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Imaginedvl said:
Wow that Jez made a really dumb reply here. Exclusivity deals for Microsoft would be way more expansive than Sony because of their martlet share. If Sony has to pay let’s say 10m for a deal it would be probably the double if not triple for the same deal for Microsoft because how the market share. Xbox are probably biding for those exclusivity deals but the cost is so high for super good AAA that they probably could not afford it while Sony could pay a fraction of this to get those deals. Sony basically uses its dominant position to do those anti competitive deals. this is really stupid thing to say. Also something people keeps forgetting, Xbox runs on a budget, as a single entity and their budget is probably smaller than Sony from the start. (Other than company wide decision like the Activision). and that’s why acquisition is the way to go, cause then it is Microsoft a whole that can use their bank account, it is their only to compete against the money hating |
People have let the "warchest" meme get ahead of them.
Like you said, it would cost Microsoft double, if not triple, for most of these deals due to market share, it means the ROI doesn't make sense for Microsoft, Sony pays say $20m for something, Xbox would probably have to pay $40m at minimum and there is no guarantee that large amounts come from PlayStation to Xbox to play the moneyhatted content instead of waiting a while and enjoying all of Sony's other moneyhatted content.
Not to mention, $100m for Rise of the Tomb Raider and a intense amount of backlash PR wise only for it to underperform and Square Enix to be unhappy.
People do seem to forget that Xbox has a budget and Microsoft isn't in the business of burning cash for little return, hence why they go for acquisitions instead because they make more sense from a ROI standpoint, cash in the bank is often earmarked for acquisitions because they provide the most growth and more cash flow, investors would probably have Satya's head if they started using a large amount of it on timed moneyhats.
With acquisitions, you receive 70% - 100% of return depending on where it is sold and you fund the production of the title, with timed money-hats you receive 30% at most if they buy it from your store, whilst having to pay double-triple what the competition pays, for a much smaller audience, in effect the money you pay is similar to you funding an exclusive, Lol.
So they go for acquisitions instead because they make a lot more sense and I know people will be down on ABK not going through and say Microsoft can't acquire anymore but we've not even seen anywhere close to the impact that Bethesda will have on Xbox, a few new IPs? Nothing. Once you get into Starfield exclusive territory, that is the big gun, then you get into the Doom exclusivity, another big gun.
Then you get into the Elder Scrolls and Fallout exclusivity, that's an atomic bomb, Lol. Plus all the other studios. Maybe Microsoft should money-hat until their releases are on a regular schedule but I've a feeling that is very close anyway so they may be fine with just waiting it out rather than burning cash. I know it doesn't feel fair though, that's just business.
Last edited by Ryuu96 - on 07 May 2023
