Microsoft acquired Activision Blizzard King for $69 Billion on 2023-10-13
- Thread starter Rangers
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Is this not due to the import tax rules? I remember in a former job, the company had to setup a local assembly factory to circumvent that, it actually was a term in the contract with Telefonica Brazil.
It's much more well reasoned than the UK's response.
D
Deleted member 11852
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The economics of GamePass are going to be complicated for a while because what do you consider GamePass costs beyond the obvious monthly running costs? I.e. personnel, servers, payouts to developers and so on. Is it fair to include acquisitions to bolster GamePass content like purchasing Zenimax? When you look at what Microsoft are spending to get content in GamePass then it cannot possibly be profitable, but of course many acquisitions will still result in titles being sold conventionally with revenue counted outside of GamePass and on platforms other than Xbox.
Microsoft could report on the whole Xbox business but that won't happen until that is collectively profitable.
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The only info I could find says is was 2.9 Billion for Xbox gamepass, but likely not PC gamepass.
I wonder if that includes gamepass Ultimatte subscriptions, or if it's JUST the xbox gamepass subs,
or is it just in game purchases and DLC?
I'd love an explanation of exactly what that number represents, but i guess we'll never get it.
Still 2.9 is a long way off 64, seems like you would need 20+ years of gamespass to pay off the ActiBlizzard purchase,
ignoring the ongoing costs of running the studios...
I wonder if that includes gamepass Ultimatte subscriptions, or if it's JUST the xbox gamepass subs,
or is it just in game purchases and DLC?
I'd love an explanation of exactly what that number represents, but i guess we'll never get it.
Still 2.9 is a long way off 64, seems like you would need 20+ years of gamespass to pay off the ActiBlizzard purchase,
ignoring the ongoing costs of running the studios...
Gamepass isn't the only source of revenue, though. In fact, COD mobile would add $0 to gamepass revenue, since it's a free to play mobile game that processes revenue through non-Microsoft storefronts.
It's 2.9B today. The expectation is that you buy Activision and it helps grow that number. So what was 2.9 becomes 4 and becomes 8 and so on and so forth.
Lets also not forget that they will have a ton of IP they can leverage in other categories. Look at how much merch minecraft sells. Look at Mario getting a new movie and so on. There are lots of opportunities to bring more revenue in than just game pass
I have speculated that the next purchase from Microsoft would be something like Discovery since it would allow them to directly leverage their IP in other forms of media and its a weak spot for them vs apple(apple tv) , Sony(sony movies and animation) , Google (youtube) and Amazon(mgm / amazon video). That or maybe Paramount.
Depends on what (if any) perks they add to GPU for COD Mobile. They could do synergies like that, where it makes sense for folks to sub to GPU for the perks.
Game Pass isn't solely responsible for recouping the investment of acquiring Activision. Game sales, DLC, COD/Overwatch League, and other revenue streams outside of Game Pass will contribute to the recouping of the investment. Plus Activision is sitting on $11 billion in cash and short-term investments. It has about $7 billion in liabilities vs $25 billion in assets.
Honestly, MS makes so much money, they could probably totally f%*^ up the Act purchase and spend years just benefitting from the tax write-offs. Remember for the wealthy, its "for every dollar you invest today can be a dollar you don't have to pay the gov't tomorrow". LOL
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Silent_Buddha
Legend
Free map packs on GP (don't splinter that userbase) while Map packs continue to be paid DLC outside of GP. Skins and season passes likely remain paid content. That would be one way to do it.
Regards,
SB
I imagine Game Pass won't be profitable for years. Don't you remember our discussions here at B3D ( i think it was during the 360/PS3 days) wondering if Netflix would ever be profitable? When you have deep pockets or a market that deeply values your stock, you can sustain heavy losses for years until your sub-numbers are to the point where you make profitability a priority.
Yeah, the success of the Halo TV series should really make MS invest in streaming services.
You shouldn't look at one data point for the whole picture.
Going forward if you want to be competitive you are going to have to offer all services. If I can go to Sony and get PSN streaming , PSN TV , PSN Music , PS anime its going to be more compelling than just MS offering Game pass esp if Sony is able to discount monthly prices by bundling. You know apple has Music / TV / Arcade and I am sure they will keep adding more. Amazon has prime , audible , music , kindle and prime video.
It's the way the market is moving
The halo show is god awful yes , but the more IP you have the more chances you get to make a break out. Maybe a horror movie type take of gears or a band of brothers like cod show. There is so much they can do with all the ip they are gathering
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From a third party competitor perspective, any possibility of acquired studios not producing content for one (Sony) or two (Nintendo and Sony) platforms is an opportunity for themselves to fill some of that void.
What do they have to lose? Nothing. What do they have to gain? Sales.
So in other words they seem fine with it huhFrom a third party competitor perspective, any possibility of acquired studios not producing content for one (Sony) or two (Nintendo and Sony) platforms is an opportunity for themselves to fill some of that void.
What do they have to lose? Nothing. What do they have to gain? Sales.
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