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Seems logical!
Microsoft acquired Activision Blizzard King for $69 Billion on 2023-10-13
- Thread starter Rangers
- Start date
They still generate Microsoft tons of money even without the deal so is risking letting go of that relationship even sane when the other three eyes (Australia, Canada, New Zealand) probably hold very similar opinions ? Microsoft aren't going to have many friends in governments or be awarded their contracts if they decide to behave in a petty manor ...
The deal may have fallen through but at least there's still that sweet sweet government contracts waiting for them in the future if they decide to keep their local workforce with other members of the five eyes ...
Real question here but doesn't gouvernment have weapon against this kind of moves ? like nationalization ?
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Microsoft have been sanctioned by regulators across multiple cases in virtually every territory they operate in. If they adopt your defeatist strategy and pull out of every market they lose a ruling in - which includes the US, China, and the EU - they would be operating nowhere except Puerto Rico, South America and the Falkland Islands!
Exactly. Microsoft trying to punish territories over nonfavorable governmental or regulatory decisions is nuts. Microsoft most still support their [more] profitable products and services throughout these territories, per their shareholders (their fiduciary duty), regardless of some stupid vendetta.
Hostile because the deal didnt go through? Hostile means that the market is hostile towards MS overall operations. Your "suggestion" doesn't make sense.
If a market doesnt serve you, you simply pull out because it is unprofitable. Not because you didnt have it your way. Your suggestion is actually the reverse. It is corporate hostility threatening to sanction because a country has regulations that were put there to protect their market, not just from MS, but from any company that fits the paradigm.
MS operates in the UK just like everywhere else, and XBOX has the best sales in the UK than any other country in Europe. How is the market hostile towards MS, and not just the regulators being concerned about the specific deal?
But MS can still release consoles and games in the uk with a limited staff. So I don't get where you are going with this. the UK and EU has been signaling that they want to handicap USA tech in favor of their own tech companies.
Microsoft has always had a dynamic head count. They will certainly reduce headcount in certain markets when they see fit. There is no reason to staff up in a territory's that is actively preventing you from competiting there. Why keep studios in the UK when you can move them to other parts of europe with lower costs ? Why start a new studio in the UK when you can start it in another country that is more favorable to your long term goals.
It's not a defeatist strategy its a smart strategy esp in regards to future acquisitions.
Furthermore for Activision if they want to be bought they will surely want to remove road blocks to that deal. So how many studios do they have in the UK ? How many will they have in the UK after this falls through ? If they still want to sell themselves they are going to run into the same road blocks. If COD is keeping MS from buying the company because it would take away to much of sony's lead then wouldn't sony buying activision utterly crush microsoft ? Wouldn't them buying activision kill any other cloud competitors ? So who is out there big enough to buy them ? Tencent ? Amazon ?
I would certainlly see Activision starting to close up shop in places where the deals were broken. They can still profit off the territory because their games are released through other platforms and open platforms like the pc. But they don't have employee headcount in that country.
Bobby has already made comments
No. You're reading some absurd fearmongering is all. MS isn't gonna do anything different in the UK with or without this deal. Pulling investment(especially hurting one of their capstone studios) would just be shooting themselves in the foot.
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International companies reasons for setting up overseas including to support local operations, because there are incentives (like tax) or because that is where the talent is when it is reluctant to move.
There are parts of Europe with lower costs to operate than the UK, like the Czech Republic, Georgia, Latvia, Moldova, Poland, Romania, Slovakia and Slovenia. If low costs and lack of regulation is really Microsoft's main priority, expect to see them move development to China, India, Indonesia and other parts of Asia where costs are super low. But I find your notion is absurd, companies don't react like children throwing tantrums.
The UK is home to a very large number of videogame studios, so any talent Microsoft leave behind should be able to find gainful employment at one of Microsoft's competitors - including third parties like EA and Rockstar North.
But I believe Gamepass was helping sold more games. 277 pages document release with multiple observation from MS internal document.
www.gov.uk
Microsoft / Activision Blizzard merger inquiry
The CMA is investigating the anticipated acquisition by Microsoft Corporation of Activision Blizzard, Inc.
that never happened. That was your assumption
So wtf is MS worried?Xcloud is by far the cloud gaminf leader.
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And their growth is super impressive.
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