Xbox Making a Large Acquisition Could be Exactly What's Needed

Jason Stettner of Gamerheadquarters writes; "A large acquisition could be exactly what Xbox needs in 2018 to really take the console further by expanding its content and games."

[PhoenixUp]

No major publisher is going to sell their company. They can make more money from distributing games on other platforms in the long term than whatever Microsoft would offer.

It’s the same reason why Nintendo turned down Microsoft’s offer of a $25 billion buyout in 1999, and Microsoft sure as Hell ain’t gonna offer that much for any other publisher.

Acquiring a developer is the most realistic option. Although what most people should be focusing on is how Microsoft actually controversially manages most of their internal studios over their history.

[AspiringProGenji]

That is what I have been saying and put that same example as well. This isn’t the first time they have attempted to get big companies for themselves... They should try to get those studios like playground who makes exclusives for them, and who knows if they are too late for that? Before when they could they refused and underestimated having their own devs, with The messiah himself saying they don’t need to own studios to make games.

Now that issue has caught up on them and they are daydreaming about adquiring big companies to fix their 1st party problem, and most likely leave a big audience behind if that happens. That wouldn’t be good for the industry

[Eonjay]

Is this what we think of Microsoft now? We think that everyone else can make their own games but in order for them to compete, whats needed is a Large Acquisition?

Okay the problem is this: If Microsoft has enough money to buy large publishers, then it means that they already have enough money to make games. So as always its never about making anything new, its about taking whats out there and paying to limit others.... without actually making anything new.

[mikeslemonade]

They should buy Nintendo because they are a terrible hardware company and holding back the industry. Plus they ruined jrpgs and Japanese developed games.

[Alucard_420]

@mikeslemonade yes they are so bad that they are outselling XBO X, they are so bad that their shitty console is holding back the X because more people buy's nintendo then M$, SONY is doing fine and nintendo is not holding back anyone in the industry. So please explain your nonsense because I cannot comprehend what you are saying.

[gangsta_red]

"That wouldn’t be good for the industry"

Lol, nothing some of you guys say MS does seems to be good for the industry. Game Pass will ruin the industry, MS acquiring a big company will ruin the industry. Every rumor of what MS might do always seems to end up with the industry being ruined. I'm shocked the industry isn't some vast Mad Max wasteland filled with cannibals eating each other.

N4G: MS needs more games!

-Rumors of MS acquiring a huge studio to have more games.-

N4G: UGH! MS just buys studios to make new games instead of making new games themselves!

¯\_(ツ)_/¯

[darthv72]

Just because MS can doesn't mean they will. MS actually owns a little bit of various other companies like Google, Amazon, Valve, Facebook. They invested in them early on and have been cashing in on their success on the back end. MS would rather take their $$ and buy into projects in development than whole studios. Less risk and a greater chance for ROI if the product succeeds. They are only out their initial investment if the product fails.

MS is about maximizing profits so if they were to purchase a developer / publisher chances are the games would be multiplatform if that was the initial plan. They wouldnt cut off a revenue stream simply for the sake of exclusivity.

[ULTp0ltergeist]

Correct to think that just because Microsoft purchases EA that it would mean they would make everything exclusive is beyond me. Minecraft is a prime example, Microsoft never limited Minecraft in any way. In fact, they helped Minecraft scale since that was the problem with previous management because they lack the clout and funds obviously.

As of now, I'm sure EA wants to do more things that can turn more profits and attract newer consumers but they can't because of setbacks and ongoing operations. With a Microsoft purchase, EA will continue to be multi-plat but they can do a lot more and potentially make better content since finance isn't an issue anymore.

[WickedLester]

if MS is looking to acquire a large company like EA, I guarantee you this is all about Game Pass. Those games will remain available for purchase on other platforms but Game Pass will be the only subscription service where you can play them.

[DarkZane]

They really can't. EA is never gonna sell to them because they can make a far bigger amount of money than whatever Microsoft can offer. As for a hostile takeover, if Ubisoft has been managing to fight off Vivendi this long, EA can easily completely prevent Microsoft from doing it. All they have to do is buy enough of their own shares to control 51% of the company. Of course, that's if they don't already own the majority of the company themselves, which there is a very high chance they do.

[indyman7777]

good post

[ThinkThink]

Honestly i would be thrilled if they bought Warner Bros. Gaming division which includes monolith studios, netherRelm, avalanche, rocksteady and TT games. Those would be a solid buy.

[george957]

lol that title

"Xbox Making a Large Acquisition Could be Exactly What's Needed"

It should be MS making a large acquisition Not Xbox... Most people thinks Xbox is the company lol! Xbox along aint doing anything much for MS, hence MS is investing more so that the Xbox dept. does good for the company .

[strayanalog]

Instead of acquisitions, I'd rather them create original properties. They have the money, so go for it.

[343_Guilty_Spark]

You wouldn’t make it in business.

[MasterCornholio]

So creating successful New products is a bad business decision?

Don't get me wrong. It's great relying on old franchises but when those franchises start becoming as stale it might be a good idea to create new products to capture the consumers attention again. Much like what Bloodborne, Horizon Zero Dawn and Ghost of Tsushima are doing for PlayStation. Heck Nintendo creating Splatoon was great for them as well.

[Razzer]

Which corporation do you run again?

[strayanalog]

Well that's your opinion and who knows you may be right, so I'll even upvote you.

All players deserve to play multiplatform titles and shouldn't have to buy another console because they can't.
Now, if Microsoft let EA continue with its third-party software (Madden, Need for Speed, etc) and took only original's from then on, then yeah, that wouldn't be that bad for them for a while.
In the long term, you know, based solely on my crappy business decision,‎ just because someone has the money to acquire a studio doesn't mean they should, especially one of the larger ones. The industry as a whole needs innovation to survive and having less voices wouldn't help.
‎
So, why waste money on an aging athlete when I can save money by releasing new IP and gain some community favor? After all, EA was going to bring their titles over to me anyway and what better way to show the industry I care by showing some faith in it.‎

[LP-Eleven]

Um, if that's the case, why are the companies who are making that very decision (Nintendo and Sony) raking in more profit with their gaming divisions?

As I noted to another person like you - it's time to take a Business Class.

[thisismyaccount]

"I'd rather them create original properties."

.. in 17 years this is their inhouse output, as in newish IPs not acquired ones :

- Kameo
- Viva Piñata 1/2
- Conker Remake
- Rare Replay
- Project Spark
- Sea of Thieves this year

..i don´t remember any other new ips.

[Razzer]

Forza

[thisismyaccount]

at vj27

Insomniac got childish when Sony refused? or did not want to fund Sunset Overdrive, according to Ted Price. After getting funded for 20 years as a close 2nd party with privileges of a 1st party making Ratchet games and what not ... everyone considered them to be a team among other Sony 1st parties.

I still feel betrayed by them, after "wasting" my money on the ratchet games for them to go xbox (for just 1x game) with the excuse of "Microsoft will crush Sony this gen!" "Without MS, we could have not done this game ... " "MS has $1bill. to spend on..." "we cna retain the IP" ... yeah keeping the IP sure help you out in the long run.

No one cares about it, MS has the right to republish as they funded it ... so no matter how you look, retaining the IP aint worth jackshit IF you dont make a sequel. And while on a tangent ... why should Sony or anyone for that matter NOT have the right to own said IP¿? I mean, if im going to fund Sunset Overdrive for <$100mill. i´d better get at least to own the IP of said project, else get your funds elsewhere (kickstarter).

And i agree that it does not matter what studio, if owned or not, but in case of MS they got a history of buying up companies to achieve a goal they´re incapable of with their internals. And yes, i forgot Forza was another one :)

[strayanalog]

With all due respect, Conker and Rare Replay should be stricken from the record, as both were previous releases on other platforms.

[manabyte77]

Conker was not a new IP. That was created on N64. Rare Replay is the antithesis of a new IP. It’s just an updated collection of old games.

[mark_parch]

creating new studios and games from scratch is a lot more risky and time consuming than buying studios and ip.

[maybelovehate]

They do need to find a way to work with EA and EA Access. Having both GamePass and EA Access isn't ideal. Hopefully GamePass will push EA to add newer games though or lower their price.

[ULTp0ltergeist]

Or it just becomes part of Game Pass after purchasing EA? What backlog that would be for $10 a month. I'd buy easily. But they have to also make it Play Anywhere. Just fuse Origins and Game Pass.

[zerocarnage]

I think EA will have no choice but to start adding launch games straight away now.

But it would make sense if EA sold to MS, but I'd prefer SEGA honestly or both..

[StifflerK]

If MS buy a popular dev/publisher that makes multi-plat games:
- and then makes those games exclusive, they'll just end up angering the fans.
- if they keep those games multi-plat, they'll still have a lack of exclusives.

I think it would be best, and arguably cheaper for MS to create it's own studios ( like they did with 343/Coalition) to work on the IP's they already own, or make new ones.
A lot of gamers would be happy to see a new Banjo/Conker/Lost Odyssey etc.

[ULTp0ltergeist]

It would be bad for business so I'm sure Microsoft will give the Minecraft treatment. Where they funded their growth and not stifle it by making its exclusives. This just further confirms Microsoft approach towards a major service platform because it brings value to everyone. Hard to find any fault in this except not owning your games, but then that's just fewer regrets for me.

[343_Guilty_Spark]

The problem isn’t just exclusives though. The top 10 games each month are multiplats available on PS4 and Xbox.

The bigger problem is ongoing perception of lack of exclusives even if exclusives aren’t the big gainers on here that people make them out to be. Yes, they very important but this isn’t the only thing I’d be looking at if I’m Microsoft.

[Aenea]

If exclusives aren't that important why would they even want to buy a big publisher like EA?

[343_Guilty_Spark]

Didn’t say they weren’t important, it’s not the only reason they’d buy out an EA.

EA has a lot of attractive things that make a ton of sense in to invest in besides exclusives.

[slate91]

@aenea

Because they wouldn't make EA games exclusive. That would be suicide. Its all about money. Keep em multiplat and count the dollars coming in.

[slate91]

Second option is best. Acquire a big publisher and keep the games multiplat. This business is about the dollar (or other currency depending on region). Their revenue would boom and they would still pump out exclusives to sell their console. Minecraft is a great example of this imo.

[343_Guilty_Spark]

I’d keep BF, MADDEN, Live, sports games and PvZ NFS multiplat but games like Anthem, Deadspace, Bioware titles...exclusive

[zerocarnage]

Sega I always said Microsoft should buy, they have it all what ms need and it could help them in Asia. SEGA are now at a point where they're into the mobile gaming service to me it's been a step back after step back especially when they have so much at there disposal that they could release on console. If Microsoft did buy them and supported them heavily it would be great for Microsoft, SEGA and Xbox owners.

Sega are worth about 3.7 billion dollars, if I were Microsoft I'd make a 5.5 billion dollar bid, I think Sega would sell at the rite price because of where they are now instead of where they started and loved to be.

[sizeofyou]

Exactly what it needs...or the ONLY thing it can do?
If it wants it's own software to further sell its hardware, I see no other option that's timely enough. It's basically what Sony did years ago, but over a prolonged period of time.
I don't think one is enough though. They'll buy, cull 00s of staff to focus on a smaller number of releases, but won't be able to cycle through studio releases like Sony do...yet...

[Elda]

MS/XBO needs to search for talented developers & start building first party studios from the ground up to start making names for themselves instead of trying to buy up well established studios & company's & stamping their names on them.

[starchild]

They can do both, just as Sony has done. Or do you forget that many of Sony's best studios were acquisitions? Naughty Dog, Guerrilla and Sucker Punch were all bought, for example.

[Elda]

Those developers were not well established huge companies like Valve & EA,those were small time developers developing games for Sony.

[headblackman]

the negative comments are coming from fear. ive always said that this is why fanboys don't like ms. it's not because they're incapable of doing a good job in gaming. it's because they fear the money, intelligence, and the power that they have. ms is the only company that literally has the money, intelligence and the power to buy everything good in gaming and for fanboys who feel like it's a sin to buy anything other than they're platform of choice, sees this as potential loss for they console and. if everything good is on the other platform then it devalues their console of choice and the burns them up. so im rooting for ms in these purchases and i hope they add others like ubisoft, sega, and activision. do this and they've sealed the market up (even if they allow the games to continue as multiplatform titles)

[LP-Eleven]

All of that "money, intelligence, and power" has never lead them to a victorious 1st place in any of the generations they've been involved in. Rather, you place too much emphasis on what a few fans think.

What you should want is for Microsoft to actually build a sold base with which to fight from. That base is called 1st Party. acquisitions are great and all, but what is their track record in the industry? Did Rare excel after being purchased? Minecraft (MoJang) was a safe buy, but that's about it and it hasn't helped Xbox in the ways needed to establish itself as something other than the US/UK-dudebro brand.

There is a reason Nintendo and Sony have many, many, MANY more fans. They've have always appealed to more than just a select few types of people and they are seeing the rewards from this very thing as we speak. You should want the same from Microsoft, not just an excuse to point fingers at sloppy assumptions of "fear" from forum-goers.

[Tross]

What's with all these articles lately? No, MS buying more studios and sitting on them like they do with the ones they currently own won't solve anything. They actually have some pretty good studios. They should consider actually using them for a change. Besides, MS acquiring a studio would mean they would only have one or two more games in them before being forgotten about, and would just ensure that no one else can have that company's games. N4G really needs a filter that auto-fails these kinds of fanboy articles.

[DrumBeat]

Good, gooooooooooooooooooood. :)

[DivineAssault]

I dont think so.. They bought rare and look what happened.. If they let the devs do what they intend to do without publisher pressure it would be cool but thats doubtful..

[Jalapeno]

If that leads Madden, NBA LIve, and NHL being ported to Windows & Mobile, I’d say it would Ben worth it for MS to buy EA.

[TheOttomatic91]

Ya it would help but I doubt it’s going to happen