Microsoft buys Activision

[Strange | 1,700]

I don’t see them making COD exclusive to Xbox/PC like a lot of people seem to think. I think there’s way more money to be made by putting COD on GamePass and still keeping the $60 option open to Sony users. That way even if the consumer still chooses to get it on PlayStation, you’re still making money on that software sale (which is where the real money in the industry is). You win even if you lose.

Money in this industry is made on the software side and Microsoft knows that. COD is huge and to fracture that base wouldn’t be as lucrative imo, nor would it be as simple as all of those folks just throwing their hands up and buying an Xbox in a seamless transition. I could be wrong.

I have an Xbox Series so this doesn’t affect me at all. I’m just looking at this objectively.

Despite all of the above, I don’t like this move if I’m Sony.

Edited January 19, 2022 by Strange

[Tulpa | 3,519]

Yeah, I don't get why the most lucrative titles would be pulled from Playstations. Why lose a third to half of your revenue stream? Some of the smaller titles will most likely become Xbox exclusives, but not the cash cows.

[Californication | 1,477]

42 minutes ago, Tulpa said:

Yeah, I don't get why the most lucrative titles would be pulled from Playstations. Why lose a third to half of your revenue stream? Some of the smaller titles will most likely become Xbox exclusives, but not the cash cows.

Agreed. I think digital gaming is too close for xbox to make cod exclusive. That would be an o.g. move though - they should have done that 10 years ago.

Also, think xbox's willingness to share software with Nintendo means they have a different strategy 

Edited January 19, 2022 by Californication

[Gloves | 11,800]

Microsoft has been perfectly willing to entertain partnerships for a while now, it's Sony that's been gate-y with that stuff, not embracing crossplay etc. 

Look at Deathloop as a recent example. It was originally set to be Playstation exclusive. Microsoft purchased the developer and managed to at least get it on PC. The PS5 exclusivity clause ends in September this year at which point we will likely see it on Xbox consoles. Fortnite and Minecraft are other such examples - Sony doesn't WANT crossplay, Microsoft does.

Honestly the Redditors of the internet crying monopoly while kissing up to daddy Valve is hilarious to me.

[Link | 2,715]

A friend's friend who is a game dev pointed out that after this deal, MS will be the second biggest game publisher. At latest numbers, the combination earned less than 1/10th of the industry's revenue. So, far from monopoly status. 

The biggest publisher, with a slight margin over MS + Activision/Blizzard, is TenCent, owner of Riot Games and 40% of Epic. 

[SpoonMan Abrams X | 697]

7 hours ago, DoctorEncore said:

I 100% agree that we should approach with skepticism and caution. It's just been really refreshing to see them grow studios rather than dismantle them over the past few years. It's very encouraging when a luminary like Tim Schafer sings the praises of a massive corporation. And I'm not out here shilling for a 2 trillion dollar company or anything, but I am willing to give credit where credit is due. Phil Spencer and Stay Nadella have really righted the Xbox ship.

It's only a matter of time, imho. Especially with all the excess ActiBlizzard has, I'm fully expecting a not insubstantial amount of studio closures as they consolidate. It's just too damn big.

2 hours ago, Link said:

A friend's friend who is a game dev pointed out that after this deal, MS will be the second biggest game publisher. At latest numbers, the combination earned less than 1/10th of the industry's revenue. So, far from monopoly status. 

The biggest publisher, with a slight margin over MS + Activision/Blizzard, is TenCent, owner of Riot Games and 40% of Epic. 

I'm surprised it isn't EA. Though it makes a lot of sense. TenCent has their hands in a lot of pies lol

Also if anyone is curious about Bobby Kotick's future;

Spoiler

TL;DR He will reside as CEO until the buyout is finalized, then he will get a phat quarter billion ($250 million) pay out. Because of course.

[a3quit4s | 4,107]

I lost respect for Satya Nadella that Bobby Kotick came with this deal. 

Edited January 19, 2022 by a3quit4s

[DoctorEncore | 3,691]

1 hour ago, a3quit4s said:

I lost respect for Satya Nadella that Bobby Kotick came with this deal. 

Multiple outlets are reporting that he's just staying on through the acquisition and then will be let go.

https://www.businessinsider.com/activision-ceo-bobby-kotick-out-after-microsoft-acquisition-closes-report-2022-1

https://www.forbes.com/sites/annakaplan/2022/01/18/activision-blizzard-ceo-kotick-reportedly-leaving-company-after-microsoft-deal-closes/?sh=276f6bf47000

Microsoft cannot do anything to him until the acquisition is complete since they are not his employer. There are also multiple reports that he was instrumental in negotiating the sale, so his bosses at Activision aren't going to get rid of him now either. I wouldn't lose too much respect for Nadella because of this deal. He has little in the way of options right now as there are significant regulatory and financial hurdles that must be accounted for. There is a reason Spencer was cagey about Activision and Kotick during his recent NYT interview on the Sway podcast. Any negative comments could be construed as artificially driving down the stock price and making the acquisition cheaper, which is illegal. 

After the acquisition, Nadella and Spencer have a real chance to improve the culture and working conditions at Activision. I'm hopeful.

Edited January 19, 2022 by DoctorEncore

[DoctorEncore | 3,691]

5 hours ago, SpoonMan Abrams X said:

It's only a matter of time, imho. Especially with all the excess ActiBlizzard has, I'm fully expecting a not insubstantial amount of studio closures as they consolidate. It's just too damn big.

I agree that they will make some necessary cuts to eliminate redundancy and downsize  less profitable divisions. In a deal this big, that just comes with the territory. As long as they don't absolutely gut everything of substance, I'm okay with that.

[a3quit4s | 4,107]

4 minutes ago, DoctorEncore said:

Multiple outlets are reporting that he's just staying on through the acquisition and then will be let go.

https://www.businessinsider.com/activision-ceo-bobby-kotick-out-after-microsoft-acquisition-closes-report-2022-1

https://www.forbes.com/sites/annakaplan/2022/01/18/activision-blizzard-ceo-kotick-reportedly-leaving-company-after-microsoft-deal-closes/?sh=276f6bf47000

Microsoft cannot do anything to him until the acquisition is complete since they are not his employer. There are also multiple reports that he was instrumental in negotiating the sale, so his bosses at Activision aren't going to get rid of him now either. I wouldn't lose too much respect for Nadella because of this deal. He has little in the way of options right now as there are significant regulatory and financial hurdles that must be accounted for. There is a reason Spencer was cagey about Activision and Kotick during his recent NYT interview on the Sway podcast. Any negative comments could be construed as artificially driving down the stock price and making the acquisition cheaper, which is illegal. 

After the acquisition, Nadella and Spencer have a real chance to improve the culture and working conditions at Activision. I'm hopeful.

For $70 billion Satya should have been able to tell Bobby to fuck right off, grow some nuts and threaten to kill the deal if Bobby comes with it. Let’s not overthink how we kill a stage 3 cancer that Bobby is. 

[Tulpa | 3,519]

1 hour ago, a3quit4s said:

For $70 billion Satya should have been able to tell Bobby to fuck right off, grow some nuts and threaten to kill the deal if Bobby comes with it. Let’s not overthink how we kill a stage 3 cancer that Bobby is. 

For those huge corporate deals, you need the old CEO in place, as bad as he is. He knows too much about the company that they need him to keep it running until their people can take over. 

Yes, we on the outside looking in hate him, but he's probably in bed with too many necessary people that Microsoft needs to keep.

[DoctorEncore | 3,691]

1 hour ago, a3quit4s said:

For $70 billion Satya should have been able to tell Bobby to fuck right off, grow some nuts and threaten to kill the deal if Bobby comes with it. Let’s not overthink how we kill a stage 3 cancer that Bobby is. 

Ehhh... That's only how things work in the movies. This is real life and you don't play games during a $70 billion dollar acquisition. People like to split the world into good and bad, but the truth is somewhere in the middle. If Bobby Kotick left in disgrace and the deal fell through, he'd still be worth 870 million dollars and own several yachts. But how many low level Activision employees would be out of a job, unable to feed their families and pay rent? Consider this opinion piece on Gamespot:

https://www.gamespot.com/amp-articles/bobby-koticks-payout-is-a-small-price-for-the-good-that-could-come-from-microsofts-acquisition/1100-6499750/

Edited January 19, 2022 by DoctorEncore

[Tulpa | 3,519]

Plus, all of those CEOs have some kind of golden parachute deal in place. They all get huge payouts to leave, because they all get the leverage to negotiate it. 

That should not come as a surprise.

Yeah, everyone hates Kotick and want his spleen eaten by wolves, but he's going to walk away from this with a fat check. Just be glad he's on the way out.