Dizagaox
Member
A spinoff of this thread, I ask NeoGAF-ers the question:
Should Microsoft buy Sega from Sega Sammy Holdings?
Some context for why Microsoft buying out companies has become a hot discussion: Microsoft is sitting on approximately $138B of cash (mostly overseas), and shareholders want it used up now because Trump has introduced a low one-time tax policy that won't last as it's not sustainable. That FOMO is why Microsoft might very well make so insanely huge acquisitions. Now throw in Microsoft wanting to push and grow its Xbox Game Pass service into the video game equivalent to Netflix, and the changes in leadership, the idea of Microsoft buying out Electronic Arts isn't absurd. They need to spend that $138B on companies that altogther bring an R.O.I. of at the very least 115.5%, in order for their balance sheet to stay, well, balanced. So buying a money maker like Valve or EA isn't crazy. It's a safe move for Microsoft that will also guarantee the thing that's missing from Xbox... Exclusive content!
Sega seems like a company that is more valuable for the IPs it owns than any of the games its actually releasing. Parent company Sega Sammy Holdings has a market capital valuation of $4.9B, but most of that will be down to the Sammy half of the company, which is honestly dragged down by the Sega half. However Sega does have strong, good IPs, it has great-to-competent developers including the masters of JRPGs Atlus, and its a brand that people trust the world over. Sorta. Well definitely in Japan.
Buying out Sega would give Microsoft actual clout in the Japanese market. Something like the "Sega Xbox" would get noticed, and with strong IPs, especially something like Game Pass if it included brilliantly insane exclusives from the Sega/Atlus library, it would sell systems. Internationally, the idea of all future Sega and Atlus games being Xbox exclusives also makes Game Pass more appealing.
There's more arguments for such a potential buy out, and there will be many against it too. So let's discuss!
Should Microsoft buy Sega from Sega Sammy Holdings?
Some context for why Microsoft buying out companies has become a hot discussion: Microsoft is sitting on approximately $138B of cash (mostly overseas), and shareholders want it used up now because Trump has introduced a low one-time tax policy that won't last as it's not sustainable. That FOMO is why Microsoft might very well make so insanely huge acquisitions. Now throw in Microsoft wanting to push and grow its Xbox Game Pass service into the video game equivalent to Netflix, and the changes in leadership, the idea of Microsoft buying out Electronic Arts isn't absurd. They need to spend that $138B on companies that altogther bring an R.O.I. of at the very least 115.5%, in order for their balance sheet to stay, well, balanced. So buying a money maker like Valve or EA isn't crazy. It's a safe move for Microsoft that will also guarantee the thing that's missing from Xbox... Exclusive content!
Sega seems like a company that is more valuable for the IPs it owns than any of the games its actually releasing. Parent company Sega Sammy Holdings has a market capital valuation of $4.9B, but most of that will be down to the Sammy half of the company, which is honestly dragged down by the Sega half. However Sega does have strong, good IPs, it has great-to-competent developers including the masters of JRPGs Atlus, and its a brand that people trust the world over. Sorta. Well definitely in Japan.
Buying out Sega would give Microsoft actual clout in the Japanese market. Something like the "Sega Xbox" would get noticed, and with strong IPs, especially something like Game Pass if it included brilliantly insane exclusives from the Sega/Atlus library, it would sell systems. Internationally, the idea of all future Sega and Atlus games being Xbox exclusives also makes Game Pass more appealing.
There's more arguments for such a potential buy out, and there will be many against it too. So let's discuss!
