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

Interfectum

Interfectum

Member
DeepEnigma said:
Good Guy MS™
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FutyMpeXgAA0mF2
 
thismeinteil

thismeinteil

Member
//DEVIL// said:
I really wonder what kind of relationship Activison will have with Sony when this completely fails.

Common sense would indicate that once the marketing deal is done, Acticvison won't renew with Sony ever again. probably even to Xbox game pass as well ( with profit sharing with MS on subs or some deal of sort ) Edit post : Not talking about personal feelings. but more of the bitterness of losing a 60+ B$ sale.

But then again, Sony is where Activision makes most of its sales on Call of Duty. I am not sure if Xbox and PC combined are close to half of how much it sells on Sony.

So will Activison have any dignity left in them and stop any marketing deal with Sony, or will they pretend Jim didn't crush them?
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It'll be business as usual. Especially since the PS5's sales are blasting off, while the XSX is losing steam. The board members of Activision will want a piece of that. And if Kotick wants to have hard feelings over losing the deal, they'll just throw him out. He may be on his way out, anyway, because of the sexual harassment scandal.
 
Nydius

Nydius

Gold Member
thismeinteil said:
He may be on his way out, anyway, because of the sexual harassment scandal.
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I’m of the belief that the only reason he’s still there is because Microsoft stepped in when they did with the acquisition talk. Prior to that, it was endless issues about Kotick, sexual harassment at ABK studios, and other negative reports leaking seemingly daily. The acquisition deal eclipsed all of the negative press and threw Kotick a lifeline — plus gave Kotick’s critics a new mantra: “Microsoft will sack him and fix all the problems at ABK!”
 
Majima Everywhere System

Majima Everywhere System

Member
RoadHazard said:
This is great news for everyone but MS. Everyone here should be happy about this.
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1 or 2 Activision games any one person plays was not worth the price. MS needs to focus on building new experiences, adding to the landscape with risks 3rd parties can't take, or they don't belong anymore.

Nintendo and Sony do this. MS used to do this. Buying shit I already have does nothing for me.
 
Eotheod

Eotheod

Member
Majima Everywhere System said:
1 or 2 Activision games any one person plays was not worth the price. MS needs to focus on building new experiences, adding to the landscape with risks 3rd parties can't take, or they don't belong anymore.

Nintendo and Sony do this. MS used to do this. Buying shit I already have does nothing for me.
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I'm not quite sure Sony has really been showing much risk lately, though what we are seeing now is from development timeframes 3-5 years ago, if not potentially longer due to COVID. Seeds don't grow instantly if you throw money at it, just look at the graveyard EA has been filling. Plus there have actually been a number of Indies over the years that have hit big notes on all three platforms, which shows big titles aren't always the key.

At this time in gaming landscape we have some significant challenges including: talent drains, AI upheaval, longer development of those bigger games that move consoles and of course economic impacts like inflation. The industry is very different from even 10 years ago, and I'd argue it's going to change again very soon with newer technologies. I don't believe cloud gaming is as big as some companies like to state, in fact I think it's a waste of capital really. World's infrastructure required to even adequately play a game without it feeling like molasses is no where near capable.
 
James Sawyer Ford

James Sawyer Ford

Member
//DEVIL// said:
I really wonder what kind of relationship Activison will have with Sony when this completely fails.

Common sense would indicate that once the marketing deal is done, Acticvison won't renew with Sony ever again. probably even to Xbox game pass as well ( with profit sharing with MS on subs or some deal of sort ) Edit post : Not talking about personal feelings. but more of the bitterness of losing a 60+ B$ sale.

But then again, Sony is where Activision makes most of its sales on Call of Duty. I am not sure if Xbox and PC combined are close to half of how much it sells on Sony.

So will Activison have any dignity left in them and stop any marketing deal with Sony, or will they pretend Jim didn't crush them?
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Activision will strike a deal with the highest bidder

I think what's MORE likely is that Sony opts out due to the tarnished relationship. It shows that Sony is vulnerable to individual IPs and may be less likely to strike these deals and would prefer allocating marketing spend towards their own developers or direct partners.
 
laynelane

laynelane

Member
Zok310 said:
MS trying to keep all revenue for their games streamed by other cloud services.
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That's just one of the outcomes of 'letting' MS "compete" by consolidation. I've been against this deal from the start because I don't want to see what an unfettered MS will do to the hobby I love and to consumer choice. Still, the difference between their past PR and what we're learning now - the disconnect - is absolutely stunning.
 
James Sawyer Ford

James Sawyer Ford

Member
laynelane said:
That's just one of the outcomes of 'letting' MS "compete" by consolidation. I've been against this deal from the start because I don't want to see what an unfettered MS will do to the hobby I love and to consumer choice. Still, the difference between their past PR and what we're learning now - the disconnect - is absolutely stunning.
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It was always the goal for MS to dominate based on Cloud/Sub services.

Gobble up huge publisher swaths of the industry, subsidize an unprofitable Sub service like GamePass after accounting for all costs, consumers then get used to paying much lower cost for high quality content, leaving other third party publishers to fend for themselves. Entertainment is always a luxury "choice", and this strategy would eventually consume the industry if left to go unchallenged by regulators. You'd see smaller third party publishers likely wither away if their content isn't on the Sub service. We have already seen what a fragmented Streaming service has done to TV/movies.

Good on the CMA for doing what is right for competition and not allowing something like that to happen, where only a $2T company has the financial prowess to usher in such an inevitability.
 
Crayon

Crayon

Member
laynelane said:
That's just one of the outcomes of 'letting' MS "compete" by consolidation. I've been against this deal from the start because I don't want to see what an unfettered MS will do to the hobby I love and to consumer choice. Still, the difference between their past PR and what we're learning now - the disconnect - is absolutely stunning.
Click to expand...

The only thing I'm stunned about is that it took 20 years to happen. As soon as they were throwing in, I thought this was how it was going to go right off the bat. I thought they were just going to buy and wreck everything immediately. I think they would have if there was ever really a point to it but it's always seemed like more of a vanity project.
 
James Sawyer Ford

James Sawyer Ford

Member
Crayon said:
The only thing I'm stunned about is that it took 20 years to happen. As soon as they were throwing in, I thought this was how it was going to go right off the bat. I thought they were just going to buy and wreck everything immediately. I think they would have if there was ever really a point to it but it's always seemed like more of a vanity project.
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We lucked out that as Xbox came into the market, Microsoft went through a very rough period in the 00s where their stock market cratered in the Dot Com bust, and didn't really start taking off again until the mid 2010s.

When your stock price isn't doing well you have less ability to make aggressive consolidations. That's why over the last few years, as Microsoft's cashflow and share price has risen dramatically, it has emboldened Microsoft to make big moves like Bethesda and Activision. Otherwise, if the company wasn't doing as well the shareholders would never approve such reckless spending.
 
Mibu no ookami

Mibu no ookami

Banned
DJ12 said:
I think Activision are going to find the first part of that statement the hardest pill to swallow.

Sony CoD rival is incoming.
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A cod rival from Sony is basically sum of all fears.

They’ve got a lot of studio talent and obvious means of advertising and pushing it along with the console.

That combined with diminished advertising from Sony on CoD….

Activision isn’t in great shape coming out of this.
 
Mibu no ookami

Mibu no ookami

Banned
Thirty7ven said:
It won’t be business as usual I don’t think. In the sense that I don’t think Jim Ryan will pursue another marketing deal with them, nor will PlayStation take a lesser % cut from them.

They will put their eggs on another basket.
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I think this is exactly what will happen.

Call of duty does less good for Sony the longer the generation goes. They’re less reliant on indivudal titles due to a larger user base.
 
laynelane

laynelane

Member
Crayon said:
The only thing I'm stunned about is that it took 20 years to happen. As soon as they were throwing in, I thought this was how it was going to go right off the bat. I thought they were just going to buy and wreck everything immediately. I think they would have if there was ever really a point to it but it's always seemed like more of a vanity project.
Click to expand...

I've thought that recently too. I wonder if it's because of the sheer amount of money gaming makes nowadays? It's a drastic change from 20 years ago. Back then, gaming was more niche. Now, it's mainstream and it seems like many companies want a piece of the pie.
 
D

damidu

Member
wow that brad "we gave peace a chance" smith guy sure sounds like a 2 years old throwing tantrums now. pretty panicky

safe to assume he will be the one that wears "the dork that caused mothership 3+ billions" banner on his ass for this dead deal? or is it phil?

when do you think they will be chased off by shareholders?
 
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MarkMe2525

MarkMe2525

Banned
Even if they did get it through, at what point would the continued pursuit not be worth it? I'm not expecting any of us to know that, but I wonder how long before even if they get the deal done, it's still an L.

I don't personally believe they are there yet, but how many opportunities do they let slip by while they are tangled up in this? I want Diablo and CoD on gamepass as much as the next guy, but a big reason MS wants the production company is for mobile, and I don't give a shit about that. I fully expect them to push the issue for at least the next 8-12 months, but I hope they drop it if it is still going no where. In saying that, I believe they are liable for damages if they don't see this through with an honest and earnest effort.
 
Yoboman

Yoboman

Member
damidu said:
wow that brad "we gave peace a chance" smith guy sure sounds like a 2 years old throwing tantrums now. pretty panicky

safe to assume he will be the one that wears "the dork that caused mothership 3+ billions" banner on his ass for this dead deal? or is it phil?

when do you think will they be chased off by shareholders?
Click to expand...
Phil seems like a smart player. He has shifted Sad Smith into the limelight to look like the fool if the deal failed

Now Phil is like teflon not saying anything
 
T

Three

Gold Member
adamsapple said:
The only way this ends any time soon is if MS decides to back out. Otherwise the venue for appeals is wide open and can keep it going for a long time.
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Honestly I think they will just stretch it out till the June/July deadline to show they didn't back out of the deal.
Yoboman said:
Activision can back out
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And miss out on $3B? No way.

damidu said:
wow that brad "we gave peace a chance" smith guy sure sounds like a 2 years old throwing tantrums now. pretty panicky

safe to assume he will be the one that wears "the dork that caused mothership 3+ billions" banner on his ass for this dead deal? or is it phil?

when do you think will they be chased off by shareholders?
Click to expand...
Brad really has not been humble and kept his mouth shut.

I think this will bite him in the ass the most if they're serious about an appeal:

‘Sony has emerged as the loudest objector, It’s as excited about this deal as Blockbuster was about the rise of Netflix … Think about how much better it is to stream a movie from your couch than drive to Blockbuster. We want to bring the same sort of innovation to the video game industry.’

How do you publicly say something like this then try and backtrack that your blockbuster killing streaming innovation shouldn't have mattered to the regulators.
 
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James Sawyer Ford

James Sawyer Ford

Member
Three said:
… Think about how much better it is to stream a movie from your couch than drive to Blockbuster. We want to bring the same sort of innovation to the video game industry.’
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I can download a new game and it’s just as easy as subbing to a service

False argument he makes there. There’s zero innovation at all, its digital distribution all the same, it’s just a money losing scheme
 
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Heisenberg007

Heisenberg007

Gold Journalism
//DEVIL// said:
I really wonder what kind of relationship Activison will have with Sony when this completely fails.

Common sense would indicate that once the marketing deal is done, Acticvison won't renew with Sony ever again. probably even to Xbox game pass as well ( with profit sharing with MS on subs or some deal of sort ) Edit post : Not talking about personal feelings. but more of the bitterness of losing a 60+ B$ sale.

But then again, Sony is where Activision makes most of its sales on Call of Duty. I am not sure if Xbox and PC combined are close to half of how much it sells on Sony.

So will Activison have any dignity left in them and stop any marketing deal with Sony, or will they pretend Jim didn't crush them?
Click to expand...
I can tell you now how that's gonna play out.

Activision will be begging Sony for a marketing deal. They wouldn't touch Xbox's marketing agreement with a 10-foot pole.

And Sony will now be able to negotiate an even better deal -- cheaper and with more exclusive content.
 
Zok310

Zok310

Banned
laynelane said:
That's just one of the outcomes of 'letting' MS "compete" by consolidation. I've been against this deal from the start because I don't want to see what an unfettered MS will do to the hobby I love and to consumer choice. Still, the difference between their past PR and what we're learning now - the disconnect - is absolutely stunning.
Click to expand...
Should not be stunning, always expect the worse from ms. By default to be a trillion dollar company you have to be filled to the top with greedy assholes that can give 2 shits.
 
mckmas8808

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
Crayon said:
The only thing I'm stunned about is that it took 20 years to happen. As soon as they were throwing in, I thought this was how it was going to go right off the bat. I thought they were just going to buy and wreck everything immediately. I think they would have if there was ever really a point to it but it's always seemed like more of a vanity project.
Click to expand...

I remember a couple of years ago a good number of Xbox fans said on GAF, "MS has finally taking Xbox seriously and they are really in the game now to win it". Now............I understand what they meant. I was lost before because I thought MS always tried to compete. But I was wrong. When MS is really competing, this is what it looks like.
 
Gamezone

Gamezone

Gold Member
It's not a done deal. They could still appeal, which is what they are doing. That might fail, but there's no stopping them from pulling out of the UK entirely. The UK represents less than 2% of MS's gross revenue, all divisions combined. It's just a huge loss for both sides, as the UK "need to protect" cloud gaming. Ironically Blizzard/Activision doesn't support cloud gaming, and would have been available on both xCloud and Geforce NOW if the deal wasn't blocked.
 
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MasterCornholio

MasterCornholio

Member
Topher said:

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.

[/URL]
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And yet they are really mad about it. I have a feeling this changes a lot of their plans if it doesn't go through.
 
mckmas8808

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
Gamezone said:
It's not a done deal. They could still appeal, which is what they are doing. That might fail, but there's no stopping them from pulling out of the UK entirely. The UK represents less than 2% of MS's gross revenue, all divisions combined. It's just a huge loss for both sides, as the UK "need to protect" cloud gaming. Ironically Blizzard/Activision doesn't support cloud gaming, and would have been available on both xCloud and Geforce NOW if the deal wasn't blocked.
Click to expand...

If the bolded were true.......why would you think that would be?
 
Heisenberg007

Heisenberg007

Gold Journalism
Gamezone said:
It's not a done deal. They could still appeal, which is what they are doing. That might fail, but there's no stopping them from pulling out of the UK entirely. The UK represents less than 2% of MS's gross revenue, all divisions combined. It's just a huge loss for both sides, as the UK "need to protect" cloud gaming. Ironically Blizzard/Activision doesn't support cloud gaming, and would have been available on both xCloud and Geforce NOW if the deal wasn't blocked.
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Oh, so you want Microsoft to blackmail, using the 'we will pull out of the UK' card, to force the CMA into approving the acquisition?

Very nice.
 
Ronin_7

Ronin_7

Member
Gamezone said:
It's not a done deal. They could still appeal, which is what they are doing. That might fail, but there's no stopping them from pulling out of the UK entirely. The UK represents less than 2% of MS's gross revenue, all divisions combined. It's just a huge loss for both sides, as the UK "need to protect" cloud gaming. Ironically Blizzard/Activision doesn't support cloud gaming, and would have been available on both xCloud and Geforce NOW if the deal wasn't blocked.
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Microsoft stock would collapse after the news that they're leaving the UK, over 50% collapse btw. Leaving a country because a GAMING deal your Shareholders don't even give a shit.

Xbox also relies heavily in the UK to be 'relevant' in Europe.

KING would also die because they're UK based.

The appeal will take approximately 11 months based on Meta Giphy case so new decision only around March 2024 or April 2024.
 
Nydius

Nydius

Gold Member
Gamezone said:
That might fail, but there's no stopping them from pulling out of the UK entirely.
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People actually believe this nonsense…?

It doesn’t work that way. They can’t just leave and have the merger suddenly approved. They can’t just leave their second largest gaming market. Not to mention the home of RARE and Playground Games. Microsoft leaving an entire market over a tiny gaming deal would cause a shareholder revolt.

And it wouldn’t change the fact that CMA approval would still be needed for the merger to happen.

Anyone saying they can just leave the UK market is either a fanboy repeati g what they read on brain dead Twitter or they got their business degree from a Cracker Jack box.
 
laynelane

laynelane

Member
Zok310 said:
Should not be stunning, always expect the worse from ms. By default to be a trillion dollar company you have to be filled to the top with greedy assholes that can give 2 shits.
Click to expand...

What gets me is the belief that nobody will or would notice. It bespeaks of a very low opinion of the general public on MS' side, not to mention of regulators too. The coverage being given to MS' threatening response to the UK and the CMA, the decision of the CMA, the details of their Cloud plans, etc. is all drawing attention to this very attitude and it's a good thing to see.
 
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B

bluecowboys

Banned
sinnergy said:
Just stop game pass in the UK, and sell it to the rest of the world when approved 🤣 problem solved. In the UK you than can resurrect GameStop and let the buy physical 🤡
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Pretty much this or guarantee in writing that Xbox game pass won't raise its prices (beyond inflation). Those are the two best options. MS can create an independent subsidiary in UK to handle COD publishing and guarantee the status quo.
 
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