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At least 11 members of congress argue Sony is unfairly impeding Xbox in JP

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If they had a 2T market cap like MS I guarantee they would've bid.

If they were a 2T company with the same market position, there's still no need to buy Ativision. It's a waste of capital because Activision is already preferentially positioned on their platform.

If, on the other hand, they were a 2T company that cannot meet their competitive objectives despite employing the largest developer/studio payroll in the business already, then a $70B acquisition of the world's largest third party studio MAY be implicated if they still want to compete in that business.
 

BeardGawd

Banned
Takes like these are kinda funny where Microsoft is a Trillion dollar company that can spend $70 billion in one go with no problem and can outbid Sony with ease.
Userbase is King. Sony is the market leader by far. In what world would a developer consort with MS if Sony approached them for a deal? If Sony approaches you for a deal, you take it. Being aligned as Playstation exclusive can greatly increase your mindshare with the largest part of the market.
 

Clintizzle

Lord of Edge.
As someone who doesn't care enough to read about all of this - can someone please tell me if my vague understanding is correct?

I feel like Jim Ryan and Co being whinging punishers with the ABK acquisition has rustled MS's jimmies. MS are now being whinging punishers about sony and their "dominance" in Japan.

Is that pretty much it?
 

SlimeGooGoo

Party Gooper
"Continue reading your article with a WSJ subscription"

Rose Mcgowan Seriously GIF by filmeditor
 

quest

Not Banned from OT
Userbase is King. Sony is the market leader by far. In what world would a developer consort with MS if Sony approached them for a deal? If Sony approaches you for a deal, you take it. Being aligned as Playstation exclusive can greatly increase your mindshare with the largest part of the market.
Exactly its not like a 3rd party comes to Microsoft and says sony will give us 50 million for a timed what will you give us and Microsoft says 80 million and not be laughed at. They need to offer 3-4 times the amount sony did. So it is a starting point of 150-200 million. It's pretty lopsided in ease of money hats when you have over 70% market share.
 

Venom Snake

Gold Member
As someone who doesn't care enough to read about all of this - can someone please tell me if my vague understanding is correct?

I feel like Jim Ryan and Co being whinging punishers with the ABK acquisition has rustled MS's jimmies. MS are now being whinging punishers about sony and their "dominance" in Japan.

Is that pretty much it?

No.
 

Nubulax

Member
I really don’t want to go all
Ekpfd4H.jpg

But this smells lobbying, big time.

A fast shrinking market in Japan doesn’t come off as a natural thing for american politicians to worry about to the extent that they actively try to make the current administration ”take action”.
What about the fast growing market of PC gaming in Japan? A market that almost solely depends on Windows. I presume they are less worried about that.

A market that I may add... is "high performance gaming" just not a console... although at this point is there really much of a difference
 

SlimeGooGoo

Party Gooper
Thanks.
For those that don't want to visit Reee:

When a congressional committee was preparing to publicly interrogate the CEOs of four tech giants in 2020, Microsoft Corp. President Brad Smith, whose employer wasn't on the hot seat, gave the lawmakers a private briefing. When Australia proposed a law to force Facebook and Google to pay for news articles, Mr. Smith endorsed it and offered Microsoft's Bing as an alternative. When the U.S. considered similar legislation, he went to Washington to testify in front of Congress to show his support.

Mr. Smith, a Microsoft veteran of almost 30 years and president for seven, has maneuvered his company to an enviable position in a regulatory environment that is increasingly hostile toward tech titans. Once an antitrust pariah itself, Microsoft is now widely seen by regulators as the friendly party among today's top tech companies, a status government officials and Microsoft insiders say flows largely from Mr. Smith's cultivation of friends in Washington.

Rivals say he is also skilled at directing negative attention toward competitors—to Microsoft's benefit.
Click to shrink...
The 63-year-old's influence is being tested as the company tries to smooth the way for its largest-ever acquisition, a $75 billion purchase of Activision Blizzard Inc. While regulators have yet to approve the deal, lawmakers and industry representatives say it is hard to imagine any of the other four biggest U.S. tech companies—Apple Inc., Amazon.com Inc., Google parent Alphabet Inc., or Facebook owner Meta Platforms Inc. —being in a position to even attempt to win approval for an acquisition of that size in the current environment.

"If this was any of the other four regular suspects, the blowback would be much greater," said Sen. Mark Warner (D., Va.).

Seniority and experience​

Few other tech executives have Mr. Smith's combination of seniority within their companies and experience grappling with political and regulatory power centers. One of the longest-serving leaders inside Microsoft, he joined in 1993 and served as a legal adviser through its bitter antitrust disputes with regulators around the world in the 1990s.

Microsoft's general counsel in the '90s had a more confrontational approach with regulators, said former Microsoft employees. In 2001, Mr. Smith made a pitch to Microsoft's board of directors to become the next general counsel with a single PowerPoint slide that said: "It's time to make peace." He started the job the next year.
Mr. Smith's role changed again after 2014, when Satya Nadella, a soft-spoken engineer, became CEO and quickly moved to shift Microsoft's culture from combative corporate politics to more collaboration within and outside the company. One of his first public actions was to make Microsoft's Office productivity software available on Apple's iPad—a move away from tying its applications closely to its Windows operating system.

Clash with rivals​

Since taking the president's job, Mr. Smith has become a more prominent public face of Microsoft. He relished the role—members of his team sometimes referred to him as "Governor Smith"—and often talked about having cell numbers of important members of Congress, said people who worked with him.
"We've tried to identify the concerns that people might have and then go address them proactively," Mr. Smith said. "I think that's going to serve us better in getting [the Activision] acquisition approved."

After the company announced the Activision bid early this year, Mr. Smith's team reached out to aides of Rep. Ken Buck, the top Republican on the House Antitrust Subcommittee, whom the tech executive has known for years.
Mr. Smith wanted to assuage any concerns the Colorado congressman might have about the impact of the deal on industry competition, an issue Mr. Buck has championed.

Mr. Buck, one of the most vocal critics of big technology companies in a Congress full of them, seemed persuaded. Within hours of the deal's announcement, he posted about it on his Twitter account, which he routinely uses to assail Amazon, Apple, Facebook and Google. "The assurances I've received from Microsoft are encouraging," he tweeted, adding that Microsoft said it would emphasize access to gaming titles and competition in the marketplace.

Focus on market power​

In mid-2020, Mr. Buck and other members of the House antitrust panel were preparing for a contentious hearing with the CEOs of Amazon, Facebook, Apple and Google on the companies' market power. Subcommittee staff organized a virtual meeting with lawmakers of both parties, envisioned as a sort of pep talk before they faced the tech titans.

Mr. Smith was the guest speaker. Over an hour, he delved into Microsoft's history under Washington scrutiny. One takeaway for lawmakers, two attendees recalled, was that asking CEOs tough questions is a good thing.

Mr. Shaw, the Microsoft spokesman, said Mr. Smith's message was that the experience had taught the company it needed to address "heightened expectations" and "to get out and listen to what other people had to say and do more to help solve technology problems."

Executives at other companies privately fumed that Microsoft was a collaborator on the committee's investigation, rather than a target, according to people familiar with their thinking.
Click to shrink...
Microsoft annoyed Apple last year when Microsoft was an important witness for "Fortnite" maker Epic Games Inc.'s case against Apple, which claimed anticompetitive practices in the App Store. The case mostly swung in Apple's favor and is now under appeal. Apple accused Microsoft of being the puppet master behind the claims. "A reasonable observer might wonder whether Epic is serving as a stalking horse for Microsoft," Apple said in a court filing.

Activision in spotlight​

The Activision deal puts Microsoft in the spotlight with regulators. Microsoft doesn't expect to close the deal until June 2023. It is being reviewed by the Federal Trade Commission, led by Chairwoman Lina Khan, who has broadcast her plans to increase scrutiny of mergers.

On Thursday, four U.S. senators sent a letter to the FTC citing concerns about the deal, saying it could undermine employees' calls for accountability over alleged misconduct at Activision.

Around the time the deal was announced in January, Mr. Smith said he woke up at 4 a.m. with his mind full of ideas. Unable to fall back asleep, he began sketching out a plan to blunt criticism by addressing competition concerns head-on.

He called Microsoft's gaming chief, Phil Spencer, at 8 a.m. to hammer out plans to contact Sony Group Corp. , Microsoft's main competitor in gaming, to let it know Microsoft would continue to make Activision games for Sony's PlayStation consoles.

Mr. Smith decided with Mr. Nadella, the CEO, to announce that Microsoft planned to pre-emptively make its app store more open than Apple's without government pressure, such as by not requiring developers to use a proprietary payment system.

The company saw this as part of a pitch to regulators around the world that it would be a good steward of a huge addition to its already big gaming business. The next month, it unveiled the new app store principles in Washington to lawmakers and the press.

"We're more focused on adapting to regulation than fighting against it," Mr. Smith told reporters. "We want to be clear with regulators and with the public that if this acquisition is approved, they can count on Microsoft to adapt to the rules that are emerging, and run our business in a responsible way."
 
Oh god... 30 years ago Nintendo and SEGA decided to turn the US Senate into a petty pissing contest between each other. I wonder if Microsoft and Sony are going to echo history here?
 

//DEVIL//

Member
seems like there is a biased from the US government towards this acquisition, understandable since Microsoft is a US company.
One of the reasons why it was going to be approved anyway. as if we need a force from outside NA to try and control the market. which is what Sony is doing anyway right now and needs to stop.

when it's 70 Billion on the line, it's no longer just business, it's a political move as well. and the US wants its companies/government to control the tech industry, whether it's Nvidia, Apple, Google, Microsoft and the rest.

Sony as a Japanese company never had a chance to do anything more than shout about it. problem is, Jim did bark so loud it turned heads against the company. When the CEO of a Japanese company, tells MS that can swallow Sony as a whole for breakfast, and in front of everyone in that private meeting arrogantly that they do not want any deals and they just want to block the merger, then yeah... people will put you back where you belong.
 

Yoboman

Member
The ones who actually directly led Japan Studios, which have been westerners for over a decade.



Head of WWS, which is not the head of Japan Studio.
"Yoshida oversaw Japan Studio from 1996 through 2000. "

"Yoshida took over full control of Japan Studio in 2008, at the same time that the PlayStation 3 was out and Sony was preparing to launch the PlayStation 4 "

"In May 2008, he became the President of SCE Worldwide Studios.[2]"

https://en.m.wikipedia.org/wiki/Shuhei_Yoshida
https://en.m.wikipedia.org/wiki/Japan_Studio

So he was head of Japan Studios for awhile, left to another role, then came back and was head of Japan Studios and the President of World Wide Studios

In both roles his responsibility was ensuring Japan Studios was performing and it wasn't
 

//DEVIL//

Member
lol.....I wonder what these people have in common.
the majority are white? lol, zing!


I do not get it, one of the biggest (if not the biggest) companies in US. and one of the US economy pillars ( them and apple ) you do not want it to have a political influence? all these big companies do bud lol.
 

Drell

Member
America fuck yeah! Let's continue like this until Microsoft is a video game monopoly in every country!

More seriously, I know Japan is the US' bitch but I really hope they won't let them interfere in they're market just because some retarded US politicians feel powerful.
 

ChorizoPicozo

Gold Member
America fuck yeah! Let's continue like this until Microsoft is a video game monopoly in every country!

More seriously, I know Japan is the US' bitch but I really hope they won't let them interfere in they're market just because some retarded US politicians feel powerful.
they will get the Nintendo treatment.
 
Exactly. If MS came to the table with COD in perpetuity the whole thing would be over

I doubt that claim. My confirmations of this? Jim Ryan's words about blocking the deal entirely and not being interested in a new deal at all, and Sony simply don't want MS having a large revenue share slice of the PS base pie, plus the overwhelming majority of other industry players don't give a shit (only Sony).
 
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Abriael_GN

RSI Employee of the Year
"Yoshida oversaw Japan Studio from 1996 through 2000. "

"Yoshida took over full control of Japan Studio in 2008, at the same time that the PlayStation 3 was out and Sony was preparing to launch the PlayStation 4 "

"In May 2008, he became the President of SCE Worldwide Studios.[2]"

https://en.m.wikipedia.org/wiki/Shuhei_Yoshida
https://en.m.wikipedia.org/wiki/Japan_Studio

So he was head of Japan Studios for awhile, left to another role, then came back and was head of Japan Studios and the President of World Wide Studios

In both roles his responsibility was ensuring Japan Studios was performing and it wasn't

Japan studio's real decline started much later than anything even close to when Yoshida-san was in that role.

Whatever you think of his performance, it's ludicrous to think that Yoshida-san has been sidelined because of (imaginary) "screwups." The timing coincides with the rest of the leadership changes that shifted the whole axis of PlayStation decisionmaking to the west (for the worse).


Oh my god! Are you telling me that politicians are being lobbied? Incredible!

It's almost like Sony hasn't been doing some massive lobbying of its own over the past several months to try to block the ABK acquisition.

Like it or not, this is simply a case of "two can play this game."

Now?

Just starting to figure out how the world works?

The sweet summer child has just discovered lobbying. Wait until they find out that there are people whose actual job is doing that, in the open, legally. They even have it on their business cards.

Must be really out of touch to find out that lobbying exists due to some console war saber rattling. 😂
 
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fallingdove

Member
It’s pretty fucking disgusting that so many Xbox fanboys are in support of governmental corruption, so long as the outcomes fall in their favor.

You honestly think a brute force change to market dynamics like this one is going to reward you in the end?


the-simpsons-voted-for-kodos.gif
 
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Abriael_GN

RSI Employee of the Year
It’s pretty fucking disgusting that so many Xbox fanboys are in support of governmental corruption, so long as the outcomes fall in their favor.

Are you in favor of lobbying regulators but not members of congress?

What goes around comes around. Two can play the game.

Lobbying is a legally recognized part of American politics. It's an entirely screwed-up part of it, but they're 100% playing by the rules. Welcome to American politics.

Have some study material: https://www.investopedia.com/articles/investing/043015/why-lobbying-legal-and-important-us.asp (not that I agree, but it'll educate you on the topic).
 
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Yoboman

Member
I doubt that claim. My confirmations of this? Jim Ryan's words about blocking the deal entirely and not being interested in a new deal at all, and Sony simply don't want MS having a large revenue share slice of the PS base pie, plus the overwhelming majority of other industry players don't give a shit (only Sony).
I keep seeing this. Give me a reason anyone but Sony should care?
 

Yoboman

Member
Are you in favor of lobbying regulators but not members of congress?

What goes around comes around. Two can play the game.

Lobbying is a legally recognized part of American politics. It's an entirely screwed-up part of it, but they're 100% playing by the rules. Welcome to American politics.

Have some study material: https://www.investopedia.com/articles/investing/043015/why-lobbying-legal-and-important-us.asp (not that I agree, but it'll educate you on the topic).
Big difference between lobbying in the bounds of a case that Sony have been dragged into and going to senators to start pulling out intimidation tactics
 

feynoob

Banned
I wasn't kidding when I said this entire purchase is just a clown circus.

It keeps delivering outrageous takes nonstop.

I wonder what is the next stupidest thing that will happen after this news.
 

Abriael_GN

RSI Employee of the Year
Big difference between lobbying in the bounds of a case that Sony have been dragged into and going to senators to start pulling out intimidation tactics

Sony has been "dragged" into what?

Sony hasn't been dragged into anything. This is such a hilarious take. Their involvement is entirely 100% of their own making.

Microsoft is employing a tactic that is literally enshrined into the American constitution. May want to deal with the burn that two can play the influence game and Jim Ryan isn't the only that can play the tough guy (and look like a complete nincompoop in the process). 😂
 
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