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Is 7.5 billion too much and MS overpaid?

Nikana

Go Go Neo Rangers!
tenor.gif
 

quest

Not Banned from OT
Yes but what choice did they have honesty? Anyone who is opposed what realistic alternative was there? Sony locked up all the 3rd party deals. They needed something big to get fans excited for Tuesday pre orders and reading online it worked.
 
Even disregarding the many developers they will soon own, let's look through the list of IP they will soon own:
- Doom (Massively relevant today, Eternal sold hella well, well known brand even out of gaming)
- Wolfenstein (Relatively big today, the two mainline games this gen were received incredibly well)
- Elder Scrolls (Skyrim, need I say anymore? Elder Scrolls 6 will be huge, exclusive or not)
- Fallout (Pretty much universally beloved game series, very big)

Not to mention the 8 new studios that are now under the XGS wing, and the fact that any new games will be huge AAA games in well known franchises all in Gamepass day one. Even if they overpaid, they will be making their money back in less than 5 years and then some.
 
I'd say so and your example of Star Wars is a good one. Everyone has differing opinions of the Sequel Trilogy, but leading up to The Force Awakens, the WORLD was hype af for new Star Wars. Disney fumbled the films and EA fumbled the games, and we are where we are, but buying Star Wars for $4 Billion seemed like a steal in 2012. The possibilities were endless. $7.5 Billion for Bethesda...? That seems like an impulse buy. They were hot back in 2010 coming off Fallout 3, New Vegas, and leading up to Skyrim, but now people pick up a Bethesda game and immediately ask if its been patched yet. Fallout 76 really killed people's good will for their games. Their reputation is of broken glitch fests.
 

jigglet

Banned
George Lucas accepted a low value on purpose because he's stupid.

This is a poor comparison.

Agreed, it's a poor comparison. Disney would have made that money back within just a few movies esp. with merchandising and licensing rights.

Minecraft is also a bad yardstick too since that went too cheap as well. What was it, $2.5b? For something that has been consistently been in the top 10 sellers for like 10+ years now? lol
 

jakinov

Member
There's a lot of intellectual properties beyond the franchises; and physical assets across a bunch of subsidies. The fact that the company makes money and likely to continue to, is a huge factor. Star WArs is bigger than any franchise IP individually but there's a lot more than 1 franchise at play, Lucasfilm didn't have a lot of asserts, it didn't even have it's own distribution rights. and overall the scope of the deal was just smaller because Lucasfilm was just one small mostly monolithic company that had 1 IP that was super valuable.
 
Yes they overpaid. About $5b too much. But...
It now triples the value of their entire xbox division.

Rupert Murdoch once said that you can't buy opportunity. Microsoft have paid for the opportunity to completely change the landscape of the market.
 

TGO

Hype Train conductor. Works harder than it steams.
Depends, I mean outside of Evil Within most of those IP's have some Xbox heritage and are popular to the Xbox fanbase.
But was they going anywhere if MS didn't buy them?
 

docbot

Banned
world is really broken, considering all the devs having to work overtime, going borderline insane and then they're just getting traded over to MS without seeing any of the cash lol
 
world is really broken, considering all the devs having to work overtime, going borderline insane and then they're just getting traded over to MS without seeing any of the cash lol
Why would they get any cash? They get extra money for the overtime they do and that's all they deserve. They didn't put in any of the risk to build the company they don't get any of the reward.
 

killatopak

Gold Member
I think it should have been less.

They have great IPs but fumbled them in a lot of ways so I thought they have overpaid for it.

The only IPs that are currently successful are Elder Scrolls and Doom. They fucked up Fallout and Rage.

Of course they can make it better once it is in the Xbox umbrella but before that Zenimax as a whole was on a downhill.
 
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docbot

Banned
Why would they get any cash? They get extra money for the overtime they do and that's all they deserve. They didn't put in any of the risk to build the company they don't get any of the reward.
it's ultimately their hard creative and technical work that created the value. it's just insane to me that now people are getting billions for the nerdy work of others while half of the US is going to shit.

I know it's nothing unusual, but just showed me again how broken I find the system to be. these monolithic structures are cancer
 
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it's ultimately their creative and technical work that created the value. it's just insane to me that now people are getting billions for the nerdy work of others while half of the US is going to shit.

I know it's nothing unusual, but just showed me again how broken I find the system to be.
Yea its their work, but its not their company. They can build their own company if they wanted, but they don't because of how risky it is and how big of an investment it is. The people that take that risk and put in that investment reap the rewards. Some random developer that works at a studio when it gets sold doesn't deserve any of the cash that the company was sold for.
 

truth411

Member
Yes but what choice did they have honesty? Anyone who is opposed what realistic alternative was there? Sony locked up all the 3rd party deals. They needed something big to get fans excited for Tuesday pre orders and reading online it worked.
This has nothing to do with preorders, it has everything to do with GamePass.
 

diffusionx

Gold Member
The only comparable purchase I can think of was Minecraft which was also purchased by MS. They spent $2.5B on that game six years ago, and it seems like a great steal today. So along those lines, I think $7.5B for Zenimax and all their franchises is a pretty reasonable price.
 

Kenpachii

Member
Yes but what choice did they have honesty? Anyone who is opposed what realistic alternative was there? Sony locked up all the 3rd party deals. They needed something big to get fans excited for Tuesday pre orders and reading online it worked.

What does sony got locked up exactly?
 
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