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Forums - Microsoft Discussion - Microsoft to buy Activision Blizzard for 69 billion $

KLAMarine said:
Otter said:

I think that was the ambition of the creators, not trend following. It's clearly a narrative Cory really cared about and the changed gameplay perspective works extremely well in delivering an outstanding experience. 

I can't agree: the change in perspective is a downgrade. The old God of Wars didn't need to rely on red arrows to alert one of danger, for starters.

Sure, but would it of been as emotionally engaging with the old perspective? To me they're apples and oranges but this perspective serves the tone and focus of the games narrative. 



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Chrkeller said:

I'm the odd man out. I think this is great for gamers. It will give MS a competitive edge, in which Sony will need to respond too, which could include opening up more studios. Competition is good, market domination is bad. MS and Sony being 1:1 in the market place is great, given it will lead to better sales on software and hardware being cut in price.

Openning up more studios or just buying studios that were already doing fine and delivering games on a wide scope of platforms? That's the question for me.

I'm actually pretty easy with this Acquisition because Activision hasn't interested me in years and I'd like to see Toys For Bob put to better use than COD. But widely speaking, competition is great when it drives innovation but simply buying stuff from other players isn't innovative. For example if Sony was to buy Square or Capcom I don't think that would benefit anyone.  

P.S: I don't think Sony will 



So much salt from people. The reality is for those of us with a medium or better PC rig, we just got a bunch of free games. For those on the fence about which console to get, the choice just got easier. For those that were going to buy both reluctantly, you at least have more reasoning to stick with just one and save some money.

Many people have a console + another console, or a console + a mid range or better PC. With dlss, going forward you won't even need that decent of a rig to play on PC. With cloud improving it will be even more accessible.

Yeah, this stinks for those that absolutely refuse to game in any other way other than Nintendo/Sony natively, but the number of people in that category are growing smaller each gen. The market will always focus on where the industry is heading in general, not on an increasingly small minority of purist fanboys.



Ryuu96 said:

That 45% is about in line with other premiums paid on public companies, Linkedin was 50%, Take-Two's acquisition of Zynga was 64%. Market-cap is the absolute minimum expected to pay and often the purchaser has to pay a pretty large premium which is typically between 10%-50%...It's normal.

Bobby was going to leave with a huge payday no matter what, if it weren't Microsoft, it would have been someone else, or worse, he stays at Activision, that board is just as disgusting as Bobby and were backing him no matter what.

Bobby is guaranteed to stay until the buyout is complete which is also normal and would happen if anyone else was acquiring AB...The rest of the board will almost certainly be removed, why would they remain? Microsoft isn't giving stocks to any of them, it's all cash on hand, they'll be no AB board after this deal closes, all of Zenimax's board left too.

AB employees didn't want AB to die/shutdown, they wanted change, at least under Microsoft they may get that now, with Bobby pissing off along with his disgusting board, I'm fairly confident (as are AB employees themselves) that working conditions will improve under an image conscious Microsoft, especially with the praises that all their other acquisitions speak about how Xbox treats them from general development conditions to stuff such as diversity, inclusion, etc.

Bobby is a piece of shit but sadly in this world this is the only way he was leaving, he likely would have been found guilty, fined a ridiculously small amount compared to what AB makes, paid it and the world would have moved on and continued to buy CoD in droves, that stock would have definitely rebounded eventually.

My #1 thought in all of this is improving the workplace conditions of AB employees as I don't give a shit about AB IPs themselves, I'm fairly confident that Microsoft will fix shit in regards to the abusers, especially when Xbox's leadership team is pretty diverse too, I can't see them putting up with the sexism and general awful workplace practices, so yeah, as it stands right now, I'm leaning towards being happy for AB employees but not caring about the IPs themselves.

Hopefully MS will work with the ABK Workers Alliance and eventually it will lead to unionize all MS's game studios.

However instead of putting pressure on Activision-Blizzard as Phil was 're-evaluating' their relationship in November, it just turns out they were in negotiations with Bobby Kotick. These deals take time. Actions speak louder that words. So I'm not all that confident things will quickly get better for the employees. Nvm these big take overs always lead to shuffling people around and making a lot redundant.

Instead MS and Sony could  have worked together to put actual pressure on acti-blizzard. Threaten with ultimatums to remove their stuff from sale if things didn't improve. I'm sure Sony and MS have a code of conduct for publishers as well.


On the other side this move is a clear signal that game pass needs to grow into the mobile market
https://www.theverge.com/2022/1/18/22889457/microsoft-activision-blizzard-acquisition-mobile-gaming-candy-crush
Streaming is the future and mobile games are cheaper to make than full fledged games while making a lot more money.

Core gamers are just there to get gamepass started, the end goal is dominance in the mobile market. For now you can still enjoy great deals on gamepass for console and PC, but the focus will shift to mobile. A monthly fee to get access to an ad free games library on mobile (still full of mtx ofcourse). Premium subscription for streaming. This move has little to do with Sony nor Steam, it's to go after Apple, Google play and Tencent.

Sony makes about 25 billion in gaming revenues yearly, all together. Compare that to the 90 billion mobile gaming makes.
https://www.businessofapps.com/news/eight-mobile-games-reach-over-1-billion-each-in-revenues-in-2021/
That's what you spend 69 billion for, not to try get a bigger piece of the stagnant AAA games market. (stagnant compared to mobile revenues)


But sure, as a silver lining, things could improve for the employees at Activision-Blizzard. Atm I'm sure they're all wondering what will happen to their job and what they will be working on in the future, next to now having a board that doesn't care at all anymore as they're just sitting out their time waiting for their golden handshake.



SvennoJ said:




A bit off-topic but it's impressive how much more revenue the App Store generates considering iOS is at 30% market share.



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so how is xbox becoming competitive not good for the market?



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Otter said:
KLAMarine said:

I can't agree: the change in perspective is a downgrade. The old God of Wars didn't need to rely on red arrows to alert one of danger, for starters.

Sure, but would it of been as emotionally engaging with the old perspective? To me they're apples and oranges but this perspective serves the tone and focus of the games narrative. 

They could have easily implemented a radar in the HUD but instead went with really ugly arrows that shouldn't be there.



KLAMarine said:
haxxiy said:

Insanely huge consolidation. I wonder if Sony will be forced to respond (maybe with something like Take-Two).

Can Sony afford Take-Two? Activision-Blizzard was in a bad spot which I think gave Microsoft the opening it needed. Is T2 going through the same?

Sony has somewhere between $20 b and $45 b in cash assets. But that's not the only means there is.

For instance, Take-Two just acquired a company that is two-thirds of its own market share. AMD bought Xilinx literally without spending a penny. A large enough company can do a lot of things using their own stock and loans.

Honestly, though, I don't think Take-Two is worth it after buying Zynga in terms of yearly revenues. EA or Nintendo are too risky/expensive, respectively, unless there's a straight-up merger with SIE. I think it'll be both Capcom and SE at some point in the next couple of years or so.



 

 

 

 

 

the-pi-guy said:
Dulfite said:

So much salt from people. The reality is for those of us with a medium or better PC rig, we just got a bunch of free games. For those on the fence about which console to get, the choice just got easier. For those that were going to buy both reluctantly, you at least have more reasoning to stick with just one and save some money.

Many people have a console + another console, or a console + a mid range or better PC. With dlss, going forward you won't even need that decent of a rig to play on PC. With cloud improving it will be even more accessible.

>The reality is for those of us with a medium or better PC rig, we just got a bunch of free games.

Not everyone wants Gamepass. I like owning my content, and I don't like subscription services, especially where content lives or dies based on what the company feels like.

Yeah, this stinks for those that absolutely refuse to game in any other way other than Nintendo/Sony natively, but the number of people in that category are growing smaller each gen. The market will always focus on where the industry is heading in general, not on an increasingly small minority of purist fanboys.

This isn't a fanboy issue. 

It's not about not wanting to play games on Xbox. It's about the health of the entire market. Companies need competition to make for the best scenario for consumers.

Those same games on PC Gamepass are and will be purchasable on windows store. 

MS has tons of competition still, and more will arise. When there are voids, that's when new companies pop up. If the quality or amount of games these studios make decreases going forward, then that gives new studios the wiggle room to pop up and have success in the market taking advantage of those companies not satisfying the market.

In the next 20 years there's going to be new companies that rise to the level of activision/blizzard, Bethesda, etc. Companies we don't even know the name of yet because they don't exist yet. They will have IPS that don't currently exist that all of us will be talking about 20 years from now because of how popular they will become. This is how capitalism works and the market works. Voids fill naturally.

And if there aren't many of those new Studios and aren't many new IPS by those Studios that's because the studios that were purchased by larger companies continue to release quality product at a pace the market deems is acceptable.



the-pi-guy said:
VideoGameAccountant said:

My second point above is basically that the other divisions basically owe SIE. If you were to apply this to any of Sony's other acquisitions, many of them wouldn't have happened.  So yes, they make up ~27% of the company's total revenue, but on any given year they tend to get a substantially smaller portion of that. And at some point that could go the other way.

I think your missing the point of this analysis. If all cash was split equally, than Sony's gaming division would have claim to 27% of their cash. Its not an exact number (and it actually includes sales from the Financial Service sector), but the point is that even with the 626 in cash, that amount needs to be split between the other divisions because that is all of Sony's cash. Your point on the divisions owing Sony is mute here because this is trying to split cash evenly. Sony Gaming can't hog all the resources the other departments needs because they made acquisitions in the past. Point is, Sony doesn't have the liquidity to make a deal work. 

*On 626 billion yen - "In just cash, Sony has 1.473 trillion yen. However, this is split between all of Sony's departments. If you take out Sony Financial Services, they only have 874 billion yen." 874 minus 248 equals 626. The 1.4 trillion yen includes the Financial Service's Cash. The 874 billion number comes right out of Sony's Earnings Release.

On the last point, I thought you meant Square with SIE, so my bad on that. If you want a response to my original point, then just see the analysis I posted previously. Sony pictures CEO may be right that they will have more acquisitions, but Square is out of their league with their current positions and liquidity. Sony is not looking to hot right now, so it would be hard to finance an acquisition of this size. And if an acquisition like that were to happen, Nintendo would likely sweep in and be in a better position to make a deal, both due to their current success and greater availability of liquid resources. 

>. If all cash was split equally, than Sony's gaming division would have claim to 27% of their cash. Its not an exact number


My point is literally just that the cash would not get split up equally. If SIE needed it, they would get a much larger chunk.

You do understand you need cash for operations right? If Sony tries to buy Square, that means they are taking a substantial about of cash from other divisions. Again, gaming is only a fourth of Sony's business, so to take up this much cash just to try and one-up Microsoft isn't feasible. Sony doesn't have a lot of excess liquidity to throw around. 



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