not sure how it is a good business decision when you spend almos 70 bln dollars to get what you already had.
and revenue doesn't really matter since before recouping from such and expense through profit (not revenue, profit) a good decade would pass at least, and we might not even have an xbox console anymore since it's share of the market is starting to get irrelevant day by day at this point..these deals were their chance to go back in the race..now it seems the plan is just going all in with gamepass and let the console side of xbox die...but even that doesn't explain why wouldn't go for gamepass exclusivity and secvure millions of new subscribers
as i said before, maybe it all makes sense, just not to me.
Yeah; between this and Sony's Bungie acquisition, it does feel like both were done as a means of staving off a large entity outside of the traditional gaming space (i.e an Apple, Google, Amazon etc.) from buying these companies. Because in both cases, if they're still going to keep the majority of that content, especially MP/service-orientated games, multiplatform, then it's essentially business-as-usual.
I guess through buying the company, they earn all the revenue and profits from that point onward, but they could've also just bought 51% of the shares and obtained a controlling stake, and a decent amount of profits that way, right? If the other purpose was for brand association, standard co-marketing deals could've made that happen I feel. But I'll admit, a lot of this is just me spitballing alternatives in light of what both of these acquisitions seem to do on the surface for the platform holders.
Can't really say what this does for the console side in Microsoft's case, I guess they are riding hard on GamePass as a value proposition, and the desire for people to play the games natively, to drive console adaption rates. And it maybe will be that strong of a value proposition, but I think some of that is outside of their control i.e recessions and lockdowns from a pandemic creating boosts to a proposition that's seemingly driven by the customer saving money.
At least in Sony's case, they can realistically recoup the cost of the Bungie acquisition in a year or little over a year through PlayStation annual profits; Microsoft can recoup the Activision-Blizzard costs in about shy a year, actually, but that'd be company-wide. Xbox division on its own definitely isn't recouping that in a single year or the course of the generation if just talking annual division profits. GamePass growth and, more importantly, long-term retention of regular subs at a health median will have to be very strong over the course of the generation to make up for that and help drive returns faster.
I'm confident they'll find a way to make things work out but now in light of the big IP remaining multi-console I'll admit Microsoft have a lot of work cut out for them not just for Xbox but for GamePass, too. More than they would've if at least some of those went Xbox/PC/GamePass-exclusive, IMHO, if we're talking about Xbox & GamePass growth. Guessing new IP will be exclusive, they just better be some damn good games (same with the known 1P XGS/Zenimax exclusives in development) at a high caliber because no matter what, exclusives still
do matter in a notable way.