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Mergers and Acquisitions |OT| Thread Merged

Acquisitions and mergers official topic

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Three

Member
I'm old and remember the competition between Sega and Nintendo, when exclusives were pretty much everything. One of the best generations we've ever had.

Exclusive strategies make for better games, more competitively priced products, and more value for the consumer.

If these fuckers have to fight for your hard earned cash, you get more for it.
If they invest in making new products, not if they invest in consolidation. Imagine if in the Nintendo vs Sega era Nintendo was out buying up Acclaim, EA, Konami, Capcom etc. That would have gained you nothing. If anything it would have maybe meant no Smash Bros, or Mario Strikers because they would have had other IPs to fill the gap. Consolidation isn't competition of products.
 
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splattered

Member
I think i read this morning that AT&T just spun off their WarnerMedia and consolidated in a deal or something? So maybe they are going to be selling of WB game studios after all? We may hear about Sony or MS buying them soon. Sony makes sense cause they're investing in fighting games more lately. But then that could fill a void for MS? Dunno.
 

jakinov

Member
Soon we'll have less than a handful of companies owning all gaming studios and gaming IP's.
Videogames might become as boring and devoid of creativity as Hollywood.
Except unlike hollywood where theater screens are finite and there's infrastructure to support people earning money without a deal being made except itunes/play which is less and elss popular everyday. The gaming industry makes it super easy to self publish. The biggest and most unique games are from indepedently owned studios (or at least used to) and there's more and more every year.
 
They just spent a lot of money for them. Anything else would be much smaller.
Jim Ryan yesterday:

The deal is a significant buy from PlayStation. Sony is not a small organisation, but it doesn't have pockets as deep as some of its competitors. Nevertheless, Ryan says the firm is not done in this area.

"We should absolutely expect more," he concludes. "We are by no means done. With PlayStation, we have a long way to go. I will personally be spending a lot of my time with Pete and the team at Bungie, helping make sure that everything beds down right and that autonomy means autonomy. But elsewhere in the organisation, we have many more moves to make."
This doesn't sound quick lil support studios for sure. How "much smaller" can they get than a single studio?
 
Videogame market is north of $200 billion in total. The PC gaming market alone has a value of $37 billion. How much of that do people believe Microsoft has? Nowhere as much as people would think, even in the PC gaming market its miniscule.

What does Microsoft have that competes with the android store front, the Apple app store? Steam?

People also forget that apple tvs and amazon firesticks (while not respected for their gaming capabilities by hardcores like us) are also big venues for games as well, which further makes Microsoft's dedicated xbox consoles seem all the smaller in the grand scheme of the larger game market. Netflix, a massive streaming giant, have opened up their platform to supporting games also. Remember that games don't always come in the form of Horizon, God of War, Halo, Starfield and Elder Scrolls. They also come in the form of movie trivia games where you spend money to get new quizzes and new topics. Many people play these. Hell, I once played one with my friend and her two kids, and got addicted to the game on an Amazon fire stick. It's now a legit activity for get togethers.

Microsoft also still has Minecraft, the gold standard example of their fairness. Even spinoffs have continued to be supported on rival systems. Minecraft will feature heavy in Microsoft's case for the deal to regulators.

Regulators lean heavily in favor of companies, in order to better compete, coming up with disruptive ideas to change the way consumers interact with the business.

Is there any better example of such a thing in gaming than Xbox Game Pass? So now we enter a space where Microsoft can credibly say there are many more PS + subscribers than Game Pass subscribers. They can say they even offer a competing service, EA Play, to subscribers of their highest tier plan for Game Pass, as well as allowing people to sign up even without being part of Game Pass. They can also say they are welcoming further competition into their own platform, Ubisoft+.

I don't think many truly realize that Microsoft is playing a kind of 4D chess in order to get this deal passed that many have been largely overlooking, and it's been taking place seemingly for years, and an increased opportunity appeared with a troubled Activision Blizzard.

Also, the recent public announcement Microsoft made in response to a U.K. about making sure their subscription plans are fair and consumer focused? Yet another example.
 

Zeroing

Banned
If that results in better games, which I believe it will, yes.
You must be joking… having a tons of studios is hard to manage. Becoming exclusive means less revenue… if you wanted better games you be asking the MS and Sony to open new studios and bet on new IPs… none of that is happening… MS seems to be hoarding all the big IPs while Sony plans is a bit confusing … Nintendo is quiet… so none of this is good for us gamers…
 

SlimySnake

Flashless at the Golden Globes
Nothing will come of this. They are creating a monopoly and locking out any new competitors but if they stop Microsoft from buying them, MS will argue that Sony, Tencent or Meta will pick them up anyway.

This might jeoperdise any other big acquisitions like Take2 for GTA Online, but all MS has to do is show other players were interested.
 
Lol why do you think that's a guarantee of anything? Nvidia has the same clause and it's not going through

Because there’s no reasonable way someone could conclude that Microsoft would harm the industry or have a monopoly with this acquisition.

It’s already been said ad nauseam that Microsoft would only be the third largest publisher, behind Sony and Tencent, after this goes through. And there are plenty of other publishers in the industry.

It’s the US Government doing due diligence. And the $3b blackout fee is substantial, which means Microsoft believes it won’t have issues clearing any hurdles.
 

winjer

Gold Member
Except unlike hollywood where theater screens are finite and there's infrastructure to support people earning money without a deal being made except itunes/play which is less and elss popular everyday. The gaming industry makes it super easy to self publish. The biggest and most unique games are from indepedently owned studios (or at least used to) and there's more and more every year.

True. There are many great indie games today.
And these are frequently much better and more creative than AAA games.
 

dotnotbot

Member
I think they are more strict in EU.

The deal will go through, but there will be concessions. What the concessions will be? IDK. I assume a purchasing freeze. Or simply a warning.

EU can give companies that operate in EU huge antitrust fines if they think something is not right. Edge case scenario it could force companies to separate but I'm not sure if there has been any case like that yet, probably not.



Not expecting this to happen here btw, just saying in general.
 
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NahaNago

Member
I can't really say I care that much when folks talk about consolidation. Thousands of games come out every year on steam these days and hundreds come out on console so all this consolidation really does is keep maybe at most a dozen games a year from coming to 1 or 2 platforms.
 

Trogdor1123

Member
So, is this going to be Sonys push into pc gaming? I’d like that as more people can play the games.

also, where is the damn PlayStation game pass?
 
Say hello to arrogant Jimbo.

jim-ryan.gif
 
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PlayStation the hardware will continue to exist, but it’s clear for everyone to see and out from Sony’s mouth themselves that the goal is to expand beyond the console.

The point is to sell software, or subs, or MTX, that’s where the business is. The console is just a vehicle.
Sony's goal is to sell their games in more places than their main console...but in no way do they expect their consoles to sell less for sure. There's no data that shows that interest decreasing as far as i know.
 
Both Sony and MS splashing the cash which will ultimately need a return on investment. GP and PS price increases incoming. 'Great' for gamers.

That’s just it—Sony doesn’t have cash to splash. Microsoft repatriated ~$200b from Ireland (?) and has spent half of it.

Nintendo always has cash on hand when they’re doing well. They’re a rather frugal company.

If anyone is still splashing cash, it’s Microsoft or Nintendo.
 

Sosokrates

Report me if I continue to console war
A strong Xbox and playsation is good for the consumer because if one slips up the other will expose any anti consumer practices.
 

NewYork214

Member
Sony gonna buy Nintendo. Nintendo will focus on handheld hardware and Nintendo IP for playstation.

im only joking, stand down.
 
Because there’s no reasonable way someone could conclude that Microsoft would harm the industry or have a monopoly with this acquisition.

It’s already been said ad nauseam that Microsoft would only be the third largest publisher, behind Sony and Tencent, after this goes through. And there are plenty of other publishers in the industry.

It’s the US Government doing due diligence. And the $3b blackout fee is substantial, which means Microsoft believes it won’t have issues clearing any hurdles.

Nvidia had a substantial $1.5 billion blackout fee for ARM too. Guess what. It still isn't going through

It's not about preventing monopolies, it's ultimately about protecting consumer choice. From their lens, they're going to look at the Zenimax deal, and see they're taking consumer choice away, they're going to look at the ActBliz deal and see they're taking consumer choice away. They're going to be scrutinized even further for being a tech giant and the risk they pose if they continue on that type of heavy acquisition streak.

I'm still of the position it'll go through, but you're a fool if you can't see how regulators might want to block or condiationalise this.
 
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There's definitely a case to be made that some of it is good.

Pros:
  • Increased funding for several studios that were floundering with minimal investment and wasted potential (Ex: Obsidian, Ninja Theory, Double Fine, Insomniac, etc.). This will result in better games.
  • Xbox gamers get any of the acquisition games at no additional cost if they're subbed to Gamepass. Dramatic financial savings.
Cons:
  • They're exclusive to one console.
To me, so far the pros outweigh the cons because I already passed the point of finding all 3 consoles worth it. For now, it's been relatively positive for me.
 

SlimySnake

Flashless at the Golden Globes
Nvidia had a substantial $1.5 billion blackout fee for ARM too. Guess what. It still isn't going through

It's not about preventing monopolies, it's ultimately about protecting consumer choice. From their lens, they're going to look at the Zenimax deal, and see they're taking consumer choice away, they're going to look at the ActBliz deal and see they're taking consumer choice away. They're going to be scrutinized even further for being a tech giant and the risk they pose if they continue on that type of heavy acquisition streak.

I'm still of the position it'll go through, but you're a fool if you can't see how regulators might want to block or condiationalise this.
Yeah nvidia will probably appeal, take it to court and pay off the judge. MS too. But it might complicate any future acquisitions.
 

G-Bus

Banned
I hope this is some weird case of Sony and MS trying to keep company/developers tied to this ecosystem.

Afraid of the Facebook or Amazon or who ever disrupting the market in a big way.

Gamers don't benefit if things get this devided with exclusives.
 

Werewolf Jones

Gold Member
Only benefit of Capcom getting bought by Nintendo is they might feel financially safe to actually dig deep into older IPs.

Capcom just recycle the same old three IPs. Booooooooring.
 

Fredrik

Member
There's definitely a case to be made that some of it is good.

Pros:
  • Increased funding for several studios that were floundering with minimal investment and wasted potential (Ex: Obsidian, Ninja Theory, Double Fine, Insomniac, etc.). This will result in better games.
  • Xbox gamers get any of the acquisition games at no additional cost if they're subbed to Gamepass. Dramatic financial savings.
Cons:
  • They're exclusive to one console.
To me, so far the pros outweigh the cons because I already passed the point of finding all 3 consoles worth it. For now, it's been relatively positive for me.
Perfect summary.
It sucks to be forced to play on a specific platform but the upside at least with MS acquisitions is more quality games for less money and PC versions and shared save files.
 
Eventually console warring is gonna die.

Theres gonna come a point where one platform is going to inevitably buy a major publishers/developer you love and cant live without thats gonna force your hand.
Sadly not, Xbox fans will deny the greatness of GOW simply for being on Playstation and Playstation will say Starfield will be as bad as 76 since its an Xbox exclusive. The only way it stops is when each service comes to the other platform. You dont have netflix fans saying hulu sucks cause they're both on the same tv set.
 

PhaseJump

Banned
All I see here is a retarded point that not having plastic in a box means not having ownership. Negated nonsense, after you pop in a modern console game that needs updates or downloads to function.
 

CatLady

Selfishly plays on Xbox Purr-ies X
I think most GAF doesn't want these acquisitions to happen. It's more about having the games you like inside your ecosystem right now.

I always played on Sony consoles and i "want" them to buy Square-Enix not because of console warring, but because i don't want to lose access to those games.

I do think it would be hilarious if Capcom somehow gets acquired by Sony and then Nintendo would lose IPs like Monster Hunter, specially after months of so many people saying "Nintendo is unbothered by all of it" and how this acquisition period doesn't affect them (which it will, even if they don't need 3rd party studios to survive)

This exactly. Or more like not losing games and studios you like to money hats and outright purchases by a console-maker you aren't interested in. As an Xbox fangirl I want Microsoft to buy Square Enix but only the Western Division you Sony guys can keep the weeb division. :messenger_beaming:
 

Corrik

Member
Sony is absolutely going to buy a Japanese developer. Don't be surprised if it is Square or Capcom. Microsoft is likely going to buy one also. Don't be surprised if it is Sega or Capcom.

However, you are about to see Amazon, Facebook, and Netflix buying some also. That's where you need to start worrying. Take Two is the big one you need to worry about.
 

fart town usa

Gold Member
I'm honestly stunned that so many people can't imagine why Bungie games would remain on all platforms. Destiny's GAAS design is potentially easy profits for Sony. Bungie also has lots of talent and expertise. Them working with other Sony studios benefits everyone and the added cash will just go to R&D, game development, etc.

Thinking only of exclusivity is shallow IMO. If MS wants to go that route, so be it. Doesn't mean Sony has to, especially since Destiny is an MMO, it's not like they're making single player games.
 

Helghan

Member
I can see Sony making more buys, but will Microsoft? They just spend 80B, how much more are they planning to put into the gaming industry without taking too much of a risk.
 
Feels almost like buying a bag supposedly full of stuff and when you open it, it is actually empty.
Love all those replies that say Sony is stupid for acquiring Bungie with the current deal. I’m quite sure Sony doesn’t have their head up their assess and they have a million good reasons to make this deal, which some of us can not understand. Probably this deal is very good/profitable for Sony because not a single company would buy into something with the idea of not gaining anything lol. That you don’t have the insight in the companies that Sony doesn’t mean that Sony made a bad purchase here.
 
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