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Microsoft / Activision deal prevented to protect innovation and choice in cloud gaming

Banjo64

cumsessed
For a normal company, selling 50-60 million of consoles in a generation of 6-7 years should be profitable. The console online store take 30% of any games or DLC sold there. It's a very comfortable position to be in. A lot of companies would buy the position MS is currently at.

It's just that Microsoft is greedy and does not want to waste time earning less than a billion for a division (profit). Gaming does not make sense for them unless it's earning (profiting) 10 billion and cornering the market. That's why they want to monopolize the market.
Fantastic post.
 

DJ12

Member
Microsoft could sell Xbox to like, Samsung or Amazon or something, then just make the games for it.
Rofl.

Samsung name is as strong if not stronger than Microsoft for producing tech, like they'd need to buy damaged goods to get going if they wanted.
 

reksveks

Member
For a normal company, selling 50-60 million of consoles in a generation of 6-7 years should be profitable. The console online store take 30% of any games or DLC sold there. It's a very comfortable position to be in. A lot of companies would buy the position MS is currently at.

It's just that Microsoft is greedy and does not want to waste time earning less than a billion for a division (profit). Gaming does not make sense for them unless it's earning (profiting) 10 billion and cornering the market. That's why they want to monopolize the market.
Bing??? Xandr???

Surface did become profitable after a while.
 
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jm89

Member
Jim Ryan Brad Smith is desperate and should move on

giphy.gif
 

John Wick

Member
Nope, didn’t Sony recently acquire another studio? They’ve been doing it unscathed for years, but like a frog in a pot, cooked slowly and no one notices or cares.
Aww what's stopping MS from buying studios? They have bought plenty and a big Publisher/studios with Bethesda. Why don't they buy new start ups like Sony has recently?
 

DJ12

Member
My god, the sheer hubris. If anything, these statements will only push UK/EU to double down on big tech crackdown and to block this particular deal.

Good job, Mr Smith! Now, Satya, could you please unplug Brad's mic to save any future prospects for MS in the region?
Its a veiled threat to the EU to fall into line. EU are probably not going to block it now. It's dead anyway.

And let's not forget the former ms guy now working for the EU.
 

Schmendrick

Member
You being dense on purpose?
Clearly it's bad for gamers that the biggest 3rd party publisher becomes first party for MS. Nothing is lost if they stay 3rd party.
You being dense on purpose?
Clearly it doesn`t matter because no one can force you to buy anything and companies grow and shrink depending on consumer choices/spending.
 
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GHG

Member

Bringing up the EU commission because they've somehow convinced them to take on the person they've had working on the deal? Coincidence I think not. These guys are rotten.

They lack introspection so much that it's funny. It's this kind of stance and these kinds of statements that are the reason they failed to appropriately address the CMA and their concerns.

He comes across as a spoilt brat that's been told no for the very first time in his life.
 

Zok310

Banned
My god, the sheer hubris. If anything, these statements will only push UK/EU to double down on big tech crackdown and to block this particular deal.

Good job, Mr Smith! Now, Satya, could you please unplug Brad's mic to save any future prospects for MS in the region?
This guy is a sore loser. Loses a bet on a $69 billion deal to a whole country and like a man child he reverts to talking about the uk’s cyber security and how crucial ms is to uk residents and businesses(a position they are in due to ms monopoly on os)?
MS sounds like a fucking terrorist organization in this response, basically got on tv to tell the uk, “give us what we want or we will destroy you”
 
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Panajev2001a

GAF's Pleasant Genius
This guy is a sore loser. Loses a bet on a $69 billion deal to a whole country and like a man child he reverts to talking about the uk’s cyber security and how crucial ms is to uk residents and businesses(a position they are in due to ms monopoly on os)?
MS sounds like a fucking terrorist organization in this response, basically got on tv to tell the uk, “give us what we want or we will destroy you”
Depending on the day they dress themselves as the poor bullied generous child and if they do not get what they want how they want they turn to cartoon villain mode… “we have peace a chancel was another gem MS uttered during this kind of ordeal…
 

oldergamer

Member
You realize the cma blocked a 70 billion dollar deal over their definition of cloud gaming being its own market instead of just another way to sell access to games?

First, mobile is the driving factor in cloud gaming imo. Downloading portions of games as you play. Isnt that far away from streaming. U still install parts but I think exclusion android and iOS gaming from it might be a mistake. Also an expert they had said it's not its own market.

Second, blocking a 70 billion dollar deal for a market that will take multiple years to reach 1 billion globally simply doesn't make sense. There is next to no appetite to have cloud gaming exist or be paid for on its own. It's simply too small .

Third, how do you get innovation in cloud gaming when there is a limited amount of methods for delivery. Without a delivery method, that market doesn't exist. The content on cloud gaming is the same content you get everywhere else for download or retail. Where is innovation going to come from without expensive infrastructure ??? It all doesn't make a lot of sense.

Cloud gaming is already proving to be a supplemental market. Not a separate one.
 
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ShaiKhulud1989

Gold Member
Second blocking a 70 billion dollar deal for a market that will take multiple years to reach 1 billion globally simply doesn't make sense. There is next to no appetite to have cloud gaming be with paying for on its own
It is better to prevent a potential monopoly than to try and remedy an existing one. For once, CMA showed the understanding and wisdom that is unexpected from a governing body, to be honest.

Media and even corporations are highliting the short-term, it is an obligation for a body like CMA to think on a decades scale. Maybe cloud will work out, maybe not, but either way the market will be healthy enough to grow organically.
 

LordCBH

Member
Their little minions going around in forums and Twitter calling for them to exit the UK has been eye opening. Hipsterism is a disease. Their politics shifting on a dime for this company? What the hell is going on man?

It’s kind of amazing how many bootlickers Microsoft has when they’ve demonstrated in multiple markets over 30 years that they don’t care about their consumer base.
 

Nicktendo86

Member
Their little minions going around in forums and Twitter calling for them to exit the UK has been eye opening. Hipsterism is a disease. Their politics shifting on a dime for this company? What the hell is going on man?
My it will never happen but absolute dream scenario is they do it, get forced to sell their UK studios, Nintendo gobble up rare for a bargain basement price and we get banjo 3.
 

yazenov

Member
Why is there this persistent, binary belief that success in the console market means selling more consoles than anyone else?

Because unit sales are currently the one and only metric for success in the console space, and no amount of dismissing or PR talk will change this fact. MS themselves admitted the importance of console sales to increase subscriber growth of Gamepass, and its growth has stunted as the result of low demand for their consoles.

Increased console sales lead to software sales, subscription growth, revue, and profit. It is the barometer for success unless you or MS can prove otherwise. Given the lack of details MS provides with Gamepass profits and userbase, I'd presume even MS agrees with this.

The cloud or Netflix of gaming may be the future, but not in this current climate. We're talking about the current market.
 

Topher

Gold Member
You realize the cma blocked a 70 billion dollar deal over their definition of cloud gaming being its own market instead of just another way to sell access to games?

First, mobile is the driving factor in cloud gaming imo. Downloading portions of games as you play. Isnt that far away from streaming. U still install parts but I think exclusion android and iOS gaming from it might be a mistake. Also an expert they had said it's not its own market.

Second, blocking a 70 billion dollar deal for a market that will take multiple years to reach 1 billion globally simply doesn't make sense. There is next to no appetite to have cloud gaming exist or be paid for on its own. It's simply too small .

Third, how do you get innovation in cloud gaming when there is a limited amount of methods for delivery. Without a delivery method, that market doesn't exist. The content on cloud gaming is the same content you get everywhere else for download or retail. Where is innovation going to come from without expensive infrastructure ??? It all doesn't make a lot of sense.

Cloud gaming is already proving to be a supplemental market. Not a separate one.

Cloud game streaming absolutely is its own market just as cloud itself is its own market. Even Microsoft has recognized that fact.

Streamed games are not downloaded/installed even partially. The game runs entirely on the remote computer and images are transmitted to the device. This is why input latency is an issue. This is not like locally installed Android/iOS games at all.

Microsoft not buying Activision does not limited "methods of delivery" whatsoever.
 

quest

Not Banned from OT
All Xbox has to do is make great games and they will be good. It's really not that hard.
You mean like sega and the dreamcast. They produced great game after great game. But couldn't over come the mindshare of Sony. It will take more than great games to defeat that mindshare. Nintendo produces great games but had to leave the high performance console market because of Sony mindshare.
 

ulantan

Member
You mean like sega and the dreamcast. They produced great game after great game. But couldn't over come the mindshare of Sony. It will take more than great games to defeat that mindshare. Nintendo produces great games but had to leave the high performance console market because of Sony mindshare.
No the wii U happened
 

Thirty7ven

Banned
You mean like sega and the dreamcast. They produced great game after great game. But couldn't over come the mindshare of Sony. It will take more than great games to defeat that mindshare. Nintendo produces great games but had to leave the high performance console market because of Sony mindshare.

But Microsoft isn’t Sega so your point is moot.

Phil has come out and said Xbox doesn’t need ABK, the division makes more revenue than Nintendo, hell gamepass makes money for them.

So what exactly are you saying here?
 

FunkMiller

Gold Member
Their little minions going around in forums and Twitter calling for them to exit the UK has been eye opening. Hipsterism is a disease. Their politics shifting on a dime for this company? What the hell is going on man?

Microsoft/Xbox are not going to leave the UK. If for no other reason than it would be prohibitively expensive even for them, to disentangle themselves away from one of their biggest markets. The legalities and trade implications would be huge.

Like it or not, despite Brexit, the UK is still a very major economic power, and any global corporation could not easily alter their trade practises just for one nation.
 

Bragr

Banned
Reminds me of a fantastic video I watched on YouTube this week where someone ripped in to Xbox’s current strategy and said ‘they have somehow convinced people that they don’t measure success in money’. You’ve been had hook, line and sinker.
I've been had because they are offering games on a subscription service?

Do you also believe they are gonna raise the price to something ungodly later on?
 
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