ since 2018, and can continue to do so without any concerns until their competition is phased out in a battle of attrition? A 5 years old kid would understand, but not adult fanboys for some reason...🤔
These idiots are gonna be the reason the industry's fucked if it keeps going like this, it's mind boggling to see a select few who don't understand or pretend not to understand their loss-leader strategy & the end goal here.
 

bitbydeath

Gold Member
CMA: Microsoft will instead still have the incentive to continue to make the game available on PlayStation.
Seems a bit contradictory too:

“At the Remedies Hearing the CMA asked Microsoft if the 10-year duration is sufficient and whether there would be a ‘cliff edge’ for Sony at the end of this period. The 10- year period is [redacted],” Microsoft wrote.

“Microsoft considers that a period of 10 years is sufficient for Sony, as a leading publisher and console platform, to develop alternatives to CoD.”

 

Lasha

Member
They just spent $70 billion on an acquisition. More than Nintendo has made on the entire Switch gen in profit

Tell me what's the limit?

Microsoft bought a good company as an investment. The investment turns a profit from day 1 on top of whatever profit the division already makes. The acquisition isn't the same as an exclusivity deals. Microsoft had to find some use for that cash to satisfy investors.
 

DrFigs

Member
From a customer stand point, I could give two shits if the product, they potentially develop, is as successful as CoD. All I care about is getting an awesome game.
the point was that they were already doing that. we didn't need MS to do this acquisition for Sony to invest in an fps. this was a thing that was already happening. they apparently have 10 gaas in development anyway independent of this acquisition.
 

Yoboman

Member
Microsoft bought a good company as an investment. The investment turns a profit from day 1 on top of whatever profit the division already makes. The acquisition isn't the same as an exclusivity deals. Microsoft had to find some use for that cash to satisfy investors.
Investors don't give a fuck, you think investors are turning on Microsoft about their smallest division? The one that is considered so inconsequential to their investors that MS don't even need to release revenue numbers?
 
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Thebonehead

Gold Member
Wow a list of games, doesn’t make a good point though about "getting wild".

PS4 Sony also did Bloodborne, Driveclub, Resogun, Horizon, Killzone, Uncharted, TLOU, Fat Princess Adventures, Dreams, Infamous, Ghost of Tsushima, Order1886, Firewall Zero Hour, Until Dawn, Nioh, Farpoint, The Last Guardian, Death Stranding, etc etc.

This has nothing to do with sony getting wild. If anything they will be more conservative.
How had I never heard of this?
 

Lasha

Member
Investors don't give a fuck, you think investors are turning on Microsoft about their smallest division? The one that is considered so inconsequential to their investors that MS don't even need to release revenue numbers?

Investors definitely give a fuck if a company sits on a hundred billion dollars without doing something productive.
 
All these pages of hateful people in the other thread 🤣. All that time wasted writing walls of text. deal was always going through…
I tried to detail why and how of my similarly aligned thoughts in the OT, got thread banned because I let myself get sucked into the narrative around Sony.

You know what would be nice? If GAF talked more about what MS and gaming in general do now, and the future, rather than Sony this or Sony that. I'd rather discuss the content over the platforms. Xbox going the Azure route of opening up is confirmed and well underway. This gamer, his family and gaming friends are all going to enjoy that for years to come for cheaper. We can generally enjoy that on more devices and platforms in a better ecosystem together with lower cost of entry.

I'll be happy if regulators follow through on the latest news. I'm also happy regulators took/take MS to task for consumers and the industry but not to the point of blocking, more so keeping in check. Sony alone ain't the whole industry but you wouldn't think that looking at the OT.

I'm also all for a MS taking ground back or leading going up against the likes of Apple, Meta, Amazon, Google, Tencent. I am also all for Nintendo being Nintendo, they do their own thing in a really great way. Sony seem to be assholes as are Apple. Google is as much a blueprint for Xbox going forward as Netflix or streaming music is.

In the end we are going to see 1 or 2 big players and then market saturation and fragmentation much like streaming music and movies has. It's not doom and gloom but I'd like industry and regulators to not have consumers end up with 10 paid monthly subs just to play what they want. I'd also like to see ownership across platforms or subs e.g. owning a marvel movie on one sub but not recognised ownership on another. Ownership and playback ability across subs would be good things for regulators to push hard for, especially with games coming and going from various services or timings.
 
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Banjo64

cumsessed
Why would anyone be in favor of further entrenching a mega corp?
bootlicker-gif.2040151

Everyone should just start giving out their games for free, it's gonna be so good for consumers!
Exactly bro. Something that Activision themselves don’t even want to do, because it’s no where near as profitable, and will lead to brand dilution. Sony should just cripple themselves willingly for their trillion dollar adversary, it’s so simple.


Activision does not make its games (including Call of Duty) available in any meaningful sense to any multi-game subscription services, nor is
there any evidence that this is likely to change in the foreseeable future? It is therefore not possible that Activision games are an "important input" for subscription services or that such services could be "foreclosed" by not having access to them post-Merger.

Activision's ordinary course internal business documents, as well as the sworn testimony of its executives, has made clear that there are no plans to do so in the future absent the Merger. Activision is concerned that participation in subscription services could impact its and would lead to brand dilution and cannibalisation of buy-to-play sales (especially of new releases). This reflects Activision's view that even if the subscription business model were to grow, the [X]. This has been a fundamental impediment to publishers more generally agreeing to place their content on subscription services, a stance which is not going to change in the future.
 

dotnotbot

Member
PS3 Sony was a lot more fun than PS4 onward Sony. Fat Princess, Resistance, Killzone, TLOU, Uncharted, Warhawk, MAG, Motorstorm, Gravity Rush, LBP, and Eye of Judgement off the top of my head. I actually liked it better when Sony was getting wild.

All of the bolded games combined probably sold less than a yearly instalment of Call of Duty. This is the reality of how you can compete with such big acquisitions. Prepare for more remasters, remakes and endless sequels as they are the only safe way of generating steady profits. Oh, and more GaaS.
 
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reksveks

Member
Investors don't give a fuck, you think investors are turning on Microsoft about their smallest division? The one that is considered so inconsequential to their investors that MS don't even need to release revenue numbers?
Microsoft does release gaming revenue numbers, not profits.

Whether the increased revenue from MS gaming with ABK under it is enough to split it out of More Personal Computing is unknown.
 

DrFigs

Member
So they're not accounting for a loss leading strategy to gain market share and monopoly in the long run? Ok.
I think it's clearly what microsoft is doing and has done with gamepass so far. But Sony's free to make this argument and they haven't. Maybe they don't think it's a good argument?
 
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Three

Gold Member
How had I never heard of this?
Not sure, i guess because nobody really talks about or truly cares about the smaller games. We tend to ignore them in favour of coverage for big franchise games like COD, GoW, Halo, etc. The only reason it came to mind is because the person mentioned Fat Princess.

Only when we're moaning about there being no smaller games like The Puppeteer anymore do we bring them up while ignoring the next small/new game like Concrete Genie or The Tomorrow Children, then the next gen where we complain about no games like Concrete Genie or the tomorrow children anymore while ignoring whatever batch of new games came out that aren't getting attention.
 
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reksveks

Member
So they're not accounting for a loss leading strategy to gain market share and monopoly in the long run? Ok.
They are basically saying
1) the loss from playstation revenue is too great in comparison to the revenue gained from switchers
2) partial foreclosure isn't an issue which kinda throws out the remedy around having a 3rd party check the games on both platforms
 

Lasha

Member
All of the bolded games combined probably sold less than a yearly instalment of Call of Duty. This is the reality of how you can compete with such big acquisitions. Prepare for more remasters, remakes and endless sequels as they are the only safe way of generating steady profits. Oh, and more GaaS.

Prepare for? TLOU was just released for a third time. I've accepted the end of originality long ago.
 

DenchDeckard

Moderated wildly
Is it true that it was Jim Ryan that brought them the data to do the 180. I read it was Sony that provided the data.

I could be ways off.
 

RafterXL

Member
All these pages of hateful people in the other thread 🤣. All that time wasted writing walls of text. deal was always going through…

I’ve got some screenshots saved. It will be a glorious day when this deal goes through.
That thread is hilarious. Angry fanboys who have gone from gloating for months and months on end, over thousands of posts, to coping in the blink of eye. Honestly, it's the gift that keeps on giving.

All the smugness and guarantees that the deal wouldn't go through. The 2% chance nonsense. The talk about how Microsoft would leave the market because of it. I even mentioned they'd start conspiracy theories and they have. I also said they gave this forums years of crow eating material and it got me a threadban, but that's also true. Now it's on to the copium and they've pivoted to who Sony should buy, because they were never actually against consolidation, just against Microsoft doing it.

So they're not accounting for a loss leading strategy to gain market share and monopoly in the long run? Ok.
You honestly think that between thousands of lawyers, a dozen regulatory bodies and Sonys constant attempts to try and block this that it never was considered and rejected as having no merit?
 

OuterLimits

Member
It is interesting how Sony is the only one that is "pressured" to strive to create, when the other entity, which is significantly richer, is never held to such standards. Hey, Timmy, it's good Johnny has brought a gun to your fight...will teach you how to dodge like a master!
Anyway! Hopefully this charade is over quickly, that we may discuss more interesting stuff...

Nintendo is really the only one that is "pressured" to create. They are largely dependent on first party software to sell systems and compete.

Granted, I'm sure Nintendo was thrilled by this entire saga. They suddenly have a 10 year contract agreement for Call of Duty.(which likely won't mean much until Switch successor is released)
 

Fess

Member
So there is two threads for this circus now? I’m blocking all this, I trust that someone will make Gamepass thread when the Activision games are about to arrive on my sub.
 

Sony

Nintendo
CMA finally realized their math didn't add up. It was rediculously wrong to think that pulling CoD from PS in the UK will lead to SLC. Glad they amended their views.

The question now is, will Microsoft the same 10 year parity contract to Sony, now that it isn't neccecary. Cloud remains a concern and Microsoft have been signing 10 year cloud steaming deals will various parties. But Sony specifically got a contract with content and price parity for CoD releases.. Which isn't strictly neccecary it seems. Sony should have signed that contract.
 

Lasha

Member
Nintendo is really the only one that is "pressured" to create. They are largely dependent on first party software to sell systems and compete.

Granted, I'm sure Nintendo was thrilled by this entire saga. They suddenly have a 10 year contract agreement for Call of Duty.(which likely won't mean much until Switch successor is released)

Nintendo is the mother of all counterexamples because it generates more profit than Sony with 2/3 the revenue. Its really the only one of the big three competing as a video game company.
 

RafterXL

Member
CMA finally realized their math didn't add up. It was rediculously wrong to think that pulling CoD from PS in the UK will lead to SLC. Glad they amended their views.

The question now is, will Microsoft the same 10 year parity contract to Sony, now that it isn't neccecary. Cloud remains a concern and Microsoft have been signing 10 year cloud steaming deals will various parties. But Sony specifically got a contract with content and price parity for CoD releases.. Which isn't strictly neccecary it seems. Sony should have signed that contract.
Yeah, Sony kinda boned themselves by not taking the deal. They aren't part of the discussion anymore, and now have zero leverage in the matter. Microsoft didn't even mention them in their last response to the CMA.

Whatever deal Sony deemed "insufficient" is now easily the best deal they'll ever get again, if that's even on the table anymore.
 

FoxMcChief

Gold Member
I think they will sign a contract with Xbox down the line. Sony is very arrogant, so they will try to find a way to recover from this embarrassment.

Sonys biggest loss isn’t CoD, they came out of this looking cheap and petty.
Jim Ryan was so sure the CMA would believe his tears, like Amber Turd in her trial. I can’t imagine Sony is too pleased with him if he doesn’t kiss Phil’s ring and beg for 10 years of CoD.
 
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