Johnny Awesome
Veteran
I think MS are pretty confident that the rest of their content will still drive gamers to xCloud over competing services.
With our clearance #Activition Blizzard’s games will also be available on cloud. This is good for competition and innovation and brings games to many more devices and consumers. #Microsoft‘s commitments will enable the streaming of games in any cloud game streaming service.
Why would they do that and not just stream from the same servers current PS4/5 games are streamed from?They wouldn't even have to do that, they could just contract with another cloud provider (MS, Amazon, Google, NVidia, whoever) for the hardware and infrastructure.
Regards,
SB
Why would they do that and not just stream from the same servers current PS4/5 games are streamed from?
Forced means they wouldnt have done it at all if EU didnt request the remedy. MS said it themselves they were forced.Yes and no. Yes, it was a condition that this be the case in the EU. But if it was such a concession that MS was upset about it, why would they adapt this globally? The EU has basically no power to force Microsoft to license streaming in SE Asia, but according to all of the reporting as of when the merger closes, that will be the case in Asia, the EU, USA and everywhere else.
MS never said they were forced.Forced means they wouldnt have done it at all if EU didnt request the remedy. MS said it themselves they were forced.
MS's own words. There is no yes and no. It either is or it isn't.
The rest of your argument is trying to find a convenient explanation/correlation to lesser the fact.
But we can find a lot of reationale behind releasing globally and a simple one is, which is not common practice (if at all), is release your multimillion blockblaster on, lets say, console A only in EU, while deliberately not in US, Australia etc. Makes no sense and it sends a message to the rest of the world of strategic exclusion and confirms the concerns of the regulators.
You are trying to give in interpetation to the word force that blurs that MS did not want to give such remedies, but they had to because the costs of not making the merge happen were higherMS never said they were forced.
I should point out; people are taking aim at your word force over the word requirement.
A Requirement implies consent or compliance, an item that needs to be met in order for something to proceed. I’m this case global automatic makes for a behavioural remedy to be easily enforceable with no additional work. This is what CMA complained could not be accomplished without a structural remedy.
Forced, that means you were given no consent compliance. You don’t get a say in the matter, you don’t get to walk away or even comply. Thus it is forced on you. As in the regulators divested COD from the merger and MS and ABK and they must accept the result.
They literally wrote requirement. I want a Ferrari for $20,000 dollars, they tell me it’s $350,000. If I don’t pay it I don’t get it. If I pay the price I am forced?You are trying to give in interpetation to the word force that blurs that MS did not want to give such remedies, but they had to because the costs of not making the merge happen were higher
In business and economics there is something called opportunity costs. Secondly if the merger didnt happen MS is under obligation to pay ABK an amount for the failed merger.They literally wrote requirement. I want a Ferrari for $20,000 dollars, they tell me it’s $350,000. If I don’t pay it I don’t get it. If I pay the price I am forced?
Common.
What you want and what you are willing to give in exchange for it is not a force.
In business and economics there is contract negotiations. And everyone starts contract negotiations with what they want. Both the buyer and seller don’t have to accept it. In the end buyers and sellers know what a fair contract is, and a fair contract is where both parties benefit from the deal. The deal is a win for consumers and the deal is a win for ABK and MS.In business and economics there is something called opportunity costs. Secondly if the merger didnt happen MS is under obligation to pay ABK an amount for the failed merger.
Thus your scenario doesnt fit this.
Its as if you want a car to move to a place where you will have a life changing career,the seller tells you to pay triple, but you cant say no because not taking the opportunity will cost you more.
Which they would have done already if such opportunity existed.So I disagree entirely with what your saying because Opportunity cost is the cost of not doing something or doing something else in exchange for what you have decided to do. For instance, The opportunity cost of buying ABK that 70B could be spent on buying another company with a better return.
The public part of the UK parliamentary oversight hearing on CMA's work has finally started.
Chair says "we're gonna ask about some topical cases ... most widely covered news is Microsoft-ActivisionBlizzard, please give us a quick summary"
Now Cardell is essentially making the argument that when there's a nascent market, you should just block.
But the law works the other way round: nascent market means you have a weak theory of harm and your remedies must be less extreme.
MP insists to know more about interactions between CMA and FTC, but Cardell points to confidentiality restrictions.
The longer this takes, the more it looks like Activision's CEO may have had a point about an alleged Khan-Cardell conspiracy to block the deal in the UK.
They can spend 70B anywhere. It doesn’t have to be with Xbox. And the penalty for failing to merge is 5%. It’s only large because the merger value is. The conditions exist so that shareholders are not being put through a rollercoaster to ensure that both parties are doing best effort to achieve the goal. They know precisely where their don’t sign line is, just like we all know there is a price we will not accept or pay for something.Which they would have done already if such opportunity existed.
And there you have it. Both an opportunity cost of not making the merger happen and the billions they will have to pay ABK as a compensation of the failed merger. MS didnt want to provide such remedies but they had no choice if they wanted it to happen. They didnt come by themselves with these remedies.
This is arguing semantics at this point. Any compromsie can be considered as being forced from a certain POV. Best just to agree to disagree on this one.You are trying to give in interpetation to the word force that blurs that MS did not want to give such remedies, but they had to because the costs of not making the merge happen were higher
This is arguing semantics at this point. Any compromsie can be considered as being forced from a certain POV. Best just to agree to disagree on this one.
Hour long video of the UK Parliament session and FM's thread about it:
In order for the deal to go through Microsoft and Activision need approval from regulatory bodies in the UK, EU and the US.
The US Federal Trace Commission filed a lawsuit in December to block the deal - a judge's decision is unlikely before the end of the year.
Microsoft and Activision filed an appeal and have reportedly hired high-powered lawyers who have previously represented British Royals to fight that decision.
On Thursday the CMA dealt a further blow by restricting Microsoft and Activision Blizzard from acquiring stakes in each other without "prior written consent".
The deal is important for Microsoft who are trying to play catch-up with its main competitors Sony. They have been the more successful of the two in recent years when it comes to sales in the console market.
However, this attempted massive investment from Microsoft can been seen as a play for the future of games rather than its present. Microsoft is betting big on its Game Pass service, which can be described as a Netflix of games.
Their Game Pass offering is compelling but lacking the volume and calibre of new titles to fully transform the way most people play. This deal would give it control of some of the world's most popular games such as Call of Duty, World of Warcraft and Overwatch. Being in charge of titles like that could be a big boost to the service.
Microsoft have invested in this space and so combined with its Game Pass offering it is in a good position to lead the way, should cloud gaming go on to become a significant part of the industry.
That is why the CMA decided to block the decision in the UK, arguing it would put Microsoft in too dominant a position in this up-and-coming sector.
However many within the games industry have disagreed with their analysis - especially given how small the cloud gaming sector is in the grand scheme of things and given it is not be guaranteed to become the dominant way of accessing games in future.
The drama is far from over and there is a lot of money on the line. Activision Blizzard, for example, will still get $3bn from Microsoft if the deal fails.
The EU taking an opposing position on the mega-deal could be read by some as a reflection of post-Brexit frictions with the UK.
If there was a better option they would have done it. Apparently the merger is still the best option than putting the money elsewhere. The penalty is a clear loss and loss of the business opportunity arising with the merger.They can spend 70B anywhere. It doesn’t have to be with Xbox. And the penalty for failing to merge is 5%. It’s only large because the merger value is. The conditions exist so that shareholders are not being put through a rollercoaster to ensure that both parties are doing best effort to achieve the goal. They know precisely where their don’t sign line is, just like we all know there is a price we will not accept or pay for something.
You are making this way more than it is.
They see value in the deal and continue to push, no one is forcing MS to do anything. They had to meet fair conditions for competition. Not getting what you want is not the same as being forced. I’m done with this argument.
Then you should go back and review my original postyou got too attached on the word force.
you used the word forcedI should point out; people are taking aim at your word force over the word requirement.
MS said it themselves they were forced.
MS's own words. There is no yes and no. It either is or it isn't.
The EU report identifies the exact same concerns as the UK CMA. The difference in outcome is because of the difference in assessed relative impact. One highly-developing technology-focussed country and consumer market versus a much larger, but also more more diverse market.Some interesting sections from the EU decision. One part seems to be directed at the CMA. Expect to see snippets being posted all around the internet.