PC & Video Games

Microsoft buys Activision for $68.7 billion

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  • Apr 28th, 2022 6:26 pm
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TIL Activision owns the old Sierra P&C adventure franchises. Can we get a new Police Quest?

Looking forward to hopefully being able to play the last few COD campaigns I missed on Game Pass
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We know the driving force behind the purchase was to make an Indiana Jones version of Pitfall. Face With Tears Of Joy
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BernardRyder wrote: Hooo boy. Great for MS, not great for gaming 🤷
Just sell your PS5, and get the series X. You already have a second controller for co-op.....jk
Anyway, it's just not good for PlayStation only users, so they'll have to step up with Spartacus as I pointed out earlier. Obviously there is going to be some bitterness from some fanboys. Maybe PlayStation can go the way of Nintendo, or maybe they can acquire Take-Two Interactive to level up the field. We shall see, but they need to make a move and can't just sit on those hardware sale numbers this generation.
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BernardRyder wrote: Hooo boy. Great for MS, not great for gaming 🤷
On the surface, it's definitely concerning, and hopefully MS has learned from their lessons re: antitrust in the past. XBox value proposition is amazing right now, but that could change in two years, and we'll have to hope that legislators keep an eye on what they do after they've taken control of Activision Blizzard. That said, MS has said and done all the right things in the past few years and I'm confident that they won't totally screw over the gaming landscape to make profits.

Question for you @BernardRyder - what would your thoughts be if Sony was the one who acquired Activision? Would it be the same doom and gloom for you?

If you're an XBox or PC gamer, then there will be benefits if you're willing to get into the XBox ecosystem... Right now is the time to really get a long term GamePass subscription if you want to reap the benefits, because they're not going to offer this $1 loophole forever, and I wouldn't be surprised if they increased their subscription price, or introduced a two-tier system. I also wouldn't be surprised if some games aren't day-one on GP in the future, but maybe on there after 2 months or something. People are using the "Netflix of Gaming" moniker when maybe it's more like HBO Max...

If anything, this will have to push Sony to have to diversify their first person games production. They relied so heavily on their marketing partnership with Activision to carry their multiplayer and co-op gaming, and now that's going to change, and they'll have to really think about revisiting older IP to fit that niche. But they own a lot of IP that still holds value, and they can get there. TBH there's still potential in things like Killzone and SOCOM, maybe Resistance comes back, or they do something like purchase Capcom and focus on the FGC, or strike partnership deals with Japanese devs to try to keep games like Monster Hunter or bring back Lost Planet or try to get Kojima in-house.

This move definitely raises the stakes and this is another huge inflection point in the state of gaming.
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This might be the gen where Microsoft forces Sony's hand to also buy a publisher outright. MS's already bought two.

Square Enix, Capcom, Take-Two, Bandai Namco ?

It's going to be pricey though and Sony just doesn't have the deep pockets MS does so I don't know if they can get it done.
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To be honest, COD only became as big as it did because it's been multiplat for the longest time. It would be dumb of Microsoft to say screw playstation, then watch as a new fps gets developed by Sony and fills the gap. It makes more sense for MS to continue supporting playstation, but provide exclusive content for the xbox version, and days gamepass release. At least in that way, you open yourself to more subscribers down the line. Market share is the goal after all.
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Piro21 wrote: Wow, those are some titles I haven't seen in a long, long time. Caesar, Interstate '76, Soldier of Fortune, Hexen, King's Quest. I doubt they'd put money into reviving those great old '90s games, but nobody spends 68 billion dollars on something if they're not going to use it to the fullest.
I think those library games are nice to haves, and I can see them maybe making remasters of some of those.

But as much as I want reboots of some of the Police Quest and I76 games, this is really about the profitability of their current library. Call of Duty may have fallen out of favour for many people, but it's still going strong, buoyed by the immensely popular Warzone. And of course, anything Blizzard releases turns into gold... Warcraft, Diablo, Overwatch...

Also, Take Two went and bought Zynga for $12B... buying Activision (who owns King, makers of Candy Crush) seems like a steal in comparison...
Last edited by M1GOmigs on Jan 18th, 2022 1:15 pm, edited 1 time in total.
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thechampion116 wrote: It will end up badly for gamers cause Sony/Playstation will end up losing. They may last this generation but I can't foresee them lasting that much longer afterwards. MS always had the warchest (they are worth almost 3 trillion) but they are now actively using it to expand their gaming portfolio through major acquisitions.

Nintendo has their portfolio and will survive no matter what so that front will always exists. It now comes down to whether Sony can do the same and I don't think its that easy. COD is one of Sony's top performers on the platform. There is a lot of revenue that will slowly vanish over the next year and then they will start to lose PS+ subscribers as well. It's a huge base that will either stop paying for gaming or simply slide on over to MS. Sony started at the top but they can't compete with the acquisitions.

I don't think MS will take a hands off approach either. The acquisition won't be finalized until June 2023 but once it is final, anything not on a Sony platform now will never see the light of day on it (i.e. future release of COD, etc.).

I am sure there will be quite a few people in the future saying "I regret my PS5 purchase".
In 2014, it appeared that Sony was returning to a PS2-like dominance. There was chatter than Microsoft would sell its Xbox division. Nintendo seemed like they were doomed and could not make another successful home console again. Both Microsoft and Nintendo found their footing a few years later and the narrative changed.

I think it's an overreach to say the PlayStation won't be lasting for much longer after the next generation. The PlayStation brand has been pretty resilient in the past.

Sony won't be able to make the same acquisitions like Microsoft, but they could nurture the studios they have and occasionally make smaller acquisitions. In addition, they can probably shore up exclusives/timed exclusives with Japanese third party publishers that historically has strong ties to PlayStation (they are doing now with Square Enix - FF7R, FF14, FF16, Forespoken etc).

If it's all just about who has the larger wallet then Google or Amazon would have had more success in this industry.
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CFRTim wrote: Anyway, it's just not good for PlayStation only users, so they'll have to step up with Spartacus as I pointed out earlier. Obviously there is going to be some bitterness from some fanboys. Maybe PlayStation can go the way of Nintendo, or maybe they can acquire Take-Two Interactive to level up the field. We shall see, but they need to make a move and can't just sit on those hardware sale numbers this generation.
You can't seriously believe it is that simple a result. And why equate an Xbox win with automatic tears from PlayStation users only? This is a monopolistic move plain and simple, just look at the numbers, $70 Billion. Google doesn't buy out companies for that much an amount, and they still get smacked left and right with antitrust and anticompetitive lawsuits, lol.
Also if it affects PlayStation users only, then it still affects all console.owners in general. It's a 2-pony race because Nintendo is its own thing, they don't really compete with MS and Sony.
And now that I look back at Phil Spencer's recent comments on PlayStation and a GamePass competitor, kind of makes sense. He already knew what was coming. One major player that PlayStation could try and garner deals with was about to be removed from the market. Sneaky sneaky...
c'mon get happy!
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Just looked at the whole Kotick situation. He's going to be ousted once the deal closes and he'll be making 290M from it alone. Add in his equity being bought in this deal, that's like another 380M.. Dude is making out about 700M out of this whole thing. Crazy madness 🤡
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sumtimw0ng wrote: Just looked at the whole Kotick situation. He's going to be ousted once the deal closes and he'll be making 290M from it alone. Add in his equity being bought in this deal, that's like another 380M.. Dude is making out about 700M out of this whole thing. Crazy madness 🤡
Golden parachutes man... SMH :facepalm:

In his email to the company after the acquisition news broke he said:
I will continue as our CEO with the same passion and enthusiasm I had when I began this amazing journey in 1991.
But what he really meant was:
I will continue as our CEO with the same salary and compensation I had when I began taking heat for my mismanagement, and will subsequently step down and given a severance package once MS takes over. Disappointed Face :facepalm: :twisted:
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jeffyjaixx wrote: This might be the gen where Microsoft forces Sony's hand to also buy a publisher outright. MS's already bought two.

Square Enix, Capcom, Take-Two, Bandai Namco ?

It's going to be pricey though and Sony just doesn't have the deep pockets MS does so I don't know if they can get it done.
I have to correct myself earlier, in terms of gaming marketshare by revenue its - #1 Tencent, #2 Sony, #3 Microsoft. So I guess Microsoft isn't truly in a dominant position (yet). Though they certainly have the capital to quickly get there as we've seen.

I still believe that all of this consolidation is not good for the industry regardless of what brand preference someone has. If Sony bought say Take-Two or Ubisoft, I wouldn't be a fan of that acquisition either. The industry has grown a lot though and we have many entertainment options so ultimately it's internet armchair analyst stuff. If one company becomes greedy, give your money to a different platform. Right now all three platforms are thriving anyway.

Ugh Bobby Kotick, I hope they get rid of him as quickly as possible and it doesn't turn into a Notch situation.
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If Sony had bought Activision/Blizzard many would be saying "take that!" in response to MS getting Bethesda....and yes I realize the monetary difference between the 2. Like Redmask said...internet armchair analysts will predict doom and gloom on both sides. Sony is done!!! MS is a Monopoly!! Realistically until the full acquisition takes place and MS does something "crazy" like pulling COD to Xbox exclusive nothing can really be set in stone. I will stay quietly optimistic that MS handles this in a way that is both good for the MS brand and doesn't hurt the industry fully.

Xbox has NO exclusives!!! Why buy one only for multiplats....well hopefully they get that old tired adage put to bed. Also I hope this lights more of a fire in Sony to get some bigger stuff out the door! My PS5 is basically a Beat Saber player.
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BernardRyder wrote: You can't seriously believe it is that simple a result. And why equate an Xbox win with automatic tears from PlayStation users only? This is a monopolistic move plain and simple, just look at the numbers, $70 Billion. Google doesn't buy out companies for that much an amount, and they still get smacked left and right with antitrust and anticompetitive lawsuits, lol.
Also if it affects PlayStation users only, then it still affects all console.owners in general. It's a 2-pony race because Nintendo is its own thing, they don't really compete with MS and Sony.
And now that I look back at Phil Spencer's recent comments on PlayStation and a GamePass competitor, kind of makes sense. He already knew what was coming. One major player that PlayStation could try and garner deals with was about to be removed from the market. Sneaky sneaky...
That statement makes no sense. If it affects all console owners, and Nintendo is its own thing, then it affects PS users only. Is there another 4th or 5th console within the all console owners? The Sony Take-Two acquisition was a pun, but who knows I see someone else said the same thing on here. Google antitrust suits comments on here...... please Microsoft has pioneered those.
Sneaky or whatnot Phil Spencer has turn the Xbox division around, so give the man some credit.
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Going against the grain here... I'm fine with this acquisition. I understand some people aren't and I'm fine with that as well.

- This really pushes me towards going all in with both Playstation and Xbox. I can afford it. I was already there during the PS3/360 generation. Though XBox Game Pass does make it easier.
- To date Microsoft has been pretty good about maintaining multiplatform games after acquisitions. You have to remember that the company is thinking about their profits. They'll never make Call of Duty or Diablo Xbox-exclusive.
- Xbox has a history of staying hands off with acquired developers, but being there to provide its financial and technical resources and stability.
- Phil Spencer has been really good for Xbox. Remove all the acquisitions during his tenure and you'll see he's been a champion of backwards compatibility and cross-platform gaming. He's said in the past that Xbox has holes in its games lineup that they need to fill.

Some people are worrying over as of now just fictional scenarios. People forget the huge uproar when Microsoft acquired Mojang in 2014 and everyone assumed Minecraft would become Xbox exclusive but that never happened.

Wait it out and see what happens. Ultimately most people's plans won't change. You'll still have your primary gaming brand and your second.
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swaghunter wrote: This is huge news. Sony definitely has to put their AAA first party games available day 1 launch on their new upcoming subscription service now. I dont see how they can compete if not. This acquisition might have just helped both XBOX and PS subscribers!
I highly doubt it. These are two different business models we’re talking about. Microsoft is aiming to be the Netflix of games. Sony’s strategy will likely be closer to Disney: they don’t release blockbusters straight to Disney+. To fund those giant games/movies you need actual massive game/movie sales.

I don’t think the subscription model lends itself well to creating games/movies like that. I’ll believe MS can make amazing single player games like Ghost of Tsushima, God of War, Horizon, Spiderman, etc when they actually make a game like that. I’ve had an Xbox One for like seven years and there’s literally zero games that rival those Playstation games. Hopefully Starfield will start that trend.
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CFRTim wrote: That statement makes no sense. If it affects all console owners, and Nintendo is its own thing, then it affects PS users only. Is there another 4th or 5th console within the all console owners? The Sony Take-Two acquisition was a pun, but who knows I see someone else said the same thing on here. Google antitrust suits comments on here...... please Microsoft has pioneered those.
Sneaky or whatnot Phil Spencer has turn the Xbox division around, so give the man some credit.
No, Nintendo doesn't equate in this, but at the same time they do lol. It is a console, yes, but not in the same weight class as PS/Xbox which are two sides of the same coin. Nintendo is a different specialized console, like mobile games are different from console games to make a poor analogy. But in the end it affects all console games. It can affect Nintendo, just not as directly as Sony. Today.

You take everything too personally if it's not a rah-rah MS statement. Show me where I equate his statements to discrediting him and I'll apologize. I'm simply pointing out his statements are good corporate-speak. Sure we welcome Sony's competition (especially now that we eliminated some of the avenues they had...)
c'mon get happy!
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Going to gently push back on a few of those items:
Mulder and Scully wrote: To date Microsoft has been pretty good about maintaining multiplatform games after acquisitions. You have to remember that the company is thinking about their profits. They'll never make Call of Duty or Diablo Xbox-exclusive.
Bethesda is exclusive going forward. I don't see why they wouldn't do the same with CoD. Minecraft was an outlier, it was purchased specifically to be a multiplatform title that gives them an inroads to a younger marketshare. I can easily see both of the IPs you mentioned being exclusive.
- Xbox has a history of staying hands off with acquired developers, but being there to provide its financial and technical resources and stability.
I think this is a reach, Microsoft has meddled plenty with their acquisitions over the years and outright ruined several studios. I think it's more accurate to say that in recent purchases under Spencer, they have more direction and outcomes have been more positive.

On the other hand, I agree that Spencer has been very good for Xbox and consumers in general. He's a smart business man who threads the needle between consumer value and shareholder value, I dread what happens when he leaves the company one day. I also agree that the sky is not falling, this isn't going to drive Sony out of business or some such nonsense. All three platforms consistently outperform expectations so you're probably right, it's much ado about nothing.

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