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

Today Sony is the only platform that charges additional revenue for allowing a title to be cross play if the title sells more than a certain amount. To counter this MS would have to offer uhh money to make up for Sony charging the publisher more? That would effectively be MS paying Sony.
If that's the case, these companies should pull their products from Sony. Go public with the reasons (accidental leaks if necessary, come down 'real hard' on the temp cleaner hired to leak them) adn let Sony rot in the public outcry. The law courts aren't the only way to get justice.
 
If that's the case, these companies should pull their products from Sony. Go public with the reasons (accidental leaks if necessary, come down 'real hard' on the temp cleaner hired to leak them) adn let Sony rot in the public outcry. The law courts aren't the only way to get justice.

Unfortunately it’s true.

It begs to ask what companies can do when the biggest platform does this? Say no? It’s 2x the size of Xbox, the majority of the profits will come from PS.

You either pay the fee or you don’t allow cross play.
 
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I attribute it to people below him, not this spoiled toxic son of a bitch
Oh I would love to say Bobby K isn't the guy responsible for COD's market position, but honestly, he's the guys steering the ship. He's the guys making the decision to push for annual releases. He did that with Tony Hawk, Guitar Hero, Skylanders, and of course, Call of Duty. That's literally his recipe for success. Make a franchise that's an yearly release. They almost did it when they had the James Bond license, releasing 4 games in 5 years. When they got the license, Kotick announced they were already working on 2 games from 2 teams. The annual release is the reason why COD has the market position it does. The fact that Kotick is so obsessed with only having annual franchises is the reason he pushed so many teams to work on COD games. Even Toys For Bob are a COD support studio now.
 
While I agree with the direction of your post, Im not sure It’s not up to Microsoft for these contracts, or whether it’s anywhere close to efficient to engage in countering them.
Again, my response was to BRiT's post which was suggesting Activision-Blizzard should gibe all their marketing to Microsoft.

How do we know there isn’t a clause in all of Sonys contracts that say if you don’t sign on this clause, that blocks you from game pass, we will charge you more revenue.

That would be extortion and insert a clause into a contact would be evidence of extortion (so dumb).
 
Again, my response was to BRiT's post which was suggesting Activision-Blizzard should gibe all their marketing to Microsoft.



That would be extortion and insert a clause into a contact would be evidence of extortion (so dumb).
I agree, it’s hyperbolic. It’s likely not that forceful. But IMO we are treading a pretty fine line here when you are paying for blocking rights. This is just an extension of timed exclusivity ugliness.

MS did submit to CMA that the COD series cannot move to gamepass due to block not rights with Sony at least for the foreseeable next 3 titles.

If money alone could solve this issue, I would like to examine the possibilities of how Microsoft should be countering this; that wouldn’t just be burning cash or handing it over to Sony in some indirect method.
 

Oh I would love to say Bobby K isn't the guy responsible for COD's market position, but honestly, he's the guys steering the ship. He's the guys making the decision to push for annual releases. He did that with Tony Hawk, Guitar Hero, Skylanders, and of course, Call of Duty. That's literally his recipe for success. Make a franchise that's an yearly release. They almost did it when they had the James Bond license, releasing 4 games in 5 years. When they got the license, Kotick announced they were already working on 2 games from 2 teams. The annual release is the reason why COD has the market position it does. The fact that Kotick is so obsessed with only having annual franchises is the reason he pushed so many teams to work on COD games. Even Toys For Bob are a COD support studio now.
He is not. The big work is still on those who made it happen. We tend to attribute on CEO's the work of others.
 

Unfortunately it’s true.

It begs to ask what companies can do when the biggest platform does this? Say no? It’s 2x the size of Xbox, the majority of the profits will come from PS.

You either pay the fee or you don’t allow cross play.
Hmm.....interesting. I didnt know that you can purchase DLC on a different platform other than the one you purchased the game on and it is probably more of an issue on F2P games.
It looks like cross play is potentially charged only on games where platforms share DLCs.
For example if you buy a PS5 version of Street Fighter 6 where you only own that version and all DLCs are PS5 versions, but can play against XBOX and PC owners, that wont incure any royalties.
It is a bit messy for platform owners when you can purchase the game once, but buy content on any platform.
When the 360 had a bigger share than PS3, MS were the ones that were against cross play. Now it is reversed.
It kind of makes sense to a degree if it indeed incures server costs. Imagine millions downloading and playing an F2P game like Fortnite on platform X but all revenue is bought on Y and Z.
Platform X is simply hosting and incurring costs while others absorb revenue. I have no idea how Sony calculates server costs for running the game or if it is just an idiotic excuse where they have zero real costs.
 
Hmm.....interesting. I didnt know that you can purchase DLC on a different platform other than the one you purchased the game on and it is probably more of an issue on F2P games.
It looks like cross play is potentially charged only on games where platforms share DLCs.
For example if you buy a PS5 version of Street Fighter 6 where you only own that version and all DLCs are PS5 versions, but can play against XBOX and PC owners, that wont incure any royalties.
It is a bit messy for platform owners when you can purchase the game once, but buy content on any platform.
When the 360 had a bigger share than PS3, MS were the ones that were against cross play. Now it is reversed.
It kind of makes sense to a degree if it indeed incures server costs. Imagine millions downloading and playing an F2P game like Fortnite on platform X but all revenue is bought on Y and Z.
Platform X is simply hosting and incurring costs while others absorb revenue. I have no idea how Sony calculates server costs for running the game or if it is just an idiotic excuse where they have zero real costs.
The way it works is that the developers must submit to Sony all of their revenue across all platforms.

They then compare on that game how many players are playing it by %. If there is more than 85% of the revenue not into Sony but the playtime is highly on Sony then you have to pay Sony.

It doesn’t have to do with where you buy the DLC. If the majority of players are playing on PSN and not buying, and all the buying players are elsewhere, they will owe Sony for loss of revenue.
 
The way it works is that the developers must submit to Sony all of their revenue across all platforms.

They then compare on that game how many players are playing it by %. If there is more than 85% of the revenue not into Sony but the playtime is highly on Sony then you have to pay Sony.

It doesn’t have to do with where you buy the DLC. If the majority of players are playing on PSN and not buying, and all the buying players are elsewhere, they will owe Sony for loss of revenue.
Of course it has to do with where you are buying. The calculation is supposed to make an estimation of how many are playing on PSN vs where the players are actually buying. Cant really say if that calculation is the best way to do it or if it robs the developers nor if playing on PS incures costs for Sony. But if it does incure costs, it kind of makes sense why a platform owner will want compensation for how many people play the game on their platform vs where they are buying.
The calculation compares gameplay share on PSN with revenue share.

It says it right here
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Of course it has to do with where you are buying. The calculation is supposed to make an estimation of how many are playing on PSN vs where the players are actually buying. Cant really say if that calculation is the best way to do it or if it robs the developers nor if playing on PS incures costs for Sony. But if it does incure costs, it kind of makes sense why a platform owner will want compensation for how many people play the game on their platform vs where they are buying.
The calculation compares gameplay share on PSN with revenue share.

It says it right here
View attachment 8312
I think you’re mixing cross platform purchasing with cross play.

For instance; They aren’t buying on Xbox and playing on PlayStation. They are buying on Xbox. Playing on Xbox. If the share of revenue is overwhelmingly coming from another platform ie Xbox. But most of the players are PlayStation they the developer to hand over revenues to Sony.

It’s bullshit, it’s basically saying I will monetize my own player base. If all your friends play on PS but the whale of a friend is on another platform, I want that guys money because he should be over here on PlayStation instead. That’s pretty bullshit.

The tldr; if you want access to Sony players and we failed to make enough money off our own player base, you gotta make up the shortfall.

This is the definition of anti consumer behaviour because all player bases benefit from having more players to play with. Sony continues to be the only platform that does this.
 
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I think you’re mixing cross platform purchasing with cross play.

For instance; They aren’t buying on Xbox and playing on PlayStation. They are buying on Xbox. Playing on Xbox. If the share of revenue is overwhelmingly coming from another platform ie Xbox. But most of the players are PlayStation they the developer to hand over revenues to Sony.

It’s bullshit, it’s basically saying I will monetize my own player base. If all your friends play on PS but the whale of a friend is on another platform, I want that guys money because he should be over here on PlayStation instead. That’s pretty bullshit.

The tldr; if you want access to Sony players and we failed to make enough money off our own player base, you gotta make up the shortfall.

This is the definition of anti consumer behaviour because all player bases benefit from having more players to play with. Sony continues to be the only platform that does this.
In simple terms it says that if a certain amount of players play on PS and the corresponding revenue share is below a certain percentage then Sony should get some royalties.
If 9 people play on PS and 1 play on XBOX and all 9 people buy on PSN and 1 buys on XBOX there is no compensation to Sony. Neither if all 10 play on PS and one of these 10 buy on XBOX. If 2 of them though buy on XBOX while all 10 of them play on PS then a small percentage of the revenue from one of the 2 will go to Sony. If 9 play on XBOX and buy on XBOX but 1 plays and buys on PS, Sony gets no compensation

And the question is, which you havent answered, is whether playing time on PS incures server or any other costs
 
In simple terms it says that if a certain amount of players play on PS and the corresponding revenue share is below a certain percentage then Sony should get some royalties.
If 9 people play on PS and 1 play on XBOX and all 9 people buy on PSN and 1 buys on XBOX there is no compensation to Sony. Neither if all 10 play on PS and one of these 10 buy on XBOX. If 2 of them though buy on XBOX while all 10 of them play on PS then a small percentage of the revenue from one of the 2 will go to Sony. If 9 play on XBOX and buy on XBOX but 1 plays and buys on PS, Sony gets no compensation

And the question is, which you havent answered, is whether playing time on PS incures server or any other costs
Firstly, yes but the examples thst Sony have provided I don’t agree with. Sony represents 2x the size of Xbox and PC represents approximately Xbox or more. That means at best PS is usually 50% of a cross platform title. Normal distribution would say that typically PSN should net about 50% of the proportional profits. But if PSN dips to 42% of the profits, but holds 50% of the proportional player base, then money is owed.

The allowances there is pretty narrow.

I’m not sure what the costs are incurred here truthfully. Unless Sony is running dedicated servers for these games (hint they don’t, most games are P2P, and cross platform titles are run on the developers network, there is not network cost. And they cannot communicate cross network so no cost there. Basically any type of real communication should be covered by the PSN monthly fee.
 
He is not. The big work is still on those who made it happen. We tend to attribute on CEO's the work of others.
I'm not attributing anything to him that he didn't do. He's the guy who only wanted annual franchises. He's the guy who applied that idea to COD, a game made by a single developer every few years to a franchise with multiple developers pumping out annual releases.
 
Of course it has to do with where you are buying. The calculation is supposed to make an estimation of how many are playing on PSN vs where the players are actually buying....It says it right here
In conflicting language. "PSN Revenue Share divided by PS4 Gameplay Share". They then go on to multiply the fractions, as you'd expect. :p
Firstly, yes but the examples thst Sony have provided I don’t agree with. Sony represents 2x the size of Xbox and PC represents approximately Xbox or more. That means at best PS is usually 50% of a cross platform title. Normal distribution would say that typically PSN should net about 50% of the proportional profits. But if PSN dips to 42% of the profits, but holds 50% of the proportional player base, then money is owed.

The allowances there is pretty narrow.

I’m not sure what the costs are incurred here truthfully. Unless Sony is running dedicated servers for these games (hint they don’t, most games are P2P, and cross platform titles are run on the developers network, there is not network cost. And they cannot communicate cross network so no cost there. Basically any type of real communication should be covered by the PSN monthly fee.
I agree I don't think there are costs that need recovering. Sony's PSN revenue is through the roof - they aren't struggling due to cross play. That said, after looking at it back and forth, presently I don't thiknk the remuneration here is completely whack. It's comparing the expenditure to the play time. If someone owns two platforms and buys all their content on not-PS but plays all the game on PS, Sony is missing out on that revenue. But the metric Sony are using is that someone has to spend a slightly less amount of time on PS proportional to spending on the platform. If you have PC, XB and PS, and buy 50% of your content on PC, Sony expects you to spend 50% of your gaming time on PC. If you are buying on PC but then playing on PS, you are using the other platform not as a gaming platform but as a shopping workaround. That doesn't seem unfair in a business rules way, but it does kinda suck that consumers aren't allowed to shop around. But then consumers are also tricksy and will circumvent and cheat spending, so there has to be some management of them too. Worst case hypothetical, someone buys a PS5 at cost, Sony makes no profit. They then play a F2P, buying all their content on a crappy laptop that can't play the game through a cheap content portal but playing all their time on PS5 and PSN. That's circumventing Sony's market which the hardware is designed around. If we're going to have that model, perhaps should be sold at profit?

In short, I can see Sony's point and it doesn't immediately nauseate me where the initial description did. But it's still a bloody massive imposition, the right to audit the company's entire books! Piss off!

PS: Love the fact we're discussing something HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY. ;) There are no secrets any more!
 
In conflicting language. "PSN Revenue Share divided by PS4 Gameplay Share". They then go on to multiply the fractions, as you'd expect. :p

I agree I don't think there are costs that need recovering. Sony's PSN revenue is through the roof - they aren't struggling due to cross play. That said, after looking at it back and forth, presently I don't thiknk the remuneration here is completely whack. It's comparing the expenditure to the play time. If someone owns two platforms and buys all their content on not-PS but plays all the game on PS, Sony is missing out on that revenue. But the metric Sony are using is that someone has to spend a slightly less amount of time on PS proportional to spending on the platform. If you have PC, XB and PS, and buy 50% of your content on PC, Sony expects you to spend 50% of your gaming time on PC. If you are buying on PC but then playing on PS, you are using the other platform not as a gaming platform but as a shopping workaround. That doesn't seem unfair in a business rules way, but it does kinda suck that consumers aren't allowed to shop around. But then consumers are also tricksy and will circumvent and cheat spending, so there has to be some management of them too. Worst case hypothetical, someone buys a PS5 at cost, Sony makes no profit. They then play a F2P, buying all their content on a crappy laptop that can't play the game through a cheap content portal but playing all their time on PS5 and PSN. That's circumventing Sony's market which the hardware is designed around. If we're going to have that model, perhaps should be sold at profit?

In short, I can see Sony's point and it doesn't immediately nauseate me where the initial description did. But it's still a bloody massive imposition, the right to audit the company's entire books! Piss off!

PS: Love the fact we're discussing something HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY. ;) There are no secrets any more!
I d say there is no difference for the consumer. It is unfair mostly for the owner of the software used. In the case of Fortnite, Epic. Epic pays for the consumer who purchases on a different platform. It reduces their own revenue.
Then again its like they are paying an amount for the royalties Sony missed. But its as if they are paying roaylties "twice". Royalties for platform A where the product was purchased and royalties for platform B that missed out.
It also makies me curious how it is handled for games like Minecraft where MS is the owner.
 
In conflicting language. "PSN Revenue Share divided by PS4 Gameplay Share". They then go on to multiply the fractions, as you'd expect. :p

I agree I don't think there are costs that need recovering. Sony's PSN revenue is through the roof - they aren't struggling due to cross play. That said, after looking at it back and forth, presently I don't thiknk the remuneration here is completely whack. It's comparing the expenditure to the play time. If someone owns two platforms and buys all their content on not-PS but plays all the game on PS, Sony is missing out on that revenue. But the metric Sony are using is that someone has to spend a slightly less amount of time on PS proportional to spending on the platform. If you have PC, XB and PS, and buy 50% of your content on PC, Sony expects you to spend 50% of your gaming time on PC. If you are buying on PC but then playing on PS, you are using the other platform not as a gaming platform but as a shopping workaround. That doesn't seem unfair in a business rules way, but it does kinda suck that consumers aren't allowed to shop around. But then consumers are also tricksy and will circumvent and cheat spending, so there has to be some management of them too. Worst case hypothetical, someone buys a PS5 at cost, Sony makes no profit. They then play a F2P, buying all their content on a crappy laptop that can't play the game through a cheap content portal but playing all their time on PS5 and PSN. That's circumventing Sony's market which the hardware is designed around. If we're going to have that model, perhaps should be sold at profit?

In short, I can see Sony's point and it doesn't immediately nauseate me where the initial description did. But it's still a bloody massive imposition, the right to audit the company's entire books! Piss off!

PS: Love the fact we're discussing something HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY. ;) There are no secrets any more!
Yea I think from that perspective that makes sense. For me, I wasn’t actually thinking about a person owning several consoles buying on one and playing on the other. It doesn’t seem to make sense to me since I would want to play on the console where I was buying stuff.

I was actually just looking at spend per group.

And what random possibly overly embellished fact is the following:
What is far more notable about Microsoft’s financial report is the revelation that Game Pass subscribers play around 40% more games than non-subscribers and spend 50% more money – presumably on a mix of DLC, full-price games, and the subscriptions themselves.

With 20M subscribers if this above metric is true, then it’s entirely possible with any gamepass title where there is cross play, MS revenue could significantly higher than Sony revenue here even if the player base is smaller. Thus we get into that situation where Sony will be asking for money.

To me the money is minuscule, I agree wholly on your point. I just see it as a deterrent to try to get a few more games to not be cross play. The audit is likely the big deterrent for most companies and is likely the main goal here for Sony. They want to know how much competitors are getting with competing services.
 
I d say there is no difference for the consumer. It is unfair mostly for the owner of the software used. In the case of Fortnite, Epic. Epic pays for the consumer who purchases on a different platform. It reduces their own revenue.
Then again its like they are paying an amount for the royalties Sony missed. But its as if they are paying roaylties "twice". Royalties for platform A where the product was purchased and royalties for platform B that missed out.
It also makies me curious how it is handled for games like Minecraft where MS is the owner.
When presented as billing Epic a small additional percentage, the response is largely 'who cares'. But for other devs, Sony's fees are already high. An additional Sony Tax on sales outside of the Sony ecosystem is tough to bear where it's not really paying for anything from Sony, especailly if all the platform holders followed suit. What's that, you bought a Virtual Haircut on iOS? Please pay MS, and Sony, and Nintendo, and Steam, and Epic, and Google, a cut of all the money you didn't spend on their respective stores...
 
Doubled?! Wow, they were stock limited.
Seems like a really health market in the EU that they want to preserve there huh.

Only two companies in competition one is up 202% and the other down 32% . Looks super healthy
Silly to look at growth instead of install-base.


"Which console comes out top in the UK in 2022 is going to come down to December. Currently PS5 leads but just 20,000 units separates the 3 main platforms. I couldn’t call it."


Sales ranking was NSW, PS54, XBX, and...
There was less than 60,000 units separating the Nintendo Switch, PlayStation 5, and Xbox Series X|S.

Furthermore, what are the factors contributing to XB's position? Are MS selling it as hard as their rivals, for example? I know those on one side of the fence feel it's all Sony's back-room exclusives, but I reckon the average gamer is less interested in a unique skin or even DLC mission for a game (which MS could also finance if they choose) than they are influenced by media and advertising etc. Just checking commercials, Sony has plenty more TV presence (on YouTube) than XB. Similarly more content. How much sales lead (minimal in UK where CMA is operating) is due to Sony's dodgy exploitation of a market-leadership position and how much is due to MS just not being that great at console businessing, creating the product and marketing it well?
 

Seems like a really health market in the EU that they want to preserve there huh

Only two companies in competition one is up 202% and the other down 32% . Looks super healthy
If people love their Nintendo and Playstation more it is MS's fault and not Sony's or Nintendo's.
I dont understand your logic. Seriously. Also good point from Shifty.
You are complaining about Sony and Nintendo doing better as if it is bad and something that MS needs to counter by whatever means, even if they are potentially undesireable.
 
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