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News Bloomberg: Microsoft is seeking to make acquisitions in Japan

Kumomeme

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i think it not easy for them to acquire big publisher due to the country regulation. but rather than spend big on big boys on the block, better they spend smartly on something smaller that would benefit the future line up. they should aim for something that would pay off in long term. no way they can turn the situation at japan in mere blink of an eye. not easy to dethrone sony and nintendo. not to mention japanese gamers preferences over portable console. but they can do something to gain mindshare over time bit by bit. they need to invest at something that would attract japanese market in long term, something that would pay off in next few years or even helped them to gain better foot for another next generation since build a massive mindshare didnt happened in mere generation unless they pull some genius move. Personally rather than acquire things instantly, better for them to build relationship first, make collaboration, or deal sign off, make sure things go smoothly and see the potential then buy them if both party are comfortable and it would benefit the xbox branding later like how sony does with insomniac. they lack of presence there and i doubt they already super familliar with the japanese market. they need to properly gauge the situation overtime, learn, improve and make things better. also they need to tread this carefully to avoid simillar situation like with platinumgames before.

that said, i feel the acquisition intention is more to boolster their gamepass audience than all about pushing xbox brand.

but i hope several studio remain independent like Platinumgames. i want to see they become publisher and remain free on neutral ground in the industry. i love to see how far they can grow.
also same for Fromsoft too, which is under parent company of kadokawa if i not mistaken.
 
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Clarissa

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My friend who is a Nintendo Fanboy who hates Sony wants Microsoft to buy Capcom so that Sony will be fucked but then he remembered that Switch will not have Monster Hunter so he was like "Umm ok nevermind".
 

Valued Gamer

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Japan is is a small market nowadays for consoles.
The Japanese are kinda weird. I mean, have any of you guys watched Japanese Porn?
 

reksveks

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Can someone show me an example of a US company being blocked from buying a Japanese traded company?

As I understand it, the Japanese regulation is more like a CIFUS type of deal which is that it's more specifically about blocking acquisitions that could lead to security concerns aka Chinese companies buying Japanese companies.

On a separate note, is there any big multiplayer games in Japan that isn't big in the West? Those are the type of games/developers that I can see Microsoft going after.
 

Rhazer Fusion

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Microsoft is not buying a Japanese studio to appease the current users. They are buying to bring users from Sony and Nintendo

That’s most likely the case, but Microsoft is going to have to give amazing compensation and make it worthwhile for the studio to make up for presumably missing out on both Sony and Nintendo system’s huge user base. I think some smaller Japanese studios would make more sense, be more cost efficient and can really help diversify Microsoft’s library.
 
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On Demand

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Harder to buy a Japanese company than a U.S. one.

In any case. It ain’t going to be a large one since those audiences are on PlayStation and Nintendo.
 

noshten

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With Nintendo dominating Japan, I don't really think it matters what Sony and Microsoft do. Japanese market and the vast majority of Japanese 3rd party devs will use the Switch as the default platform for their games going forward. Marvelous, Koei, Capcom, Konami, Bandai, Atlus are about to have their best-ever years in decades putting them in a good position in terms of any takeover bids.
The multimillion 3rd Party games in Japan are basically Fortnite, Minecraft, Monster Hunter & Dragon Quest.
Switch basically has Monster Hunter Rise, SMT V, Monster Hunter Stories 2, Rune Factory 5, Olive Town, BOND, Age of Calamity, Bravely Default 2, No More Heroes 3, Bayonetta 3 as 3rd party exclusives in the coming 12 months or so. There might be a lot more game developers that choose this option in 2021. This was recently also demonstrated by the devs behind Hades as they chose the first console they launch their game on to be the Switch.
Japan is the third biggest gaming market, so if Switch represents 90% of the hardware market this will be a substantial shift compared to the time the PS4 launched when Nintendo was struggling. A lot of 3rd Parties shifted away from Nintendo because of the subpar performance by the 3DS in the West compared to the DS, while Wii U cemented their opinion of Nintendo floundering. So the first three years Nintendo didn't really receive much support for the Switch from a third party perspective.
Minecraft is currently the biggest 3rd Party game on the system, with digital sales the game has already surpassed 2 million in Japan. The next biggest third party games on the Switch in Japan are a late port of DQXI, and a drumming and fishing AA games by Bandai - Taiko and Fishing Spirits.

Overall any developer focused on AA games will have Switch as the default platform if they aren't incentivized by some different platform holders be it Epic Store, Playstation ecosystem, GamePass or even Amazon. I don't think we'd see growth for Playstation or Microsoft in terms of their gaming divisions unless they somehow also release their games on the Switch.
 

Sub Boss

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Deals and such sure, actual acquisitions nah i think they are safe,unless its like a very small studio in need the government doesn't like such takeovers
 

sinnergy

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Good , anything that shacks up the industry dominated by one force is a good thing in my opinion.
 

Sub Boss

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With Nintendo dominating Japan, I don't really think it matters what Sony and Microsoft do. Japanese market and the vast majority of Japanese 3rd party devs will use the Switch as the default platform for their games going forward. Marvelous, Koei, Capcom, Konami, Bandai, Atlus are about to have their best-ever years in decades putting them in a good position in terms of any takeover bids.
The multimillion 3rd Party games in Japan are basically Fortnite, Minecraft, Monster Hunter & Dragon Quest.
Switch basically has Monster Hunter Rise, SMT V, Monster Hunter Stories 2, Rune Factory 5, Olive Town, BOND, Age of Calamity, Bravely Default 2, No More Heroes 3, Bayonetta 3 as 3rd party exclusives in the coming 12 months or so. There might be a lot more game developers that choose this option in 2021. This was recently also demonstrated by the devs behind Hades as they chose the first console they launch their game on to be the Switch.
Japan is the third biggest gaming market, so if Switch represents 90% of the hardware market this will be a substantial shift compared to the time the PS4 launched when Nintendo was struggling. A lot of 3rd Parties shifted away from Nintendo because of the subpar performance by the 3DS in the West compared to the DS, while Wii U cemented their opinion of Nintendo floundering. So the first three years Nintendo didn't really receive much support for the Switch from a third party perspective.
Minecraft is currently the biggest 3rd Party game on the system, with digital sales the game has already surpassed 2 million in Japan. The next biggest third party games on the Switch in Japan are a late port of DQXI, and a drumming and fishing AA games by Bandai - Taiko and Fishing Spirits.

Overall any developer focused on AA games will have Switch as the default platform if they aren't incentivized by some different platform holders be it Epic Store, Playstation ecosystem, GamePass or even Amazon. I don't think we'd see growth for Playstation or Microsoft in terms of their gaming divisions unless they somehow also release their games on the Switch.
Thats what fanboys always say every gen then get angry when X game doesn't come to Nintendo lol but PS PC and even Xbox are appealing to the biggest Japanese publishers, there will still be some successful AAA games on other consoles as long as the power gap is huge
 
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Ehh, I really don't like the idea of Microsoft going around with their big sack of money and buying everything in their sight. And yes I would be pissed off if they would bought some devs of my favourite japan IP and lock them to PC/Xbox. Why can't they set up their own studios or buy ones with established and long partnerships like Sony does? And before xbox guys jump on me, if sony all of a sudden randomly bought say random ass developer they hardly had any connection with, it would be retarded too. But yeah hurr durr PS fans would be mad!111 It's always funny people pretend exclusives are shit and big corporations bad!11 but when it comes to buying companies it's 180 turn and suddenly advocating/wishing for it.
 

longdi

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Ehh, I really don't like the idea of Microsoft going around with their big sack of money and buying everything in their sight. And yes I would be pissed off if they would bought some devs of my favourite japan IP and lock them to PC/Xbox. Why can't they set up their own studios or buy ones with established and long partnerships like Sony does? And before xbox guys jump on me, if sony all of a sudden randomly bought say random ass developer they hardly had any connection with, it would be retarded too. But yeah hurr durr PS fans would be mad!111 It's always funny people pretend exclusives are shit and big corporations bad!11 but when it comes to buying companies it's 180 turn and suddenly advocating/wishing for it.

This is just business. The bigger fish gets its prey.
If you read the bloomberg article. Sony, under Jim Ryan, has taken powers away from Sony Japan too. 🤷‍♀️
 
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This is just business. The bigger fish gets its prey.
If you read the bloomberg article. Sony, under Jim Ryan, has taken powers away from Sony Japan too. 🤷‍♀️
I know it's just business but still. I haven't read an article, what does that mean that Jim Ryan has taken power away from them? They can't make decisions on their own or what. Well I think Sony is focusing wayy to much on western markets and to some degree it will bite them in the ass sooner or later.
 
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longdi

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I know it's just business but still. I haven't read an article, what does that mean that Jim Ryan has taken power away from them? They can't make decisions on their own or what. Well I think Sony is focusing wayy to much on western markets and to some degree it will bite them in the ass sooner or later.

From the same article.

The most immediate impact for me is PS5 unvieling was set to US time, meaning in Asia is wee hours of dawn.

Of course when you make a samurai game, it was given to your gaijin developer..

Im not sure if you should look towards Sony if you want strong japanese games in future..

“The Xbox has a chance to make Japan its second-largest market after the U.S. if it takes the right steps for years to come,” said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. “Sony’s attention is drifting away and fans have started to notice that.”

Sony has placed more importance on the U.S. market after the PlayStation 4’s disappointing performance in Japan, according to employees who asked not to be identified discussing internal matters.

A senior figure inside PlayStation headquarters in San Mateo, California, said the U.S. side was frustrated by the failure of the Japan marketing team to sell as many PlayStation 4 units as expected. The person asked not to be identified discussing internal matters.

As a result, Japan has been sidelined in planning the PlayStation 5’s promotion, according to several PlayStation staff in Japan. Employees in Tokyo said they’ve been left awaiting instructions from California.

Japan-based developer support teams have been reduced by as much as a third from their peak, and the rolling contracts of a number of game creators at PlayStation’s Japan Studio, one of the unit’s oldest in-house software ateliers, haven’t been renewed, former employees said. The U.S. office believes the PlayStation business doesn’t need games that only do well in Japan, employees in the California headquarters said.

The PlayStation 5’s two main online promotional events both took place at 5 a.m. in Tokyo -- making them more accessible to American and European fans -- and lacked Japanese translation for some parts. The company also decided to standardize its PS5 control scheme so that Japanese players would have to use X to confirm and O to cancel, like the rest of the world. That reverses a 26-year tradition in a country where circles signify positives and crosses mark negatives.

“It’s analyst consensus that PlayStation no longer sees the Japan market as important,” Morningstar Research analyst Kazunori Ito said. “If you want to know their take on the Japanese market, you need to ask about it because otherwise Sony wouldn’t talk about it.”

TV ownership among Japanese households has been falling for years, according to government data. That makes the market less attractive, according to Ace’s Yasuda. In order to play games on the PlayStation, a user must have a TV or monitor, though some titles are also available to play on PCs.

Serkan Toto, a game consultant in Tokyo, said the PlayStation 5 should sell fewer units than its predecessor.

“Many PlayStation 4 owners in Japan would eventually move to the PlayStation 5, but that would largely depend on how strong the PlayStation team in Tokyo will be in pushing the needs of Japanese customers to the American headquarters,” he said. “Considering the current power balance between the U.S. and Japan, I can’t expect much, unfortunately.”
 
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Rien

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Dont blame Phil.
Read the full article.
In part Jim Sony has taken their eyes off the Japanese markets.
If anything, MS can capitalise and funds big Japanese games.
If they make the games available for everybody else I am okay with it.
 

longdi

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already have.. still not a fan of this approach and I hope it doesn’t blow up in their faces.

Guess are you stuck between 2 rocks.
Sony is weakening their japanese base, MS has a GPU approach and hoping to add more japanese games

If it was me, the GPU works fine. :messenger_savoring:
 

Rien

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Guess are you stuck between 2 rocks.
Sony is weakening their japanese base, MS has a GPU approach and hoping to add more japanese games

If it was me, the GPU works fine. :messenger_savoring:

guess I am hahah.
it doesn’t really matter to me because I will buy both consoles as I always do. Still these acquisitions run me the wrong way
 

Clear

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MS don't have remotely close to enough product focused on the Asian markets to float GamePass in the region, and without buying up half the devs in Japan will take years to build a sufficient warchest of IP to float it.

Without GamePass as a driver USP literally nothing suggests a change in Xbox fortunes for the region. Any Japanese company bought by MS will primarily be expected to serve Western markets with minimal success and exposure at home.

Thats simple reality.

If they'd actually stuck with the task after the initial volleys on OG Xbox and 360 they'd have built up a presence by now, but every time they've quickly lost interest and as a result their market and mindshare has remained marginal. Especially as over the current gen they've shown practically zero interest in addressing the market, I mean Recore from back in 2016 is the last Japanese exclusive of any scale I can remember them actually publishing.
 

noshten

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Thats what fanboys always say every gen then get angry when X game doesn't come to Nintendo lol but PS PC and even Xbox are appealing to the biggest Japanese publishers, there will still be some successful AAA games on other consoles as long as the power gap is huge

Japan is still the third-largest video game market and the rest of Asia is also seemingly also trending towards Nintendo.

This year Nintendo is closing in on something like 85% of the Japanese Video game market. Next year it will be over 90%.
In the Wii/DS era, their previous peak Nintendo only had like 65% of the market - the PSP did great numbers ofr third parties. Between the PS3/PSV Sony sold like 100 million physical software in Japan, right now the PS4 is only around 40 million physical software so serious decline compared to the prior gen. The PS5 will see an additional decline in both software and hardware sales since a lot of the AA exclusives that used to automatically go to the PS3/PS4/PSV are now on the Switch.
Japanese Devs actually do care about doing well in their home market. So offering them to make exclusive games that only reach 10% of their market, isn't going to be especially attractive without incentivizing it.

Power gap is huge but the majority of Japanese 3rd parties aren't competing with AAA publishers. If you are talking about a handful of companies like Take Two, EA, behind the biggest hits on the systems like FIFA, GTA, COD etc yeah I do agree those have an interest in supporting the new consoles more. For example, EA has barely bothered to support the Switch and GTA isn't even launched on it. Compare that to Capcom who after having a massive hit with Monster Hunter World, reveals a Switch exclusive game not pushing the graphical boundaries,
 
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Just buy SEGA and be done with it and then also get the Ferrari licence back for us to get Outrun 2 back online LOL
 

cireza

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Fuck off Spencer. You have bought enough now. Build your own shit.
Microsoft did build a number of studios from the ground, and currently still are (The Initiative), but you don't build studios from scratch this easily.

As for the topic, I don't see them buying big studios like SEGA but who knows. Smaller ones are interesting as well, starting with those who have been supporting Xbox since the beginning :
Experience
Mages / 5pb
Cave
Moss
White owls
Mistwalker
Grounding
 
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Rien

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Microsoft did build a number of studios from the ground, and currently still are (The Initiative), but you don't build studios from scratch this easily.

As far the topic, I don't see them buying big studios like SEGA but who knows. Smaller ones are interesting as well, starting with those who have been supporting Xbox since the beginning :
Experience
Mages / 5pb
Cave
Moss
White owls
Mistwalker

if they have a good relationship with the company like Insomniac with Sony or Playground with MS then it’s much more logical.
But studios like Bethesda?
fuck that. It’s cool for the laughs and mic drops but I would rather have them to be sold to another company that keeps the games multiplat.

I am all for competition as it benefits the consumer.
but put some heart in your product and don’t simply buy your way to the top.

But I would be the worst business man alive so there’s that
 
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Starbuck2907

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Has anybody thought about the fact that Microsoft owns TangoSoftworks, which is in Japan, because they bought Bethesda?

they have already acquired at least one Japanese studio. The one headed up by the mastermind of RE4.
 

Fitzchiv

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A modest slice of a big pie you have none of, still tastes good.

That's how business works folks.
 
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Kumomeme

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Why can't they set up their own studios or buy ones with established and long partnerships like Sony does?

the problem is they should do this since beginning of this generation or generation before. but we see what happened. things that they should do sooner end up happened way later. it take time to cultivate studio. the period that both sony and nintendo continuously creating new ip, ms just still stuck with halo and gears. the result clearly visible today. even if they set up new studio, it wont bear fruit in blink of an eye. it probably take years to see result considering nowdays AAA game development period which is assuming they can imediately nailed their first product. but it wont be that easy. even those recent acquistion, none of it has game ready for launch. all of this resulted from their blunder at this gen. even insomniac get bought by sony despite they already made exclusives for xbox before. now, that studio responsible for ps5's launch game.

it not about who has more money. sony and nintendo exclusive franchise line up been build up more than single generation. in meantime they build up mindshare. even studio like naughty dog didnt immediately bring goty level of game at first try. even for uncharted franchise, take second game to make tremendous leap. it take time for studio, team, and their tech to 'mature' especially new team. i believe atleast that is what to expect to those recent's ms acquisition and their newly set up studio. dont expect immediate result. fans just need to give them time. it might not happened in single generation. the result might pay off in another generation instead. all of this gonna benefit long term, assuming ms gonna steer their big ship properly.
 
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hemo memo

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Oh man imagine the meltdown if Microsoft went ahead and bought From or SEGA/Atlus. That would be guaranteed Japan win. Yes, Atlus fans will buy an Xbox in Japan to play SMT.
 
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oldergamer

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Oh man imagine the meltdown if Microsoft went ahead and bought From or SEGA/Atlus. That would be guaranteed Japan win. Yes, Atlus fans will buy an Xbox in Japan to play SMT.

I'd be down with it. Imo the consolidation at the start of every console generation is pretty normal. However in this case, there is greater risk due to the impact covid has. Missing timelines, or releasing a product before it should be, can mean the difference between life and death for any independent developer or publisher.
 

Sub Boss

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Japan is still the third-largest video game market and the rest of Asia is also seemingly also trending towards Nintendo.

This year Nintendo is closing in on something like 85% of the Japanese Video game market. Next year it will be over 90%.
In the Wii/DS era, their previous peak Nintendo only had like 65% of the market - the PSP did great numbers ofr third parties. Between the PS3/PSV Sony sold like 100 million physical software in Japan, right now the PS4 is only around 40 million physical software so serious decline compared to the prior gen. The PS5 will see an additional decline in both software and hardware sales since a lot of the AA exclusives that used to automatically go to the PS3/PS4/PSV are now on the Switch.
Japanese Devs actually do care about doing well in their home market. So offering them to make exclusive games that only reach 10% of their market, isn't going to be especially attractive without incentivizing it.

Power gap is huge but the majority of Japanese 3rd parties aren't competing with AAA publishers. If you are talking about a handful of companies like Take Two, EA, behind the biggest hits on the systems like FIFA, GTA, COD etc yeah I do agree those have an interest in supporting the new consoles more. For example, EA has barely bothered to support the Switch and GTA isn't even launched on it. Compare that to Capcom who after having a massive hit with Monster Hunter World, reveals a Switch exclusive game not pushing the graphical boundaries,
I think there will be a MONSTER HUNTER WORLD 2 eventually, when the userbase is adequate for Capcom, the series works well both on portable and as AAA series, that game might not come to Switch 2 for technical reasons.

When publishers have a graphics pushing successful international series (like Resident Evil or Final Fantasy, even Ni Oh) they can avoid the Switch for new releases, but i agree Switch is getting more popular and MICROSOFT will have a tough time getting attention :p they have a ton of money to burn though so lets see what happens
 

jhjfss

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if they have a good relationship with the company like Insomniac with Sony or Playground with MS then it’s much more logical.
But studios like Bethesda?
fuck that.

I take it you have no idea about the 20 year close relationship MS has with the bethesda studio?
 
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if they have a good relationship with the company like Insomniac with Sony or Playground with MS then it’s much more logical.
But studios like Bethesda?
fuck that. It’s cool for the laughs and mic drops but I would rather have them to be sold to another company that keeps the games multiplat.

I am all for competition as it benefits the consumer.
but put some heart in your product and don’t simply buy your way to the top.

But I would be the worst business man alive so there’s that

Bethesda and MS have been buddy buddy since forever.
 
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The Alien

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Their Japanese strategy is likely different now. They likely will be planning XCloud/GamePass maneuvers is Japan, not console focused. Which already has some early success in Asian markets.

Technically they got Tango Gameworks in the Bethesda deal....so some of Phil's Japan studio thirst may be quenched, but will still need more to move the needle in Japan.

Suppose we'll only have to wait until Wednesday for the bid news. Amirite? 😁
 

the_master

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From the perspective of the players, We all know what would be the best company they could buy. A company that has hundreds of great Ips gathering dust and could use the money and the direction to get some of them back. Even better, make some new ones. The perfect company to go deep and wide on the japanese market, the company which creativity kept on giving for so many years.

It has to be next wednesday.
 
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