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Xbox Boss Phil Spencer Explains Why He Doesn't Need to Buy EA; Talks About Next-Gen Hardware

Today Microsoft's Xbox Division head Phil Spencer talked at the Barclays 2018 Global Technology, Media and Telecommunications Conference, providing more info on the company's business and plans.

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Septic7d ago

Buying out SEGA would make more sense to me considering the close association of the original Dreamcast with MS and also the DNA of the original Xbox.

The studios MS has bought up this year are quite diverse so we should get some variety next gen. Whether or not those games will be good though is an entirely different question.

OT- Giuseppe (I know how to pronounce this) at Twinfinite now? Thought you owned DS? Well, good luck at your new home.

Abriael7d ago (Edited 7d ago )

Nah, I was only the News Editor, so I simply moved my soapbox at Twinfinite in the same role :D It's funny how many thought that, tho :D Thanks.

darthv726d ago

Yeah, MS doesn't need to buy EA. They need to buy smaller devs that they can nurture and help grow to be great devs.

NewMonday6d ago

don't need EA, MS are on the right track with the developer selections recently, just need to follow through and deliver.

FallenAngel19847d ago

“Buying out SEGA would make more sense to me considering the close association of the original Dreamcast with MS and also the DNA of the original Xbox.“

Why would that make any sense now? No Sega game sells more on Xbox than it does on other platforms. Plus the various Sega games that haven’t released on an Xbox console would just die out, especially the Japanese oriented ones.

Apocalypse Shadow7d ago (Edited 7d ago )

Yeah. It sound crazy. Why would Sammy sell sega when they can continue to make money off of them?

And two, Japanese games are mostly shunned by the Xbox crowed while Sega's games are selling quite well on playstation with many being exclusive.

Septic is talking nonsense. Sammy didn't merge with sega to be bought by an American company.

trouble_bubble6d ago

Sega still makes games that are Japan first. Yakuza games only get localized west years later. Xbox doesn’t have the presence in Japan to go exclusive anything there.They’d literally lose 99% of that game’s audience.

Better off buying Sleeping Dogs and bringing back True Crime.

Obscure_Observer6d ago

@FallenAngel1984

"Why would that make any sense now? No Sega game sells more on Xbox than it does on other platforms."

Some people would say the same thing about Ninja Theory before Phil acquired them. :p

majiebeast6d ago

@obscure

Yeah and they will get shut down when the next game bombs and i cant wait to see it happen.

giovanealex6d ago

@majiebeast oooh, you are so sad, aren't you? LOL!

Jarrodlamp19806d ago

Buy out SEGA the make Bayonetta 3 on the next xbox. I would xbox & Bayonetta 3 because i love sega & Bayonetta 3

Imortus_san6d ago

It makes sence because it would make a huge dent on the Playstation fans.

darthv726d ago

"Sammy didn't merge with sega to be bought by an American company."

You do know that SEGA started out as an American company... right? It was created in Honolulu Hawaii in 1940 as Standard Games and then years later they changed to SErvice GAmes... SEGA

+ Show (5) more repliesLast reply 6d ago
gamingunited7d ago (Edited 7d ago )

Sega's game division is owed by Sega Sammy Holding. It's not going to be for sale. It's funny how people just think buying a gaming studio is like going to the self check-out a the supermarket.

NarutoFox7d ago (Edited 7d ago )

"It's funny how people just think buying a gaming studio is like going to the self check-out a the supermarket"

I know right. I wonder how much it cost to buy a studio? Millions

gamingunited7d ago

The point isn't really the cost, it's the willingness of a company like Sega/Sammy to sell. And the cost wouldn't be millions, Sega Sammy is a multi-billion dollar company.

BioNeo6d ago

Microsoft paid 1.8 billion dollars for SKYPE, I don't see why they won't do the same for something obviously better than Skype.

Valkron16d ago

How much did MS pay for Minecraft?

+ Show (3) more repliesLast reply 5d ago
neutralgamer19926d ago

Septic

If sega or Capcom ever needs to be bought out than it will be Sony or Nintendo. There are Japanese laws that will prevent American company to buy sega

DarXyde6d ago

You think Microsoft should buy SEGA?

Screw that. That would result in acquiring Atlus, and I'm not with that idea one bit.

Imortus_san6d ago

If they could buy Capcom and, spin out huge collections of their arcade games, plus a new Mega Man Legends 3, now that would be great.

Veneno6d ago

If anything other companies should consider buying the Xbox brand and see if they can turn it around.

+ Show (4) more repliesLast reply 5d ago
FallenAngel19847d ago

Microsoft can’t buy EA period. That publisher makes way too much money as a multiplatform company that Microsoft wouldn’t be able to make any bid as a buyout that’d be more lucrative than what they continue making on their own.

In fact no major publisher has any reason to sell out like that. This was already discussed at the beginning of the year when people thought Microsoft might actually buy on of the top dog third party publishers.

rainslacker7d ago

I suppose they could, but it wouldn't be just a simple buy out. I'm also not sure that the board on MS would even be game to try and take a controlling interest in the company. That would be quite the investment, and take quite a bit of time, and as soon as takeover talks began, the shares would inflate, then go back down after it were all done, causing MS to have an instant loss on their hands....not to mention the loss in value that would come along because using it to leverage Windows or Xbox would significantly reduce the revenue that EA gets. Madden, FIFA, and Star Wars would be unaffected because EA is required to make those multi-plat through the license.

MS is much better off just buying studios. Maybe buying a studio off EA even. But a whole publisher, especially the size of EA, is just a poor business decision. MS doesn't need a publishing house, as they already have their own.

Obscure_Observer6d ago

@rainslacker

"MS is much better off just buying studios. Maybe buying a studio off EA even. But a whole publisher, especially the size of EA, is just a poor business decision. MS doesn't need a publishing house, as they already have their own."

Yes, that´s what he said. Phil wants Game Pass to be the "Netflix' of gaming so to acquire/create more studios to create more first party content just make sense to achieve that goal.

rainslacker6d ago

I know what Phil said. I read the article. I wasn't making a comment on what they should or shouldn't do. I was replying to the original poster talking about the business side of things, not MS reasons for buying, or not buying EA.

Bigpappy6d ago

Sure they can. Just need to buy up most of their shares in the market.

shiva16d ago (Edited 6d ago )

Microsoft brought Linkedin for 26.2 billion. If Satya Nadella is given the right justification to buy out then money is not a big deal for microsoft....

So the guy who speaks to Satya is not keen in EA.... It will not happen. It was asked and Phil gave inputs of what he thought.

He has given a comment that this was thought out, which im pretty sure they had a pretty good discussion and if EA was brought, then people would have been fired due to management layers....

giovanealex6d ago

"Microsoft can’t buy EA period." ( FallenAngel1984)

I found the guy who didn't read the article.

timlot6d ago

Why would Microsoft buy EA to make it exclusive? Minecraft is still everywhere. You think in the NFL is going to let Madden be exclusive.

+ Show (1) more replyLast reply 6d ago
SpaceRanger7d ago

“The thing I love about Fortnite is that it happened on our platform. It happened on other platforms as well, but we were able to reap the benefits of Fortnite’s success without actually investing in Fortnite as a specific form of content.”

No but they invested heavily in and launched a buggy mess with PUBG which ended up getting eaten up by the stupid crazy uptake in Fortnite.

rainslacker7d ago

Ironically, he probably hated Fortnite for pretty much instantly taking a lot of the hype away from their PUBG exclusivity. That died out practically overnight, except among some of the console war warriors who tried in vain to justify the buggy mess, and extreme lack of content that was PUBG.

If anything, it was that hype from PUBG on consoles perpetuated by the console war, that opened the door for Epic to swoop in and get everyone on board their product instead. It was rather clever of Epic to be honest. If they had charged for that portion of the game, it probably wouldn't be raking in billions in revenue right now.

Apocalypse Shadow7d ago (Edited 7d ago )

Hey space, you know what's also funny and we still don't see barely any outrage?

You see where he says "reap the benefits?"

Of course when they have fortnite, a F2P game behind a paywall.

They're definitely reaping the benefits. Buckets of anti consumer cash money.

gangsta_red7d ago

Launched? You mean when PUBG was in early access on Xbox?

SpaceRanger7d ago

Yup, when it launched in early access and even its “official” launch. It’s still a buggy mess right now.

gangsta_red6d ago

Well, yeah it was buggy in early access. I would think that's a given.

But you're seriously over exaggerating if you're saying it's a buggy mess now.

giovanealex6d ago

@SpaceRanger you have never played it, of course.
NEXT!

spicelicka6d ago

That's unrelated to Fortnite. Even if they could foresee the buggyness of PUBG it's not like they could invest that money in Fortnite. Seems like an unnecessary plug you added there.

Gamist2dot06d ago

"...but we were able to reap the benefits of Fortnite’s success without actually investing in Fortnite as a specific form of content."

Translation: We made people pay for Live to play a popular Free-to-Play game muahahahahahhahaha..."

+ Show (4) more repliesLast reply 6d ago
rainslacker7d ago

LOL. Doesn't need to buy? As if that's an easy option? How about you can't just buy EA. That would take a hostile takeover, and would take quite a bit of effort, considering EA is worth a lot of money, and while MS has more, I doubt they are going to invest that much for another publisher. MS could certainly invest in EA through buying shares, and maybe even buy up enough to have a strong controlling influence....possibly even enough to control the board to a great extent. But in doing so, there is no reason for them to change the operations of the company, because that would ultimately devalue the brand if they leveraged it for PC and XBox. There is no point investing just to devalue the acquisition.

Apocalypse Shadow7d ago (Edited 7d ago )

What he doesn't say is that they couldn't afford the price of EA and what EA's investors would want from lost revenue and future revenue on other platforms that make them money.

What he also doesn't talk about is the loss in EA's multiplatform licenses that would be revoked. Giving other 3rd parties opportunity to create and license star wars, nfl,fifa, etc. And outdo them like nba 2K does to live.

And the amount of developers they would have to manage. They can barely manage a few without closing them. Also, a lot of positions would be redundant resulting in many job losses.

Best bet is to continue to enjoy EA's support they already get and look for opportunities for exclusive content.

gamingunited7d ago

Phil is lying after he buys Steam, Activision, Ubisoft, Square/Enix Sega, and of course Nintendo and Sony they are still going to buy EA.

Apocalypse Shadow7d ago

Lol! You know what? How some of them sound, they'll just buy up the whole game industry. We're told they got the money.

Console and PC game industry. Brought to you by Microsoft.