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

New entrants can’t compete. I didn’t say MS cannot compete. When stadia, Luna, go belly up it’s a sign of the difficulty.

Regulators don’t need to get involved unless people feel like there is no longer a suitable choice for gaming. Currently with PC gaming always being there, this is not likely to happen.
And thats not necessarilly the result of monopolistic/anti-competitive practices from Sony. Not to mention Stadia and Luna tried to compete in the videogame streaming services and thats why they failed. Bad business will fail.
As it was mentioned earlier it is not the regulators jobs to meddle in normal business operations of companies in hopes that some "competition" will appear and succeed. They are natural oligopolies.
You yourself do not find MS's monopoly illegal and do not have such demand for regulators to reduce artificially their business just so more OS companies will enter.
Regulators will not get involved unless there are clear signs of market manipulation. Whatever people will feel like is very vague. Not to mention that people are pretty much happy with their console offerings.
So I am not sure what point you are trying to make, as the demand for Regulators to make favors to MS, not only has nothing to do with their job, there is not even a necessity to intervene in general because of a ficticious lack of competition.
 
Let’s say MS exits the console industry. It’s Sony remaining and Nintendo. Two monopolies effectively.
Companies leaving markets is a normal process and an healthy one, too. Microsoft ist taking a spot but their product is the same as sony. Without Microsoft other companies or Nintendo could be making better products.
 
Outside of acquisitions and mergers over a certain value, they cannot solicitously interfere in market activity unless market abuses taking place.
This is correct. I'm glad we're on the same page here. It took me some time to get where I wanted to say something without knowing how to say it. Yes.
So as it is right now, regulators can only take action when a potential or a market abuse is actively taking place: in this case, MS is making a step to create a monopoly via a vertical merger. Thus they must step in to see what's going on.

And I think everyone agrees on that.

And we agree that there are different steps regulators can take place only if a market abuse is happening (and usually this is brought up by consumers or some insider information that would indicate an antitrust occurring)

So as a simple discussion point, for the sake the discussion, I brought up the idea that perhaps regulation could have taken a more proactive role to balance competition by removing particular barriers like content control to remove the desire point for companies wanting to make vertical mergers, but also as a scenario setup such that, we know content control is not the reason why a company is in a dominant position. That's where I was going.

I was expecting people to tell me that there are advantages to consumers with content control, and exclusivity practices, or that the game industry is healthier because of it. I didn't expect I would have to defend myself against my understanding of what regulation can and cannot do. I mean, coming to this point in realization now, I see I was unable to make it clear.
 
This is correct. I'm glad we're on the same page here. It took me some time to get where I wanted to say something without knowing how to say it. Yes.
So as it is right now, regulators can only take action when a potential or a market abuse is actively taking place: in this case, MS is making a step to create a monopoly via a vertical merger. Thus they must step in to see what's going on.
That is half of it.

The other half is what Microsoft do with all the IP owned by Activision-Blizzard that thus far, has generally been released on multiple platforms (including non-Windows PC operating systems). Activision-Blizzard comprises two of the oldest independent publishers in the videogame market, with some others like Ubisoft struggling. Is less independent publishers what the industry needs? How is that good for competition? It's only good for Microsoft.
 
Activision-Blizzard comprises two of the oldest independent publishers in the videogame market, with some others like Ubisoft struggling. Is less independent publishers what the industry needs?
I mean, this particular part I do not know the answer. The game industry grows as fast as it shrink. We have more game companies than ever right now. And at the same time, our biggest game companies all seem to be struggling.
 
The game industry grows as fast as it shrink. We have more game companies than ever right now. And at the same time, our biggest game companies all seem to be struggling.
Exactly. There are lots of smaller and indie publishers but when it comes comes to big, independent multi-platform publishers the list is growing thin. So does would an approval do to content on non-Microsoft platforms should the deal be approved? Because you know some content is going Xbox console exclusive, just like Starfield and Elder Scrolls VI.

[URL='https://assets.publishing.service.gov.uk/media/63ed02d68fa8f56139fc0c7e/A._Summary_of_third_party_calls.pdf']CMA Extracts[/URL] said:
2. Each of these third parties is a competitor or a potential competitor with the merged entity in either console gaming services or cloud gaming services.

7. Some third parties referred to Microsoft Xbox, Sony PlayStation and Nintendo Switch as competitor platforms, though Nintendo was perceived as differentiated on several bases, including in having different technical specifications and content.
Amazon? Steam? Epic? Nvidia?
 
Amazon? Steam? Epic? Nvidia?
Strange isn't it. They identified the console platforms as competitors, but there aren't any real competitors to those big 3 companies. Unless the 3rd party pool includes the likes of Blaze (Evercade), Intellivision, AT Games and Atari, Inc.

Also....
It identified Call of Duty players as highly informed
LOL, wish I knew who this was so I could disregard their opinions in the future.
 
LOL, wish I knew who this was so I could disregard their opinions in the future.

It's likely Sony for point #9.

#9. One third party characterised Call of Duty as unique and a driver of console purchase decision-making given its fast development cycle and large, highly engaged audience. It noted that Call of Duty’s annual releases are very expensive to develop, and that these development costs would be even higher for a competitor without the necessary existing infrastructure. It identified Call of Duty players as highly informed and sensitive to lower quality offerings, less accessible add-ons, delayed release dates and restrictions to cross-play on a particular platform.
 
Strange isn't it. They identified the console platforms as competitors, but there aren't any real competitors to those big 3 companies. Unless the 3rd party pool includes the likes of Blaze (Evercade), Intellivision, AT Games and Atari, Inc.

That could be Amazon, Nvidia, Steam or Epic. Whilst Geforce Now is streamable to Xbox, it's not to Nintendo and Sony platforms. And from the perspective of any store/platform selling games, any user base you cannot sell games directly too, and which is providing that function, is a defacto competitor for your audience. For folks for whom 60fps was a bridge to die on, consoles were previously not viable option. Now they are.
 
Three Xbox rivals believe the Activision Blizzard merger would harm competition | GamesIndustry.biz

"Finally, two companies discussed Microsoft's wider portfolio, including Windows OS, Azure, Xbox and Game Pass, and expressed concerns about the impacts on competition if Activision Blizzard's games and studios were added to this line-up."

Ok Bob we are moving to cloud AWS it is
NOOOOO Azure they have Call of duty!!!

Wtf is that, i fail to see logic here windows and azure and xbox and COD.... in what way COD will influence anyone to chose azure ... not sure what this is.
 
When the PS3 launch this was easier to drop cost of console semi conductor. PS4 release with a HDD not the PS3, this is one element where cost don't drop a lot during the lifecycle of a console. This time it will be worse like MS said with less possibility to drop console cost.

And again your hypothesis for the console price rising is false and price increase is not only a console stuff. This is not because you repeat something false than it will be the truth.


Maybe you forget this event.

Nah I didn't. Sony already increased prices there. But here are the key points

ast week, the Japanese yen fell to a 32-year low against the dollar before the government in Tokyo reportedly intervened to prop up the currency. The British pound sterling also hit historic lows last month, now down 16% year to date (YTD) against the dollar, while the euro tanked over 13% YTD.
This is an Oct 2022 article. Sony increased prices already in August.

Also
As third-quarter earnings season moves into its second week, companies are already throwing shade on the surging dollar. Already in June, news agency Bloomberg reported that "foreign exchange" was mentioned in earnings calls at a rate not seen since 2019.

And while yes there was more movement in the semi conductor industry during the ps3 generation there was no pressure from competitors to push the console price down. If the ps4 and xbox one were selling neck and neck the whole generation you should have seen lower prices from Sony. MS was able to bring down the xbox one from $400 without kinnect down to $190.


Sony does not have a monopoly at least in the proper definition of the word.

"the exclusive possession or control of the supply of or trade in a commodity or service"

Are they a very dominating leader, are they using their power to bully others in the business, sure.
Are they pushing legal boundaries and just being assholes, I would guess so.

But not a monopoly and they look to have gotten where they are by doing it brick by brick.
While MS seems to trying to shift the market in a big swoop, which looks to be running afoul of the current laws and regulations.

As for companies exiting, well anybody can at any time exit, its just about the ROI, if it is not enough then why continue?
Duopoly's are also regulated



Also in the USA at least the term isn't used in its traditional sense


Courts do not require a literal monopoly before applying rules for single firm conduct; that term is used as shorthand for a firm with significant and durable market power — that is, the long term ability to raise price or exclude competitors. That is how that term is used here: a "monopolist" is a firm with significant and durable market power. Courts look at the firm's market share, but typically do not find monopoly power if the firm (or a group of firms acting in concert) has less than 50 percent of the sales of a particular product or service within a certain geographic area. Some courts have required much higher percentages. In addition, that leading position must be sustainable over time: if competitive forces or the entry of new firms could discipline the conduct of the leading firm, courts are unlikely to find that the firm has lasting market power.


Companies leaving markets is a normal process and an healthy one, too. Microsoft ist taking a spot but their product is the same as sony. Without Microsoft other companies or Nintendo could be making better products.
MS's product isn't stagnant . MS has championed many additions to what we considered standard console features that Sony did not. hard drives in consoles , built in ethernet , xbox live and even up to game pass.

If MS exits the console market there wont be new entries into the console market that can compete in many ways. It would take half a decade or more to start releasing first party titles to set it apart from the other consoles already on the market and it would take even longer to release enough to not only match but to surpase Sony's output

So are they admitting that crippling the xbox's version is a deliberate anticompetitive action?
Of course. Just look at Hogwarts. They made a marketing contract and the game is not only missing content on two of the platforms but also suffers terrible performance issues that don't exist on the playstation.



10 years puts us a few years into the ps6 likely. Plenty of time for that company Sony just bought to come up with a competitor...
Three Xbox rivals believe the Activision Blizzard merger would harm competition | GamesIndustry.biz

"Finally, two companies discussed Microsoft's wider portfolio, including Windows OS, Azure, Xbox and Game Pass, and expressed concerns about the impacts on competition if Activision Blizzard's games and studios were added to this line-up."

Ok Bob we are moving to cloud AWS it is
NOOOOO Azure they have Call of duty!!!

Wtf is that, i fail to see logic here windows and azure and xbox and COD.... in what way COD will influence anyone to chose azure ... not sure what this is.

it's funny because Xcloud doesn't run on azure.
 
Last edited:
10 years puts us a few years into the ps6 likely. Plenty of time for that company Sony just bought to come up with a competitor...
Not really. You aren't just competing on the game experience, but the whole brand grown over 20 years. It woudn't take that long to write an alternative Wizarding School story to Harry Potter, but no-one's going to be buying into it at the same scale as the behemoth that WB has grown. So let's say Sony buy WB and gets the Harry Potter games exclusive. You think MS will be able to turn AB into making Mr. Marvello's School of Magics to compete on an equal footing and win over existing HP fans into buying an XBox with this HP alternative?
 
Back
Top