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

You might loose out on new copy sales in the off year but that can be off set by not having to develop a new game every year and can be suplemented by having battlepasses , map pack dlc and the like
I would / hope that a Battlepass subscription not to be a thing if you're accessing Call of Duty via GamePass. Double subscription-dipping might be necessary though, because as you say, if they stretch the release cadence out they are taking a sales hit for those who buy games full price.
 
I know people aren't going to like it, but this deal is in another league. Microsoft likely made back the money for the Bethesda deal on the Xbox division alone. The ABK deal would take multiple years to recover that 69 Billion under the Xbox division, which is why there is a difference here. It is why letting Sony put COD on their games service didn't make sense to me. The gamers from the other ecosystems would make recovering that 69 billion easier.

This is a Microsoft deal, not an Xbox deal. The whole of Microsoft. Xbox will benefit from it, but that much money signals that this deal is from the very top. In other words, making a profit from it as soon as possible is in Microsoft's best interest.
It's such a poor reading of that tweet also.

MS didn't take anything away from Playstation. All the bethesda games are still on Playstation and making Ms money. New titles are on a case by case basis and will be released on the platform that MS wants them to be on. Starfield had no release platforms announced and it was a new IP that didn't exist on playstation . So I am not sure what MS took away there. How do you take away something that doesn't exist ?

I think MS's messaging there was very clear from the start. People just want to read into things and fake outrage
 
I would / hope that a Battlepass subscription not to be a thing if you're accessing Call of Duty via GamePass. Double subscription-dipping might be necessary though, because as you say, if they stretch the release cadence out they are taking a sales hit for those who buy games full price.

Why do games on xbox gold and psn not have battle passes even though you are paying for those subscriptions ?
 
Sega, Capcom, Ubisoft ...Not sure what to do with the leftovers. :ROFLMAO:
Could you imagine the drama each time MS announced they were purchasing one of those companies.

I mean just skip the middle men and buy sony at that point . That way all sony fans could cry out at once and be silenced and Obi wan could be at peace
 
Or spending it elsewhere. But in terms of recuperating costs, MS may be richer in 20 years time just leaving the money in the bank! This looks like a really long term investment, or they have crazy, crazy monetisation plans. ActiBlizzard theme park, anyone?? ¯\_(ツ)_/¯

Let's just go with 2 billion USD ROI (operating income) per year on a 70 billion USD investment. Assuming that there is no devaluation of the investment (ABK) then that's about 2.9% each year.

That seems relatively realistic given that the period between 2020 and 2022 inflated the income of many tech companies.


However, there are likely a fair bit of redundancies that will be shared by MS and ABK if the acquisition goes through, so operating income is likely to increase to be somewhere between current operating income and current gross profit.


Let's say somewhere around 5 billion USD per year for gross profit. Depending on how much redundancy is cut after the acquisition operating income could rise to anywhere between 2.5-3.5 billion USD or ~3.6-5.0% yearly ROI.

However, MS is also planning to extend the reach of some of the IPs, for example expanding releases to NSW, cloud, etc. So it's possible that their yearly ROI may end up being higher. Of course, it could also end up lower. There are no certainties when it comes to doing business or investing large sums of money.

Consider that there are a lot of, IMO, valuable IP that ABK are just sitting on and doing nothing with due to the risk associated with AAA development of non-high performing IPs. In that sense this could also be viewed as a high risk/high reward gamble. There's an opportunity here if MS/ABK can execute well in releasing new titles based on old but beloved IP.

We know that the current iteration/management of MS Games (I guess it's called Xbox Games now even though that includes PC, PS and NSW game releases) and its management isn't risk averse. We can see that with their current acquisition spree and the freedom they've been given to release "high risk" games that do not fit the profile of "safe" development projects that almost all the major games publishers are now focusing on.

Of course, it could completely flop and there actually isn't an audience waiting for games from ABKs stable of unused IP or they just do an inept job of resurrecting those IP.

Regards,
SB
 
Ooof, listening to a developer talk right now and they are thinking this will be a record year of developers going out of business if they can't get acquired.

Regards,
SB
 
Ooof, listening to a developer talk right now and they are thinking this will be a record year of developers going out of business if they can't get acquired.

Regards,
SB
Can you post a link for that ? Can’t be that dire? Can it?
 
Can you post a link for that ? Can’t be that dire? Can it?

It was towards the end of the Jan. 23rd episode of Dropped Frames with Rami Ismail. It was a very interesting episode as he talked about the game development process, being an indie developer called in to be on EU policy boards and reviews, state of the development industry, industry consolidation, etc.


Don't have a time stamp for when they talked about it since I don't have time to scrub through right now.

He also runs development camps and training for new developers.

Regards,
SB
 
https://kotaku.com/culture/news

Activision Blizzard Exec Has The Most Unhinged Last Of Us TV Show Take Yet​



“Sony’s talent and IP across gaming, TV, movies, and music are formidable and truly impressive,” Meservey tweeted today. “It’s no wonder they also continue to dominate as the market leader for consoles. In gaming, Sony is ‘the first of us’ - and they will be just fine without the FTC’s protection.” :ROFLMAO:
 
whether this goes through or not -I am starting not to care tbh-, this deal gave new life to Activision. Given how picky/destructive we've become as gamers, the company was going through very hard times and issues that could have killed it if Microsoft didn't try to acquire them. My only worry is for franchises like Diablo to survive and with all that happened, Activision feels again a little more alive.
 
The point being that Activision seem to have the same problem that Microsoft have in separating Live media from Game media. And clutching at straws seems to be the order of the day.
 
It was towards the end of the Jan. 23rd episode of Dropped Frames with Rami Ismail. It was a very interesting episode as he talked about the game development process, being an indie developer called in to be on EU policy boards and reviews, state of the development industry, industry consolidation, etc.


Don't have a time stamp for when they talked about it since I don't have time to scrub through right now.

He also runs development camps and training for new developers.

Regards,
SB

It makes sense. When times are good people are flush with cash and will spread out their spending on big and little games. When times get lean people pull back their spending and are likely to go with established ip as its less riskier. I am going to guess kisktarter type funding will dry up first , then purchases of new indie team games will start to slip. It will eventually make itself all the way up to AAA games and companies.

I think a lot of small developers are going to run over to the game pass umbrella until the storm passes
 
It makes sense. When times are good people are flush with cash and will spread out their spending on big and little games. When times get lean people pull back their spending and are likely to go with established ip as its less riskier. I am going to guess kisktarter type funding will dry up first , then purchases of new indie team games will start to slip. It will eventually make itself all the way up to AAA games and companies.

I think a lot of small developers are going to run over to the game pass umbrella until the storm passes
The tiny indies should be fine. With small teams you can sell you game for a few dollars and make a profit. When you get to that AA level is where the most risk is. Your team is big enough that you have to make real money on your product to feed all those mouths, which means you have to take bigger risks by taking on larger projects. Prior to the Bethesda purchase, most of the developers that Microsoft had been picking up fit into this category. Ninja Theory, Double Fine,... even Bungie at the time fit this criteria.

I do agree that indies will seek guaranteed funding from Gamepass, PS+ or Epic Games Store deals.
 
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