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

How much is 70b for MS anyway? Its not that much of a number seeing their total assets?

This sentiment comes up a lot. Investors do not look at things this way, everything is about maximising the return on investment. Spending $8m to make $1,000 is a bad return. You want to invest money into things that will provide a good return as soon as possible because the longer the return period, the greater the risk of things jeopardising that return.

If you want easy money, just shove it in a bank or invest in tangible commodities.
 
This list of games here is incredible, and it's absolutely nauseating to me that everyone is focused on CoD being kept away from PS.
Like really, this is an incredible list of games made during the golden ages of PC gaming.

I was thinking Battlezone would be there, but I think Atari still owns that. Mechwarrior is still owned by FASA.

This list is missing Dark Reign. One of the greatest RTS there is (imo)



:D
 
Revenue is incoming money before costs are subtracted. Revenue is almost meaningless. If you take 1 billion in revenue and your costs are 999.9m then your revenue numbers are less impressive. Without knowing the profitability ratio of a business, revenue is of limited use. Lots of companies with massive revenue makes losses ¯\_(ツ)_/¯
Of course. Everyone knows what revenue is. But it isn't meaningless. Also, Activision's profits aren't that hard to find.
 
I'm not sure it'll ever happen for COD. The backlash from COD being made exclusive will make the disagreements about MS making Bethesda titles exclusive seem like a tiny match next to a forest fire. :p

It could happen, but I think it's more likely that they'll keep COD multiplatform much like Minecraft. It's a way to not have most gamers turn sour on MS and keeps at least some goodwill in the face of MS potentially making other IPs exclusive.

Also, that's 100's of millions (possibly billions) of USD a year they'd be throwing away if they made it exclusive.

Regards,
SB
I d say we will talk again about this matter at the next generation launch. These IPs I m very certain will be next gen exclusive immediately after this generation. And they will be going hard with a plethora of popular IPs to shift the adoption from PS to XBOX.
 
Unfortunately shareholders generally only really care about the minutiae if the corporation is losing money, flirting with the possibility of losing money (small profits relative to revenue) or alternately making money or losing money depending on the year.

If the corporation is consistently making money hand over fist year after year and shareholders are getting good value for their shares, then they often only care about the broad strokes of a corporation's strategy and trust the company to handle the minutiae.

As long as MS continues to make bucketloads of profit year after year, shareholders are unlikely to start pestering them to release more information.

And as a result, MS will continue to use profitable divisions to hide the losses generated by unprofitable ventures ... when possible. Sometimes, it's not possible. :p

Regards,
SB

To be honest as a stock holder of the company there isn't much to really worry about here. All of Microsoft stuff is seeing growth and profits keep going up. Does it matter how many consoles ms sold against sony when Office and windows pulls in way more money ?

M365 has pulled in a ton of money for microsoft and a lot of investors are on board for a gaming version and they know based on m365 that it doesn't happen over night

A $70b acquisition isn't going to pass without comment because it is Microsoft's largest acquisition ever and almost three times what they paid for LinkedIn, which was generally considered to be a poor investment which has increasingly been referred to as "a new franchise" in reports. Investors will absolutely expect to see a return on $70b. You know what you could do with $70b spare cash? Dividends. :-|
Microsoft already has competitive dividends.

I agree with your post.
But as per this, I believe they are significantly positive with respect to the purchase price paid. Minecraft licensing and sales are everywhere from toys, plushies, to mobile, to tv series, to game spin offs; I'm sure their 2B is recovered directly, not including possible indirect benefits.

Activision has a lot of properties that can be made into all that stuff and I am sure MS will be doing so. Paramount and ms seem to be gearing up for more than just halo.
 
Of course. Everyone knows what revenue is. But it isn't meaningless. Also, Activision's profits aren't that hard to find.
This was poor phrasing on my part, I meant that revenue is meaningless without profitability (or losses) for context. I know that Activision-Blizzard is profitable.
 
So it should be really easy to provide numbers on how profitable it is. I mean it's not like loads of companies have conflated their success over the years, citing revenue and downplaying actual profits whilst eating through investors margins. That would never happen. :yep2:

It's a simple question. How much profit has Call of Duty made? It's fine if you can't answer is, just move on.

Just for fun the most expensive cod cost 250 mln to make (with huge adv in tv) last MW made 600 mln in first 3 days so they make 2-3 times profit safe counting.
 
Just for fun the most expensive cod cost 250 mln to make (with huge adv in tv) last MW made 600 mln in first 3 days so they make 2-3 times profit safe counting.
What's the breakdown in terms of production costs, marketing and the cost of keeping the servers running? I know that latter is a significant cost and this has only become viable by frequently releasing new games (which does not always help as you often need to keep old servers running during the 12-24 month user base transition) and flooding the game with micro-transactions.
 
What's the breakdown in terms of production costs, marketing and the cost of keeping the servers running? I know that latter is a significant cost and this has only become viable by frequently releasing new games (which does not always help as you often need to keep old servers running during the 12-24 month user base transition) and flooding the game with micro-transactions.

50 mln dev costs 200 mln marketing infra costs unknown.
 
Infra costs should be minimal for msft who owns azure
This isn't how costs work. It costs Microsoft to run Azure and when they use resources they cannot sell/hire, that is potential lost revenue. There is a literal cost to everything. Vertical integration always comes with a disproportionate cost when you companies themselves use their own facilities at below market cost. Running severs is preterit much the biggest cost in tech.
 
Teams is a Microsoft Gaming brand? o_O
I thought trying to use it without crashing or freezing, or causing Outlook to quit was the game? It's like Gremlins, don't input in Teams after midnight, don't try to connect with more than 10 people simultaneously.
 
This isn't how costs work. It costs Microsoft to run Azure and when they use resources they cannot sell/hire, that is potential lost revenue. There is a literal cost to everything. Vertical integration always comes with a disproportionate cost when you companies themselves use their own facilities at below market cost. Running severs is preterit much the biggest cost in tech.
I am sure that game passes and loot boxes cover those costs completely and generates extra bucks. Does cod even have dedicated servers now or is it still p2p? And how do you know how expensive it is without even knowing capacity it’s BS. You are trying very hard but the truth is cod is very successful franchise that generates shit loads of profit.
 
One thing to think about is what the teams that were working on supporting other consoles can now be assigned too ? That head count can be dedicated to new titles which can be a good thing. Wouldn't mind another hexen
I reckon it would be a limited. A lot of effort is spread across all platforms, Microsoft might save on some programming effort for PlayStation and Switch, but those folks in isolation will still need art, audio and game designers where there probably isn't a great deal of platform specificity. But some savings would exist for sure.
 
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