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Forums - Microsoft Discussion - Microsoft <3 Valve

ClassicGamingWizzz said:

You better prepare yourself, they will buy valve my guy. 

I honestly don't see it happening.



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sales2099 said:
Ryuu96 said:

Don't mean to be a downer but it's likely nothing.

Geoff was hosting a generic Game Awards meeting with industry folk, Phil was apart of it, some fans were invited to the video call as well to ask Phil questions, Gabe popped in right at the end and answered some questions. It wasn't like Phil, Geoff and Gabe were the only ones there.

Regional Twitter accounts never tweet anything important, with maybe the exception of Xbox UK, if it isn't being teased by the main account it is likely nothing, the New Zealand tease is likely for a NZ launch event (as NZ will be the first place Xbox launches in). Gabe wants to move cause he's been stuck in NZ during this entire pandemic and maybe he's grown to like NZ.

I do think Game Pass will eventually make its way to Steam and who knows, maybe if Gabe decides to retire one day (not really convinced he's at that point yet) Microsoft will acquire Valve but not for a while and I don't think these teases mean anything.

Well he’s 57 right now. Normal age to retire is 65 but I don’t think he will wait that long given his personal wealth. Sometime this upcoming generation we gonna see what he chooses to do upon retirement.

Can’t always judge by age when it comes to retirement when talking about the head of a major company. He could retire early, but he also could retire much later if he truly loves what he does. Look at Warren Buffet:  One of the richest people in the world, and still runs Berkshire Hathaway at 90yo. 



https://twitter.com/XboxANZ/status/1318724225637625856?s=20

There is something happening in New Zealand for Xbox.



Imagine not having GamePass on your console...

I dont see any changea coming. MS are happy to use Steam as a source for selling digital media, and Valve are simply not complaining either.



Valve has always been happy to make and sell games for one or more MS platforms, as long as it's at Valve conditions, not MS ones. When MS tried to enforce on PC monopolistic console marketplace-like conditions, Valve made the Steam Machine, that eventually failed (or it was left to fail as on PC MS just owns the OS and cannot legally claim ownership of the whole PC platform), but now Android needs just some more tweaks than what SW emulators currently do to become a viable PC platform, so the threat could be far more effective for Valve and dangerous for MS, but there's no need to arrive to cold war if they can get along nicely and profitably for both. And eventually, Steam arrived on XBOne too and it will be on XB Series X and S too, the harsh times are over, this means Gabe got from MS what he wanted giving it what was the honest deal, games, not MS domination too as paranoid thugs like Lardmer wanted. The gentle Nadella way proved once again it works better than brute force.



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW! 
 


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UnderwaterFunktown said:
DirtyP2002 said:

Something is going on. I don't think MS will buy steam or anything like it, but there will be some collaboration between those two. And it should be quite impactful when Gabe and Phil give Geoff Keighley an interview together.

No reason Valve would sell anyways. They don't reveal much number wise, but there's no doubt they're one of the biggest companies in gaming. They probably have a larger revenue than the Xbox divsion of Microsoft honestly, Steam is a larger platform and the market place is a goldmine for them.

Ahahahahahaha! 



AsGryffynn said:
UnderwaterFunktown said:

No reason Valve would sell anyways. They don't reveal much number wise, but there's no doubt they're one of the biggest companies in gaming. They probably have a larger revenue than the Xbox divsion of Microsoft honestly, Steam is a larger platform and the market place is a goldmine for them.

Ahahahahahaha! 

Well, since you asked nicely, let's do an estimate (for 2017):

Microsoft Gaming revenue: 9,25 bn (confirmed from annual report)

Valve Gaming revenue from game sales only: 4,3 bn (estimated by SteamSpy)

Now we don't know how high a percentage of Valve's revenue is made up from other sources than game sales (mainly DLC, microtransactions and the marketplace). But we can look at another major western game company: Activision Blizzard. They revealed in their annual report for 2019 how much of their revenue came from "in-game net bookings" (fancy talk for DLC and microtransactions). They revealed it for 2019 (around 53 % of their revenue) and for 2018 (around 57 % of their revenue), so around 55 % on average. And the remaining 45 % aren't even only from game sales, since they write in the report that it also includes merchandise and license fees.

If we just keep it at 45 % of the total revenue and say theoretically that Valve was in a similar situation they'd have a total revenue of 9,5 bn in 2017.

This is just hypothetical of course and you might say that Activision Blizzard games are riddled with microtransactions and the works, so they're likely to have a bigger part of their revenue from those sources than Valve. But many major games on Steam are free-to-play and make all their money from microtransactions including what are probably the most profitable games for Valve: Dota 2 and CS:GO. On top of that there is the marketplace where Valve makes money from players reselling items to each other, which Activision Blizzard does not have an equivalent to, and I don't think the significance of that should be underestimated. You may still not be convinced that Valve's revenue is bigger, but I hope this is enough to at least show that they are in the same ballpark.



Major Switch Titles Launch Aligned

2021 predictions:

  • Switch - 27m
  • PS5 - 15.5m
  • Xbox Series - 10m

UnderwaterFunktown said:
AsGryffynn said:

Ahahahahahaha! 

Well, since you asked nicely, let's do an estimate (for 2017):

Microsoft Gaming revenue: 9,25 bn (confirmed from annual report)

Valve Gaming revenue from game sales only: 4,3 bn (estimated by SteamSpy)

Now we don't know how high a percentage of Valve's revenue is made up from other sources than game sales (mainly DLC, microtransactions and the marketplace). But we can look at another major western game company: Activision Blizzard. They revealed in their annual report for 2019 how much of their revenue came from "in-game net bookings" (fancy talk for DLC and microtransactions). They revealed it for 2019 (around 53 % of their revenue) and for 2018 (around 57 % of their revenue), so around 55 % on average. And the remaining 45 % aren't even only from game sales, since they write in the report that it also includes merchandise and license fees.

If we just keep it at 45 % of the total revenue and say theoretically that Valve was in a similar situation they'd have a total revenue of 9,5 bn in 2017.

This is just hypothetical of course and you might say that Activision Blizzard games are riddled with microtransactions and the works, so they're likely to have a bigger part of their revenue from those sources than Valve. But many major games on Steam are free-to-play and make all their money from microtransactions including what are probably the most profitable games for Valve: Dota 2 and CS:GO. On top of that there is the marketplace where Valve makes money from players reselling items to each other, which Activision Blizzard does not have an equivalent to, and I don't think the significance of that should be underestimated. You may still not be convinced that Valve's revenue is bigger, but I hope this is enough to at least show that they are in the same ballpark.

I'm sure if we looked at profit than revenue then Steam certainly have higher profit.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

DonFerrari said:
UnderwaterFunktown said:

Well, since you asked nicely, let's do an estimate (for 2017):

Microsoft Gaming revenue: 9,25 bn (confirmed from annual report)

Valve Gaming revenue from game sales only: 4,3 bn (estimated by SteamSpy)

Now we don't know how high a percentage of Valve's revenue is made up from other sources than game sales (mainly DLC, microtransactions and the marketplace). But we can look at another major western game company: Activision Blizzard. They revealed in their annual report for 2019 how much of their revenue came from "in-game net bookings" (fancy talk for DLC and microtransactions). They revealed it for 2019 (around 53 % of their revenue) and for 2018 (around 57 % of their revenue), so around 55 % on average. And the remaining 45 % aren't even only from game sales, since they write in the report that it also includes merchandise and license fees.

If we just keep it at 45 % of the total revenue and say theoretically that Valve was in a similar situation they'd have a total revenue of 9,5 bn in 2017.

This is just hypothetical of course and you might say that Activision Blizzard games are riddled with microtransactions and the works, so they're likely to have a bigger part of their revenue from those sources than Valve. But many major games on Steam are free-to-play and make all their money from microtransactions including what are probably the most profitable games for Valve: Dota 2 and CS:GO. On top of that there is the marketplace where Valve makes money from players reselling items to each other, which Activision Blizzard does not have an equivalent to, and I don't think the significance of that should be underestimated. You may still not be convinced that Valve's revenue is bigger, but I hope this is enough to at least show that they are in the same ballpark.

I'm sure if we looked at profit than revenue then Steam certainly have higher profit.

No doubt about that, since (nearly) all their products are digital their expenses must be much lower. They also have very few employees for a company of their size.



Major Switch Titles Launch Aligned

2021 predictions:

  • Switch - 27m
  • PS5 - 15.5m
  • Xbox Series - 10m

UnderwaterFunktown said:
DonFerrari said:

I'm sure if we looked at profit than revenue then Steam certainly have higher profit.

No doubt about that, since (nearly) all their products are digital their expenses must be much lower. They also have very few employees for a company of their size.

And Hardware revenue bloat the number on revenue and tank the number on profit.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."