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[Varteras]

I can agree with this. My only issue with Kadokawa is that with their large presence in anime, it could create a bit of a snag for Sony in some global markets due to their large presence in anime streaming with Crunchyroll and Funimation. Though I think it could also work in Sony's favor, in that other companies with massive streaming platforms have acquired content to have a foot in the market as actual content makers of 1P assets alongside some 3P ones. Disney, for example, is a big example of that.

If Sony could acquire Kadokawa though, that would be a big get and get them a lot of what they need. Take-Two, they can buy shares & make investments into instead. Like you, I think Capcom would fit into their plans for content securement, just unsure if that would be through an acquisition. Probably more along the lines of what they do with Square-Enix today, meanwhile they might look into acquiring Square-Enix itself. Some key investments & shares into CDPR would also be a good idea, and the same with mid-sized publishers like Devolver Digital and Annapurna.

Outside of that acquisition-wise I don't think they would need anything else outside of some teams that could do well for an expanded effort of further 1P software diversification via AA-tier/budgeted content that can tap into legacy IP. Sony's big AAA studios are beyond those games now, but I think Sony could do a better job on 1P AA-type side of software and pair that with tapping into legacy IP, for games that can serve both console and even mobile well. Maybe cut back some of that live-service/GaaS budget and PC porting schedule (at least for the big AAA releases; I think stuff like PS3/PS4 remaster compilations can serve well on console & PC, and also maybe mobile) and put it towards this instead.

One clear thing is, they can't afford to just go forward with things like it's business as usual. In the likelihood this ABK deal goes through, Sony have to make some substantial moves in gaming . They don't need to overdo it, but they have do some.

Kadokawa could potentially be an issue in that regard. Which is one reason I suggested that Sony may instead offer an attractive payout for their controlling stake in FromSoft and make larger commitments to helping Kadokawa expand globally with their other ventures.

I think Sony does fairly well in allowing their studios to do what they want, with the understanding that there are consequences for failure. So if their studios wanted to do some lower budget projects, I don't think there would be much pushback. Sony has bought smaller studios like Bluepoint and Housemarque. Both of whom have done games on the lighter side of budgets. So clearly they see value there. I definitely feel it would be in Sony's interest to kind of pad out their release schedule with more mid-size games. Projects that can be churned out faster than average AAA development schedules. You never know which of those may end up being the next big deal and it would help reduce the impact from one of Sony's big projects not landing.

Sony needs a big buy for the mobile space. I would think, also, a restructuring of their mobile teams is in order. I see little reason to have Lasengle and ForwardWorks remain in Sony Music when you are clearly pushing for SIE to have a full blown mobile arm. Unless there are reasons behind that structure that still make sense now.

They also need a lot more development muscle to fuel their IP growth. I just don't think their current size, in both head and studio count, is going to cut it. Both of those need to grow by 50 to 100% rapidly in the next few years. Existing studios you own trying to soak up talent is a long game. Talent is at a premium right now. For the short to midterm, best to find where the talent is already congregated elsewhere and buy them if you can.

 

[Three]

Yeah, I was think that, straight after I stopped thinking about how intellectually bankrupt her whole comment was for gaming, because even the best players in the world can't compete in adverse lag conditions and internationally diverse lobbies for competitive games are not where even a mediocre experience can be had, because game latency is proportional to hop counts from the distant players to the nexus of the lobby players.

Exactly, the only reason those international players would even enter lobbies of other countries is usually because the COD population in that other country is small enough that it couldn't matchmake with a better latency with somebody nearby when looking for games. They spent earlier talking about latency for cloud too and how that is a bad experience but end up using COD lobbies to define regional market importance, who the hell would honestly do that? Why not just use data that isn't grouped by % of lobbies but instead % of players from each region or country? Intellectual dishonesty at its finest.

 

[Tams]

This explains so much and i feel so sorry for my American folks, if this is what attempts to protect consumers from major deals look like, i cant even imagine how much less effort they put into smaller deals. Dr. Lee wasnt even able to answer half the stuff while Bailey actually came with preparation, what a contrast.

I know this is how the game has to be played in this system, but Bailey is talking absolute shite (on the verge of lying) and playing on the judge's complete ignorance of the subject matter.

The argument is that judges are there to make a judgement, not know the subject matter, but I think that's really silly. How can you make a fair judgement on something you know nothing about?

 

[Gameplay Gods Bless]

You keep deflecting. I asked where MS said anything about closing on the deal.

That's the lesson for you. Don't talk about shit if you don't have facts. And no, you don't because MS factually has said nothing about closing. So you are just wrong, "homie".

Homie MS never announced that to the world. These talks are private. Here's another lesson for you: ALL talks either via email, phone or meeting between regulating bodies and companies are PRIVATE(and before you ask save yourself the time and Google the definition) unless stated otherwise. The FTC does not stream their comms on Twitch while asking for donations. Wow what a revelation this is to you, simply earth shattering.

For someone who spends so much time posting on this thread you don't seem to know much about the FTC. Maybe if you spent less time on Gaf and more time educating yourself you wouldn't waste people's time asking such ignorant questions.

And for the love of God don't reply with another "no you see the FTC just loves waisting the courts time, that's the whole purpose of a TRO and PI! They totally aren't there to stop a merger from closing. Nope nope /sticks head in sand"

 

[Gameplay Gods Bless]

I thought he was today but apparently tomorrow.

Just a few more people left. I'm not sure if Thursday will have hearings too or just the judge's decision.

Thursday will be the closing arguments.

 

[Gameplay Gods Bless]

I know this is how the game has to be played in this system, but Bailey is talking absolute shite (on the verge of lying) and playing on the judge's complete ignorance of the subject matter.

The argument is that judges are there to make a judgement, not know the subject matter, but I think that's really silly. How can you make a fair judgement on something you know nothing about?

Looking at the timeline by the time a built by MS COD launches the Switch 2 will already be out. It launches next year according to all the good leaks(kimi, Nvidia). So expect it to run on far more powerful HW than Switch 1 but weaker than Series S since the Switch 2 will be a hybrid system again.

 

[Banjo64]

Maybe if you spent less time on Gaf and more time educating you wouldn't waste people's time asking such ignorant questions.

Yeah Topher , you bloody ignorant ignoramus.

You want to educate yourself so you can give us nuggets of wisdom such as:

Yea but MS is considering outright removing ABK from the UK and selling via distributors as the CMA doesn't have the power to ban products just acquisitions in it's jurisdiction. If the company being acquired is no longer in it's jurisdiction then there is no problem.

Microsoft being in the UK doesn't affect their ability to successfully close. The issue is ABK and it's assets not MS.

 

[Gameplay Gods Bless]

Yeah Topher , you bloody ignorant ignoramus.

You want to educate yourself so you can give us nuggets of wisdom such as:

Cool a random gaffer saying analyst and M&A journalist information is wrong. Wow you sure got me Zelda fan.

 

[Banjo64]

Cool a random gaffer saying analyst and M&A journalist information is wrong. Wow you sure got me Zelda fan.

I didn’t say that, I know it’s hard to read 2 sentences though.

And no worries, fat man in a green lycra bunny suit fan.

 

[Jen_yakzua]

Nothing guarantees those IP will hold the same or increased relevancy 10 years from now. Hell, the MCU is in shambles right now, no telling what that could do to Spiderman long-term if Disney/Marvel don't fix things up.

Also outside of maybe Spiderman those other IP don't have the longer-term timelessness of a Mario or Pokemon. Granted, that's on Sony to resolve and making some big IP that aren't necessarily tied to big epic stories (all stories have to conclude eventually). But all the same, none of that justifies MS buying ABK under the idea Sony will be okay because they have big tentpole IP currently.

And if Sony can just make more of them in the future, or continue to keep what they have massively relevant, why can't Microsoft do that with the IP they already own without resorting to buying ABK? IF Microsoft for some reason can't, and need ABK as a result, shouldn't that make them less trustworthy with handling ABK properly?



I can agree with this. My only issue with Kadokawa is that with their large presence in anime, it could create a bit of a snag for Sony in some global markets due to their large presence in anime streaming with Crunchyroll and Funimation. Though I think it could also work in Sony's favor, in that other companies with massive streaming platforms have acquired content to have a foot in the market as actual content makers of 1P assets alongside some 3P ones. Disney, for example, is a big example of that.

If Sony could acquire Kadokawa though, that would be a big get and get them a lot of what they need. Take-Two, they can buy shares & make investments into instead. Like you, I think Capcom would fit into their plans for content securement, just unsure if that would be through an acquisition. Probably more along the lines of what they do with Square-Enix today, meanwhile they might look into acquiring Square-Enix itself. Some key investments & shares into CDPR would also be a good idea, and the same with mid-sized publishers like Devolver Digital and Annapurna.

Outside of that acquisition-wise I don't think they would need anything else outside of some teams that could do well for an expanded effort of further 1P software diversification via AA-tier/budgeted content that can tap into legacy IP. Sony's big AAA studios are beyond those games now, but I think Sony could do a better job on 1P AA-type side of software and pair that with tapping into legacy IP, for games that can serve both console and even mobile well. Maybe cut back some of that live-service/GaaS budget and PC porting schedule (at least for the big AAA releases; I think stuff like PS3/PS4 remaster compilations can serve well on console & PC, and also maybe mobile) and put it towards this instead.

One clear thing is, they can't afford to just go forward with things like it's business as usual. In the likelihood this ABK deal goes through, Sony have to make some substantial moves in gaming . They don't need to overdo it, but they have do some.

This is the purpose of the new CEO kenshiro

 

[Topher]

Homie MS never announced that to the world.

Exactly what I said. Reading isn't that hard, "homie".

 

[bender]

 

[adamsapple]

Remaining people (copied from Era)




Witness left that both sides called:

Witness		FTC time allotted	Microsoft time allotted
*Satya Nadella	Microsoft, CEO	Direct and Cross: 30 minutes	Direct and Cross: 15 minutes
*Tim Stuart	Microsoft, CFO of Gaming	Direct and Cross: 45 minutes	Direct and Cross: 30 minutes

Witnesses left for Microsoft:

Defendant Witness
~Liz Bailey	Vice President, Charles River Assoc.	Direct Examination: 45 minutes~ (guessing)	Cross-Examination: 45 minutes
^Dr. Dennis Carlton	Universift of Chicago - Economics	Cross-Examination: 45 minutes	Redirect Examination: 60 minutes
^Amy Hood	Microsoft, CFO	Cross-Examination: 15 minutes	Redirect Examination: 30 minutes
*Bobby Kotick	Activision, CEO	Direct Examination: 45 minutes	Cross-Examination: 30 minutes
*Steve Singer	Nintendo SVP, Developer Relations	Direct Examination: 10 minutes	Cross-Examination: 10 minutes
*Armin Zerza	Activision, CFO	Cross-Examination: 20 minutes	Redirect Examination: 15 minutes

Witnesses left for FTC:

Plaintiff Witness
*Jeff Fisher	Nvidia Senior VP of GeForce	Direct Examination: 10 minutes	Cross-Examination: 5 minutes

 

[Iced Arcade]

Kotick on the stand should be real interesting. I absolutely can't stand the man but he knows how both Sony and MS operate in terms of contracts and shady deals.

 

[ChorizoPicozo]

Kotick on the stand should be real interesting. I absolutely can't stand the man but he knows how both Sony and MS operate in terms of contracts and shady deals.

First words coming from his mouth:

" I just want to set the record straight your honor: I am the real victim here and i have been silenced for a long time....is time to tell my truth, the real truth"

 

[93xfan]

Nice smooth ride downwards into the the shitter, yes, a great thing.

PlayStation will be fine, just not as dominant. not a bad thing imo

 

[dotnotbot]

PlayStation will be fine, just not as dominant. not a bad thing imo

In a near future, yes. But in the long run it's looking grim unless they get lucky with their GaaS investments.

 

[93xfan]

In a near future, yes. But in the long run it's looking grim unless they get lucky with their GaaS investments.

there’s a lot of brand loyalty. Do you think MS will withhold CoD from Sony at any point?

I could see them using it as leverage and also offering that sweet 80/20 deal if Sony is lucky.

But I don’t see MS putting Sony out of business in the gaming console space.

 

[ulantan]

there’s a lot of brand loyalty. Do you think MS will withhold CoD from Sony at any point?

I could see them using it as leverage and also offering that sweet 80/20 deal if Sony is lucky.

But I don’t see MS putting Sony out of business in the gaming console space.

Why wouldn't you cut off a major money stream to your competition?

 

[poppabk]

Why wouldn't you cut off a major money stream to your competition?

What part of 80:20 do you not understand?

 

[ulantan]

What part of 80:20 do you not understand?

Why would they do that when you could cut them off and cripple them

 

[RedC]

Why wouldn't you cut off a major money stream to your competition?

To maintain the Ip's dominance and a guaranteed major money stream for yourself, show good faith to regulators for future game acquisitions, and make all the other single-player IPs exclusive to your platforms.

 

[dotnotbot]

there’s a lot of brand loyalty. Do you think MS will withhold CoD from Sony at any point?

I could see them using it as leverage and also offering that sweet 80/20 deal if Sony is lucky.

But I don’t see MS putting Sony out of business in the gaming console space.

Regarding brand loyalty, I don't think it's as strong as it may look like from our perspective. Sony certainly isn't Apple. Once they start losing popular IPs they previously had on their platform, most consumers will switch, unless there's some close equivalent of course.

COD may stay multiplatform but I don't like how even regulators are silent about the rest of IPs from Activision and Blizzard. It all adds up.

 

[splattered]

Glad we can all go to bed tonight as friends and start fresh in the morning.. tomorrow should be insane. I hope.

 

[Three]

What part of 80:20 do you not understand?

The same part that Phil doesn't with 70:30.

 

[Kilau]

Glad we can all go to bed tonight as friends and start fresh in the morning.. tomorrow should be insane. I hope.

 

[ulantan]

To maintain the Ip's dominance and a guaranteed major money stream for yourself, show good faith to regulators for future game acquisitions, and make all the other single-player IPs exclusive to your platforms.

Or you can force sony into a blunder. have the scrambling to make up that call of duty revenue. Suddenly they aren't making any single player "cinematic games" All Gaas all the time. Thier playerbase already hates thier new multi-player trend. You could force them to try to change player bases.

 

[poppabk]

Why would they do that when you could cut them off and cripple them

Yeah why have another company busting their ass to make you money in a field they are very succesful in, when you can try and do all the hard work yourself?

 

[RedC]

Regarding brand loyalty, I don't think it's as strong as it may look like from our perspective. Sony certainly isn't Apple. Once they start losing popular IPs they previously had on their platform, most consumers will switch, unless there's some close equivalent of course.

Digital libraries being the dominant way people purchase games have significantly changed things.

Phil Spencer himself admitted how blundering the eighth generation with Xbox One was the wrong generation to fuck up due to the massive transition that took place from physical to digital.

 

[adamsapple]

Glad we can all go to bed tonight as friends and start fresh in the morning.. tomorrow should be insane. I hope.

Kotik on the stand tomorrow, should be interesting.

 

[ManaByte]

Kotik on the stand tomorrow, should be interesting.

He’s just going to recite his dialog from Moneyball.

 

[RedC]

Or you can force sony into a blunder. have the scrambling to make up that call of duty revenue. Suddenly they aren't making any single player "cinematic games" All Gaas all the time. Thier playerbase already hates thier new multi-player trend. You could force them to try to change player bases.

You will also greatly reduce the value of the Call of Duty IP that it has built and maintained for over 2 decades and leave a huge void with a massive userbase for Sony or a 3rd party to fill.

I don't think it's worth it given the massive library and IPs Activision Blizzard has that could be made exclusive to Xbox/PC.

 

[Varteras]

Glad we can all go to bed tonight as friends

 

[ulantan]

You will also greatly reduce the value of the Call of Duty IP that it has built and maintained for over 2 decades and leave a huge void with a massive userbase for Sony or a 3rd party to fill.

I don't think it's worth it given the massive library and IPs Activision Blizzard has that could be made exclusive to Xbox/PC.

What third party would cannibalize 3 major developers and several support studios to fill that void, and would the attempt even be worth it?

 

[dotnotbot]

Digital libraries being the dominant way people purchase games have significantly changed things.

Phil Spencer himself admitted how blundering the eighth generation with Xbox One was the wrong generation to fuck up due to the massive transition that took place from physical to digital.

Depends on what kind of consumers we are talking about. I don't think average FIFA player cares he can't play previous 20 instalments on a new platform cause he's buying new one every year anyway. It's similar thing with COD, some people like to revisit previous instalments from nostalgia but most will only play the newest one. And then there are games like Diablo or Fortnite where everything you own in-game is cross-platform anyway.

In the era of GaaS games ownership doesn't matter much. Also notice how many of older titles are available in subscription services, either PS+ Extra or Gamepass. Making it much easier to switch.

 

[RedC]

What third party would cannibalize 3 major developers and several support studios to fill that void, and would the attempt even be worth it?

Trying to fill that void isn't equal to trying to release a AAA FPS with a single-player campaign and multiplayer EVERY YEAR.

The first step would be creating a successful and likely new IP FPS multiplayer game that they can then iterate on in sequels.

 

[b6a6es]

 

[RedC]

Depends on what kind of consumers we are talking about. I don't think average FIFA player cares he can't play previous 20 instalments on a new platform cause he's buying new one every year anyway. It's similar thing with COD, some people like to revisit previous instalments from nostalgia but most will only play the newest one. And then there are games like Diablo or Fortnite where everything you own in-game is cross-platform anyway.

In the era of GaaS games ownership doesn't matter much. Also notice how many of older titles are available in subscription services, either PS+ Extra or Gamepass. Making it much easier to switch.

I can see Microsoft considering that in the future, perhaps at the beginning of a new gen.

However, I don't think Microsoft would think the trade-off would be worth it, especially as they start porting CoD to Nintendo platforms and expanding Call of Duty's player base, and increasing the overall value of the IP and revenue generated.

 

[ulantan]

Trying to fill that void isn't equal to trying to release a AAA FPS with a single-player campaign and multiplayer EVERY YEAR.

The first step would be creating a successful and likely new IP FPS multiplayer game that they can then iterate on in sequels.

No that's the void, 70 dollar retail best seller every year is what you can take away. that loss of money would cause competition to buckle there is a reason no one else in the industry has achieved this feat for as long as activison. Because it's nigh impossible without having to reinvent your whole business.

 

[RedC]

No that's the void, 70 dollar retail best seller every year is what you can take away. that loss of money would cause competition to buckle there is a reason no one else in the industry has achieved this feat for as long as activison. Because it's nigh impossible without having to reinvent your whole business.

I just stated there would be a void if Call of Duty was no longer released on PlayStation. That void would be attempted to be filled by Sony and/or other 3rd party Studios/Publishers. In what ways it would happen, would remain to be seen.

 

[ulantan]

I just stated there would be a void if Call of Duty was no longer released on PlayStation. That void would be attempted to be filled by Sony and/or other 3rd party Studios/Publishers. In what ways it would happen, would remain to be seen.

That's the point you would force them to try to fill the void causing them to blunder pull cod would be worth that.

 

[demigod]

Anything juicy so far folks?

 

[Varteras]

Anything juicy so far folks?

Spoiler: The Juice

 

[demigod]

Spoiler: The Juice

Jesus fuck who is this chick again?

 

[thicc_girls_are_teh_best]

Interesting. I still think they should learn a difference between mediums and markets, but maybe some of my other thoughts on the judge have been premature and unfair.

Her son working for Microsoft shouldn't necessarily really have influence on their ruling, whether it's for the FTC or for Microsoft. Ideally, anyway.

 

[Varteras]

Jesus fuck who is this chick again?

Hell if I know. I typed "boobs" in the gif search lol

 

[Kilau]

Interesting. I still think they should learn a difference between mediums and markets, but maybe some of my other thoughts on the judge have been premature and unfair.

Her son working for Microsoft shouldn't necessarily really have influence on their ruling, whether it's for the FTC or for Microsoft. Ideally, anyway.

Her son told her to rule this way to look more impartial for the FTC denial.

 

[Shakka43]

Jesus fuck who is this chick again?

Amanda Love, according to Google Lens.

 

[Varteras]

Amanda Love, according to Google Lens.

I'm gonna call your name out when I finish. Thank you.

 

[SneakersSO]

I'd like to hear from S SneakersSO , who has been very quiet during this, it seems.

My extended family has been in from out of town for a little while and will still be for a touch longer, so I haven't fully kept up with the latest developments. Some of the headlines i've seen have been pretty interesting. Lots of stuff coming out in the open that I already knew about - nice to get some internal emails on some matters i'm sure.

Honestly, the case is fascinating, but I haven't really seen this FTC case take any major surprising turns. My gut feeling says there is a > 50% chance the judge will ultimately not grant the injunction. I wonder why the FTC didn't focus on the point that the injunction should be granted purely on the grounds that the actual acquisition is still being held up by the CMA and CAT appeal process, so granting it doesn't actually change any standing? I could see the judge biting on this. A lot of these internal comments coming out are really flying against a lot of what MS has stated to regulators. This entire discovery process is for sure far more painful for MS than they ever cared for it to be. I don't know how MS gets another publisher-acquisition through regulators with some of these comments being on the record.

The fact that Booty is basically confessing to them wanting to pursue a foreclosure strategy against Sony is the biggest smoking gun the FTC could've hoped for.