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[James Sawyer Ford]

Microsoft’s Gaming Chief Is Still Open to Acquisitions After Activision Deal

Phil Spencer is planning how to enter and partner in the handheld device and mobile-store markets

www.bloomberg.com

Does Sony's potential acquisition of Kadokawa and FromSoft accelerate Microsoft's plans to acquire someone from Asia? It's strange that Phil got rid of Tango Gameworks if there is still interest in Asia - why would they do that?

What could they realistically acquire in Asia? I think Capcom/Square are too successful in their own right to want to sell out of their positions. Sega has a lot of big IPs and works more closely with Microsoft on certain deals, and Studio Atlus has a similar quality to them that FromSoft has in the RPG space, so they would be a prestige property for them. So Sega MAY be more open to sell given how friendly they've tended to be with Microsoft. But Sega is actually worth A LOT MORE than Kadokawa - around 4B market cap (I would be interested to see how this breaks down into their business lines). Sega has a lot of baggage like Panchinko machines, resorts, etc. that just simply does not fit into Microsoft's business, so it's also a bit unrealistic. Capcom/Square would be a more "pure" gaming play, but no opportunity to really acquire them IMHO.

I still think it may be difficult for any big Japanese/Asian studio to want to sell to an American company. The Sony/Kadokawa deal is sort of a perfect storm of willing family seller and a good mix for the two companies from a business point of view.

 

[Cert.in.Death]

- Phil $pencer

 

[Fahdis]

Obviously Sega and ONLY on a Wednesday.

 

[Fabieter]

If its Japanese it's gonna be Sega for sure. But other asia countries are producing on the same level these days so they don't have to go after Japanese devs.

 

[PauloRoberto]

It sounds pathetic, does it? I mean, how many companies MS already bought and crashed? Do they really think any Asian company will agree with that AFTER what happened with tango? DO they think any jp (authority will allow something like that?

 

[BennyBlanco]

I’m guessing it would be a company who makes mobile games.

 

[intbal]

Forget buying a whole company. They should just pry Team Ninja away from Koei Tecmo and start making Ninja Gaiden games again.

 

[Gojiira]

Ffs enough with the MS-SEGA nonsense. Sega is a protected company and Japan wont allow MS to just scoop them up.
Same goes for Capcom and Konami so they’re only real possibility is much smaller studios.
Besides who said it was a Japanese acquisition they’re after? They could go after a Korean or Chinese studio.
Pointless either way.

 

[nowhat]

I still think it may be difficult for any big Japanese/Asian studio to want to sell to an American company.

I think it will be next to impossible for a non-Japanese company to take over a Japanese company. The regulators over there are not exactly in favor of an open market.

 

[TintoConCasera]

They bought Activision and I'm still waiting for Hecatomb: Beyond Hexen, so yeah, fuck off with the acquisitions already.

 

[Fahdis]

Ffs enough with the MS-SEGA nonsense.

YOU SHUT YOUR WHORE MOUTH! The Blue Spikey rodent deserves redemption in the hands of the Green Rats! It's family.

 

[nowhat]

They bought Activision and I'm still waiting for Hecatomb: Beyond Hexen, so yeah, fuck off with the acquisitions already.

I'm with you! We still haven't got Pitfall 2024.

 

[RoboFu]

Maybe it's that company that makes hi-chew. Those are good.

 

[Griffon]

How about you open your own fucking studios?! Motherfuckers.

 

[AJUMP23]

From. Offer more than Sony.

 

[Donald mac Ronald]

Buy Vietnam. MS GDP is bigger than most countries.

Covert Saigon into game pass factory machine.

 

[Mibu no ookami]

Really hard to see any further investment in Xbox Gaming at this point despite what Phil said.

Whether it be Japan, South Korea, or China... there would be significant concerns on both sides as to how to make that work. I doubt they helped themselves by closing Tango.

 

[Roxkis_ii]

Microsoft buys studios like their disposable. What studio would willing want to get bought by Microsoft and the owner still has a soul?

Any studio that gets bought, the people with any passion will likely leave, get replaced by contractors, and you will get a Microsoft game.

Microsoft is looking for arranged marriages, instead of fostering relationships that would encourage people to join their organization.

 

[adamsapple]

Microsoft -> Sony -> From Software

Makes sense.

 

[Bridges]

I’m guessing it would be a company who makes mobile games.

I think this is right on the money. I wouldn't be surprised if we don't get any console focused acquisitions for quite awhile, but the mobile market is still perceived as a huge area of growth for them.

Though, Sega does own Rovio now, and we're two days away from Wednesday...

 

[Bridges]

Or, how funny would it be if they bought Krafton and added Tango to their portfolio for the second time

 

[LectureMaster]

Buy Platinum and bring back ScaleBound.

 

[StereoVsn]

Obviously Sega and ONLY on a Wednesday.

And immediately rebrand to Dreamcast 2. I will also allow Saturn 2. Fully funded “true” Shenmue 3 must follow.

Edit: Although they don’t really need to buy anything. Since Sony is buying Kadokawa it means everything is going to be on an Xbox and Xbox Pro.

 

[ExtendEmbraceExtinguish]

Depends; I see Sega/SE as cheap BUT if all devices are Xbox then the lanes for consoles, mobile and pc are going out and msft will need a big publisher to feed off of growth, stable cash flow, multiple IPs, mp titles and potential msft funds for expansion. I am thinking Krafton, or a better alternative option to feed off of Asia.

Please note:
Sega = multiple IPs that can be funded for all devices, gp weakness of jrpgs, potential moating of Sega IPs via expansion and infusion of funds for remakes/remasters/ect and cross studio projects aka coalition doing binary domain remake.
SE = exactly as leaked doc during Actibliz trial aka msft sees se as a mobile dev. This purchase says mobile/remakes/mmo/gp day1 ads in Japan for dragon quest.

 

[lh032]

I hope they scoop as much of studios or publisher and crashed lol,should be a sight to see.

 

[Oppoi]

Microsoft can flood every thread with x2 faux voices. The silent majority still exist.

 

[Pop]

More Gamepass filler

 

[Sharius]

i would praise him if he can get tencent

 

[bitbydeath]

Most of the publishers are protected by law in Japan. Kojima is likely accessible.

Otherwise Tencent would net them a lot.

 

[midnightAI]

From. Offer more than Sony.

Don't even joke about that

 

[hououinkyouma00]

I don't want Microsoft to touch any Japanese studios. I want them to stay as far away from Japanese devs as possible. They've ruined enough devs/franchises as it is.

i would praise him if he can get tencent

CCP ain't letting anybody get near Tencent. Also that shit would be like $500B.

 

[Begleiter]

Itagaki's studio still exists and I think is the most reasonable prospect.

Corporate consolidation remains bad and I don't want Microsoft buying anyone else for the sake of having a few more catalogue titles on Game Pass. What they should be doing is funding existing studios or creating new ones to actually release games.

 

[FrankWza]

They had Tango and couldn't keep it together

 

[Stu_Hart]

I rather see them pump the brakes on these acquisitions. They have bought some huge companies and ruined some.

 

[demigod]

Buy Vietnam. MS GDP is bigger than most countries.

Covert Saigon into game pass factory machine.

Damn boy, you must be old if you know the word Saigon.

MS will buy Sakaguchi and Itagaki's companies just for those 2 clowns to leave the company after their clause is up.

 

[StreetsofBeige]

I thought people have said Japanese companies cant be bought out by foreigners?

 

[Topher]

I thought people have said Japanese companies cant be bought out by foreigners?

This is what chatGPT says...

Yes, Japanese corporations can be bought by foreign entities, but there are certain regulations and considerations that apply.

1. Foreign Investment Rules: Japan has relatively open markets for foreign investment. However, there are restrictions to protect national security, public order, and important industries. These are governed by the Foreign Exchange and Foreign Trade Act (FEFTA).
2. Approval Process: Foreign acquisitions of Japanese companies may require approval from the Japanese government, especially if the company operates in sensitive areas such as defense, telecommunications, or infrastructure. In particular, if a foreign investor seeks to acquire more than 1% of a listed company in certain strategic sectors, the Ministry of Finance or other relevant authorities may review the deal to assess any national security concerns.
3. Shareholder Voting and Regulations: For foreign investors looking to acquire control of a Japanese company, they must typically follow the country's securities laws. This involves submitting a tender offer (a formal proposal to purchase shares) and meeting certain disclosure requirements, including reporting their ownership stake to the relevant authorities.
4. Cultural Considerations: Japanese corporations are traditionally conservative about foreign ownership. Although there has been an increasing trend of foreign acquisitions in recent years, many companies still value local management and corporate culture. Foreign ownership can sometimes face resistance from employees, local communities, or shareholders who prefer domestic control.
5. Public Companies vs. Private Companies: Foreign investors can acquire public companies through stock purchases, subject to the approval and regulatory requirements mentioned above. For privately held companies, the process may be simpler, though it's still subject to Japanese laws regarding foreign investment.

In summary, while foreign entities can buy Japanese corporations, the process may involve various legal and regulatory checks, especially in sensitive sectors, and foreign investors need to be aware of cultural and procedural nuances.

 

[Kurimao]

Just buy Ubisoft they have studios all over asia. And with AssShadows coming sometime soon maybe they can get some back love from Japan (fat chance).

 

[ChorizoPicozo]

Nintendo is the only one.

remember dumbass Phil saying that any other western Publisher was too small for them.

 

[Yoda]

I don't see the point of this strategy. The cost of these studios will take forever to make back if the plan is making game pass more attractive. If we take gamepass off the table, Microsoft isn't really good a monetizing it's corporate (gaming) purchases. Almost every studio they buy produces worse output than before MS taking over. Who's the winner here? The stockowners of whoever owns the bought out company. Losers: Everyone else (including Microsoft lol).

 

[pasterpl]

Most likely some Korean studio good In GaaS/Mobile, less seriously Kadokawa (sell the anime stuff to Tencent) and Sega, maybe Konami.

 

[DenchDeckard]

If Sony gets kudokawa. Daddy Nutella is gonna be pissed.

It will spawn the next wave of purchasing hell.

 

[GHound]

Most of the publishers are protected by law in Japan. Kojima is likely accessible.

Otherwise Tencent would net them a lot.

Kojima is as inaccessible as they come.

 

[Cyberpunkd]

It's strange that Phil got rid of Tango Gameworks if there is still interest in Asia - why would they do that?

Because he wants to do as little work as possible and reap the benefits. In other words - hack the system. That’s why they went after Activision instead of spending 20 years building their studios - too much work.
Tango Gameworks was not making good games, not at the level Microsoft requires. They want big blockbusters with 10mln+ copies sold and long revenue tail.

This is Microsoft’s message to indies and AA studios:

 

[Heisenberg007]

Considering they have already acquired and closed a Japanese studio (Tango), I doubt they'd buy an Asian dev anytime soon. And I doubt any Japanese company/studio would feel okay being bought by Xbox.

If they do buy anything (which I doubt they'll anytime soon), I think they'll buy a Korean developer that primarily focuses on mobile games.

 

[Gojiira]

YOU SHUT YOUR WHORE MOUTH! The Blue Spikey rodent deserves redemption in the hands of the Green Rats! It's family.

Fuck off

 

[Three]

It's strange that Phil got rid of Tango Gameworks if there is still interest in Asia - why would they do that?

Because simply good games aren't what they're after, it's engagement metrics. Tango didn't have the latter but it had the former.

 

[ap_puff]

I can only see an Asian studio acquisition being a horrible failure for Microsoft.

 

[SweetTooth]

- Phil $pencer

Phil Spender

 

[Yoboman]

Sega the last few years: