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

Microsoft, a company that has used shell companies in Ireland to avoid paying tax on €260b profit and we have to sit here whilst dipshits from Activision, a mega company themselves, try and spoon feed us on what’s good for us :messenger_tears_of_joy: tempted to never buy another Xbox/ABK product again after this. It’ll certainly effect my purchasing decisions even if I don’t outright boycot.

Yeah, both come off looking awful after this. Microsofts good guys act has also slipped too with how they've spoken about Sony through this whole thing. They've also made themselves look weak by finally admitting that Sony are kicking their asses and dominating, instead of their usual pr nonsense.To put it simply, Microsoft done fucked up in every way possible here.
 
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Thirty7ven

Banned
People shocked that governments are changing their stance on M&A practices even though it’s the logical thing to do given the last couple of decades and the academic research that has gone into their effects.

Blind people who spent too much listening to tv stock market talking heads who like to shout their opinions are only too happy to see the dystopian nightmare of stupid ass mega companies becoming as powerful as nation states, well guess the fuck what, thank god there are still human beings out there who aren’t complete fucking dimwits.
 

Topher

Gold Member
it can’t go to court, where Microsoft can try and tangle the procedure up and create huge legal fees. it goes to a tribunal who decide if the CMA didn’t follow their process correctly. if that’s found to be the case it goes back to the CMA.

that’s it. that’s the appeal process in its entirety.

I spelled this out for him earlier today. He just has his head in the sand.
 
I don't know why people are celebrating this. MS were going to buy a shitehouse of problems and issues. Now, they are out of that deal and there is nothing but badblood between Sony and Activision Blizzard. I dont see how Sony wins out of this at all.
 
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It'd be great if they even just put 2 billion into Elder Scrolls so they could get that out ASAP.
Yes my friend that would be a very good idea. It just seems so ridiculous that a company that has so much money has such a hard time putting out new first party games. This has been going on for a long time as well. Not something new.
 
So essentially the appeal is just a committee more or less determining if the CMA did their due diligence, and if they did, then that's that? The deal with the CMA is now closed with no further recourse?
Correct.
The CMA exists separately to the judiciary and government. Their decision will only be deemed invalid if it is proved they didn’t do due diligence. The problem for Microsoft is that they’ve been more diligent about this than anything I can recall.

I’ve been saying it since almost the start - it wasn’t the console stuff that was the issue. It was cloud (and by proxy GamePass).
 
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I don't know why people are celebrating this. MS were going to buy a shitehouse of problems and issues. Now, they are out of that deal and there is nothing but badblood between Sony and Activision Blizzard. I dont see how Sony wins out of this at all.
You know what Bobby Kotick and most people really like? Money. I don't think ABK is going to make decisions to spite Jim Ryan and Sony at the expense of their bottom line.
 
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ulantan

Member
I still am in awe that fanboyism and feeding console war bullshit just cost Microsoft 3 billion dollars. That's the funniest shit that's happened in this industry in at least a decade.
 
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Eotheod

Member
It’s funny because Microsoft thinks you’re wrong. Consoles are outdated and cloud is the future.

But lemme guess, you think they say that just to throw off the scent? But if they lied then… oops? If they told the truth then… oops?
It most definitely could be the future, but until world infrastructure is capable of delivering that it's at a stage of infancy. Content does matter for cloud services, however technology is key and no one has really nailed that yet. Alongside, as I mentioned, the infrastructure being still relatively primitive in most first world countries for delivering of cloud gaming. Hell Australia is just barely fixing up the past mistakes of Liberal's shit NBN.

Cloud gaming has so far not shown any form of competency to wager hedging of company acquisitions. I fully understand the scrutiny of console gaming, even though that was dropped due to somewhat shaky ground on whether MS actually would gain an upper edge. Rewlisticslly though, this decision is pretty far fetched and based on assumptions of a market that hasn't even shown it's worth yet to consumers. That's quite ballsy to rule on.
 

LordOfChaos

Member
If I'm an MS investor I am happy this deal fails. Xbox is just a drag on the whole business and not worth a 70 billion investment. If I'm an MS investor I can envisage a large chunk of that now going to AI development (for better or worse)

Yeah that's a lot of money to do other things with, and their ROIC on practically every other business is better than on Xbox
 
I don't know why people are celebrating this. MS were going to buy a shitehouse of problems and issues. Now, they are out of that deal and there is nothing but badblood between Sony and Activision Blizzard. I dont see how Sony wins out of this at all.

Have you seen the latest NPD report? Activision will go running to sony to renew the marketing deal. They need sonys massive audience. Things will stay exactly as they are because it's good business. Badblood and grudges ain't even in the equation.
 
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They were about to be made multibillionaires, sony were involved heavily in blocking that.
Yes, but if the deal falls through and ABK goes back to business as usual, to keep making all that money off CoD and what have you, it would be stupid of them to make deals that spite Sony or cause them to lose money from their platform.

ABK and Bobby Kotick and Lulu can be mad all the want over this, but if the deal falls through they have no choice but to make nice with Sony and carry on.
 
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Dane

Member
Anything that prevents Microsoft from accelerating (*cough* forcing *cough*) gaming towards a dystopian cloud future where they control the majority of the market is a win for gamers.

You guys need to get more creative if you're going to argue that this was somehow going to be a win for gamers when Activision provided evidence that they were eventually going to make their franchises available via cloud anyway.
It is a win, I get games on gamepass, you get the games on the Playstation, what's the problem?
 
Yes, but if the deal falls through and ABK goes back to business as usual, to keep making all that money off CoD and what have you, it would be stupid of them to make deals that spite Sony or cause them to lose money from their platform.

ABK and Bobby Kotick and Lulu can be mad all the want over this, but if the deal falls through they have no choice but to make nice with Sony and carry on.
Well, that might all be true, but it cant not create a negative relationship.
 

Nydius

Member
I haven't really been to Twitter much today because I've been busy with other stuff... just popped over and holy shit the copium is flowing.

So many delusional people beliving Microsoft and/or Activision can just leave the UK and suddenly make this acquisition happen.
 
Have you seen the latest NPD report? Activision will go running to sony to renew the marketing deal. They need sonys massive audience. Things will stay exactly as they are because it's good business. Badblood and grudges ain't even in the equation.
I think things like marketing deals will now be scrutinized much more. I also expect every paid exclusive to be investigated. I just see a shit show future.
 

Astray

Member
ABK and Bobby Kotick and Lulu can be mad all the want over this, but if the deal falls through they have no choice but to make nice with Sony and carry on.
Lulu is likely gone after the all ill-advised memeing she did, it's entertaining for people like us, but I can't imagine that it's great for fostering great corporate relationships..

Kotick is a toss-up, on one hand he really tried hard to fuck with Sony, but on the other hand this isn't the 1st time relationships got heated between him and Sony (he famously threatened to drop support for Sony if they didn't reduce the PS3 price), and he's a major shareholder. That one could go both ways..
 

GHG

Gold Member
It is a win, I get games on gamepass, you get the games on the Playstation, what's the problem?

I wasn't talking to you (or was I?).

I was talking to someone regarding the cloud dynamics at play. That's exactly the point I was addressing.

As for your "I get to play it on Gamepass" comment, the CMA aslo addressed that as well. No guarantee you get anything on gamepass, current or future and theres no guarantee it will be priced as it is today in the future. Further to that there's no guarantee gamepass will continue to exist in the future in its current capacity if at all. Microsoft are free to change that offering as they see fit.

Them having ownership of Activision and all of the associated IP has far more risks and pitfalls to consumers and the industry at large than it does benefits.
 
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Eotheod

Member
You act like the Switch doesn't exist and isn't in competition with Sony and MS. There is more to gaming than just Sony vs Xbox. You also just came out and said it, MS needs/wants ABK to be more competitive.

It's so absurdly dumb. MS not getting ABK only prevents fanboys from dunking on Sony fanboys. Nothing about owning an Xbox will change when it comes to ABK output, they've lost nothing other than shit talking points. MS has so many resources with Xbox, they're just mismanaged as can be and pathetic in their output.

People should be mad at Xbox for repeatedly shitting the bed for no apparent reason. It's embarrassing to see people straight faced boast about gamepass and the fact that Xbox controllers take AA batteries.
What is it with the continual hate for Xbox controllers and batteries? Are people seriously that hurt by having to buy some rechargeable ones that end up lasting longer then the PlayStation controller's battery? How is this still an argument that carries weight to it?

Microsoft does indeed have many resources, and I'm not arguing against internal revision to realign development mentalities. What I'm arguing against is the CMA decision, which is based on an industry that "may" be worth €1 billion by 2026. Maybe, if people actually shift to that consumer style and the infrastructure is available to do so. Right now, and I really can't see it changing in less than three years time, that isn't there so the decision is based on hypothetical stretches.

Would the content library be massive for Xbox and Microsoft? Most definitely, can't argue against that. However there would be severe cannibalism if Microsoft decided to foreclose any IP's of significance that can move the needle in game sales. It'd be like setting on fire truck loads of money to pamper a brand that doesn't need it, instead the association is key. That's how CoD got so big and is why Sont focused so much on it, because it is PlayStation now in the eyes of the consumer.

I didn't ignore Switch, and know very well Nintendo is actually the number one in console space. However Nintendo operates on an entirely different stratosphere of thinking, and you can't deny that at all. Heck even the CMA agrees there. I will just be very interested how this all plays out in the coming remainder of year, as we have some big titles coming from Sony that will continue to bolster their lead. Whether that upsets the industry or not, who knows 🤷
 

Baki

Member
If you think those execs who were going to be billionaires thanks to this deal wont hold a grudge.. I am not sure what planet you are living on.
Kottick owns 3.9 million shares. ABK stock price is currently $76.81 and the buyout price was $95. Kottick loses out on $71 million and maybe more if this deal doesn't go through. However, Kottick + other execs wealth is tied to stock price. So they will need to do everything in their power to increase their stock price. One of those things involves working with PlayStation to further increase sales and profits.
 

Dane

Member
I wasn't talking to you (or was I?).

I was talking to someone regarding the cloud dynamics at play. That's exactly the point I was addressing.

As for your "I get to play it on Gamepass" comment, the CMA aslo addressed that as well. No guarantee you get anything on gamepass, current or future and theres no guarantee it will be priced as it is today in the future. Further to that there's no guarantee gamepass will continue to exist in the future in its current capacity if at all. Microsoft are free to change that offering as they see fit.

Them having ownership of Activision and all of the associated IP has far more risks and pitfalls to consumers and the industry at large than it does benefits.
That same regards can apply to Sony and Nintendo services, even Steam and other digital storefronts can remove games.
 

EDMIX

Member
Are you kidding me? Today and the next few days is better than Christmas for warriors.

I was just going to say why would this news stop that? 1 side will claim victory, the other will cry, cope, trigger etc.

This is the wildest outcome of this whole thing, but this is the much more funny and interesting outcome lol
 
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