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

I personally don't think that is true. $200 for a cod box isn't a big spend for a lot of people. If MS takes cod to xbox/ pc / switch only the cost of entry is still low. I don't think it will be one day its on playstation and then boom its not.
Eh. You only want exclusivity when you are aiming to corner off the market. Xbox can’t generate that much money cornering off the market. They don’t have the library of Sony where that makes a lot of sense as a strategy. Right now, just having their goods everywhere onto as many platforms as possible is going to have a better impact for MS. The end state goal for them is cloud gaming, walled garden is the old model which they are moving away from.
 
I personally don't think that is true. $200 for a cod box isn't a big spend for a lot of people. If MS takes cod to xbox/ pc / switch only the cost of entry is still low. I don't think it will be one day its on playstation and then boom its not. I think we will see the current contract end , then beta weekends , early dlc and stuff hit the xbox console along with all the marketing focused on the xbox and then ms will move off playstation. That is assuming sony declines a 10 year agreement.

Now what sony's reaction to that would be interesting. I think sony would then scramble to get cod back on the playstation
I agree with you, and I think that was the stance Microsoft should have taken from the beginning, but I think Microsoft will honor the 10-year PlayStation deal if Sony accepts it or not. It would be one thing if the 10-year deal was simply leaked info that could be denied, but they gave their word in public and now they need to stick to it. The thing is, Microsoft has yet to say something like all ABK titles will be on Playstation or something like Crash, Spyro, and Tony Hawk will remain on Playstation. All we have heard about is the status of Call of Duty. So that should be all that Sony gets if Sony excepts the deal or not.

Microsoft going back on this might hurt them if they try to make any more purchases. They may not be bound on paper, but it would satisfy the regulators.
 
Eh. You only want exclusivity when you are aiming to corner off the market. Xbox can’t generate that much money cornering off the market. They don’t have the library of Sony where that makes a lot of sense as a strategy. Right now, just having their goods everywhere onto as many platforms as possible is going to have a better impact for MS. The end state goal for them is cloud gaming, walled garden is the old model which they are moving away from.
I'll have to disagree with you in regards to the contents of their library of games. After activision they will have what 35+ studios ? They have some really big IP and with activison they can bring some large IP over from the pc like wow.
 
This would be a big win for CWA. And an interesting future as well. They need a union in video game development. Can’t keep asking people to sleep in the office to force a game out.
Really if the main concern of the FTC is labor rights do they really think blocking this deal is the best way of going about it. These regulatory bodies should research how ABK was being run before the announcement of the deal. There was no freakin way ABK would have entertained this before the deal.
 
I agree with you, and I think that was the stance Microsoft should have taken from the beginning, but I think Microsoft will honor the 10-year PlayStation deal if Sony accepts it or not. It would be one thing if the 10-year deal was simply leaked info that could be denied, but they gave their word in public and now they need to stick to it. The thing is, Microsoft has yet to say something like all ABK titles will be on Playstation or something like Crash, Spyro, and Tony Hawk will remain on Playstation. All we have heard about is the status of Call of Duty. So that should be all that Sony gets if Sony excepts the deal or not.

Microsoft going back on this might hurt them if they try to make any more purchases. They may not be bound on paper, but it would satisfy the regulators.

I think its really simple. If MS offers Sony a 10 year contract and now everyone knows thanks to the leaks and reports and sony says no then Ms doesn't look like a bad guy. Sony has to accept it for Ms to put games on the playstation. sony controls what gets on the platform. So it will be very easy for MS to go to regulators in the future hey we offered sony an unheard of 10 year contract to keep COD on the platform. They declined so why is there a hold up this time. We offered them to keep this acquisition title on their platform. It's up to them to say yes or no.
 
Really if the main concern of the FTC is labor rights do they really think blocking this deal is the best way of going about it. These regulatory bodies should research how ABK was being run before the announcement of the deal. There was no freakin way ABK would have entertained this before the deal.
If it’s about labour rights and these deals happen because they allow for a union. Then, Unions will form and mergers will continue because it’s harder to drop the labour force like a rock after the merger. Sort of the issue with M&A. Lots of jobs are often slashed in the process, or failed ventures are dropped completely.
 
If it’s about labour rights and these deals happen because they allow for a union. Then, Unions will form and mergers will continue because it’s harder to drop the labour force like a rock after the merger. Sort of the issue with M&A. Lots of jobs are often slashed in the process, or failed ventures are dropped completely.
Or the Government comes in and says wtf needs sick days this deal is good enough and the president signs it.
 
I have to give props to Microsoft for holding out for over two years since substantial part of the industry already moved on to the $70 pricing tier. As you mentioned, it would be odd to see ABK games for $70 while the rest were $60.

I don't see any mention of Game Pass price increases, so the value proposition of GamePass increases even further.
 
I have to give props to Microsoft for holding out for over two years since substantial part of the industry already moved on to the $70 pricing tier. As you mentioned, it would be odd to see ABK games for $70 while the rest were $60.

I don't see any mention of Game Pass price increases, so the value proposition of GamePass increases even further.
It would have been awesome for Microsoft to announce that Call of Duty was going back to be $60 across all platforms IMO.
 
1) Shouldn't you wait and actually see what happens before you make the assertion ?

2) Yea the series s is great. Are we going to shit on the PS5 DE now ? We going to talk about Vinyl records that take a huge amount of energy to create and ship and then sit in land fills for decades or centuries ? Should we do the same with cd/dvd/bluray that not only include all of the above but then break down into micro plastics polluting the world ?

I've been around a long time. I know a lot of collectors who have most of the systems made. I have 80% of the systems ever made going back to my intellivsion . Physical media degrades and breaks down as well as does the hardware. How many of the 150m playstations made are still usable? How many don't even cut it as a wimpy space heater ? how many millions of discs for the playstation have ended up in land fills ?

It's such a weird tangent you went on

And yet in a previous post in another thread you highlight how people still like to collect physical media like Vinyl, now you are questioning me on my preference for physical over digital? . On this this and the subject below you flip/flop so much, try adopting a position and sticking to it.


3) If sony purchased a developer I liked I wouldn't really care. Eventually it seems the game will come to the PC which is what I play my games on. Like I have said for years. I rather know that Company A now owns the ip and I should expect it to only appear where that company produces games vs Company B making an exclusive deal where I only get to play a part of the content avalible like with the new hogwarts game.

Then I have to admit I'm confused by your attitude, you say that you mostly play games on PC yet you've been losing your shit over the possibility of the merger not going through and losing your shit over Sony owning the likes of Bungie and Insomniac, if you like their games so much buy them on PC, especially since Sony is going to be porting most their stuff to the PC, its a great time to be a PC gamer.
Either way it doesn't affect you personally, it also doesn't affect me either as I have neither a current Xbox or PlayStation and also play on PC.
At this point you're just cheer leading and fanboying for microsoft, I suspect you just have a deep seated hatred of Sony, either that or you have a big share holding in microsoft...lol
 

Here's the amusing thing. The current head of the FTC is hugely pro-labor, but she's even more anti-large corporation, as she completely blew off the Microsoft-CWA labor agreement and basically said it wasn't important that labor would be getting a good deal (CWA claims) if the merger went through and that she still wants to try to stop the merger from happening.

But now that some members of her party are signaling that they would like to see the acquisition go through, it's going to be interesting to see whether she tries to turn this around and claim that due to the FTCs actions MS were "forced" to sign an agreement with the CWA as a concession for the FTC to allow the merger to take place despite her earlier saying that she wouldn't accept any concessions for this deal. :p

It's notable that a member of her party that is part of the FTC board is now "in favor" of the merger, their switch in stance might be due to there not being many if any major corporations actually putting forth a compelling case where this could be harmful to consumers thus significantly reducing their already slim chances of winning a case in court.

Yay politics? :p

Regards,
SB
 
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WSJ piece from Mr Smith, a Vice Chair and President at Microsoft, about the acquisition:


The Federal Trade Commission reportedly plans to sue Microsoft to stop our proposed acquisition of Activision Blizzard. That would be a huge mistake. It would hurt competition, consumers and thousands of game developers.

Microsoft faces huge challenges in the gaming industry. Our Xbox remains in third place in console gaming, stuck behind Sony’s dominant PlayStation and the Nintendo Switch. We have no meaningful presence in the mobile game industry. That segment of gaming generates the most revenue and is the fastest-growing, but a significant portion of the revenue goes to Google and Apple through their app-store fees.

Acquiring Activision Blizzard would enable Microsoft to compete against these companies through innovation that would benefit consumers. While modern consumers can stream videos or music on multiple devices on low-cost subscription plans, many games can often only be individually purchased and downloaded onto one device. Microsoft wants to change that by offering consumers the option to subscribe to a cloud gaming service that lets them stream a variety of games on multiple devices for one reasonable fee. It would also benefit developers by allowing them to reach a much broader audience.

To get subscribers to this service, Microsoft needs a full library of popular games and, as things stand, we simply don’t have enough. That’s where the acquisition comes in. Activision Blizzard comes with popular mobile, PC and console games, including “Candy Crush,” “World of Warcraft” and “Call of Duty.”

Sony has emerged as the loudest objector. It’s as excited about this deal as Blockbuster was about the rise of Netflix. The main supposed potential anticompetitive risk Sony raises is that Microsoft would stop making “Call of Duty” available on the PlayStation. But that would be economically irrational. A vital part of Activision Blizzard’s “Call of Duty” revenue comes from PlayStation game sales. Given the popularity of cross-play, it would also be disastrous to the “Call of Duty” franchise and Xbox itself, alienating millions of gamers.

That’s why we’ve offered Sony a 10-year contract to make each new “Call of Duty” release available on PlayStation the same day it comes to Xbox. We’re open to providing the same commitment to other platforms and making it legally enforceable by regulators in the U.S., U.K. and European Union. Microsoft made a similar commitment to the European Commission when we acquired LinkedIn in 2016, ensuring access to key technologies for competing services.

Some regulators worry that any big-tech acquisition will harm consumers and workers. But Microsoft committed in February to govern its new cloud-based game store by the pro-competition principles outlined in the app-store legislation pending in Congress. And in May we negotiated a precedent-setting agreement with the Communications Workers of America allowing workers to organize easily at studios, including Activision Blizzard.

Blocking our acquisition would make the gaming industry less competitive and gamers worse off. Think about how much better it is to stream a movie from your couch than drive to Blockbuster. We want to bring the same sort of innovation to the videogame industry.

Mr. Smith is vice chair and president of Microsoft.
 
But now that some members of her party are signaling that they would like to see the acquisition go through, it's going to be interesting to see whether she tries to turn this around and claim that due to the FTCs actions MS were "forced" to sign an agreement with the CWA as a concession for the FTC to allow the merger to take place despite her earlier saying that she wouldn't accept any concessions for this deal. :p
Well, she would be within her rights to say so. Unlike the CMA and EU, the FTC has not come out and said anything, just some "leaks" from Politico and the nypost. Microsoft accepting neutrality may very well be a direct result of the actions and mission of the FTC during her tenure. The FTC's hands aren't tied here. I don't know if you can say the same for the CMA and EU.
 
Well, she would be within her rights to say so. Unlike the CMA and EU, the FTC has not come out and said anything, just some "leaks" from Politico and the nypost. Microsoft accepting neutrality may very well be a direct result of the actions and mission of the FTC during her tenure. The FTC's hands aren't tied here. I don't know if you can say the same for the CMA and EU.

Except for a few things. The FTC is now more of a political agency than a non-political agency as it was in the past.


To increase her leverage over business, Khan weaponized an agency famous for its bipartisan, internal culture of debate. The FTC is now a one-woman show. FTC has long been famous for its spirit of debate and intellectual ferment. All significant decision-making has been brought under the control of the Office of the Chair. Policies long subject to notice and comment are altered or rescinded with little or no internal or external input.

FTC experts were once highly prized as speakers at economic and business forums. These interactions informed business on how to conform to regulations and gave real-world insights to regulators. One of Khan’s first acts was to forbid FTC staff from attending outside events.

FTC Commissioner Christine Wilson says: “Under Chair Khan, morale has plummeted, and we have seen an exodus of experienced lawyers and economists. The FTC may take a generation to recover from this loss of institutional knowledge.” FTC employees for years responded to Office of Personnel Management surveys by giving it the highest ratings. That same survey now gives the FTC, and Chair Khan, the lowest marks among government agencies for lacking “high standards of honesty and integrity.”

In the past there would always be bi-partisan debate (as it should be in representing all people in the US versus only the people of the current party holding power) about how consumers are best served versus pushing a particular political agenda. Not only that, but because it's basically a one woman show now, decisions can be unpredictable and capricious.

If businesses can't rely on the FTC for consistency, it makes it difficult for businesses to operate in the US. Why does X business get to do A thing but Y business is sued by the FTC if they do A thing? Or, wait, the FTC said they would allow businesses to operate in S manner but now they are suing a company for operating in S manner?

Unfortunately, the FTC under Rina Khan is ruled with a political iron fist that operates based on her whims and desires and not a panel representing the broad interests of the people of the US.

And as she's stated previously, she's first and foremost against large corporations and would like to see mergers and acquisitions by large businesses stop and that she'll do whatever she can to stop them. As such the FTC under her rule doesn't really accept concessions when it comes to large corporations in order to avoid a lawsuit brought by the FTC.

Hence, her public dismissal of the CWA-Microsoft agreement as being not relevant to whether the FTC would or wouldn't sue to prevent the acquisition.

The significance of the Democrat member of the FTC board dissenting with her desire to prevent the merger from happening is that it shows that a member of her party may be unwilling to just blindly follow her lead regardless of how it impacts the FTC or consumers in the US.

It's like I've always said to people I know. The US government works best when there is a clear division of power between the branches of government and no one party holds all power. IE - Congress is most dangerous if both branches are held by one party whether it be Republicans or Democrats. It's even worse if one party holds both branches AND the presidency. It works best for the American public if there is a balance of power and both parties have to work with each other.

The Clinton presidency was good because Republicans held power in congress. The Reagan presidency was good because the Democrats held power in congress. One side balances the other and they worked with each other to get things done.

The FTC was good when there was a balance and debate was encouraged. The FTC under Rina? Perhaps it'll get better. BTW - it didn't just suddenly become this way, but it's been building towards this over the past 2-3 presidents. It's just especially bad now.

Regards,
SB
 
Would be odd if Khan approved the merger -- but she's not the only one who has a vote?

She's acted as if the Facebook acquisition of WhatsApp and Instagram were wrong and maybe even should be reversed.

She's also against tech companies of just about any size.
 
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