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

[iroboto]

I meant related to sony/Nintendo quiting business.

Ecause even with the acti acquisition, sony/ninte do will still have the kinds of popular games that are not on Xbox

To be fair to the argument, a simple thought exercise is what happens if we had reversed the deal, Sony is buying ABK and the merger went through.
A fair assumption in this scenario is that, I think likely, MS would be dead. Without access to the major 3rd party titles, MS has nothing really else going for it right now. I don't htink they would survive until their first party releases are able to carry themselves through.

Which means in some situations, CoD is enough to break the camel's back. Sony's back imo, is just hella strong.

 

[iroboto]

https://twitter.com/x/status/1597290792929951745

oof, can't read this, hit my article limits.

 

[BRiT]

oof, can't read this, hit my article limits.

Not much content, but here it is:

BRUSSELS, Nov 28 (Reuters) - Microsoft (MSFT.O) is likely to offer remedies to EU antitrust regulators in the coming weeks to stave off formal objections to its $69 billion bid for "Call of Duty" maker Activision Blizzard (ATVI.O), people familiar with the matter said.

The U.S. software giant and Xbox maker announced the deal in January to help it compete better with leaders Tencent (0700.HK) and Sony (6758.T).

It has since then faced regulatory headwinds in the European Union, Britain and in the United States, with Sony criticising the deal and even calling for a regulatory veto.


The deadline for the European Commission, which is investigating the deal, to set out a formal list of competition concerns known as a statement of objection is in January. Offering remedies before such a document is issued could shorten the regulatory process.

"Ultimately, such a move could secure an early clearance with the European Commission and subsequently be used by the parties before other antitrust agencies," said Stephane Dionnet, a partner at law firm McDermott Will & Emery.


"However, it remains to be seen whether the active complainants will validate such concessions (in particular in terms of scope) and if behavioural remedies will also be accepted by the CMA and the FTC," he said, referring to the UK and U.S. antitrust agencies.

Microsoft's remedy would consist mainly of a 10-year licensing deal to Playstation owner Sony, another person with direct knowledge said.

Activision shares were up 2% after the Reuters story was published.


The EU competition watchdog, which is scheduled to decide on the deal by April 11, and Sony declined to comment.

Microsoft said it was working with the Commission to address valid marketplace concerns.

"Sony, as the industry leader, says it is worried about Call of Duty, but we've said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less," a Microsoft spokesperson said.

The deal has been cleared unconditionally in Brazil, Saudi Arabia and Serbia.

Reporting by Foo Yun Chee; Editing by Jan Harvey, Lisa Shumaker and David Evans

 

[Silent_Buddha]

Wouldn't that be amusing. Commissions saying that it's worried about the impact to a multitude of companies some of which may or may not have offered complaints. Commissions then drop their objections after MS offers concessions. Concessions basically consist of MS putting into writing that COD will be released on PlayStation for at least 10 years because that would somehow help the other companies who may or may not have complained.

BTW - not saying that's how it is. Just that if it goes down like that, what a joke. MS never intended to pull COD from PlayStation in the first place, so it wouldn't exactly be an onerous concession.

Also, note that MS is aware of the commission's objections. So they would be best positioned to know what type of concession to offer to appease the commission. So, if that's the only major thing they are offering (rumored) that might be the major thing the commission is "worried" about regardless of what they publicly state.

Regards,
SB

 

[eastmen]

I meant related to sony/Nintendo quiting business.

Ecause even with the acti acquisition, sony/ninte do will still have the kinds of popular games that are not on Xbox

Well of course. Sony had double the install base of MS last generation and they both had COD and the other activision titles.

Nintendo had none of it and was pretty much tied with sony after dumping the wii u

 

[Shifty Geezer]

This may be cherry picking on my behalf, but so far, Sony has been doing just fine, the Bethseda merger had no market share effect on Sony.

There aren't any Bethesda exclusives yet though, are there? It will only start having an affect on Sony sales if important games start missing from PS's catalogue. All these changes are likely to affect PS6 if they ever do, not PS5.

 

[iroboto]

There aren't any Bethesda exclusives yet though, are there? It will only start having an affect on Sony sales if important games start missing from PS's catalogue. All these changes are likely to affect PS6 if they ever do, not PS5.

thus cherry picking lol.

Yes I think the argument only works if you assume they just produce uninteresting titles for the next 8 years.

 

[BRiT]

That article was updated with the following sentence:

The deal has been cleared unconditionally in Brazil, Saudi Arabia and Serbia.

 

[Dr. Nick]

It would be interesting to find out which company offered to buy Bungie first, Microsoft or Sony. Remember, Microsoft dropped out of the bidding because they chose to pursue ABK. The bidding might have played a role in offering to purchase ABK. Sony buying Bungie would have been blockbuster news if it weren't for ABK.

 

[Nesh]

I completely understand that MS will acquire a huge competitive advantage if they acquire COD. I dont' think that was ever at debate. It's just a question is if this acquisition will cause Sony and Nintnedo to exit the games business.

There is this possibility to happen, not now but much later. Even if that scenario doesnt happen it is also very likely that their market share will shrink significantly through MS's unfair competitive practices.
Once this merger is green lit, it will signal that MS can continue with large acquisitions, which will be locking and controlling the franchises originally available on other platforms.
I doubt this large acquisition will be MS's last one. MS was eyeing acquisitions of big developers during the XBOX era to gain advantage but failed to do so then.
And if we see this from the consumer's perspective, they will be experiencing the effects sooner everytime MS decides to lock ex-multiplatform games out of other platforms.

 

[Cyan]

Sony is burning every bridge it can to counter Microsoft's Activision deal

Sony and Microsoft are tearing themselves apart over the biggest games acquisition ever

www.gamesradar.com

darn, I never thought this would happen. CoD was popular for sure back when I first played CoD IV: Modern Warfare, but I remember PS fans saying that it was popular because of the fact that Xbox owners preferred shooters, and now this game is a huge deal.

 

[mr magoo]

Sony's Response to CMA Regarding Microsoft-Activision Acquisition Surfaces, Cites Consumers Would Be "Harmed" (mp1st.com)


"Consumers would be harmed.
Microsoft would be able to: increase console and game prices for Xbox users (including those that had switched from PlayStation); increase the price of Game Pass; and reduce innovation and quality."

hmm like increasing game prices to 70 usd? Incresing console price by 50 usd or charge 10 bucks for patches?

"Competition would be harmed.

This would effectively prevent SIE from competing for the business of a large portion of console gamers, reducing its incentives to invest. In this way, as the Decision found, Microsoft’s strategy would “materially affect Sony’s ability to compete” (Decision, para. 204)."

Well you cant compete without COD, cod is everything noone can compete without cod. Except Nintendo ofcourse who is outseling sony 5:1 and msft 10:1. Without cod.


And here is my favourite part

"Independent developers would be harmed.

Independent developers today have two principal options: PlayStation/PlayStation Plus and Xbox/Game Pass."

Hmm i guess PC ,nintendo, mobile dont exist anymore.

"By making Call of Duty exclusive to Xbox/Game Pass, the Transaction would tip demand for multi-game subscription services towards Xbox/Game Pass."

Yeah and making GOW:Ragnarok exlusive to psplus would tip demand for multi-game subscription services towards PSplus. And? What is stoping sony?

"As Microsoft foreclosed PlayStation/PlayStation Plus, it would likely become a critical distribution channel for independent developers. In that weakened negotiating position, independent developers would likely receive worse terms for their content from Microsoft or even be required to promise exclusivity in return for distribution, thereby diminishing independent developers’ ability and incentive to invest in high-quality new games. This, in turn, would also harm consumers even further."

What a bunch of BSs omg, without COD psplus will fall and without psplus indies are done!
WOW just WOW

 

[Nesh]

Yeah and making GOW:Ragnarok exlusive to psplus would tip demand for multi-game subscription services towards PSplus. And? What is stoping sony?

PlayStation’s boss says the Game Pass model ‘doesn’t make any sense’ for Sony | VGC

We won’t put new releases into a subscription model because it’s ‘unsustainable’…

www.videogameschronicle.com

Shuhei Yoshida says PlayStation Plus should be used to manage the lifecycle of a game

Sony's head of PlayStation Indies Shuhei Yoshida has said PS Plus should be used by publishers to manage the lifecycle …

www.eurogamer.net

 

[Nesh]

"Consumers would be harmed.
Microsoft would be able to: increase console and game prices for Xbox users (including those that had switched from PlayStation); increase the price of Game Pass; and reduce innovation and quality."

hmm like increasing game prices to 70 usd? Incresing console price by 50 usd or charge 10 bucks for patches?

Nintendo complains about rising production costs. The company is doing everything not to increase the prices of the Switch - UK Daily News

Nintendo is still struggling with the shortage of electronic components for the production of Switch consoles. The Japanese company is currently paying more

ukdaily.news

PS5 price to increase in select markets due to global economic environment, including high inflation rates

New recommended retail price coming to select markets in the EMEA, APAC, and LATAM regions, plus Canada.

blog.playstation.com

IDG: Other publishers are considering raising game prices for PS5 and Xbox Series X

Other game publishers are considering raising the price of games for PS5 and Xbox Series X, says games research firm ID…

www.gamesindustry.biz

Sony hikes PS5 price on economic pressures, rising rates

Sony Group Corp said on Thursday it was hiking the price of its PlayStation 5 games console in markets including Europe, Japan and Britain following economic pressures including rising interest rates.

www.reuters.com

Xbox Now Says It Will Have To Increase Prices, But To What?

While Microsoft was happy to announce no current plans to increase Xbox-related prices even as Meta and PlayStation started to raise their asking price on hardware, the emphasis there was on “current” plans.

www.forbes.com

 

[mr magoo]

PlayStation’s boss says the Game Pass model ‘doesn’t make any sense’ for Sony | VGC

We won’t put new releases into a subscription model because it’s ‘unsustainable’…

www.videogameschronicle.com

Shuhei Yoshida says PlayStation Plus should be used to manage the lifecycle of a game

Sony's head of PlayStation Indies Shuhei Yoshida has said PS Plus should be used by publishers to manage the lifecycle …

www.eurogamer.net

I bet many people at MSFT said the same thing about gamepass. The truth is nothing is stoping Sony for doing the same, so who exactly is stoping innovation and harming consumers?

And great we agree on price hike. Sony is already doing this and accusing microsoft of doing the same thing in the future. Isnt that comical to you?
I agree that the deal rises concerns but Sony arguments are so bad, so delusional its a comedy at this point.

 

[Nesh]

I bet many people at MSFT said the same thing about gamepass. The truth is nothing is stoping Sony for doing the same, so who exactly is stoping innovation and harming consumers?

The fact that Sony cant sustain such a business? Its in the link. Duh?

And great we agree on price hike. Sony is already doing this and accusing microsoft of doing the same thing in the future. Isnt that comical to you?
I agree that the deal rises concerns but Sony arguments are so bad, so delusional its a comedy at this point.

Sony's and developer price increase was a response to increasing costs.
What scenario Sony is referring to against MS though in the case of the acquisition is 101 economics of competition. A company subsidizing low prices to gain advantage, and after they get hold of the market deliberately increase prices.
They are using basic economic theory of competition so much that they referred to every possible outcome of unfair advantage/reduction of competition including reduction of quality as well.

 

[BRiT]

Still sounds like what Sony is currently doing against MS, using foreclosure strategies with 3rd Party exclusives or special content arrangements. I think that's why a lot of folks are having a laugh at their complaints, "Don't let them do what we are doing."

 

[mr magoo]

The fact that Sony cant sustain such a business? Its in the link. Duh?

Sony's and developer price increase was a response to increasing costs.
What scenario Sony is referring to against MS though in the case of the acquisition is 101 economics of competition. A company subsidizing low prices to gain advantage, and after they get hold of the market deliberately increase prices.
They are using basic economic theory of competition so much that they referred to every possible outcome of unfair advantage/reduction of competition including reduction of quality as well.

Again the same speculation was said about gamepass, that is not sustainable and will generate huge loss for Microsoft duh!

"Sony's and developer price increase was a response to increasing costs."

Great! Than sony knows how the bussines works and shouldnt be surprised if msft will rise prices, exactly what sony did. Where is the problem.

"A company subsidizing low prices to gain advantage, and after they get hold of the market deliberately increase prices."

Yeah, how else do you get advantage? Why do samsung and other manufacturers offer cheaper phones than iphone? Is it something illegal?

"and after they get hold of the market deliberately increase prices."

Again what is Sony doing right NOW, why CDred is not charging 10 or 20 usd for next gen update for Witcher 3? Sony can because you have no other option.
Why is Sony not rising prices for ps5 in USA? Becouse tougher competition in this market. Comeone!!!!

"They are using basic economic theory of competition so much that they referred to every possible outcome of unfair advantage/reduction of competition including reduction of quality as well."

Agree and stronger competition will help, SOny has been leader for a very long time. Now is time for chnages tougher competition woch will result in better products and services.

 

[Nesh]

Still sounds like what Sony is currently doing against MS, using foreclosure strategies with 3rd Party exclusives or special content arrangements. I think that's why a lot of folks are having a laugh at their complaints, "Don't let them do what we are doing."

Your answer of why its different is in the bolded part.

 

[Nesh]

Again the same speculation was said about gamepass, that is not sustainable and will generate huge loss for Microsoft duh!

"Sony's and developer price increase was a response to increasing costs."

Great! Than sony knows how the bussines works and shouldnt be surprised if msft will rise prices, exactly what sony did. Where is the problem.

"A company subsidizing low prices to gain advantage, and after they get hold of the market deliberately increase prices."

Yeah, how else do you get advantage? Why do samsung and other manufacturers offer cheaper phones than iphone? Is it something illegal?

"and after they get hold of the market deliberately increase prices."

Again what is Sony doing right NOW, why CDred is not charging 10 or 20 usd for next gen update for Witcher 3? Sony can because you have no other option.
Why is Sony not rising prices for ps5 in USA? Becouse tougher competition in this market. Comeone!!!!

"They are using basic economic theory of competition so much that they referred to every possible outcome of unfair advantage/reduction of competition including reduction of quality as well."

Agree and stronger competition will help, SOny has been leader for a very long time. Now is time for chnages tougher competition woch will result in better products and services.

You are repeating yourself with the same arguments that have been answered and you cant comprehend the difference that has been explained to you. Plus you arent familiar with economic theory and why regulators are concerned. Fine.
I will leave it as such

edit: Just in case you also missed the point which I think you did, Sony was not referring to MS future price increase due to cost related increases.