Microsoft acquired Activision Blizzard King for $69 Billion on 2023-10-13

[Deleted member 11852]

I am sure that game passes and loot boxes cover those costs completely and generates extra bucks.

Maybe I misunderstand, but are you suggesting that Microsoft should use some profits to cover other losses because they are using their own resources at below the market cost had they provided those to external customers? Because they does not seem sustainable or profitable.

Unless you can persuade more and more Xbox customers to buy things that are grossly profitable.

 

[Scott_Arm]

Maybe they could revive Tenchu?

Honestly, I just hope they let some of these studios make something brand new. I'd like to see both Activision and Blizzard start making some new stuff instead of cranking out sequels. Take one of the cod studios and make an exclusive. Let blizzard make some new games and make them exclusive. COD25, Diablo7 are not interesting./

 

[PSman1700]

https://www.windowscentral.com/call-duty-going-xbox-exclusive-heres-what-we-know

Is Call of Duty going Xbox exclusive? Here's what we know.

Call of Duty isn't disappearing for PlayStation users overnight.

It wont happen just like that, but i can see a future where it might happen though.


DF video on the matter

 

[mr magoo]

Maybe I misunderstand, but are you suggesting that Microsoft should use some profits to cover other losses because they are using their own resources at below the market cost had they provided those to external customers? Because they does not seem sustainable or profitable.

Unless you can persuade more and more Xbox customers to buy things that are grossly profitable.

What loses ? are you suggesting that operating costs are far greater than profit they are making from selling games and providing online services?

 

[BRiT]

The words Microsoft use today about Activision/Blizzard exclusives is the same PR words Microsoft used for Bethesda, up until the deal closes there's not much they can speak on the matter.

 

[AlphaWolf]

That's I guess the initial interpretation - on its own at current earnings, AB would have paid itself in how long? Let's say $2 billion profit a year out of my arse - that's 35 years. But then you have to guess in how overall XB business will grow with people buying XB instead of PS and additional title revenues. But then you have to factor in people subbing to GP instead of buying these AB titles and getting them for less money, decreasing earning power per title.

It's really quite unfathomable, and I think MS don't really have a plan to make that money back per se - they are just growing and can afford to. Maybe they'll never really make it back, not in a meaningful time frame, but it doesn't really matter. Although I would have thought they'd need some good arguments for the investors, but maybe they don't need real numbers for that and can just woo them with buzzwords?

Has anyone had a stab at trying to figure out the return on Mojang thus far?

The acquisitions have equity aside from their revenue, what will the value of Activision and all of their IP be in 10 years? It doesn't need to earn them x profit in any amount of years if the equity increases and the enterprise is profitable they are still ahead of having 70billion in the bank earning them almost nothing.

 

[PSman1700]

The words Microsoft use today about Activision/Blizzard exclusives is the same PR words Microsoft used for Bethesda, up until the deal closes there's not much they can speak on the matter.

Right, and we know what happened with Bethesda games... (starfield). Activion is IMO one of the largest out there, Bethesda is one, but Activision i never expected. Aside from Rockstar then, wonder if MS has even considered that one?

 

[Silenti]

Did anything get removed from Sony's store yet? (not counting new IPs).

I generally expect MP based titles to stay multiplatform. They need a big population to survive.

You may be proven correct. Neither possibility would surprise me.

 

[Nisaaru]

The erosion of Blizzard started really slowly after the merger but it was very detectable and only got worse over time. Getting all the iconic game designers back will take a while because they're scattered all over the place on other projects for varying durations but the fact that there is even any hope is better than it was this morning!

IMHO game designers have a limited window to execute their vision and be successful. These original Blizzard people are most likely all beyond that window anyway.

 

[RobertR1]

Sony will bend the knee and allow game pass as a service on their platforms by next gen. That’s the end game here: games as a monthly recurring service, platform agnostic.

 

[eastmen]

Sony will bend the knee and allow game pass as a service on their platforms by next gen. That’s the end game here: games as a monthly recurring service, platform agnostic.

why would microsoft even care about sony at that point.

Sony is a small fish. Microsoft wants the people who used to buy a console but don't anymore cause they have surfaces and ipads and phones they keep updating. They want someone to go oh wow call of duty , world of warcraft , doom , elder scrolls and halo all streaming to my devices for x amount of money a month . I don't have to buy a new console ! let me subscribe to this .

 

[AzBat]

Can I have a modern River Raid with real iron-on patches & Battlezone III or a remake of the original 1998 game?

Tommy McClain

 

[RobertR1]

why would microsoft even care about sony at that point.

Sony is a small fish. Microsoft wants the people who used to buy a console but don't anymore cause they have surfaces and ipads and phones they keep updating. They want someone to go oh wow call of duty , world of warcraft , doom , elder scrolls and halo all streaming to my devices for x amount of money a month . I don't have to buy a new console ! let me subscribe to this .

That’s the point. They don’t care about Sony itself. What they do care is that yet another platform is willing to offer their service which in turn gives the service more appeal and accelerated growth.

 

[eastmen]

That’s the point. They don’t care about Sony itself. What they do care is that yet another platform is willing to offer their service which in turn gives the service more appeal and accelerated growth.

But at a cost.

Sony will want a % of the revenue from game pass. At that point Sony may just have to allow it through their browser and microsoft wont have to give up any money.

 

[Nisaaru]

I just don't see how a game that's selling like 10+ million copies on Playstation could go xbox exclusive. It's just way too much money left on the table. You could do it with a smaller title, not COD. They're buying that revenue. I think it makes more sense to put it on gamepass on xbox, so it basically becomes the best deal to play on xbox, but still available on playstation for $70 for each title.

I agree for 3-4 years but *if* COD remains such sales factor it being for free on gamepass might change the whole market momentum. We've seen how the exclusive PS4 deals with CoD/Destiny pushed the PS4 sales back in 2013++.

If GamePass becomes the defacto Netflix for games I wouldn't be surprised at all if CoD+co. will only be available on GamePass at some time and then Sony is forced to offer the service on their consoles.

P.S. I don't really care for CoD.

 

[digitalwanderer]

7 pages in under 12 hours?!? SEVEN PAGES?!?

That's all I need to know this is a big horking deal.

 

[Malo]

The future of GamePass game development:

1. Design 100% of a game
2. Chop off 40% of the game to be the release version
3. Add frustrating mechanics and time wasting to the original concept
4. Sell solutions to problems made in #3 as microtransactions
5. Sell the remaining 40% of the game over the next 1-2 years in the form of season passes and DLC
6. Profit

 

[Nesh]

7 pages in under 12 hours?!? SEVEN PAGES?!?

That's all I need to know this is a big horking deal.

Its one of the biggest news ever in gaming. And I d say extremely negative for the industry in my book.
Such acquisitions should have been halted by antitrust laws.
We can spin it anywhere we want. Like how Blizzard/Activision will fix themselves or how awesome gamepass will be. At the end for the sake of 3 companies and a selection of games that define third party support, we use blindfolds to ignore that it accumulates too much in the hands of few and destroys competition.
It doesnt give resources to small talented studios. It only absords established developers who supported everyone to support just a selection of platforms.

 

[Shortbread]

I'm glad Microsoft has made this move, this acquisition. Sony has been coasting on mediocre game services, poor to average BC updates, unfriendly game return policies, and pumping more money into gimmicks that don't necessarily translate into better gaming. Microsoft needs to keep acquiring publishers and put the fire under Sony's ass to do better.

 

[Silent_Buddha]

The future of GamePass game development:

1. Design 100% of a game
2. Chop off 40% of the game to be the release version
3. Add frustrating mechanics and time wasting to the original concept
4. Sell solutions to problems made in #3 as microtransactions
5. Sell the remaining 40% of the game over the next 1-2 years in the form of season passes and DLC
6. Profit

Congratulations, you're more of a skeptic than I am.

IMO, the future of Game Pass:

• A few expensive (time and money) to develop tentpole (say 1-3) exclusive AAA games a year to make news and get people to really want to get on the service.
  • The hook to get people to join GP.
• That is then supported by a spread of lower budget (time and money) AA to low AAA exclusives set to release ~1 a month.
  • Titles for people to discover while on GP
  • With how many dev studios that are now under MS's umbrella they might even be able to manage ~2 a month.
• Then the service is filled out by good indie and AA 3rd party games that may launch day and date on Game Pass with their general release on other platforms.
  • That mystery rush of discovering some gem a subscriber has never considered before.
  • Generally bite sized gaming experiences although some may be longer.
• And finally throw in some older AAA titles from other 3rd parties.
  • For the core gamers that turn their nose up at indie titles.
• Sprinkle through with a few multiplayer GAAS titles.
  • For the game-a-holics that need to be constantly getting some form of reward constantly.
  • The ones you posted about.

Basically, a service that has a broad spectrum of games to appeal to all types of gamers as well as potentially turning them into fans of gaming genres they'd never considered in the past due to the barrier of having to buy games in a genre they didn't think they were interested in.

Regards,
SB