"Getting a cut from PS5 sales is peanuts compared to growing Game Pass by millions. Worst case the big titles will be timed exclusive. MS didn’t spend 7.5 billion to treat Bethesda like any other 3rd party dev."
Playstation sales are 2/3 of mainline console market, and probably 1/3 of Zeni's valuation, so worth ~$2.5-3B of cash they paid out.
They aren't going to get that many Playstation gamers to switch to Xbox, and it doesn't make sense to throw that much money away.
Just having it on Gamepass increases attraction of Xbox platform, and timed exclusivity or just marketing exclusivity is worthy enough.
You seem to concede this by gesture to timed exclusive, which wouldn't make sense if full exclusivity was clear money maker strategy.
There just isn't a reason to throw $2.5 billion away when that can buy other devs/publishers or otherwise invest in growing business.
PC side of things seems to be ignored here, but this also increases MS' weight there with own store now having superior product access.
Ultimately there can't be the same kind of exclusivity in PC space with each store just another app, but MS' Game Pass model clearly can
be extended to PC and achieve "consumer capture" just like Netflix etc. Which reinforces my view on Sony/Epic relation being key factor,
and consolidation being likely across console/PC space with subscriptions being core element, via acquisition/merger or joint ventures etc.
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Anyways, I'm not unaware of general practice of platform owners using exclusivity to their advantage, but it just isn't accurate to call this "proportionate" to Sony's actions, a $7.5B deal is simply not proportionate to Sony's own efforts. BTW, the video gets weird where it says Sony bought exclusive rights to Spiderman... No, Sony owns a film studio who owns the underlying rights, which were purchased from original comic book company but not specifically for gaming exclusivity. Sony owns a bunch of other film and TV "IP" most of which isn't utilized for gaming at all. That a long video like that can't even mention Sony's relation with Epic (which is now just 5% investment into Epic) makes me question it's perspective. Sure, that doesn't look exactly like MS' direct acquisition, but it definitely seems relevant to larger gaming space, even if joint ventures or reverse buyout of Sony's gaming division is more likely considering Sony's own financial capabilities. The video narrator focuses too much on what MS could hypothetically do with all their money, but never substantiates why they would ever consider using all their financial resources to fund 3-4 more equivalent purchases... Never mind address the regulatory implications of doing that. Which reminds me of why I think Sony needs to shore up their EU presence and relationships in order to keep that major regulator on their side or critical of MS. Sony is vastly US/English focused and much of their EU presence was tied up in UK, which now isn't in the EU, so bulking up their own presence in the EU as well as solidifying partnerships with EU companies seems like good business politics.
Last edited by mutantsushi - on 22 September 2020