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Microsoft's Zenimax acquisition Is one of the reasons why Google closed its studios

I must be a bit dense...I don't get the connection here.
I think it means Google realized they had the wrong idea. Instead of trying to create their own games to compete with other studios / bolster their own platform they'd be better served by finding another studio / publisher to acquire to gain exclusive rights to their games.

Basically, what we're watching here is the beginning of the end as it relates to "free market" gaming. Sooner or later you will be required to subscribe to a particular platform holder in order to gain content to their "exclusive" games. In other words, the end of "multi-platform" games from top name publishers as mergers & acquisitions continue.
 
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Punished Miku

Gold Member
It is true that third parties are shrinking in number. Everything will be exclusive to one ecosystem or another soon, and Google is starting from last place.

Better to just sell the streaming capability to other companies who have a bigger footprint.
 

driqe

Member
I think it means Google realized they had the wrong idea. Instead of trying to create their own games to compete with other studios / bolster their own platform they'd be better served by finding another studio / publisher to acquire to gain exclusive rights to their games.

Basically, what we're watching here is the beginning of the end as it relates to "free market" gaming. Sooner or later you will be required to subscribe to a particular platform holder in order to gain content to their "exclusive" games.
They got timed exclusivity for judgment. I think they're gonna get exclusivity on one big game and everyone is gonna lose their shit
 

Chukhopops

Member
I really don't see Google / Alphabet investing enough to build a real ecosystem, you need more than one big name for that. They have the money for sure but I doubt they have the commitment.

It's more likely they will buy some form of console exclusivity (timed most likely) for upcoming third party games like other companies do already.
 

Fox Mulder

Member
In a cloud only streaming future, you still need big franchises and exclusives like you do now. Amazon and Google have fuck you money like Microsoft, why bother building studios at all when they can go buy someone huge.
 

NullZ3r0

Banned
I must be a bit dense...I don't get the connection here.
GamePass is the Netflix of games. The Netflix of games is what Stadia needed to be to succeed. They just didn't have the userbase for the economics of that model to make sense so they tried to go half way until they built up the userbase. By Microsoft buying Bethesda, that upped the cost of entry for Google.

In business, that's one way to kill your competition. You make it too expensive for them to compete. Google had the money but not the commitment. They are going to be kicking themselves in a few years when game streaming finally takes off because the price of entry isn't going to be any lower than it is now.
 

sublimit

Banned
Another sensational and misleading thread title by driqe driqe when the article only mentions that that could have been only ONE of the reasons.
In his Thursday Q&A with staff, he pointed specifically to Microsoft’s buying spree and planned acquisition of Bethesda Software later this year as one of the factors that had made Google decide to close the book on original game development.
Not only that but there's no actual proof that Phil Harrison even said that.

However there is proof that he said something else:
In his blog post, Harrison referenced the rising costs of game development as a factor.

But even if he did say that it sounds more like an excuse than anything else. Especially when:
Google’s parent company, Alphabet, is a nearly trillion-dollar company and roughly on par with Microsoft when it comes to revenue and profit, according to a 2020 survey by Forbes.

So yeah i doubt they gave a shit about the Zenimax deal when they could have easily made a similar acquisition (and probably many more) themselves if they wanted.
 
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Veracity of info in question imo.... but if true... not good.

Lol at anyone thinking this is a W for MS. This pretty much implies that Google will rather buy third party devs instead of building them from scratch - if they're to follow MS footsteps. I know the Xbox userbase consumes mostly shooters and sport games, so basically EA/Activision/Ubisoft consumers mostly but... anything on the periphery is a potential hit. Other platforms have more choices than Xbox. The potential shrinkage of games in the pool hurt Xbox arguably the most. I guess the syndrome can't be helped.
 
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Skifi28

Member
I think it means Google realized they had the wrong idea. Instead of trying to create their own games to compete with other studios / bolster their own platform they'd be better served by finding another studio / publisher to acquire to gain exclusive rights to their games.

Basically, what we're watching here is the beginning of the end as it relates to "free market" gaming. Sooner or later you will be required to subscribe to a particular platform holder in order to gain content to their "exclusive" games. In other words, the end of "multi-platform" games from top name publishers as mergers & acquisitions continue.

Yeah, the not so distant future is about to get rough.
 

driqe

Member
Another sensational and misleading thread title by driqe driqe when the article only mentions that that could have been only ONE of the reasons.

Not only that but there's no actual proof that Phil Harrison even said that.

However there is proof that he said something else:


But even if he did say that it sounds more like an excuse than anything else. Especially when:


So yeah i doubt they gave a shit about the Zenimax deal when they could have easily made a similar acquisition (and probably many more) themselves if they wanted.
Do these people even read

"Microsoft's Zenimax acquisition Is one of the reasons why Google closed its studios"​

-driqe
 

Jigsaah

Gold Member
Maybe Google realized they don't have the experienced needed to know how to make strategic acquisitions to the price of what Microsoft has spent. Microsoft certainly set a precedent with this purchase.

Sure Google has the money to do it, but Microsoft obviously has more experience and better ties with the likes of Bethesda. Google started to get some devs on board, but there's no way they were ready to make an investment like that.

This result makes you wonder if Microsoft considered the possibility of this happening. It's like poker I guess. Up the ante and see who folds.
 
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DaGwaphics

Member
I must be a bit dense...I don't get the connection here.

I think they were looking at it as if MS didn't think they could be as successful as needed by building new studios/teams from scratch (and thus the buying spree). Maybe lowered confidence a bit. Seems like an overblown reaction, tbh.
 

ZehDon

Gold Member
Another sensational and misleading thread title by driqe driqe when the article only mentions that that could have been only ONE of the reasons.

Not only that but there's no actual proof that Phil Harrison even said that.

However there is proof that he said something else:


But even if he did say that it sounds more like an excuse than anything else. Especially when:


So yeah i doubt they gave a shit about the Zenimax deal when they could have easily made a similar acquisition (and probably many more) themselves if they wanted.
I don't think the thread title is misleading or sensational. Did you read the article linked in the OP? Harrison highlighted this as one of the reasons in his QA session with staff.

As for the rest of your post, Alphabet's commitment to gaming is basically non-existent. As a result, their market cap value is a useless metric for understanding buying power because it has zero demonstrable intention behind it. On the other side, Xbox is Microsoft's most successful consumer facing enterprise since Windows, and they've demonstrated strong intention to continue to support it. Remember the "war chest" memes? People threw around Microsoft's market capital as some kind of trump card. And for the entire Xbox One generation it did basically nothing. That is why the scale of their Zenimax acquisition caught a lot of people off guard - myself included. Microsoft is obviously all in on Xbox, and they're back to supporting it in full. Returning to Alphabet, and it's pretty clear they don't give two red fucks about Stadia, and they're treating it accordingly. Stadia can't compete with PS Now let alone Gamepass. When they watched Microsoft goggle up an entire publisher - including the developer of one of Stadia's "case study" games, Doom Eternal - I can promise you the Stadia team realised they were out of their league. Alphabet isn't giving the Stadia team billions to do shit; any allusions to the contrary are just those "war chest" memes by another name.
 

Interfectum

Member
Look Up Adam Sandler GIF by Saturday Night Live
 

Concern

Member
Veracity of info in question imo.... but if true... not good.

Lol at anyone thinking this is a W for MS.

"You can read me crying about xbox here"

That clears things up.

OT: Anything causing Google close down studios and hopefully Stadia too is a good thing in my book.
 

Varteras

Gold Member
It is though freaking google is horrible streaming online no console hardware so it a good thing.
Google isn't shutting Stadia down. They're not leaving the industry. You're misunderstanding this whole thing. They simply decided it wasn't worth it to try and build a first party from the ground up. Right now they're buying timed exclusivity and they're likely looking to acquire studios.
 

99Luffy

Banned
Makes sense. Hard to start a studio from scratch if you dont already have the expertise.
I bet google was also looking at Amazon game studios and decided... yeah.. thats whats gonna happen to us.

0tG1ifk.png
 
Google isn't shutting Stadia down. They're not leaving the industry. You're misunderstanding this whole thing. They simply decided it wasn't worth it to try and build a first party from the ground up. Right now they're buying timed exclusivity and they're likely looking to acquire studios.
Ok thery can try but they won't make even a dent cause Sony Nintendo and Microsoft have the gaming market locked down they won't let any other company come and try to get a slice of the pie no matter how rich that other company is so Google Amazon whoever else can try but they won't succeed.
 

driqe

Member
Google isn't shutting Stadia down. They're not leaving the industry. You're misunderstanding this whole thing. They simply decided it wasn't worth it to try and build a first party from the ground up. Right now they're buying timed exclusivity and they're likely looking to acquire studios.
The two studios they shut down were acquired IIRC
 

Varteras

Gold Member
Ok thery can try but they won't make even a dent cause Sony Nintendo and Microsoft have the gaming market locked down they won't let any other company come and try to get a slice of the pie no matter how rich that other company is so Google Amazon whoever else can try but they won't succeed.
The fact is they have money. They could start acquiring studios or publishers and locking things down to Stadia. At the very least, they could cause a very bad migraine for a generation.
 
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Varteras

Gold Member
Google bought typhoon and some other studio
When they first announced Stadia's first party they were new studios being built from the ground up. They hadn't done much with anything. They only had 150 developers. Again, this isn't Google leaving the industry. They're making deals to get exclusives, timed or otherwise, and do not put it past them to try and make a big push for major players so they can be one.
 

driqe

Member
Makes sense. Hard to start a studio from scratch if you dont already have the expertise.
I bet google was also looking at Amazon game studios and decided... yeah.. thats whats gonna happen to us.

0tG1ifk.png
Amazon didn't even start a studio from scratch, all they did was fuck double helix
 

Varteras

Gold Member
Amazon didn't even start a studio from scratch, all they did was fuck double helix

Amazon's development house is even more piss poorly ran than Google's was. I give Microsoft a lot of shit for their management but at least they can put a fucking game out. Amazon's game management has ZERO clue.
 
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