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Microsoft / Activision deal prevented to protect innovation and choice in cloud gaming

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Truly the darkest hour since the Battle of Britain.
"We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender."
- Jim Ryan, circa 2023
 

sainraja

Member
So we should cripple Microsoft's ability to expand their games portfolio while we give Sony time to sit there and build up their cloud gaming infrastructure so Sony can have the best games, the best cloud, and the best console. While Microsoft just closes the Xbox division. Yeah, makes sense.

Punish Microsoft for already having cloud infrastructure while giving Sony a chance to get it so Microsoft can never compete/use their advantage. I see now.
Um... Microsoft successfully acquired Zenimax/Bethesda who has a portfolio of IP + studios under them. They had no issues closing that.. some of you act like that did not happen at all.

No one is stopping or punishing MS here.
 
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No they can appeal and will more likely will with MS stating activision games wont be blocked from other cloud gaming market places
That was already stated and it was blocked.

I don’t think people understand this appeal process. The decision is made - the only grounds Microsoft and ABK can appeal on is on grounds of the CMA not doing due diligence, not on the substance of the proposal.

Even if they somehow win the appeal, the decision goes back to…the CMA.

Given how the CMA reviewed 2 million pieces of evidence and reviewed thousands of opinions, asked the wider industry etc, the likelihood of them being rebuked for not conducting themselves with due diligence is incredibly small.

This will knock the deals completion at least a year from now, potentially three.

Given the FTC and the EU commission are due to weigh in as well, with one already taking legal action…this’ll be a long fight.

It’s entirely possible PlayStation will have extended their COD deal with ABK by then, as ABK can’t act as if not a public company until the deal completes. Given they’ve concluded a long marketing deal was in the best interests of shareholders before, and given Sony’s continued success with console sales, that view is unlikely to change.

During all this time Sony are building their competitors at Bungie, Firewalk and Deviation Games.

During this time it won’t be possible for Microsoft to buy another publisher without opening the can of worms again in terms of competition in the console space in addition to cloud concerns.

It’s a very interesting time. Sony have in all likelihood ended up in a very strong defensive and attacking position.
 
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GHG

Member
I was hoping that under Microsoft, they might greenlight a Prototype sequeI. Under Activision, they killed it because while it made money, it didn't make enough money. I want more Prototype dammit! And that's the type of game I think would do very well in a subscription type service. So I don't really care if it's on Gamepass, PS+ Extra, or both. Bring back Prototype!

You think that they're going to invest money, time and effort on games that are not successful/popular all because of a subscription service?

You'll see soon enough what happens to franchises that don't result in engagement and subscription growth for gamepass.
 
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magnumpy

Member
When there is no competition prices go up. I hope Microsoft gets their act together and that doesn’t happen.
in addition to Sony and Microsoft there is also Nintendo as well as PC and various other players. if Microsoft disappeared tomorrow there are enough interested players that competition isn't in any kind of danger of going away. video games are very profitable, and they've been that way for longer than Microsoft has existed for (re: Periscope, circa 1965, while Microsoft was founded in 1975!)
 

Bragr

Banned
I've said it for a long time, cloud is Microsoft's end goal and it goes in tandem with gamepass:





Their intentions are so obvious to anyone paying attention.

Everything they are currently doing is positioning themselves to lock out the entire market before the next transition even happens.

A few of us have talked about this here for years, but people don't want to hear it because it kills their dream where gamepass continues in its current form at its current price forever. I hope everyone is ready for pay per minute/hour cloud streaming in order to get their gaming fix.
"Their intentions are obvious".

Pay per minute? that is your obvious prediction? that PS Plus, Game Pass, and Nintendo Online are all looking at a pay-per-minute proposition?

You aren't really saying anything here at all. "Netflix of the industry", Netflix is far from being a monopoly.
 

GHG

Member
"Their intentions are obvious".

Pay per minute? that is your obvious prediction? that PS Plus, Game Pass, and Nintendo Online are all looking at a pay-per-minute proposition?

You aren't really saying anything here at all. "Netflix of the industry", Netflix is far from being a monopoly.

Netflix aren't at endgame yet. Not even close. And to be honest they likely won't be allowed to get there because instead of acquiring content via acquisitions they acquired content by agreement. Microsoft will have seen how content has been continuously pulled from netflix over the last few years resulting in an erosion of market power and fragmentation, so have decided to go a route that avoids that potential pitfall - hence the aggressive acquisitions.

I'd suggest you do some reading around loss leader strategies and how they play out.

And yes, if left untamed, all gaming cloud streaming services will begin charging their users a time of use tariff.
 
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EviLore

Expansive Ellipses
Staff Member
Exactly, they offer me the best deal in gaming, a small price for a tremendous value. The most significant and gracious consumer-friendly move since Steam, that have saved me tons of money.
Which is great, but that best deal in gaming will evaporate in an instant if they become market leader or can otherwise exert anticompetitive pressure—i.e. this deal. Be careful what you wish for.
 

ShaiKhulud1989

Gold Member
Which is great, but that best deal in gaming will evaporate in an instant if they become market leader or can otherwise exert anticompetitive pressure—i.e. this deal. Be careful what you wish for.
People really need to be reminded about Netflix' initial pricing and sharing options and where we are now.

Same WILL happen to GamePass, the only question is WHEN.
 

CatLady

Selfishly plays on Xbox Purr-ies X
:messenger_grinning_smiling:I find it interesting that since the announcement yesterday, there already seems to be a “new” talking point taking form on Twitter, YouTube and forums. Which is that the ABK acquisition was never all so beneficial for the core Xbox audience and that Microsoft should have gone for smaller studio acquisitions like Asobo and Certain Affinity or struck a deal with Square Enix to get Crystal Dynamics and Eidos + their IP’s instead of wasting over a year on this.
I think someone with a Fallout avatar (maybe CatLady CatLady ) on here already suggested something like this multiple times.

Yeah it was me. I’ve been saying that even before ABK. To me those would have been a really good investment especially when Square gave them away for lunch money.

Once Xbox was all in on the acquisition I wanted it to be approved since Jim I and Sony were so obnoxious, entitled and demanding plus it would make a lot of money for Xbox and maybe even not have to hear about how “Xbox has no games”. :messenger_squinting_tongue::messenger_winking_tongue::messenger_squinting_tongue:
 
Honestly I’m still shook at how many angry tears from Xbox warriors there have been, how many of them their are, and what a bunch of dickholes MS have been.

I really thought this would have been just like whatever for everyone, but it’s pure gold entertainment. Crazy meltdowns.
 
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Dick Jones

Gold Member
Been enjoying the console wars for many, many years and I gotta say I've never seen meltdowns like I have today. Some people were REALLY invested in MS owning Acti-Blizz... holy shit.
Hopefully the ones disappointed with the deal falling through will realise they lost zero games from ABK.
 

X-Wing

Member
The next narrative will be that the FTC and the CMA colluded because Lina Khan, allegedly, met with the CMA's top woman.
The source of this is Kotick though...
 
Been enjoying the console wars for many, many years and I gotta say I've never seen meltdowns like I have today. Some people were REALLY invested in MS owning Acti-Blizz... holy shit.
It’s mental.
And honestly, who knew how many experts in international business law were lurking in these forums? Gotta be, what, like 75% post grad from Cambridge, Harvard, et. Incredible.

Academic GIF
 
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Nydius

Member
Wow that's some shade he's accurately thrown there.

Remember when ms started pretending they weren't a bag of dicks, well this is what they did before that.
Indeed. I worked at Gateway Computer in corporate IT from 1997 to 2003 when the plant closed, and I remember the days of arrogant Microsoft.

I remember having inter office emails sent out dictating that support technicians were not, under any circumstances, to discuss any non-Microsoft products even if a customer mentioned them. Any web browser troubleshooting had to be done through MSIE even if the customer was using something else.

Because if any non-Microsoft approved software was discussed by an employee to a customer, it could be cause for litigation by Microsoft.

Yeah, I remember those days.
 

Panajev2001a

GAF's Pleasant Genius
https://www.bbc.co.uk/sounds/play/m001lbd3 BBC interview with Brad Smith Microsoft President over the Deal
I skimmed through it. Here's some tidbits.
He doubles down on the fact that this is bad for UK's economy and all the big tech was watching this deal and now they will avoid them UK because of the CMA "Shake the confidence among the business community" says CMA has extreme lack of understanding.

Says that cloud gaming is a small business and isn't going the direction they say it is. Says Microsoft's max streaming capacity (XCLOUD) is 5,000 people to the entire country.

"Torpedo a 68 Billion Dollar Global Transaction over a concern over a small part of the business. And rejecting all these proposals. It leaves people worried."

He is then asked if this changes his perspective or Microsoft's perspective of the UK. He says "We've been in the UK for 40 years, defended them using cyber security. This decision is the darkest day of the entire 40 years in britain. It shakes our confidence more than ever before."

"Will it affect Microsofts business in the UK?" "We will definitely keep it in mind" he responds

That was all in the first 7 minutes. I'll leave you the rest to listen to if you wish. Anyways the too long didnt listen/read is: Microsoft is pissed at the UK.
Does he have Tourette? Not making fun of people who suffer from it but he cannot play the pity card and the “we are too good for you and we will f-you-up if you try to suggest we are the bullies, you and that shower of bast%*ds you call UK citizen” one at the same time.

5K players max being their maximum UK concurrent capacity for XCloud, calling BS here sorry…
 
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JTCx

Member
So we should cripple Microsoft's ability to expand their games portfolio while we give Sony time to sit there and build up their cloud gaming infrastructure so Sony can have the best games, the best cloud, and the best console. While Microsoft just closes the Xbox division. Yeah, makes sense.

Punish Microsoft for already having cloud infrastructure while giving Sony a chance to get it so Microsoft can never compete/use their advantage. I see now.
friday-ice-cube.gif
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
https://www.bbc.co.uk/sounds/play/m001lbd3 BBC interview with Brad Smith Microsoft President over the Deal
I skimmed through it. Here's some tidbits.
He doubles down on the fact that this is bad for UK's economy and all the big tech was watching this deal and now they will avoid them UK because of the CMA "Shake the confidence among the business community" says CMA has extreme lack of understanding.

Says that cloud gaming is a small business and isn't going the direction they say it is. Says Microsoft's max streaming capacity (XCLOUD) is 5,000 people to the entire country.

"Torpedo a 68 Billion Dollar Global Transaction over a concern over a small part of the business. And rejecting all these proposals. It leaves people worried."

He is then asked if this changes his perspective or Microsoft's perspective of the UK. He says "We've been in the UK for 40 years, defended them using cyber security. This decision is the darkest day of the entire 40 years in britain. It shakes our confidence more than ever before."

"Will it affect Microsofts business in the UK?" "We will definitely keep it in mind" he responds


That was all in the first 7 minutes. I'll leave you the rest to listen to if you wish. Anyways the too long didnt listen/read is: Microsoft is pissed at the UK.

How is this real? Brad sounds like an evil corporate overlord.
 

Topher

Identifies as young

Microsoft Xbox Chief Seeks to Reassure Game Staff on Activision​


Microsoft Corp. executives sought to reassure workers in the Xbox gaming unit that there’s a way forward for the approval of the company’s planned $69 billion purchase of Activision Blizzard Inc., while emphasizing that its success in gaming isn’t solely dependent on the deal.

The acquisition was vetoed Wednesday by the UK’s antitrust watchdog, a potentially fatal blow for the industry’s biggest-ever deal. At an all-hands meeting for division employees Thursday morning, Microsoft gaming chief Phil Spencer acknowledged the company’s disappointment, saying the UK’s decision will slow the approval process, according to a person who attended the meeting. Still, he said Microsoft’s desire to pursue the deal hasn’t wavered, said the person, who asked not to be identified discussing an internal event.

Spencer told staffers that Microsoft President Brad Smith was up at 2 a.m. Seattle time Wednesday drafting a response to the UK Competition and Markets Authority. He said Chief Financial Officer Amy Hood, who oversees acquisitions, held a senior leadership meeting the same day.

The Xbox chief said the acquisition was intended to speed up Microsoft’s gaming plans, but doesn’t represent the entirety of the company’s gaming strategy, which would move ahead even without Activision, the person said.

The CMA said concerns about the deal couldn’t be solved by remedies such as the sale of blockbuster title Call of Duty or other solutions involving promises to permit rivals to offer the game on their platforms, according to a statement Wednesday. Microsoft said it will appeal the decision.

Redmond, Washington-based Microsoft had no immediate comment on the internal meeting.


 
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Heisenberg007

Gold Journalism
Exactly, they offer me the best deal in gaming, a small price for a tremendous value. The most significant and gracious consumer-friendly move since Steam, that have saved me tons of money.
Try Epic. They literally offer you free games every week if that's what you're into -- instead of taking $15 p/m from you just for renting games. Epic games are also yours to own forever.
 

Heisenberg007

Gold Journalism

Microsoft Xbox Chief Seeks to Reassure Game Staff on Activision​


Microsoft Corp. executives sought to reassure workers in the Xbox gaming unit that there’s a way forward for the approval of the company’s planned $69 billion purchase of Activision Blizzard Inc., while emphasizing that its success in gaming isn’t solely dependent on the deal.

The acquisition was vetoed Wednesday by the UK’s antitrust watchdog, a potentially fatal blow for the industry’s biggest-ever deal. At an all-hands meeting for division employees Thursday morning, Microsoft gaming chief Phil Spencer acknowledged the company’s disappointment, saying the UK’s decision will slow the approval process, according to a person who attended the meeting. Still, he said Microsoft’s desire to pursue the deal hasn’t wavered, said the person, who asked not to be identified discussing an internal event.

Spencer told staffers that Microsoft President Brad Smith was up at 2 a.m. Seattle time Wednesday drafting a response to the UK Competition and Markets Authority. He said Chief Financial Officer Amy Hood, who oversees acquisitions, held a senior leadership meeting the same day.

The Xbox chief said the acquisition was intended to speed up Microsoft’s gaming plans, but doesn’t represent the entirety of the company’s gaming strategy, which would move ahead even without Activision, the person said.

The CMA said concerns about the deal couldn’t be solved by remedies such as the sale of blockbuster title Call of Duty or other solutions involving promises to permit rivals to offer the game on their platforms, according to a statement Wednesday. Microsoft said it will appeal the decision.

Redmond, Washington-based Microsoft had no immediate comment on the internal meeting.



Wait, so is Phil Spencer saying that they can compete without Activision? 🤔 So what are they appealing for? 😄
 

DJ12

Member
approved by midnight.
You get your one chance to hoodwink the regulators, and MS shot their bolt with Bethesda "We have no incentive to stop making games for PlayStation"

Sony kept their powder dry with Bungie staying multiplatform, so they still have the get out of jail free card in their back pocket.
Wait, so is Phil Spencer saying that they can compete without Activision? 🤔 So what are they appealing for? 😄
If I'm an MS employee I worried about the furver of the response, considering the UK is xbox's only other market and they are even getting an ass whooping on home turf now.
 
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GHG

Member

zomboden

Banned
Try Epic. They literally offer you free games every week if that's what you're into -- instead of taking $15 p/m from you just for renting games. Epic games are also yours to own forever.
I do my Microsoft Rewards points searches and daily stuff for about 5 min every morning and I don't even pay $15 a month for GPU. I pay $0 a month. Now, I don't know what they gain from me doing Microsoft Rewards but I earn enough to get GPU to the point where it never runs out. Until they raise the price or lower the points you get, that is. But I've been doing it for years now.
 
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