Currently Online 
RolStoppable said:
It was about ten years ago that Microsoft bought the Minecraft IP. Back then I thought the logical plan was to make it exclusive to Xbox. When Microsoft kept porting to more platforms, I thought their endgame was to have the first Minecraft everywhere in order to create much greater demand for an Xbox-exclusive sequel. This didn't happen either. Instead Minecraft itself got more and more updates that were available everywhere, plus spinoffs that went everywhere too. Microsoft's strategy for consoles clearly differs from what Sony and Nintendo would have done with a monster IP like Minecraft, if they had gotten such a hold of it. But I don't think it's so much because Microsoft has a broader vision than console hardware, rather it's because they have opposing forces within the company and that results in no clear direction and the lack of consistence in their decision-making for their gaming department (and the sorry state of their first party output that has lasted for many years). The necessary contracts to even make the A-B acquisition happen secure CoD for at least ten years on PS anyway. Making predictions for two generations ahead is incredibly tough, but right now it's looking unlikely that Microsoft will return to a strategy of selling as many Xboxes as possible. They used to do this and it came at the expense of the PC, but since subscriptions are basically the only thing that made Microsoft consistently money in gaming, they'll stick to that. So once the ten year CoD deal expires, it's improbable that CoD will be taken off PS. At that point it's more probable that Sony will have to suck it up in a deal where Microsoft either can plant their own subscription service on PS or get a cut from Sony's PS+ money. But all this is speculation. It may as well amount to not more than gamers having to use Xbox Live accounts to be able to play CoD online, without having to Microsoft a cent. Sony does not have the money lying around to keep retaliating against Microsoft, so chances are high that Sony won't seek out a grand acquisition in the first place. Nevermind all the hurdles Microsoft already has to take with A-B. So it's not reasonable to fear that this entire affair will spiral out of control where everything gets consolidated, both because of the legality and the money. Nintendo won't acquire any entire publisher anyway. Any player from China, namely Tencent, will be out of luck by virtue of the West tightening things up against Chinese companies in general. So while I do think that China has the money, I doubt that they'll be allowed to buy. My comment about taking sides was a general one. |
You're right about Tencent, the West is spooked by China right now, they had to pass a fucking security review just to acquire Sumo Digital, ain't no chance Tencent is allowed to acquire a major publisher in the current climate, Lol.
Sony will be scrutinised for already being a market leader (and more importantly, they don't need to acquire a major publisher). Comcast reportedly already tried (and failed) to acquire EA. Microsoft took an absolute battering with ABK. Ubisoft will continue to desperately cling onto independence by using Tencent as a money source, as they've been doing since way before the ABK acquisition. Yves has made moves to ensure he still owns the company and can prevent any future hostile takeovers.
I disagree on your comment about Minecraft, I don't think it's about opposing forces, lack of direction or consistency, I think it was a purely money one.
Here is what Phil said when questioned.
Q Is Minecraft a significant revenue driver for Xbox? - Yes.
Q How does Xbox compare some of the other platforms on there? - It is the smallest
Q How does it compare to PlayStation to Xbox? - Roughly twice as big.
Q What about Nintendo? - Roughly twice as big as PlayStation. 4x as big as Xbox.
Q If you compare the net revenue to the gross margin, how profitable is Minecraft? - Minecraft is one of the most profitable, if not the most profitable first-party game.
Mojang is also Xbox's largest studio with nearly 1,000 employees. I think it's simply a logical financial decision. To remove Minecraft from PlayStation and make it exclusive would be shooting themselves in the face, it is simply far too big and they'd lose a huge amount of current revenue and profit if they were to remove it from PlayStation, there is no guarantee that enough would switch.
Microsoft acquired Mojang in 2014 as well...Back when the Xbox division was on its knees, they were receiving a lack of funding, they were on an extremely tight leash, Minecraft probably justified keeping the Xbox division around for a little bit longer, it wasn't until 2017 when Satya and Phil decided to start reinvesting in Xbox and go forward with a new vision, before then it was pretty dire with rumours that Microsoft might be shutting them down, Lol.
Phil testified under oath that Xbox Division is treated differently to the rest of Microsoft Divisions, that contrary to popular belief, Microsoft isn't just throwing cash at them, Microsoft demands that the Xbox division profits, that the Xbox division continues to grow, they demand that Xbox divisions becomes more inline with other divisions inside of Microsoft in terms of profit and revenue, I think based on all of this, Minecraft is likely playing a not so small part in funding the Xbox division and making it stand on its own two feet without daddy Microsoft having to constantly throw extra cash at them.
The money used from Minecraft can then go on to invest in other Xbox things, such as Xbox exclusives, as Sony stated in their testimony, the revenue they receive from COD sales helps them to fund their own 1st party titles (I think they could do it without COD but I also believe them when they say it helps). Minecraft is used (Imo) for that same purpose.
People have this misguided notion that Microsoft just throws infinite amounts of money at Xbox and is happy with a division constantly losing money, like at the end of the day, Microsoft is a business, and the Xbox division has a responsibility to provide a profitable one, Xbox division is profitable but Microsoft wants it more profitable, an easy way to make yourself unprofitable is by acquiring an IP worked on by thousands of employees, costing hundreds of millions in CODs case and yanking it from half of the userbase in the desperate hope that everyone would jump over to your console when most user polls have indicated that not enough would switch to make that scenario profitable.
Last edited by Ryuu96 - on 12 July 2023
Essay Pro