Support NeoGAF

[MasterCornholio]

Didn't know Regulators are forcing Xbox to release Bethesda.

 

[Banjo64]

Xbox’s inception and reason for existence;


"'What about Sony?' and he says, 'Sony is slowly invading the living room with a processor here software there, they could be a threat to Microsoft.'"
Gates and Ballmer stared at each other. "Yeah," Gates said. "What about Sony?"
Gates turned to the Xbox team and promised to give them everything they needed to create their console, Windows or no Windows. Ballmer echoed the chairman's vow.
"And I turn to Robbie and say, 'That was the weirdest meeting I've ever been in,'" Fries said.

 

[akimbo009]

This out of context.

The quote is effectively that Sony only cares about the console space and since consoles are basically capped at 200M devices that Sony can only grow by reducing their competition versus expanding into new markets like mobile, cloud, subscription, other devices.

Which isn't untrue - but this whole thing has been a shit show for both these companies and it's been embarrassing all around.

 

[HerjansEagleFeeder]

Small xbox syndrome. Everybody knows someone who has it.

 

[HeisenbergFX4]

Making Xbox smaller how?

Not allowing MS to buy Activision?

Stopping MS actually releasing great games?

I am a fan of team green but this is an ignorant take

 

[LordOfChaos]

Obviosuly Microsoft wants to buy Activision to grow PlayStation in contrast, and the 10 year deal offered which ends midway through next gen is nothing to think about, they're doing this for the good of humanity and not to grow Xbox over PlayStation.

He's literally just describing competition isn't he. It's not always zero sum, but each wants to have an edge.

 

[Woggleman]

At the end of the day say what you want but Sony and Nintendo have exclusives from devs who they funded and grew from the ground up. TLOU, GOW, Zelda and Mario were exclusives from day one. Microsoft is trying to use their big bucks to take hugely successful multi platform devs and keep them for himself. The shame is that Microsoft used to grow things like Halo, Forza Horizon and they were the first to really push online multiplayer but these days they just want to use their money to take away a huge seller from the competition.

I am not saying that Sony is some perfect force for good because they are another corporation that wants to make money but for Phil to play the victim now is absurd.

 

[nowhat]

So basically, Spencer is blaming Sony for the fact that the Xbox-brand is becoming irrelevant.

For the record, not trying to incite any console wars here. Competition is always great and we need multiple major players in the game for that to happen.

But really, maybe a rebranding wouldn't be a bad idea? Xbox is... nebulous. The consoles follow a naming convention that makes zero sense. Having a Windows app that seems to get forcefully installed every time I update my VM, that's called Xbox but still isn't, is kinda confusing. The streaming service is X... but not box.

So how about, just scrap all that and come up with some kind of cohesive branding/naming scheme that's suitable for all of MS's ambitions (Console/PC/Cloud)? At the moment it's all over the place.

(...and as for the topic at hand - company tries to belittle competition, news at 11)

 

[Loxus]

Activision market cap right now is 58 billion.

Imagine spending 70 billion dollars to buy a company that would probably be worth 32 billion post pandemic... and will be worth even less when you take into account the trade off of increased revenue but lost revenue in royalties and lost sales on PS consoles. Let's not get into if Sony puts money into a COD killer.

I'm starting to wonder if this is the reason Microsoft is trying to get COD under their portfolio.
PlayStation plans to release "more than 10" live service games by March 2026, a feat that will be helped by its acquisition of Bungie.

Without this acquisition Microsoft doesn't stand a change sadly.
I now see what they meant by competition.
Bethesda for Single player competition.
Activision for Multiplayer competition.

 

[phaedrus]

Gangsta

 

[Mibu no ookami]

I'm starting to wonder if this is the reason Microsoft is trying to get COD under their portfolio.
PlayStation plans to release "more than 10" live service games by March 2026, a feat that will be helped by its acquisition of Bungie.

Without this acquisition Microsoft doesn't stand a change sadly.
I now see what they meant by competition.
Bethesda for Single player competition.
Activision for Multiplayer competition.

The Activision acquisition was announced before the Bungie acquisition

 

[LordCBH]

I'm starting to wonder if this is the reason Microsoft is trying to get COD under their portfolio.
PlayStation plans to release "more than 10" live service games by March 2026, a feat that will be helped by its acquisition of Bungie.

Without this acquisition Microsoft doesn't stand a change sadly.
I now see what they meant by competition.
Bethesda for Single player competition.
Activision for Multiplayer competition.

Haven’t they maintained (so far) that the real end game of this purchase is King for Mobile representation? King alone pulls in a fuck ton of money

 

[quest]

Pot calling kettle black.

Sony didnt go out there and acquire entire publishers like zenimax and activision Mr. Spencer. At worst they continued the same anti-consumer moneyhatting YOU started with timed DLC exclusivity BS with Xbox 360 CoDs and GTA4 DLC. But MS with their war chest should never have been getting outbid for it.

Nope they only tried to money hat every zenimax game. Same thing just different capital layout lease vs purchase. Xbox gamers have lost far more games from major studios the last few years and in the next few years from Sony’s trying to content starve Microsoft out of the market. No high life is not the same as a SE game lol.

 

[Klosshufvud]

If Sony wants Game X exclusive on PS5 they have to pay Company A, Y Dollars for it
If Microsoft wants Game X exlusive on X Series they have pay Company A, Y+Z dollars for it

Why because Microsoft has to pay for the absence of PlayStation sales where as Sony has to pay for the absence of Xbox sales. As a result it's easier for Sony to afford these deals and easier for them to make these deals and they still make a ton off them from the royalties on the games sales, where microsoft makes the same percentage but a lower volume on the deal because the game sells worse on Xbox.

In other words Microsoft is in a position where they can't compete with 1st party or 3rd party with Sony.

That is where Phil went to Nadella and was like, hey, if we want to have a position in this thing, we need more money to buy a larger position. We need Bethesda and Activision and as a result they've spent upwards of 80 billion dollars to position themselves in a better position to compete with Sony, knowing Sony can't do the same.

The reality is this is both a good deal for the industry and a bad deal for the industry.

If the deal goes through, Sony is going to retaliate, it doesn't stop at Bungie. They'll buy T2, Epic, or Valve. Epic being very difficult with the current ownership of Tencent and Valve being difficult with Newell.

MS can bypass that disadvantage by allowing day 1 PC ports. This is something that Sony doesn't like to do. By offering PC/Xbox, suddenly you have a larger install base than Playstation. So these types of deals are absolutely still viable for Microsoft if they're willing to let PC in on the share day 1 aswell.

Sony is no position to buy any of those studios you mentioned. Valve is also privately owned and not for sale.

 

[Loxus]

Haven’t they maintained (so far) that the real end game of this purchase is King for Mobile representation? King alone pulls in a fuck ton of money

Are you sure?
Cause all they've been talking about is COD deals.

 

[LordCBH]

Are you sure?
Cause all they've been talking about is COD deals.

In relation to Sony at least, yeah COD is king. But overall the true prize is the money printer that is King. Especially to a company with actual zero presence in mobile.

 

[DJ12]

I like how he reiterates it's not financially a good idea to remove CoD from Playstation.

Now where have I heard/read something similar that before........

The man should just shut up.

Haven’t they maintained (so far) that the real end game of this purchase is King for Mobile representation? King alone pulls in a fuck ton of money

I have a solution, no one gives a shit if MS want to buy King.

Why not just buy King from Activision.

Of course we know the reason is, because that's total bullshit and they want the power of CoD in the console space, but you know, lets dish out more misleading statements to the press that their actions disprove.

 

[Loxus]

The Activision acquisition was announced before the Bungie acquisition

You think Companies just wake up one morning and announce their buying another company?
These acquisition attempts happen behind closed doors before coming to light.

Also, Sony was planning about expanding multiplayer before Bungie acquisition.

 

[Lucifers Beard]

It’s kind of contradicting when the idea is to buy out a major publisher and eventually remove the biggest games of all time from the competition.

The more time goes on the more it just seems like he wants to acquire as many publishers as possible to generate money. Not that Microsoft give a shit I’m sure, as long as they are making money!

Phil - Grow some bollocks and start giving those studios you already have some proper deadlines. You can’t make money unless they are actually releasing games.

 

[Iced Arcade]

man he talks too fucking much.

 

[Mibu no ookami]

MS can bypass that disadvantage by allowing day 1 PC ports. This is something that Sony doesn't like to do. By offering PC/Xbox, suddenly you have a larger install base than Playstation. So these types of deals are absolutely still viable for Microsoft if they're willing to let PC in on the share day 1 aswell.

Sony is no position to buy any of those studios you mentioned. Valve is also privately owned and not for sale.

The difference there is that while your software might sell more, you're losing out on 3rd party royalties sales because your ecosystem is diminished.

At the end of the day Sony wants its royalties and no matter how many games they sell themselves, its royalties are going to be far more.

They literally make 30% of each game sold without ANY of the development or marketing costs.... think about that.

 

[Mibu no ookami]

You think Companies just wake up one morning and announce their buying another company?
These acquisition attempts happen behind closed doors before coming to light.

Also, Sony was planning about expanding multiplayer before Bungie acquisition.

Not getting your point... do you think Microsoft woke up one morning and decided to buy Activision?

You made it sound like Microsoft bought activision to keep up competition with Sony due to their purchase of Bungie, that just isn't accurate.

 

[Loxus]

Not getting your point... do you think Microsoft woke up one morning and decided to buy Activision?

You made it sound like Microsoft bought activision to keep up competition with Sony due to their purchase of Bungie, that just isn't accurate.

I don't think so either.
Microsoft could very well plan to buy both Bethesda and Activision in the same meeting.

 

[BaneIsPain]

trying to understand Phil's logic.

 

[gothmog]

I'm not sure if this is Phil alone, but I get this feeling that Xbox loves to fixate on things to the detriment of other burning issues in their ecosystem.

First it was hardware. They let Xbox One basically languish while they chased the power crown. Now that they have that crown and the pressure's off you realize that the only reason it was even a thing was because Xbox was so vocal about their obsession with it.

Now it's acquisitions. They have the studios but instead of focusing on trying to get 4-6 studios out of 20+ they already have to deliver one game in a given year they would rather buy more studios.

I would say that it's a Phil problem but I have a strong suspicion that this is just Microsoft's culture of control shining through the lens of gaming. Nadella can sing the praises that this is a different Microsoft all day, but it feels similar to the old school control need MS has.

 

[ANIMAL1975]

And just like that,
Phil wins the 'whining bitch of the year' award in one tackle.

 

[Knightime_X]

How many PS games are on Xbox vs Xbox games on playstation.
Mega games like Minecraft are allowed on PS, but...

 

[Benniewise de Clown]

For the record, not trying to incite any console wars here. Competition is always great and we need multiple major players in the game for that to happen.

But really, maybe a rebranding wouldn't be a bad idea? Xbox is... nebulous. The consoles follow a naming convention that makes zero sense. Having a Windows app that seems to get forcefully installed every time I update my VM, that's called Xbox but still isn't, is kinda confusing. The streaming service is X... but not box.

So how about, just scrap all that and come up with some kind of cohesive branding/naming scheme that's suitable for all of MS's ambitions (Console/PC/Cloud)? At the moment it's all over the place.

(...and as for the topic at hand - company tries to belittle competition, news at 11)

Honestly, I think MS' best option would be to become a 3rd party publisher.

Right now, they're gambling on extremely unpredictable 'markets' with GamePass and their shift towards mobile, when there are millions of gamers on Nintendo and Playstation they could reach if they would become 3rd party.

Sure, there is some overlap, but Nintendo and Playstation are dominating.

It makes no sense to keep pouring money into a bottomless pit.
Xbox is struggling in their last strongholds (US/UK) and we even got NPD numbers showing PS5 is doing better than Series X/S in their Xbox strongest market (US), despite Xbox sales and PS5 supply issues.

I think this gen is their transitional phase and Spencer is supposed to supervise the transition.

 

[adamsapple]

"There has really only been one major opposer to the deal, and it's Sony. Sony is trying to protect their dominance on console. The way they grow is by making Xbox smaller," Spencer said. "They have a very different view of the industry than we do. They don't ship their games day and date on PC, they don't put their games into subscription when they launch their games. They're starting to think about mobile as I see from the outside, just reading some of the moves they're doing."

"The largest console maker in the world is raising an objection about one franchise that we've said will continue to ship on the platform. It's a deal that benefits customers through choice and access," Spencer said.

 

[BlitzerRadic]

Say you know nothing about business without saying you know nothing about bisiness.

Comments like this expose so much ignorance and you see it all the time on here.

Do great games help? No doubt, but it is a much smaller piece of the puzzle than you seem to think.

LOL this dude is a clown. MS wants to spend 70B to buy Activision. But not for their games! Its for some other reason.

 

[Alan Silvestro]

So Xbox Series XSmall version coming soon?

 

[MasterCornholio]

So Xbox Series XSmall version coming soon?

 

[ARK1391]

I really hate his whole "we want gamers to have more options" PR phrase. The only option to play the games from the companies Microsoft has purchased so far, it to play them on Microsoft devices. Which is what everyone has been doing the whole time.

Yes PC is a Microsoft device, you play those gamepass games on a Windows PC. Linux has to stream via cloud, and they aren't on Mac.

So basically more options is, any Microsoft product. Which is fine, that's what companies do. That's why Sony doesn't want this merger to happen because they want people to buy their consoles. It's the same thing Phil. Stop trying to sell it as something else.

 

[chromhound]

 

[reinking]

I really hate his whole "we want gamers to have more options" PR phrase. The only option to play the games from the companies Microsoft has purchased so far, it to play them on Microsoft devices. Which is what everyone has been doing the whole time.

Yes PC is a Microsoft device, you play those gamepass games on a Windows PC. Linux has to stream via cloud, and they aren't on Mac.

So basically more options is, any Microsoft product. Which is fine, that's what companies do. That's why Sony doesn't want this merger to happen because they want people to buy their consoles. It's the same thing Phil. Stop trying to sell it as something else.

People seem to forget that Microsoft started out with PC games, not consoles. Sony has always been a console company since entering the market.

 

[DForce]

"There has really only been one major opposer to the deal, and it's Sony. Sony is trying to protect their dominance on console. The way they grow is by making Xbox smaller," Spencer said. "They have a very different view of the industry than we do. They don't ship their games day and date on PC, they don't put their games into subscription when they launch their games. They're starting to think about mobile as I see from the outside, just reading some of the moves they're doing."

"The largest console maker in the world is raising an objection about one franchise that we've said will continue to ship on the platform. It's a deal that benefits customers through choice and access," Spencer said.

"There has really only been one major opposer to the deal"

It doesn't hurt other major publishers because it also benefits them that there's less competition on the market.

"The way they grow is by making Xbox smaller"

Microsoft wants to acquire as many publishers to make PS Smaller.

"They don't put their games into a subscription when they launch their game"

Phil knows they'll lose money. Xbox wouldn't do it if they had the same budget as Sony.

"They're starting to think about mobile as I see from the outside, just reading some of the moves they're doing."

They've been doing this for years.

"The largest console maker in the world is raising an objection about one franchise that we've said will continue to ship on the platform."

Only for 10 years.

 

[Neofire]

Phil says alot of shit.

You got that right. Dude is just throwing anything to the wall to see if it sticks. Sony been in this business way before MS thought about a console. MS just wants everyone to hop on their subscription/cloud future where they control all the IPs and whatever else they can buy.

 

[bentanchorbolt]

I mean, yeah. If Sony or MS could snap their fingers and it would diminish the competition to the point where it benefited them greatly, they would.

 

[Foilz]

Sony goes hardcore to keep games off other platforms. There were multiple at the game awards alone. So yes, I agree with what Phil said but it's also part of the business. That's why I have no -issue with Ms trying to buy out Activision to bolster their services. Sony wants people on their box, MS wants people on their software, they know the future holds no place for a 500+ box. Sony made the deal to keep cod and others off gamepass.

 

[DJ12]

You got that right. Dude is just throwing anything to the wall to see if it sticks. Sony been in this business way before MS thought about a console. MS just wants everyone to hop on their subscription/cloud future where they control all the IPs and whatever else they can buy.

The sad thing is its already resonating with the usual clowns.

 

[Crispy Gamer]

Stunning statement smh I can't stand that dude man he's the single reason why my Xbox doesn't have the exclusives it deserves he doesn't know how to manage studios and he constantly is on a freaking PR campaign it's obvious to me he doesn't know what it takes to build/manage studios and to see a project through. Everyone gives Sony shit for timed exclusivity because it sucks but guess what it's "timed" and they both do it but what Sony doesn't do is buy publishers and withhold games then claim they are just doing it to give more choice to consumers lol Microsoft's messaging is the worst I wish they would go away completely and just release games we don't need to hear them speak anymore because it's only making things worse. They are so arrogant to feel as if they deserve to be on top without putting in the actual work . What have you actually learned from coming in last place every generation Phil? Nintendo has screwed up a lot (Wii U) and the market punished them by not buying the product but they learned and are better off . PlayStation screwed up badly (PS3) so they learned by building up their first party since they lost so much third party support that generation. Microsoft have had decades to build up first party studios so since they couldn't do it at the scale to beat Sony they've decided to just go scorched earth by buying up whole publishers to ensure they can't fail again so they'll never have to learn anything because all they'll do is throw money at the problem. In summation Microsoft have contributed the most into making Xbox smaller not Sony but it doesn't matter anymore because they just want to be too big to fail and they'll get their way.

 

[laynelane]

"There has really only been one major opposer to the deal"

It doesn't hurt other major publishers because it also benefits them that there's less competition on the market.

"The way they grow is by making Xbox smaller"

Microsoft wants to acquire as many publishers to make PS Smaller.

"They don't put their games into a subscription when they launch their game"

Phil knows they'll lose money. Xbox wouldn't do it if they had the same budget as Sony.

"They're starting to think about mobile as I see from the outside, just reading some of the moves they're doing."

They've been doing this for years.

"The largest console maker in the world is raising an objection about one franchise that we've said will continue to ship on the platform."

Only for 10 years.

The whole 'blame Sony' rhetoric comes across as a red herring. It's a poor attempt to draw attention away from things such as:

“Microsoft decided to make several of Bethesda’s titles including ‘Starfield’ and ‘Redfall’ Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles,” reads the news release.

Source.

It's MS' own behavior being scrutinized here and I wonder if they will ever take any sort of responsibility for it.

 

[Snake29]

I don't like MS's approach to growing the market through consolidation and acquisition of publishers and franchises, but that's not quite true. (Well, if you skip the "permanently" part, at least.) Final Fantasy XVI & Final Fantasy 7 Remake, Star Wars KOTOR Remake, the Marvel Spider-Man and Wolverine characters (developed internally, but still, those used to be platform-agnostic brands,) new series by 3rd Parties like Square's Forespoken and Tecmo Koei's Rise of Ronin, and big indies (which may be timed exclusives) like Stray and Kena Bridge of Spirits, plus Deathloop and Ghostwire in their time.

There's differences in approach. (And from my vantage point, most of these exclusives or timed-exclusives have been smart business decisions on the makers, as they got whatever money and marketing push from Sony but also just fit the audience interests well; same for Xbox titles like The Ascent and Tunic and PSO2 and the Forza Horizon Hot Wheels deals which were right for Xbox gamers and maybe the brands as a whole.) However, it's not the same entertainment market as it was in the past, and new times call for new approaches. I begrudgingly have to admit that MS's acquisition may be the more important business approach in view of Disney and other corporations consolidating brands. MS is planning for what's beyond these single boxes housing all their products.

All the games you name are new and are not "taken away" from any other platform. Its not so hard to name upcoming Xbox timed exclusives.

Valheim, STALKER 2, ExoMecha, ARK 2, High on Life, Warhammer Darktide, Replaced, The last Case of benedict Fox, Contraband and a lot more.

I see no PS fan constantly cyring about Xboxs list of timed exclusive game. The Story about KOTOR is known, they need financial backing otherwise the game was never developed.

 

[alabtrosMyster]

Jim Ryan's arguments about this whole drama surrounding ABK don't seem so silly anymore, but people were so blind to believe in Phil's "good guy" words without also looking at the actual reason Sony is fighting it. Surely Sony really seems to have a better view of the market. Microsoft mostly wants to get a lot of content under their eco system, crying that it's good for consumers when there is choice, but that choice is only if you create a Microsoft account, because Bethesda games are no longer coming to PS, so where is that choice?

You can be free as long as you do exactly as I say.

Bend over you'll be feeling freedom inside you soon enough.

 

[Unknown?]

Nope they only tried to money hat every zenimax game. Same thing just different capital layout lease vs purchase. Xbox gamers have lost far more games from major studios the last few years and in the next few years from Sony’s trying to content starve Microsoft out of the market. No high life is not the same as a SE game lol.

Big whoop, a year or less of exclusivity isn't the same thing. All of the Zenimax moneyhats were small new IPs. They didn't try to moneyhat the next Elder Scrolls.

All you lost was a few months to a year.

 

[Jormatar]

The only reason why Sony has been growing is because Microsoft has been so quiet for the past decade when it comes to actions that interest players. Microsoft can only blame themselves.

 

[SLB1904]

How many PS games are on Xbox vs Xbox games on playstation.
Mega games like Minecraft are allowed on PS, but...

Destiny

 

[recursive]

Man, the irony of that statement from good Ole doublespeak phil.

 

[Crayon]

Anything you say can and will be used against you in the court of law.

 

[StealthGoblin]

I don't like MS's approach to growing the market through consolidation and acquisition of publishers and franchises, but that's not quite true. (Well, if you skip the "permanently" part, at least.) Final Fantasy XVI & Final Fantasy 7 Remake, Star Wars KOTOR Remake, the Marvel Spider-Man and Wolverine characters (developed internally, but still, those used to be platform-agnostic brands,) new series by 3rd Parties like Square's Forespoken and Tecmo Koei's Rise of Ronin, and big indies (which may be timed exclusives) like Stray and Kena Bridge of Spirits, plus Deathloop and Ghostwire in their time.

There's differences in approach. (And from my vantage point, most of these exclusives or timed-exclusives have been smart business decisions on the makers, as they got whatever money and marketing push from Sony but also just fit the audience interests well; same for Xbox titles like The Ascent and Tunic and PSO2 and the Forza Horizon Hot Wheels deals which were right for Xbox gamers and maybe the brands as a whole.) However, it's not the same entertainment market as it was in the past, and new times call for new approaches. I begrudgingly have to admit that MS's acquisition may be the more important business approach in view of Disney and other corporations consolidating brands. MS is planning for what's beyond these single boxes housing all their products.

I said permanently for a reason and your whole post completely missed the point. If you change the framing of the statement made then of course you can argue a different point.

My original point still stands. Through throwing money about for acquisitions, Microsoft are the only platform who have taken established series away from other gamers permanently. That’s shitty, and counter to the image of being for everyone that they like to portray.

If Sony start doing the same shit then you’ll see me spouting off against them too. When I originally read the Bungie headline when it flashed up on my phone I got quite annoyed until I became pleasantly surprised with what Sony and Bungie agreed. Even better when their new output will be MP too.

When put up against Microsoft’s purchase of Ninja Theory and Zenimax, it’s really refreshing.