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Breaking: Microsoft to acquire Activision-Blizzard in near 70$ billion deal

Rivet

Member
Provided this deal goes down...

Please someone explain to me one thing: How the fuck does Microsofts Xbox business make any sense? I mean, isn't the goal of a company to actually make money and be profitable?

If they buy them for 70 billion, then that's money that they have spent, not made (duh).

In 2021 Activion Blizzard had a net income of 639 million U.S. dollars. In order to just break even (provided Activison Blizzard continues to generate a net income of 700 million to 1 billion every year), they would need 70 years to do so.

That's not how it works. They're buying an asset, a bit like when you buy a house : you pay $500k, but you get a house worth $500k at the same time, you didn't lose or win anything.

What could happen though is this asset looses worth over the years. If one day, your house is only worth $400k anymore, you effectively lost $100k. Asset could also gain worth too, obviously (if Activision makes more and more money).
 
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M16

Member
I want to know how close Microsoft has been to aquiring EA and Ubisoft...
There has been strong rumors of this in the past... but EA in particular was almost unthinkable.

I think it was a lot closer to reality than people realize.
i think it happens when someone tries to acquire EA(google,amazon,tenscent,epic), microsoft will surely outbid them for sure. thats one property they cant afford to lose.
 
This has got to be the most colossal big dick energy move in gaming. There is no question that MS is all in on gaming, and they are here to stay. The PS4 rustled some jimmies at MS HQ, and if I were Sony, I would be sweating hard now.
 

SlimySnake

Flashless at the Golden Globes
Provided this deal goes down...

Please someone explain to me one thing: How the fuck does Microsofts Xbox business make any sense? I mean, isn't the goal of a company to actually make money and be profitable?

If they buy them for 70 billion, then that's money that they have spent, not made (duh).

In 2021 Activion Blizzard had a net income of 639 million U.S. dollars. In order to just break even (provided Activison Blizzard continues to generate a net income of 700 million to 1 billion every year), they would need 70 years to do so.
This isnt anything new. Big companies swallow smaller companies all the time. It provides them value. In the U.S, there are like five companies that own everything.

This has nothing to do with profits. It's just consolidation.

the-illusion-of-choice-the-10-mega-corporations.jpg
 

geary

Member
Zenimax deal and all concerns regarding MS revenue and GP sustainability seems so silly now....
MS paid 10x more for AB...that's crazy...
 

octiny

Banned
Why?

MS will never have COD or Diablo exclusive to MS. Millions play them on PS and they'd never get rid of that cash cow. Now, COD on Gamepass? That's more likely.

Millions play them, you're right. And all the casuals buying a PS for them will now have to buy an Xbox and/or PC. You know, kind of the whole point? Getting them into the eco system/Gamepass. Once the deal closes next year of course.

Also, being on Gamepass is a given as they are 1st party now.
 
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what the hell does the gaming landscape look like in 5 years is anyones guess right now. everything will be exclusive somewhere and there will be no more multiplatform. want to play some of your favourite japanese ip? you need a playstation. want to play the biggest western RPG's and FPS? you need an xbox.
 

twilo99

Member
Is this like on "sale" since they are having so many PR problems at the moment? how much is Activision worth without the current mess they are in?
 
So thinking about what this could mean:

-Warzone is F2P and probably stays multiplat, Gamepass Ultimate members get monthly perks
-All other games probably PC/Xbox exclusive (minus mobile games)
-Does WOW come to console? All expansions on Gamepass, and cheaper subscription for Gamepass Ultimate members. Maybe a free tier in the future?
-Entire backlog of games on Gamepass is huge
-Not sure what they do with King. They have been getting out of their own mobile games and pushing for cloud streaming games onto mobile as their main mobile platform
-Hopefully they don't let games like Overwatch, Warcraft, StarCraft, Spyro, and Crash remain stagnant. Would really like to see them allow the developers to do them right and get them back out there
-hopefully all games come to Steam with no more battle.net launcher
 

//DEVIL//

Member
Why?

MS will never have COD or Diablo exclusive to MS. Millions play them on PS and they'd never get rid of that cash cow. Now, COD on Gamepass? That's more likely.
Yeah.. they paid 70 billion $ so they release it on PS5.

WTF people here are thinking? maybe this year will be on PS5 if there is any sort of agreement between Acti and Sony so MS will have to honor it. otherwise, bet your ass all those games are PC and Xbox only.

MS has one goal. super clear goal even the blind can see it. Game pass everywhere. on your TV, your xbox, PC, Nintendo, PlayStation. wherever.

All sony needs to do is allow game pass on PlayStation.

The problem with this is 3 things.

1- Sony is arrogant fucks ( but they have a reason to be )
2- Sony won't get cut from game pass while being used on their platform ( which I think is Sony is the main reason why they are not allowing Xbox on their platform otherwise.... who would refuse such a deal where you have both xbox and PlayStation under your ps5)
3- Sony won't get a cut from third-party games that people will no longer buy on the PlayStation platform because it's available for free on a game pass.

IF sony was more open to the idea of game pass on PS, I don't think MS would have gone this far.

Sony is honestly seriously fucked.

at this point I really wish either Nintendo and sony become one / team-up. or sony capcom square Enix become one / team-up.

Wishful thinking on the Sony and Nintendo part. because right now Nintendo is kicking both MS and Sony combined. But this news WILL effect Nintendo if not now, in the future. so many lost IPs to MS camp right now.


as a primary PC gamer though ( its all I have after I sold my PS5 for profit few days ago ) my 3090 is ready lol.
 
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Tams

Member
People were predicting the downfall of Xbox and that they are stomping the gaming devision. A 70b investment shows me the opposite, no matter how much money they have, that's even for Microsoft some serious money.
Yes, as the Xbox division was losing them money for a while at one point.

Ultimately, this is a business decision. Where they think will make the most return. They decided that Xbox could be made into a valuable asset, but they think Activision-Blizzard is one.

Is it serious money for Microsoft though? It's not insignificant, but have you seen the amounts they have paid or offered to acquire other companies? $10b offered for Discord - just a gaming chat and community app. The TikTok offer was in the $10-30b range. And other behemoths make similar acquisitions.

Is it a lot for an acquisition? Absolutely, and Microsoft may make fewer or cheaper ones for a few years, but their stock has been riding incredibly high. But it's not really a risk for them.
 

twilo99

Member
what the hell does the gaming landscape look like in 5 years is anyones guess right now. everything will be exclusive somewhere and there will be no more multiplatform. want to play some of your favourite japanese ip? you need a playstation. want to play the biggest western RPG's and FPS? you need an xbox.

You can thank Sony for that. They took the exclusive thing to its highest level which forced this landscape to shape
 

Rat Rage

Member
If you buy an asset worth £60b and that company makes you £6b over 10 years, at the end you still own that asset that is now worth £65b due to inflation.

Well, this is only true if the asset is guaranteed to be worth 60 billion FOREVER. Many Acitvision Blizzard franchises are struggling. I don't think they will be worth 60 billion in 10 or 20 years. I don't even think they are worth that much money now.
 
like Bethesda before it, I couldn’t care less about any Activision games. Haven’t bought one in ages.

So I personally don’t care, but man this is enormous and really bad for the industry.

If I’m Sony right now you have to be scared as shit. This is unprecedented levels of consolidation and borderline monopoly
Don't do this to yourself James, please don't 🤣
 
Guys imagine a world where Microsoft is advertising a launch of their next gen Xbox, and DOES NOT ABUSE the fact they own COD. These games are going full exclusive, or at least timed release at some stage, but it's coming. They can still say they're supporting Playstation through Warzone and the next couple COD releases, and through things like Overwatch etc.

When Blizzard announces that next gen MMO, watch out!!
 

CuNi

Member
Pretty sure ACG sorta leaked this back in nov. He said it was a mindblowing acquisition.

Must have missed it then, my bad!
But I think even if someone would have said it, I would've laughed in their face and just walk away.
I think this is the biggest buyout in the video game industry. Or does anyone know of a bigger one?
 

Concern

Member
Just now heard about this and this thread is already on its way to 2k posts 🤣🤣🤣.

I think this was a stupid and pointless deal but the meltdowns are priceless.
 

CamHostage

Member
Crash 5, Spyro 4, Tony Hawk's Pro Skater are Xbox games.
Sure, but these franchises are strictly AA now.

Not even AA now, they're hardly even strictly "games" right now... Activision has over time removed all of its other franchises from its website masthead (I thought there was a recent version without only COD on the frontpage, but they do have Crash 4 and THPS in the "News" section and featured slot on the Games index,) and they reassigned the Crash/Spyro and THPS teams to Cod or Blizzard projects. There has been no sign of a future for any Activision franchise except for CoD for a while now...

I'm primarily a PlayStation gamer, and I'm not a fan of this acquisition craze in business tactics (albeit consumers are embracing vertical integration in other markets as a good thing, so it's pretty over to discuss what I like or not...) but if this MS deal reactivates Activision franchises and stops it from just being a Call of Duty mine, then welcome to Xbox, Crash.

mqdefault.jpg
 
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jshackles

Gentlemen, we can rebuild it. We have the capability to make the world's first enhanced store. Steam will be that store. Better than it was before.
Potentially includes these IPs:
  • Blur
  • Caesar
  • Call of Duty
  • Candy Crush
  • Crash Bandicoot
  • Diablo
  • DJ Hero
  • Empire Earth
  • Gabriel Knight
  • Geometry Wars
  • Guitar Hero
  • Gun
  • Hearthstone
  • Heroes of the Storm
  • Hexen
  • Interstate ’76
  • King’s Quest
  • Laura Bow Mysteries
  • The Lost Vikings
  • Overwatch
  • Phantasmagoria
  • Pitfall
  • Police Quest
  • Prototype
  • Quest for Glory
  • Singularity
  • Skylanders
  • Solider of Fortune
  • Space Quest
  • Spyro the Dragon
  • StarCraft
  • Tenchu
  • TimeShift
  • Tony Hawk’s Pro Skater
  • True Crime
  • World of Warcraft
  • Zork

I'd love to see new entries into things like True Crime, Prototype, Singularity, Blur, etc. Activision was sitting on a pile of unused IPs. PC gamers would welcome a revival of the old classics like King's Quest, Caesar, Phantasmagoria, Police Quest, Quest for Glory, Gabriel Knight, Laura Bow, and Zork. Pitfall could be the next Uncharted clone. On a personal note, I'd love to see a Guitar Hero revival.
 

Dr Kaneda

Member
Other than Crash and Tony Hawk I haven't cared about Activision games since COD4. I really hope this acquisition means that MS will push them to develop new and exciting IPs because for a very long time their catalogue hasn't excited me.
 
I want to know how close Microsoft has been to aquiring EA and Ubisoft...
There has been strong rumors of this in the past... but EA in particular was almost unthinkable.

I think it was a lot closer to reality than people realize.

Well if they acquire them along with Take Two and Sega, they might be able to get a bulk discount 😁
 
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SlimySnake

Flashless at the Golden Globes
So thinking about what this could mean:

-Warzone is F2P and probably stays multiplat, Gamepass Ultimate members get monthly perks
-All other games probably PC/Xbox exclusive (minus mobile games)
-Does WOW come to console? All expansions on Gamepass, and cheaper subscription for Gamepass Ultimate members. Maybe a free tier in the future?
-Entire backlog of games on Gamepass is huge
-Not sure what they do with King. They have been getting out of their own mobile games and pushing for cloud streaming games onto mobile as their main mobile platform
-Hopefully they don't let games like Overwatch, Warcraft, StarCraft, Spyro, and Crash remain stagnant. Would really like to see them allow the developers to do them right and get them back out there
-hopefully all games come to Steam with no more battle.net launcher
OMG. If they get rid of battle.net that would be amazing.

Warzone probably needs to the PS fanbase but I think if MS wants to make a splash, they need to stop Warzone on PS as soon as the chip shortage ends and make everyone buy xbox consoles. Warzone is way bigger than yearly CoD right now. Everyone is going to go out and buy an xss right away.
 
Why almost every single one of your post must be related to Sony?
because there's this legend foretold many many eons ago in China, of course, of a Man... a company, that will one day unite (aka buy) so much of the gaming industry that all other competitors will have to leave. This will leave one to run the gaming industry thus leading to nirvana, the utopia, where this one ruler will rule with love and affection. The one ruler who will not allow ultimate power to corrupt it...

Very interested in how this will integrate into the Metaverse!
 
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Megatron

Member
I never thought (and still don’t) that MS would bring the Bethesda games to PlayStation. I know Elder Scrolls is a big title. But I can’t see them keeping CoD off PS. Why would they mess with that franchise? CoD is the best selling game of the year every year. Elder Scrolls will get it’s huge sales once a generation (or less) coD gets those every year. I’m not sure you risk devaluing your up by keeping it off the most popular platform. If CoD still gets any timed exclusive stuff, I expect that to end. And of course it will never be on PSNow or any other Sony service. But if you want to pay MS $70 per copy of CoD I think they will still let you.
 

Thanati

Member
Millions play them, you're right. And all the casuals buying a PS for them will now have to buy an Xbox and/or PC. You know, kind of the whole point? Getting them into the eco system/Gamepass. Once the deal closes next year of course.

Also, being on Gamepass is a given as they are 1st party now.
There is zero chance of MS dropping COD on Playstation. Trust me on this. In 2019, COD WWII sold 13.4 million units on PS4 alone. There is no way MS drops this.

As I said, the Gamepass thing is extremely likely though.

But hey, I'm an Xbox and PC gamer anyway.
 
I never thought (and still don’t) that MS would bring the Bethesda games to PlayStation. I know Elder Scrolls is a big title. But I can’t see them keeping CoD off PS. Why would they mess with that franchise? CoD is the best selling game of the year every year. Elder Scrolls will get it’s huge sales once a generation (or less) coD gets those every year. I’m not sure you risk devaluing your up by keeping it off the most popular platform. If CoD still gets any timed exclusive stuff, I expect that to end. And of course it will never be on PSNow or any other Sony service. But if you want to pay MS $70 per copy of CoD I think they will still let you.

two words. gamepass subs.
 
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