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[R3claimer117]

Phil’s been trying for years. Remember all those trips?

To get games for gamepass not to buy a publisher there’s never been any talks of this ever.

 

[bitbydeath]

To get games for gamepass not to buy a publisher there’s never been any talks of this ever.

You wouldn’t hear about it.

 

[Ar¢tos]

This must be one of the greatest urban legends at NeoGAF. The untouchable video game Japanese companies and the Mothman.

If it's an urban legend, please list all the gaming studios in Japan owned by a foreign company...

 

[Varteras]

This must be one of the greatest urban legends at NeoGAF. The untouchable video game Japanese companies and the Mothman.

Probably not as wild as you think. Japan is rather insular, and during the pandemic they went to some pretty good lengths to protect their companies from foreign ownership. 12 sectors were identified as needing protection and any company that fell within them, even partially, would be limited at 20% or 33% foreign ownership. These sectors included telecommunications and media. Sony was one such company listed. Not surprising, considering it's been in the top 4 Japanese companies by market value quite a bit. Sometimes as high as second place, behind Toyota.

Companies like Konami, Sega, Bandai, and Kadokawa have ventures outside of video games. I'm not sure what sectors all those ventures fall in, but any overlap would automatically make them protected. Then you have to think about those ventures, even if they're not protected. Bandai Namco is not only the second most valuable third-party game company in Japan, but also Japan's largest toy company. If Microsoft, for example, tried to buy them, they'd likely face a huge uphill battle. The Japanese would likely not be too keen on seeing a company that is so huge in two different Japanese markets being foreign-owned.

Then we get into the keiretsus. Many Japanese companies have networks with each other. Each is invested in one another's company. Often owning a fair amount of each other's stocks. This is done to help protect from hostile takeovers and buoy each other during financial storms. These companies are basically friends. Meaning Microsoft would be dealing with multiple business entities when trying to buy one. If Microsoft tried to force the purchase, they'd likely find themselves ostracized from any other companies in that keiretsu, including companies that may also be in the gaming industry.

Further, many Japanese companies are family owned, be it as a majority shareholder or multiple principal shareholders. These families would be very hesitant to sell, seeing as that essentially means selling the family business. This becomes magnified when you start talking about selling to foreign entities.

Take into consideration all of that, and then think about a situation where two of some of Japan's most valuable companies (Sony #3, Nintendo #19) are having their home territory threatened by a foreign buyer. I do remember a story about how Microsoft tried to buy Square years ago. The deal was almost signed when Square suddenly asked for an additional, astronomical sum of money that Microsoft refused to pay. It's not at all easy to get into that market. It's not impossible to get something there but the more valuable it is, the less likely.

 

[bluecowboys]

Hi fi rush is an indie. I'm talking about aaa i don't care about indies.

Spiderman is the only one we know so far and they released 10 exclusives already in 2 years most acclaimed.

Xbox is always next month, semester year and we have no guarantee these games will be good because they didn't release.

It is reality and with xbox fans praising them even with all this missmanagement this will never change. Let's praise the next aquisition.

Hi fi rush is def bigger than some indie lol. Sony didn’t release 10 AAA exclusives in last 2 years lol. They just released older games and a few others.

 

[Wastelander92]

Nintendo and Sony

 

[Sanepar]

Hi fi rush is def bigger than some indie lol. Sony didn’t release 10 AAA exclusives in last 2 years lol. They just released older games and a few others.

Sure man...

 

[Ordnasella_Edadnirt]

I think a lot of people forget that to buy something the other half must be willing to sell, while also there are laws that prevent certain foreigner acquisitions, that doesn't mean that MS will not be able to buy a Japanese publisher though.

CAPCOM for example is a family owned business and even in their worst moment they wanted to remain independent, SEGA has close ties to MS but Japan protect certain brands and Sega alongside Nintendo are some of them (mainly because of legacy IP's such as Sonic and Mario), SQUARE ENIX it is a good bet since they are willing to sell but they are long time partners with SONY and i doubt that they will let something like that happen, and BANDAI has plenty of side business wich one of them is a large toy manufacturer wich would be difficult to a tech company like MS to divest.

With the ABK deal going trough anything can happen but Japan has some barriers wich can make MS strategy to buy publishers a bit complicated.

 

[BennyBlanco]

Sure man...

Do you know what an indie game is? Because it sure as hell isnt a game published by Bethesda and Microsoft.

 

[Kenshin775]

Yes I think they can and they will because Sony has 98% of the high powered console market in Japan

CMA
Sony
EU
FTC

All agreed that Nintendo should not count and the market should be defined as high powered console market.

 

[Ozzy Onya A2Z]

Probably not as wild as you think. Japan is rather insular, and during the pandemic they went to some pretty good lengths to protect their companies from foreign ownership. 12 sectors were identified as needing protection and any company that fell within them, even partially, would be limited at 20% or 33% foreign ownership. These sectors included telecommunications and media. Sony was one such company listed. Not surprising, considering it's been in the top 4 Japanese companies by market value quite a bit. Sometimes as high as second place, behind Toyota.

Companies like Konami, Sega, Bandai, and Kadokawa have ventures outside of video games. I'm not sure what sectors all those ventures fall in, but any overlap would automatically make them protected. Then you have to think about those ventures, even if they're not protected. Bandai Namco is not only the second most valuable third-party game company in Japan, but also Japan's largest toy company. If Microsoft, for example, tried to buy them, they'd likely face a huge uphill battle. The Japanese would likely not be too keen on seeing a company that is so huge in two different Japanese markets being foreign-owned.

Then we get into the keiretsus. Many Japanese companies have networks with each other. Each is invested in one another's company. Often owning a fair amount of each other's stocks. This is done to help protect from hostile takeovers and buoy each other during financial storms. These companies are basically friends. Meaning Microsoft would be dealing with multiple business entities when trying to buy one. If Microsoft tried to force the purchase, they'd likely find themselves ostracized from any other companies in that keiretsu, including companies that may also be in the gaming industry.

Further, many Japanese companies are family owned, be it as a majority shareholder or multiple principal shareholders. These families would be very hesitant to sell, seeing as that essentially means selling the family business. This becomes magnified when you start talking about selling to foreign entities.

Take into consideration all of that, and then think about a situation where two of some of Japan's most valuable companies (Sony #3, Nintendo #19) are having their home territory threatened by a foreign buyer. I do remember a story about how Microsoft tried to buy Square years ago. The deal was almost signed when Square suddenly asked for an additional, astronomical sum of money that Microsoft refused to pay. It's not at all easy to get into that market. It's not impossible to get something there but the more valuable it is, the less likely.

Japan also did a couple of rounds in the 10s of Billions during the pandemic to bring companies/operations/manufacturing back to their home shores. It's a tough thing to be foreign owned in Japan. A better route would be to create/invest and forget a standalone Japanese based brand for studio acquisitions/investments etc. I get MS wouldn't really want that overall on their balance sheet or company org chart but it would likely work in their favour and promote more open platform access to the games all under a handshake agreement basically. Just retain the lower ownership allowed and stick with their mantra of selling on whatever platform but keeping Gamepass terms.

 

[Boglin]

Yes I think they can and they will because Sony has 98% of the high powered console market in Japan

CMA
Sony
EU
FTC

All agreed that Nintendo should not count and the market should be defined as high powered console market.

Yeah, these 4 organizations came to the same conclusion after reading the internal documents from Microsoft and they actually agreed with Microsoft that Nintendo targets a different kind of gamer so it should be smooth sailing for any acquisitions in Japan.

Sony opened the door to be labeled as a 98% monopoly in Japan and because of that, they can kiss the massive and still rapidly expanding home console market there goodbye once Microsoft justifiably buys some Japanese developers.

Despite owning 23 game developers versus Sony's 20, Microsoft still has no more than 2% of the market in Japan, so if Microsoft is allowed to benevolently acquire another 100-200 studios, then there will probably finally be a competitive market.
Maybe then Sony's high powered boot will be lifted and someday soon we'll have a generation of happy Japanese kids asking, "what's a Playstation?" before they go back to playing their countless free games.

 

[Jigsaah]

Hi All, just want to know if you think MS is going to buy a Japanese publisher next or not?

MS talked about Sony having 98% of the Japanese market. If MS did buy a Japanese publisher it should probably be either Capcom or maybe Square enix because of their mobile output.

Microsoft needs to chill the fuck out if you ask me.

It feels like they are just grabbing as much as they can before others do, which I understand, but it's coming at a cost to Xbox Fans. I feel like Microsoft needs to find a happy medium between being completely hands off with their most recently purchased developers and being completely hands on like they were when they acquired Rare in the 360 times.

It's about balance. It feels like they are not in balancing themselves well right now.

 

[Danjin44]

Microsoft needs to chill the fuck out if you ask me.

 

[Griffon]

If it's anything big, the Japanese gov will just say no.

 

[93xfan]

pay attention to the Wednesday after the. A/B deal closes.

 

[Varteras]

pay attention to the Wednesday after the. A/B deal closes.

 

[adamsapple]

Japan also did a couple of rounds in the 10s of Billions during the pandemic to bring companies/operations/manufacturing back to their home shores. It's a tough thing to be foreign owned in Japan. A better route would be to create/invest and forget a standalone Japanese based brand for studio acquisitions/investments etc. I get MS wouldn't really want that overall on their balance sheet or company org chart but it would likely work in their favour and promote more open platform access to the games all under a handshake agreement basically. Just retain the lower ownership allowed and stick with their mantra of selling on whatever platform but keeping Gamepass terms.

Tough but not impossible. Tango Gameworks was acquired via Zenimax K.K (they have an office and publishing wing in Japan under that name).

Sega is realistically probably too big of a Japanese name to acquire, but they can certainly poach some smaller dev studios.

But you never know. Anything is possible.

 

[Poltz]

Tough but not impossible. Tango Gameworks was acquired via Zenimax K.K (they have an office and publishing wing in Japan under that name).

Sega is realistically probably too big of a Japanese name to acquire, but they can certainly poach some smaller dev studios.

But you never know. Anything is possible.

Tango is absolutely tiny though. Off the top of my head SNK is probably the biggest Japanese gaming company bought.

 

[aries_71]

Under the Japanese law Capcom was classed as category 1, as a company conducting business in a "non-designated" business sector, so only a post-investment report would be needed. There's a good chance there. Much better than with Sega or Bandai, that would be category 2. So, Capcom, here we go…

 

[adamsapple]

Tango is absolutely tiny though. Off the top of my head SNK is probably the biggest Japanese gaming company bought.

Yep, that's what I said in my second line as well.

But if the freaking Kingdom of Saudi can buy SNK, anything is possible

 

[Poltz]

Yep, that's what I said in my second line as well.

But if the freaking Kingdom of Saudi can buy SNK, anything is possible

Even that was accumulated over time.

 

[bluecowboys]

Under the Japanese law Capcom was classed as category 1, as a company conducting business in a "non-designated" business sector, so only a post-investment report would be needed. There's a good chance there. Much better than with Sega or Bandai, that would be category 2. So, Capcom, here we go…

Capcom has a lot of western appeal and so does Koei Tecmo.

 

[Ozzy Onya A2Z]

Even that was accumulated over time.

Ah, the Tencent approach of flying under the radar.

 

[Poltz]

Ah, the Tencent approach of flying under the radar.

All started with a 33% stake.

 

[ironmang]

Under the Japanese law Capcom was classed as category 1, as a company conducting business in a "non-designated" business sector, so only a post-investment report would be needed. There's a good chance there. Much better than with Sega or Bandai, that would be category 2. So, Capcom, here we go…

Street Fighter 7 going Xbox exclusive would be some turntables.

 

[Varteras]

Under the Japanese law Capcom was classed as category 1, as a company conducting business in a "non-designated" business sector, so only a post-investment report would be needed. There's a good chance there. Much better than with Sega or Bandai, that would be category 2. So, Capcom, here we go…

If I'm not mistaken, Capcom and Square Enix may be the only two major gaming companies in Japan not actually protected by any investment laws from foreign ownership. So, if any companies are targets, it's those two. Though there are still the issues of family ownerships, any combines they may be a part of, and just a general willingness to be bought. Capcom is doing very well for itself and SE has a significant relationship with Sony. These things don't lend themselves well to the idea of Microsoft riding in to buy them. But, it will certainly be a topic of conversation for awhile, I'm sure.

 

[reksveks]

Yes I think they can and they will because Sony has 98% of the high powered console market in Japan

CMA
Sony
EU
FTC

All agreed that Nintendo should not count and the market should be defined as high powered console market.

EU didn't say much about the definition of the console market and the CMA did something weird, they actually kept Nintendo in the market but said the impact of the deal was largely against Sony.

 

[nial]

Get over it, green rats. It's not happening.
Sonic Frontiers 2 won't become exclusive to Xbox in a Wednesday.

 

[GHound]

Yeah, these 4 organizations came to the same conclusion after reading the internal documents from Microsoft and they actually agreed with Microsoft that Nintendo targets a different kind of gamer so it should be smooth sailing for any acquisitions in Japan.

Sony opened the door to be labeled as a 98% monopoly in Japan and because of that, they can kiss the massive and still rapidly expanding home console market there goodbye once Microsoft justifiably buys some Japanese developers.

Despite owning 23 game developers versus Sony's 20, Microsoft still has no more than 2% of the market in Japan, so if Microsoft is allowed to benevolently acquire another 100-200 studios, then there will probably finally be a competitive market.
Maybe then Sony's high powered boot will be lifted and someday soon we'll have a generation of happy Japanese kids asking, "what's a Playstation?" before they go back to playing their countless free games.

Is this an excerpt from a rejected hard drive article?

 

[drganon]

The acquisition begging never ends.

 

[01011001]

pay attention to the Wednesday after the. A/B deal closes.

the Microsoft showcase this year will simply be Phil Spencer going on stage screaming "JET SET RADIOOOOOOOOO" and walking off again.

and of course it will be on a Wednesday...