490°

Microsoft aren’t making a monopoly by buying Activision, they’re protecting one

G from WASDuk ponders what does Microsoft actually has to gain from their recent acquisitions, other than the obvious.

XiNatsuDragnel808d ago

I feel they are trying to making monopoly due to solely of having COD- one if not the biggest game for the competing platform PS in my opinion that's why I think it's a monopoly.

ABizzel1807d ago

Is the Activision deal a monopoly, No. The issue isn't this specific deal, it's what happens if/when this goes through and will future acquisitions be considered monopoly tactics. Microsoft has a 40 year history of being sued for constantly engaging in monopoly like tactics. They have PLENTY of lawsuits against them from consumers / states / countries / antitrust charges / and more for price gauging, anti-competition practices, etc...

So the legal standpoint is do you let the company that has a history of being sued every decade and dragging out said court trails for over a decade for monopoly like tactics start deploying those same tactics into another area of their business. That's the issue the MS faces.

Xbox fans need to be worried more about what MS plans to raise GamePass up to after these acquisitions and their games/products start to release. They tried to double the cost of XBLG annual subscription and gamers collectively shut it down. But what happens if they say it's worth $20/mo. at the launch of Starfield, and when they have COD in GP and they say it's worth $25/mo and then $30/mo before the end of the falling year.

Sound crazy, but that's exactly what they did with Office. Turned it into a subscription based service as well.
Then Increased the price of it by 10% last year, and within the same calendar year had another price increase of 20%.

Prime157807d ago (Edited 807d ago )

Nice argument as to why it's not even close.

Edit: I'm not saying I disagree. I'm saying I'm tired of one sentence rebuttals. If you can't state a different perspective, then what are you offering?

People need to stop buying into one sentence cast-offs and non-arguments.

Locutus_of_borg807d ago

“ Xbox fans need to be worried more about what MS plans to raise GamePass up to after these acquisitions and their games/products start to release.”

I can only speak for myself, but if/when game pass price increases beyond a point that I feel doesn’t give me value then I’ll just cancel anyway and go back to buying my games … I’m fairly certain everyone has their own level and a price increase could loose them millions is subscribers, Microsoft has to tread a very fine line with subscription price

ABizzel1807d ago (Edited 807d ago )

@Loctus

Therein is the issue, by the point people have had enough, the masses will be so indoctrinated into just staying with subscriptions that it'll be hard not to have it, especially if physical copy releases start to diminish due to subscription services.

The DVD/Blu Ray industry has dropped down to 10% of the annual physical sales that it was less than 10 years ago due to streaming / on demand. CDs have dropped down to the same result and have been at a low since 2004 (closing in on 20 years). Physical media will be a slow and dying format by the time people finally say enough it's too much. People were complaining about $70 physical games, if physical sales fall off to just 10%, or even 50% of what they are now, because half the gamers are signed up for these subscription services, then they're going to have a heart attack if physical copies are only released as limited editions or premium editions starting at $99 to help make up for the loss of sales, and to make lower production numbers even worth having a physical copy.

Financially I'm not bothered with the cost per say, and I can see the value in such services, especially for parents of gamer kids (it's a set it and forget it type of deal). Even at $30/mo. and maybe even up to $50/mo with an EXTREMELY overhaul of content and benefits could I see myself paying for such as service, but it's also because I've already accepted that this is the path that gamers have chosen, PS Spartacus could likely be a similar solution, gamers (specifically Xbox gamers) are continuously marketing their own financial trap of championing GamePass and not buying games at retail at a staggering rate (sales of multiplatform games are still heavily in favor of PS), "Is it coming to GamePass" and "I'll wait for it come to GamePass" are two of the most common phrases regarding games launching on Xbox.

This is the path MS wants the industry to move towards. Once again it's the same thing they did with Office and Azure, and if they could do it without backlash they'd make Windows OS a subscription service as well. Pay your monthly or annual subscription to access Windows coming 2030 isn't as farfetched as it sounds, based on their history. And the only thing holding them back is potential competition (if they charge for Windows they run the risk of their OME monopoly starting to make more Android OS based desktop and laptops going forward giving Google an opportunity to take a large portion of that market share).

Companies need checks and balances.

+ Show (1) more replyLast reply 807d ago
thesoftware730808d ago (Edited 808d ago )

Then you don't know what a monopoly is.

Did you read that they would still be smaller than Sony even with this Acquisition?

purple101808d ago

In what respect? Games sold per year?

I'm interested.

Also.. talking of interest

. Cod at its peak was 18- 19 million playstation and 18-19 million Xbox.

Nowadays interest has waned, it's down to 18million ps5 and
12 million Xbox.

So deffo a drop of of players compared to it's height.

Kerppamaister808d ago

@Purple money gained selling games.

LucasRuinedChildhood808d ago (Edited 808d ago )

"Did you read that they would still be smaller than Sony even with this Acquisition?"

This talking point is based on an objectively false assumption. It assumes that Sony and MS's (combined with Activision's) revenue would remain roughly the same if the biggest gaming franchise was removed from Sony's platform.

We all know that's not true. Sony would lose billions from their yearly revenue through lower console sales (although, maybe not immediately) and no 30% cut from mainline COD games post 2023. Please be honest, lads.

dumahim808d ago

@LucasRuinedChildhood

There's already deals in place that MS has to honor. There's still 3 more that will still be on PS. After that, who knows. While Sony would be losing revenue from COD going away, MS will also lose money compared to what Activision was making on it being multiplat.

Crows90808d ago

No. They're not smaller. Maybe technically smaller but in terms of mainstream gaming they now have the biggest titles.

All of Bethesda and all of Activision. Including all their studios. That's about 90% of all mutliplatform bug name publishers.

DOMination-808d ago

"In what respect?"

https://en.wikipedia.org/wi...

Scroll down to the Rankings table.

"All of Bethesda and all of Activision. Including all their studios. That's about 90% of all mutliplatform bug name publishers."

90% would probably be the definition of a monopoly but.. seriously? No it isn't. Not even close. Just take a look at the link above. The list of publishers is endless. Of the most well known, these are still alive and kicking: EA, Ubisoft, Tencent, Epic, Embracer, Warner, Take-2, Capcom, Namco, Square, Valve, CDPR, Sega, 505..

If anyone has a "monopoly", it's Sony Interactive Entertainment because they have by far the biggest revenue and profits, even after the MS acquisition of AB and Beth. You can't be a "monopoly" for being the third biggest!

theindiearmy808d ago

@Lucas

"We all know that's not true. Sony would lose billions from their yearly revenue through lower console sales (although, maybe not immediately) and no 30% cut from mainline COD games post 2023. Please be honest, lads."

Yes, and Activision would no longer receive their cut of the sale anymore either. Which is larger than 30%. So no matter how you slice it, a MS/Acti combination will still be behind Sony when it comes to revenue. The only way that would change if is a majority of the COD players switch to Xbox, which isn't going to happen when they can't even make enough consoles for the demand before that hypothetical.

DarXyde807d ago

You're missing a lot of important context and nuance.

Bigger than Microsoft, yes, but oddly absent is any mention of Microsoft centralizing massive aspects of the gaming industry. The time and money invested in those games by consumers are pretty outlandish. You don't think it's even slightly off that the same company owns Minecraft, Elder Scrolls, Fallout, Candy Crush, and Call of Duty? And not through organic growth, but through throwing money at the problem?

Separately, it's one thing. Acquire maybe one or two and that's pretty bad, but whatever. But all three? You don't think this is a dangerous precedent? You don't see the budding Monopoly?

All of this to pad XGP, knowing people are very likely to take this up.

People are too short-sighted to understand that this is the first step in something colossally damaging.

If it isn't a monopoly yet, it's damn well on its way to becoming one.

Prime157807d ago (Edited 807d ago )

Microsoft's total total assets are valued over a trillion, while Sony's total assets are valued at less then 100 billion.

Microsoft's worth is 10x-20x more than Sony.

"Not a Monopoly" as they swing their Monopoly money to go from 0 in the gaming department to buying Sony's total worth in publishers.

It's delusional.

Stop comparing XBox to PlayStation if you want to talk about monopolies.

+ Show (6) more repliesLast reply 807d ago
green808d ago (Edited 808d ago )

Do you even know what a monolopy is? This is not even remotely close to being one.

EDIT: To anyone disagreeing, then show actual stats (not feelings) of how this acquisition is a monopoly?

When Disney purchased Fox, their market share of the movie industry was 35%. The Fox deal took them to 40% and the deal was still approved by the FTC.

According to Newzoo, Microsoft's gaming market share was 6.5% in 2020 and adding Activision would take it to 10.7%. How on earth is 10.7% even close to a monopoly? lol

Kerppamaister808d ago

Well, somebody said it in a tweet or video or something and now peggies and ponies are running with it.

Silly gameAr808d ago

You didn't mention the best example of a monolopy. Windows. You know, the other monolopy that MS created?

green808d ago

@Silly gamerAr

I was not trying to educate him on what a monopoly is but to tell him how this is not a monopoly. Maybe you can emlighten us on how Microsofts 1998 lawsuit that saw them accused of trying to create a monopoly that led to the collapse of rival Netscape by giving its browser software for free with its 98% share OS, is similar to Mictosoft buying Activision?

thesoftware730808d ago

Thank you for applying sound logic green.

But I fear that it will go unacknowledged based of of what people like.

If you think about their arguments, which is clearly based on their feelings, and not the truth, they are saying MS is now more well equipped than Sony. Their arguments are more Inductive than deductive.

Prime157807d ago

I love all the people comparing the gaming market share as if that means anything.

Horizontal integration may not be a monopoly by law, but it has the same ramifications that vertical monopolies of the past had.

If you're comparing Microsoft vs Sony as monopolies, but you're only talking about XBox and PlayStation, then you're bringing micro understanding to a macro discussion. Please stop.

Microsoft as a whole is valued over a TRILLION dollars. Sony as a whole is valued at around 80 billion. Horizontal monopolies need to be a discussion for the future of humanity and capitalism. They have similar ramifications to vertical monopolies.

Here's the whole data that people are forgetting when they wrongly compare XBox to PlayStation instead of Microsoft to Sony, and the semantics matter:

Microsoft just spent Sony's total value to acquire 2 publishers for its gaming departments.

So, while I agree with this article's point that Microsoft is trying to block Apple, Google, and Facebook's entry into the gaming market share... By no means does this move disprove Microsoft as a whole being just as bad as Apple, Google, and Facebook where Sony's total value is decimated...

Not that Sony isn't a giant in its own right, either.

dominicdecoco807d ago

Honestly, I'm not worried about a monopoly cause that will probably never happen. Instead, we should be worried about an oligopoly something very common in the US and is known to cause problems. ( AT&T, Verizon, T mobile) Cause we should be worried about this industry becoming one controlled by Sony, Microsoft, Tencent

+ Show (3) more repliesLast reply 807d ago
GrmpyolGamer 808d ago

Tell me U don't know what a monopoly is without telling me you don't know what a monopoly is

CrimsonWing69808d ago

I don’t think that’s how it works.

Zeref808d ago

Call of duty is big but not essential to any platform. Nintendo Switch is doing over a 100 million without COD.

Neofire807d ago

I agree this deal is a monopoly

n1kki6807d ago

Their are 500 publishers and 2500 developers in the US alone. Gamers are morons.

+ Show (5) more repliesLast reply 807d ago
Pancit_Canton808d ago

No. It's a Monopoly. Buying 2 Major Publisher back to back plus planning to buy some more is the very definition of Monopoly.

thesoftware730808d ago (Edited 808d ago )

Pancit,

Wrong...

By your own statement, you are saying they are "PLANNING" a MONOPOLY...so in effect, this is not a monopoly. Its early stages of getting one.

It's like the game monopoly, If you own Boardwalk and Park Place, and a few other properties, you do not have a monopoly, but you are in a great position to win.

FlavorLav01808d ago

And the position was bought and not earned. So how at the end of the day does this deal help gamers? It’s not gonna make Xbox’s IP management any better(Crackdown 3 and Recore). Now they just have more IP to drive into the ground by releasing more unfinished games (Sea of Thieves/Halo Infinite) day 1 on gamepass under the excuse it’s a cheap subscription service. Awesome…great future to look forward to.

Prime157807d ago (Edited 807d ago )

Xbox just spent the entire worth of Sony to compete with PlayStation and/or block Apple, Google, and Facebook.

You all are comparing XBox to PlayStation when the parent companies are worth:

Microsoft: over a trillion or 2 trillion.

Sony: 80ish billion or 120 billion.

https://mobileplusapp.com/s...

https://www.dualshockers.co...

https://www.forbes.com/site...

Microsoft's acquisition literally wiped 20 billion off Sony's market cap.

So, while it's true that Sony still has a bigger gaming market share... That's xbox compared to PlayStation instead of Microsoft compared to Sony.

Sony is decimated or worse by Microsoft, but PlayStation barely hedges over XBox, and that semantic must be recognized when having the "is this a Monopoly" discussion.

Horizontal integration will eventually be understood and seen as a monopoly in the future; whether in our lifetime or outside. It has the same effect as vertical integration which is understood as a monopoly by law and social understanding.

Vasto808d ago

This does not make any sense at all.

Atom666808d ago

Nope -- definitely not the definition of monopoly. Also not what the article is about.

It's about the Activision acquisition warding off others from entering a market controlled by Sony, MS, and Nintendo. It's a good read. When you're done rewriting that dictionary, give it a look.

dumahim808d ago

They don't even have a majority. How in the world is a monopoly?

SyntheticForm807d ago (Edited 807d ago )

It's not, but fan anger will trump truth here. This is absolutely not a monopoly. People claiming so either don't know what a monopoly is, or they just want to scream "monopoly!"

I'm going with the latter.

gangsta_red808d ago

You obviously don't know the definition of monopoly

agnosticgamer808d ago

No. It’s not when you only have 10% of the market. A monopoly is when you own the lions share of the market and can set unreasonable prices for games/services because no one else has the ability to compete. Sony and Nintendo can easily compete in the video game market place even with this… These purchases.

porkChop808d ago

A monopoly would be owning more than 50% of the market. At that point no one would be able to compete with you. But even after the Activision Blizzard deal goes through, Xbox will only account for 10.7% of the gaming market. So explain how that would be a monopoly. The gaming space is way too big for that.

n1kki6807d ago (Edited 807d ago )

Monopoly - the exclusive possession or control of the supply of or trade in a commodity or service.

There are over 500 publishers and 2500 devs in the us. Now go back and read your sentence and tell me how it's a monopoly. They also don't have full control over games services. Sony has one, EA has one, Ubisoft has one, Amazon has one, apple has one, Google has one. If you think this is a MONOpoly then you have no clue what a monopoly is.

Sitdown807d ago

This clearly is a designated troll account by the owners of this website in order to get his by people trying to reply to this outrageous notion...this can be the only explanation for this uninformed take.

+ Show (7) more repliesLast reply 807d ago
Flawlessmic808d ago

There not doing either of the things stated

senorfartcushion808d ago

I agree with the statement in the headline. The article too

Outside_ofthe_Box808d ago

Good guy Microsoft is protecting us from big bad Facebook Apple Netflix Google. All hail Phil 🙌

gamer7804808d ago

Those companies you mentioned are the last ones you want to get a stranglehold on a bunch of devs of this caliber

Outside_ofthe_Box808d ago

You don't want any one company getting a stronghold on anything. Doesn't matter the company.

SolidBoss816807d ago (Edited 807d ago )

Let’s not forget Tencent too… those are the companies that can spend as much as Microsoft especially Apple if those wanted too

Show all comments (113)
100°

Outriders Dev's Next Game Has Been Canceled After Publishing Agreement With Take-Two Fell Through

Outriders developer People Can Fly's next game has been canceled after its publishing agreement with Take-Two Interactive fell through.

Read Full Story >>
twistedvoxel.com
Tacoboto1d 10h ago

"the capital group of PCF Group S.A."

If you're getting funding from a group that needs two different ways of Acronyming itself, things will not go the way you want them to.

banger881d 5h ago

If it was more online-only crap then good riddance.

jjb198115h ago

Outriders was crap. They slapped that game together and threw in a loot system to get players' attention. This game was absolutely jank and the always online nonsense made it stutter like crazy. People Can't Optimize.

thorstein14h ago

I liked Outriders but I could see where the artistic vision was compromised. The way the industry is now, it wouldn't surprise me that upper management would scrap something that didn't pull in money via gaas, mts, or other means.

280°

Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

Read Full Story >>
theverge.com
darthv721d 8h ago

Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.

solideagle19h ago

you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)

Sonic188116h ago

I thought darthv72 and Obscure_Observer already work for Microsoft 🤔

dveio16h ago

MS: "Xbox services and content without AB up 1%, with AB up 62%. Hardware down 31%. In total a loss of 350 mill."

darthv72: "Seems about right."

MS: "Excuse m ..."

darthv72: "I don't hardly play on my consoles directly."

MS:

Lightning7711h ago

What he said was facts. How he plays games is no concern of you. Don't get too mad about it.

Cacabunga19h ago

I can tell people like you are an absolute minority..

If service is up means their fans and fanboys accepted this model and subscribed to it. The near future you will see a big decline because the service is saturated.

darthv725h ago

to you it may seem like the minority... but your bubble is shrinking because more and more are following suit. convenience is a hell of a drug and its also why physical sales only amount to 30% of overall game sales. times are changing, you either get with them or you get left behind.

neutralgamer199213m ago

Darth

30% physical sales: yet Phil and xbox division are in a rush go give up on that 30%. they don't have any right to give up any piece of the pie since the control such a little of the pie to begin with

also, the market is clearly speaking that the model Xbox is pushing isn't working right now the keyword being right now. you are right about freedom to play anywhere so i hope they put their games on steam

shinoff218318h ago

But that's been ms for years. When things aren't going their way they try to change the way things are said. For instance console sales are down, they stop telling how many sold instead telling us how many hours spent in halo or headshots. So it makes sense console sales down just say people are playing on more devices then previous. What they won't say is how many xbox players jumped ship to ps5.

Cacabunga17h ago

Hardware sales are so bad that Sony and Nintendo are blowing the sales off the water with their hardware.

If Xbox are losers, others aren’t..
Xbox already tried everything with Xbox live then subscriptions went down so much that they had to find something else. Their fans subscribed then reached saturation rather quickly.

Hardware and exclusive games is where it’s at! Keep gamers excited, announce decent software and people will support you

itsmebryan12h ago

@shin
Well keep it simple Sony 's operating income is down 26% and Microsoft's is up 32%. No MS spin there, just facts. 😉
Cheers

S2Killinit5h ago

MS is after diminishing consoles as a medium. They want to destroy this market because they couldnt win. MS’s vision is to dissolve console gaming.

romulus2311h ago

Odd that a company that touts you dont need the hardware to play is already touting another console in the works.

darthv7211h ago

They are not reliant on the HW but still want to maintain a presence (no matter how small) is a good thing. It shows commitment to the craft. It reminds me of SNK and how they made games for their own hardware (Neo Geo) while also making them for others because they knew there was a market to do so. They knew they would sell more to others but also sell to their own niche fan base.

TheEroica5h ago(Edited 5h ago)

Perfectly reasonable post down voted by insecure corporation friendly folk.... But not gamers. Real gamer want accessibility and ease of acquisition for all.... Company shills are the only ones still telling us that hardware locking people from games is good for us.

Chevalier18m ago

@Darth

You should stop parroting metrics like an idiot without context.

"Xbox content and services revenue grew 62% in Q3 from a year earlier, “driven by 61 points of net impact” from the purchase of the third-party video game giant, Microsoft said."

61 of the 62% was from their merger so net increase is ONLY 1%

https://www.mesaonline.org/...

+ Show (4) more repliesLast reply 13m ago
purple10121h ago

Xbox hardware revenue tanks to lowest point of Xbox Series generation

Profchaos21h ago

I'm not surprised surface is struggling they aren't relevant anymore

DOMination-11h ago

In the last two years they've started exiting the consumer market altogether. All of the newest Surface products are business models only. They can't seem to work out what they want to do with it.

XBManiac20h ago

Too expensive hardware when others offer the same or more for less? Good work, Green Team.

SimpleDad20h ago(Edited 20h ago)

"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."

That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.

purple10120h ago

Activision: "we gonna need a bigger rucksack/backpack please"

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

Profchaos19h ago(Edited 19h ago)

Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk

It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD

Kornholic18h ago

So basically PS and PC gamers' money is keeping Xbox on life support.

MrDead11h ago

The only growth MS will get out of the console industry is if it supports it's rivals platforms. Xbox is a pointless machine now. I can see them on a big push for live next, and they won't give up on trying to buy Steam.

+ Show (1) more replyLast reply 11h ago
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90°

An Update on This Year’s BlizzCon and Blizzard’s 2024 Live Events

Blizzard writes: "After careful consideration over the last year, we at Blizzard have made the decision not to hold BlizzCon in 2024. This decision was not made lightly as BlizzCon remains a very special event for all of us, and we know many of you look forward to it. While we’re approaching this year differently and as we have explored different event formats in the past, rest assured that we are just as excited as ever to bring BlizzCon back in future years."

Read Full Story >>
blizzcon.com
PRIMORDUS1d 6h ago

How about you not hold Blizzcon anymore period. You fucking POS company. I really hope Blizzard would just die.