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[systemr123]

I love this prevailing concept that Microsoft can just take Ls and there won’t ever be impact to them.

Stop confusing Microsoft and Xbox. At some point you have the board of directors at Microsoft take a real look at the profitability of divisions and studios.

These detail might not be shared with stockholders but they are shared with the board.

There isn’t a company on the planet who can lose 120 million and there aren’t consequences for that.

Phil just lost 70 billion dollars and he’s applauded for it by MS. Just sayin’

 

[bender]

Phil just lost 70 billion dollars and he’s applauded for it by MS. Just sayin’

 

[ZoukGalaxy]

They will survive.

 

[Danjin44]

b..b..but according to....



GaaS is the FUTURE!

 

[Mibu no ookami]

Phil just lost 70 billion dollars and he’s applauded for it by MS. Just sayin’

He didn't lose 70 billion. It doesn't work like that.

They bought an asset for 70 billion hoping that it would a) increase in value and b) help grow their business.

 

[diffusionx]

Phil just lost 70 billion dollars and he’s applauded for it by MS. Just sayin’

When you go to the mall and spend $50 on a shirt, do you come home and say you lost $50? Or do you say you spent $50 and in return got a shirt?

 

[twilo99]

The beginning of the end of GaaS. Make some real games next please.

What is a real game?

 

[systemr123]

When you go to the mall and spend $50 on a shirt, do you come home and say you lost $50? Or do you say you spent $50 and in return got a shirt?

If you know that you bought a bad tshirt then yes. Also, there’s not a single MS studio that since it’s being bought by MS produced the same quality or better games than before the acquisitions, so yes, it’s lost money most likely.

 

[diffusionx]

If you know that you bought a bad tshirt then yes. Also, there’s not a single MS studio that since it’s being bought by MS produced the same quality or better games than before the acquisitions, so yes, it’s lost money most likely.

well we can cross that bridge when we get there. right now, MS bought an asset worth roughly $70B.

 

[systemr123]

He didn't lose 70 billion. It doesn't work like that.

They bought an asset for 70 billion hoping that it would a) increase in value and b) help grow their business.

Yes, but we all know what’s gonna happen with this asset, so he might just have thrown his money down a wishing well.

 

[DrFigs]

So it seems the overwatch league is losing millions every year. Ending it will save a ton of money in the long run. Another shrewd business move from Phil Spencer.

 

[diffusionx]

So it seems the overwatch league is losing millions every year. Ending it will save a ton of money in the long run. Another shrewd business move from Phil Spencer.

The owners of the teams are the ones who make the call.

 

[DrFigs]

The owners of the teams are the ones who make the call.

You're right
In fact, MS has nothing to do with this at all. Not even Blizard really

 

[diffusionx]

You're right
In fact, MS has nothing to do with this at all. Not even Blizard really

Well, if you read the article, A-B went to them with a plan, and requested a vote, but ultimately it is the owners' decision. Not that different from the way other sports leagues work, really.

 

[lh032]

i like how people keep saying "its small change for Microsoft", when Microsoft keep raising the price of gamepass and series console lol

 

[SidViscous]

i like how people keep saying "its small change for Microsoft", when Microsoft keep raising the price of gamepass and series console lol

Yup, You don't get rich by losing money. If xbox doesn't become the Netflix of gaming in the next 5 years shits going to hit the fan.

 

[Negotiator101]

I love this prevailing concept that Microsoft can just take Ls and there won’t ever be impact to them.

Stop confusing Microsoft and Xbox. At some point you have the board of directors at Microsoft take a real look at the profitability of divisions and studios.

These detail might not be shared with stockholders but they are shared with the board.

There isn’t a company on the planet who can lose 120 million and there aren’t consequences for that.

It's like me losing £1.20p it's inconsequential mate, you may think you've written something of interest in your post but you haven't.

 

[Negotiator101]

i like how people keep saying "its small change for Microsoft", when Microsoft keep raising the price of gamepass and series console lol

It's small change, you're confused with a business strategy and a tiny loss that makes no difference to a trillion dollar company.

 

[Barakov]

Good. GAAS and Esports are trash. Let them both die in a fire.

 

[Azzurri]

Just a nice Tax write off.

On a side note. I knew Overwatch league was going to fail. They basically built the game for eSports and not other way around.

Also, MS please bring back HoTS!!!!

 

[newtypepilot]

you can't force esports from a game. The whole thing was a con job to begin with, to get uninformed rich folks to buy in even though vast majority of esports team fail to make money.

 

[Unknown Soldier]

I love this prevailing concept that Microsoft can just take Ls and there won’t ever be impact to them.

Stop confusing Microsoft and Xbox. At some point you have the board of directors at Microsoft take a real look at the profitability of divisions and studios.

These detail might not be shared with stockholders but they are shared with the board.

There isn’t a company on the planet who can lose 120 million and there aren’t consequences for that.

I think the biggest misunderstanding that exists in the world today is normal people who have to like budget and think about money and shit actually believe that ultra-big megacorps like Microsoft and ultra-rich individuals like billionaires and ultra-rich families like the House of Saud think the same way.

Spoiler: They don't

 

[recursive]

When you go to the mall and spend $50 on a shirt, do you come home and say you lost $50? Or do you say you spent $50 and in return got a shirt?

But that isn't how acquisitions work at all. If you acquire another business you want it to increase in value, not decrease after you wear your shirt and get your sweaty pit stains on it.

 

[Dane]

The beginning of the end of GaaS. Make some real games next please.

Doubt it, it was the competitive scene that made OW shit, Blizzard wanted to force everyone to play like the pros even at casual and ruined for everyone, killed the game with every shit decision from updates.

 

[Mibu no ookami]

I think the biggest misunderstanding that exists in the world today is normal people who have to like budget and think about money and shit actually believe that ultra-big megacorps like Microsoft and ultra-rich individuals like billionaires and ultra-rich families like the House of Saud think the same way.

Spoiler: They don't

Spoken like someone who has never set a budget at work.

 

[Wildebeest]

Investing in esports and expecting a return is pure fantasy.

 

[ReBurn]

In the business world sometimes you have to give some money back when it doesn't work out. That's just how it goes.

 

[adamsapple]

 

[Goalus]

Good. GAAS and Esports are trash. Let them both die in a fire.

Yes, especially the fighting game scene should be completely annihilated.

 

[diffusionx]

But that isn't how acquisitions work at all. If you acquire another business you want it to increase in value, not decrease after you wear your shirt and get your sweaty pit stains on it.

We are not even at that point yet yet in the discussion, we are simply discussing the concept of exchanging money for something, in this case an asset.

MS spent $70B to get something worth $70B, they didn't lose anything. Now if this goes like many of their other acquisitions, then we can talk.

I think the biggest misunderstanding that exists in the world today is normal people who have to like budget and think about money and shit actually believe that ultra-big megacorps like Microsoft and ultra-rich individuals like billionaires and ultra-rich families like the House of Saud think the same way.

Spoiler: They don't

lol they actually do it in a much more detailed way than a normal person. entire divisions devoted to projections, financial planning, budgeting, detailed policies and procedures on cost allocations, expense management, etc. Companies don't get to be the size of MS without it, it's simply impossible and would invite a lot of embezzlement, fraud, etc., if the company was as flippant with money as people on here think it is.

 

[balls of snow]

All Live service games should die off and be replaced by offline SP games. MP components can always be included but SP games should always be the focus with good stories and characters to pull the gamer into its world. That is what always made games special not online frag fest rubbish.

Fortnite paid for Alan Wake 2.
That Dead Space Remake? Paid by Apex Legends and Fifa.

 

[ChorizoPicozo]

ABK 70B on paper but more like 150B in reality.

 

[Unknown Soldier]

lol they actually do it in a much more detailed way than a normal person. entire divisions devoted to projections, financial planning, budgeting, detailed policies and procedures on cost allocations, expense management, etc. Companies don't get to be the size of MS without it, it's simply impossible and would invite a lot of embezzlement, fraud, etc., if the company was as flippant with money as people on here think it is.

I think we're talking past each other a bit here. I understand that corporations do accounting and they try to count how much they spend and how much they make, in a pretty general sense. I don't think Microsoft is tracking their hundreds of billions of dollars in annual revenue and expenditures to the actual penny but I'm sure they try to make numbers add up to a reasonable margin of error, like a million dollars or so.

What I'm talking about is the casual spending of money with no long term objectives. Microsoft is notorious for this. They acquired Danger and wrote it off. They acquired Nokia's entire phone division and wrote it off. They acquired LinkedIn and nobody knows what the hell they are doing with that. They are extremely infamous for spending a lot of money on acquisitions, accomplishing nothing, and then shutting the whole thing down and just writing it off. They are extremely flippant with money, to the point where they are known for having some of the least success with acquisitions in the tech industry. MS takes a shotgun approach, sometimes they'll end up with something successful like Minecraft, other times they'll get a Rare. They do not care about the money spent on acquisitions and their history proves it.

 

[bitbydeath]

It's like me losing £1.20p it's inconsequential mate, you may think you've written something of interest in your post but you haven't.

Phil earns around 10M per year.
120M is still a lot of money, even for Microsoft.

 

[Men_in_Boxes]

b..b..but according to....



GaaS is the FUTURE!

I was out on Overwatch league since day 1. That game is an awful spectator experience.

 

[DryvBy]

Damn. MS is on track to make around $70,000,000,000 profit ($70 billion). Not sure if they can afford $120,000,000.

Is that before or after their tax lawsuit?

 

[recursive]

We are not even at that point yet yet in the discussion, we are simply discussing the concept of exchanging money for something, in this case an asset.

MS spent $70B to get something worth $70B, they didn't lose anything. Now if this goes like many of their other acquisitions, then we can talk.



lol they actually do it in a much more detailed way than a normal person. entire divisions devoted to projections, financial planning, budgeting, detailed policies and procedures on cost allocations, expense management, etc. Companies don't get to be the size of MS without it, it's simply impossible and would invite a lot of embezzlement, fraud, etc., if the company was as flippant with money as people on here think it is.

But they are poised to lose $120M? What are you talking about?

 

[twilo99]

If we took a poll I bet 80%+ here prefer single player games over multiplayer , it explains a lot

 

[Goalus]

ABK 70B on paper but more like 150B in reality.

They paid 70B and got something that is worth 150B, yes. Good deal altogether.

 

[GymWolf]

The beginning of the end of GaaS. Make some real games next please.

Men_in_Boxes has been real quiet since this news came out...

 

[prinz_valium]

Good for the teams to get some of their money back.
Even most of it.

 

[Zathalus]

Yes, but we all know what’s gonna happen with this asset, so he might just have thrown his money down a wishing well.

Yeah COD and King are suddenly going to stop making money. Just like Minecraft did.

 

[prinz_valium]

ABK 70B on paper but more like 150B in reality.

AKB $70b on paper, but more like $50b in reality.

 

[Fabieter]

Damn. MS is on track to make around $70,000,000,000 profit ($70 billion). Not sure if they can afford $120,000,000.

You make it sounds like anyone of us profit over them making so much money. These mega cooperations are nothing but harm for us and some people think this is a winning thing.

 

[systemr123]

Yeah COD and King are suddenly going to stop making money. Just like Minecraft did.

I think you should compare it more to Bethesda studios than a small Minecraft indie game. Bethesda is going down the drain, this will too.

Also, Minecraft didn’t evolve in the slightest over the past years unfortunately. It could have been so much a better game now but the experience is exactly the same as when Notch created the game (yes I know there are some small adjustments but it’s nothing major like let’s say: No man’s sky).

 

[Zathalus]

I think you should compare it more to Bethesda studios than a small Minecraft indie game. Bethesda is going down the drain, this will too.

Also, Minecraft didn’t evolve in the slightest over the past years unfortunately. It could have been so much a better game now but the experience is exactly the same as when Notch created the game (yes I know there are some small adjustments but it’s nothing major like let’s say: No man’s sky).

On no planet is Minecraft considered a small indie game. The developer has over 600 employees and over 140 million play the game each month. Minecraft has also had a huge number of content added over the past decade, a massive content store, and releases on basically everything.

As for Bethesda, it is the same as it as always been, some games have been good and others not, just like before Microsoft. I can see no substantial change in quality for either good or bad in recent years. Fallout 76, Rage 2, Doom Eternal, and Youngblood were all done before Microsoft while HiFi-Rush, Deathloop, Redfall, Starfield and a number of great remasters were after. Seems like good and bad on both sides.

 

[StreetsofBeige]

I think you should compare it more to Bethesda studios than a small Minecraft indie game. Bethesda is going down the drain, this will too.

Also, Minecraft didn’t evolve in the slightest over the past years unfortunately. It could have been so much a better game now but the experience is exactly the same as when Notch created the game (yes I know there are some small adjustments but it’s nothing major like let’s say: No man’s sky).

I dont play Minecraft, so I dont know how much it's evolved the past 10 years, but hey it's successful and people love it. And it's multiplatform.

On the other hand, your beloved Sony failed with LBP and Dreams. All they had to do is open the games up to all platforms so creators from everywhere can contribute but they walled it off. But dont worry, Sony has 10 more GAAS games coming. One of them has to work eventually.

 

[diffusionx]

I think we're talking past each other a bit here. I understand that corporations do accounting and they try to count how much they spend and how much they make, in a pretty general sense. I don't think Microsoft is tracking their hundreds of billions of dollars in annual revenue and expenditures to the actual penny but I'm sure they try to make numbers add up to a reasonable margin of error, like a million dollars or so.

What I'm talking about is the casual spending of money with no long term objectives. Microsoft is notorious for this. They acquired Danger and wrote it off. They acquired Nokia's entire phone division and wrote it off. They acquired LinkedIn and nobody knows what the hell they are doing with that. They are extremely infamous for spending a lot of money on acquisitions, accomplishing nothing, and then shutting the whole thing down and just writing it off. They are extremely flippant with money, to the point where they are known for having some of the least success with acquisitions in the tech industry. MS takes a shotgun approach, sometimes they'll end up with something successful like Minecraft, other times they'll get a Rare. They do not care about the money spent on acquisitions and their history proves it.

Yes, of course they are tracking their revenue and expenditures to the penny. They have to. You cannot run a business without doing that, they're not the government lol.

I am quite critical of MS i na lot of ways but I feel like I am defending them here when I am really not. Maybe their risk tolerance is higher than other companies, but I highly doubt they did any of these acquisitions without a major analysis and deep dive to see where they can derive value. The fact that they consistently get it wrong is a major problem, as is the fact that, say, they invested billions into 343 only to watch that franchise turn into a smoldering heap, but they're not just like "yolo lmao" spending billions of dollars. Well, one could argue that their entire Xbox business since the beginning has been a waste of money and time (and shareholders have voiced these concerns in the past).

 

[FeralEcho]

Make some real games next please.

Most devs nowadays

 

[systemr123]

I dont play Minecraft, so I dont know how much it's evolved the past 10 years, but hey it's successful and people love it. And it's multiplatform.

On the other hand, your beloved Sony failed with LBP and Dreams. All they had to do is open the games up to all platforms so creators from everywhere can contribute but they walled it off. But dont worry, Sony has 10 more GAAS games coming. One of them has to work eventually.

True, LBP and Dreams didn’t work out as expected. It’s a shame because so much more can be done with Dreams…

Oh wait, was I being unbiased here and also Critisized something Sony? I tell you all the time that I don’t have a hate boner for Xbox specifically, but they just made a lot of crap decisions lately. Now you can finally see and I hope accept that valid criticism is valid criticism, no matter the console manufacturer.