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[bender]

Never pay for Booty, kids.

 

[MacReady13]

I don't get why they'd want to buy Sony out of the game when Microsoft themselves publicly came out and said Sony were not their competitors shows clearly they were talking out of their arses.

 

[DeaDPo0L84]

Microsoft may never be financially bankrupt but they are creatively bankrupt. Maybe they should redirect their motivation into creating more compelling games to draw in new consumers versus just trying to cock block Sony at every given chance.

 

[Unknown Soldier]

Guys… you’re missing the big picture, less choice is MORE choice, how hard it is? Geez.

WAR IS PEACE
FREEDOM IS SLAVERY
IGNORANCE IS STRENGTH

 

[Nydius]

Microsoft can't be allowed to acquire Activision or any other studios. Sony too.

None of this will result in a better landscape for gaming.

Exactly. I know the Microsoft contingent around here think I'm anti Xbox but that couldn't be further from the truth. I'm anti mega-merger. I'd be just as vocal against this if Sony was spending ridiculous sums to shut out Microsoft or Nintendo, I'd be just as vocal against Embracer or Tencent buying up more stuff, and so on.

I was equally against the proposed AT&T/T-Mobile merger and the T-Mobile/Sprint merger that eventually went through. I don't like these kinds of consolidating moves regardless of industry. Mega mergers are great for the companies that consolidate and great for the shareholders. Lousy for nearly everyone else. They almost always end up negatively impacting consumers and labor down the line. By that point, it's usually too late. Forcing a big company to divest is very difficult once power has been consolidated.

 

[Sorcerer]

Microsoft should forget Activision and destroying every game publisher under the sun and just develop "Call of Booty" and "Bootyablo" they will crush the competition easily.

 

[SteadyEvo]

I think that’s going to prove very damaging for Microsoft. He’s not wrong either.

Microsoft have the server infrastructure, the IP and the operating system things run on. They are pretty unassailable in that regard. It’s not a competitive situation. Giving them more IP would make it worse.

And they’re always in 3rd place. So the money hasn’t equaled a larger slice of the pie. The deal going through will be best for all parties. MS gets a huge push hogging COD to themselves. Sony will put outa top notch shooter to compete. Nintendo will ignore everyone and do their own thing. Gamers will benefit from the competition.

 

[Pop]

But... but game pass.

I'm actually worried if the deal gets blocked Microsoft will give up on gaming and then we have to deal with a Sony monopoly. No matter who wins we lose.

 

[Crayon]

But... but game pass.

I'm actually worried if the deal gets blocked Microsoft will give up on gaming and then we have to deal with a Sony monopoly. No matter who wins we lose.

Uhhh... Nintendo. Nintendo doesn't have to be obsessed with playstation to count.

 

[Nydius]

I'm actually worried if the deal gets blocked Microsoft will give up on gaming and then we have to deal with a Sony monopoly. No matter who wins we lose.

Meh. I've been hearing that Microsoft would "give up" on gaming since the OG Xbox.
Or that they'd give up after eating the losses from the X360's RROD repairs.
Or that they'd give up after the Mattrick Xbox One reveal blunder.

If they haven't given up yet, I doubt an acquisition setback would stop them, even as it costs $3B in a breakup fee. As Phil was so quick to remind people regarding the lack of Halo at the Xbox showcase, they have over 20 studios now. They have plenty to build on and I have no doubt they'd turn their focus to spending money to get timed exclusive and/or day/date Game Pass content like they had been doing before they got sidetracked with this big purchase.

I don't think they'd abandon gaming like they abandoned Zune or Windows Mobile/Phone.
They're too invested at this point.

 

[Rhazer Fusion]

I would worry first about managing those studios first. They can try to outspend Sony, but what good is it if the demographic or gamers does not buy or support the games? When even high profile games don’t sell well on XBOX, you know you got a problem.

 

[splattered]

Seems like i recall people here saying Microsoft shouldn't be buying entire devs/publishers but buying exclusive games like they used to and like Sony does now would be perfectly fine... yet we get an e-mail stating that they could very well do such a thing and NOW that's not allowed either? You people need to decide, are Microsoft and Sony competing against each other and are exclusives allowed or not?

 

[Honey Bunny]

The CMA were right. Bravo.

 

[Mibu no ookami]

Meh. I've been hearing that Microsoft would "give up" on gaming since the OG Xbox.
Or that they'd give up after eating the losses from the X360's RROD repairs.
Or that they'd give up after the Mattrick Xbox One reveal blunder.

If they haven't given up yet, I doubt an acquisition setback would stop them, even as it costs $3B in a breakup fee. As Phil was so quick to remind people regarding the lack of Halo at the Xbox showcase, they have over 20 studios now. They have plenty to build on and I have no doubt they'd turn their focus to spending money to get timed exclusive and/or day/date Game Pass content like they had been doing before they got sidetracked with this big purchase.

I don't think they'd abandon gaming like they abandoned Zune or Windows Mobile/Phone.
They're too invested at this point.

They literally considered getting out of gaming after the X1 launch...

GamePass is the reason they stayed in and if that isn't driving future profits, microsoft isn't going to stay in just to appease Xbox fans...

Of all the companies in gaming, there probably isn't a company that cares less about gaming than Microsoft.

 

[Nydius]

They literally considered getting out of gaming after the X1 launch...

GamePass is the reason they stayed in and if that isn't driving future profits, microsoft isn't going to stay in just to appease Xbox fans...

Of all the companies in gaming, there probably isn't a company that cares less about gaming than Microsoft.

"Considered" being the operative word there. I'm sure some around Microsoft considered getting the hell out of gaming when the X360 RROD cost them a ton of money to fix too. But they didn't, in either case. I don't believe the doomsaying that they would just bail because they don't get ABK. Not when they have 20 studios now and Game Pass.

I do completely agree with your last line, however. If there's any company that its utterly dispassionate about the gaming as an industry, It's Microsoft. But that's pretty much true for every industry they're in. I'm not really feeling any passion for their products out of their Windows or Office teams either lately.

 

[Mibu no ookami]

This guy couldn't have written an e-mail more tailor-made to get regulators to block their activities if he tried.

 

[Sleepwalker]

They literally considered getting out of gaming after the X1 launch...

GamePass is the reason they stayed in and if that isn't driving future profits, microsoft isn't going to stay in just to appease Xbox fans...

Of all the companies in gaming, there probably isn't a company that cares less about gaming than Microsoft.

They could keep gamepass and grow their service and kill the hardware division. If they weren't making a competing console they could probably get a version of gamepass running on Playstation and maybe even Nintendo.

 

[Unknown Soldier]

Of all the companies in gaming, there probably isn't a company that cares less about gaming than Microsoft.

Apple...

 

[rickybooby87]

WAR IS PEACE
FREEDOM IS SLAVERY
IGNORANCE IS STRENGTH

Wouldn’t it be “weakness is strength”?

 

[Mibu no ookami]

"Considered" being the operative word there. I'm sure some around Microsoft considered getting the hell out of gaming when the X360 RROD cost them a ton of money to fix too. But they didn't, in either case. I don't believe the doomsaying that they would just bail because they don't get ABK. Not when they have 20 studios now and Game Pass.

I do completely agree with your last line, however. If there's any company that its utterly dispassionate about the gaming as an industry, It's Microsoft. But that's pretty much true for every industry they're in. I'm not really feeling any passion for their products out of their Windows or Office teams either lately.

Again, it comes down to whether they can be profitable without ABK and without GamePass sustainably generating profit.

That's a tall order. They've fallen entirely behind PS this generation in install base, which is only going to continue through the summer, fall, and winter.

The circumstances in which they considered bailing out weren't nearly as bad as the circumstances they're in now, so this idea of yours that they're too invested is fiction.

There is a reason why Square Enix sold Eidos for pennies on the dollar. It comes down to operating costs. It doesn't matter if you have 20 studios if you're unable to sell sufficient hardware.

It's the same problem Sega had. They had plenty of development. That wasn't the problem. They lacked mindshare and market share.

 

[Mibu no ookami]

Apple...

I meant console gaming, but Apple cares quite a bit about gaming. They get insane revenue from it and that's why they're pushing apple arcade as part of Apple One.

Apple is ideally suited for gaming in the long run, just not console gaming.

 

[poppabk]

I don't get why they'd want to buy Sony out of the game when Microsoft themselves publicly came out and said Sony were not their competitors shows clearly they were talking out of their arses.

He literally lists all the other big players as the company that could become the Disney of game content and then adds 'or it could even be Sony'.

 

[Mibu no ookami]

They could keep gamepass and grow their service and kill the hardware division. If they weren't making a competing console they could probably get a version of gamepass running on Playstation and maybe even Nintendo.

Sony and Nintendo will never let them put GamePass on their systems and eat into their B2P royalties and MTX royalties.

This myth needs to die.

Just like Nintendo was never going to let Sony have the royalties for CD game sales on SNES. Neither company are looking for their model to be up-ended.

GamePass on PC alone won't survive either.

 

[skit_data]

If problems with studio management and unpredictable output didn't make it obvious that Matt Booty is more of a liability to Xbox, here is his big mouth possibly jeopardizing the ABK deal.

 

[solidus12]

Matt booty’s colleagues when they see him passing by :

 

[Nydius]

The circumstances in which they considered bailing out weren't nearly as bad as the circumstances they're in now, so this idea of yours that they're too invested is fiction.

Sorry, but you need to cite your sources for this claim.

How are they "worse now" than they were at the start of the Xbox One era?

The Series S and X are selling better than the X1. They're still in third place but they've closed the gap compared to last generation.

They've still got the same big name (albeit mismanaged) IPs that drive people toward Xbox (Halo, Gears, Forza) and they've added the stable of iD and Bethesda games as well.

The only fiction I see is this narrative that they're doooooooooooooooooomed without ABK.

Game Pass profitability was always going to hit a plateau, buying ABK isn't going to change that.

 

[VAVA Mk2]

At this point, maybe Microsoft should negotiate a deal with Sony. They will agree to drop the merger in exchange for a contract for a certain number of years that neither party will sign exclusivity deals on 3rd party titles. I know it will never happen, but only way I see Microsoft coming out of this now sorta with a win. They ain't getting ABK now.

 

[Mibu no ookami]

If problems with studio management and unpredictable output didn't make it obvious that Matt Booty is more of a liability to Xbox, here is his big mouth possibly jeopardizing the ABK deal.

Imagine you have an employee on a performance plan and you do everything you can do to help the guy out. You spend 7.5 billion dollars buying a company just to get Redfall and then you stake your own job on getting ABK and he does this to you...

 

[Eotheod]

Again, it comes down to whether they can be profitable without ABK and without GamePass sustainably generating profit.

That's a tall order. They've fallen entirely behind PS this generation in install base, which is only going to continue through the summer, fall, and winter.

The circumstances in which they considered bailing out weren't nearly as bad as the circumstances they're in now, so this idea of yours that they're too invested is fiction.

There is a reason why Square Enix sold Eidos for pennies on the dollar. It comes down to operating costs. It doesn't matter if you have 20 studios if you're unable to sell sufficient hardware.

It's the same problem Sega had. They had plenty of development. That wasn't the problem. They lacked mindshare and market share.

I wonder if, and it is an if, Microsoft left would that potentially cause a gaming crash? I'm very much a stickler for Nintendo, I fucking love my Switch, but it is in an entirely different league of its own. So Sony being left as the one and only mainline console manufacturer would be very interesting.

Extreme hot take, but I could see less interest in innovating as heavily, less developer care because you are the only operator in that field. It would be incredible to see such an outcome playout, and just what it could mean.

Obviously it won't happen, there is too much at play here that a niche gaming board like GAF would have any idea about. We love speculation, but that's all we are good at here because the vast majority of gaming is on those big yearly titles or mobile games.

 

[Mibu no ookami]

Sorry, but you need to cite your sources for this claim.

How are they "worse now" than they were at the start of the Xbox One era?

The Series S and X are selling better than the X1. They're still in third place but they've closed the gap compared to last generation.

They've still got the same big name (albeit mismanaged) IPs that drive people toward Xbox (Halo, Gears, Forza) and they've added the stable of iD and Bethesda games as well.

The only fiction I see is this narrative that they're doooooooooooooooooomed without ABK.

Game Pass profitability was always going to hit a plateau, buying ABK isn't going to change that.

3 years in and their sales are already in decline. XS/X were selling more because of the pandemic but sales have dried up.

Halo is out already. Forza is out already. No one cares about Gears.

That you're ignoring that their sales haven't dried up entirely is astonishing.

 

[THE DUCK]

It's tough to spin what Matt is saying, but considering the small numbers he's throwing around doesn't he just mean gobbling up smaller companies ahead of Sony or Apple or Amazon, in effect making them the "content king". Bad framing to say put sony out of business, but that's what would effectively happen if you own 75% of the content.

 

[Mibu no ookami]

I wonder if, and it is an if, Microsoft left would that potentially cause a gaming crash? I'm very much a stickler for Nintendo, I fucking love my Switch, but it is in an entirely different league of its own. So Sony being left as the one and only mainline console manufacturer would be very interesting.

Extreme hot take, but I could see less interest in innovating as heavily, less developer care because you are the only operator in that field. It would be incredible to see such an outcome playout, and just what it could mean.

Obviously it won't happen, there is too much at play here that a niche gaming board like GAF would have any idea about. We love speculation, but that's all we are good at here because the vast majority of gaming is on those big yearly titles or mobile games.

If Microsoft leaves, someone will step up.

I could see Nintendo buying Sega and putting out a more competitive system. I could see Apple or Tencent throwing their name in the ring. I could see Amazon.

There will be competitors to Sony regardless of whether Microsoft stays in or not.

Sony completely dominated with the PS2 and gaming was strong as can be. We've never had a more dominant and one-sided generation.

I think it would be bad for at least a generation, but I don't think people would lose interest just because of Microsoft's absence. They're already absent in Europe and Asia.

 

[Crispy Gamer]

I don't get why they'd want to buy Sony out of the game when Microsoft themselves publicly came out and said Sony were not their competitors shows clearly they were talking out of their arses.

Yup....But Microsoft's Spencer says he doesn't consider Sony and Nintendo his main competition anymore, largely because neither of those Japanese companies owns its own top-end global cloud infrastructure akin to Microsoft's Azure platform."When you talk about Nintendo and Sony, we have a ton of respect for them, but we see Amazon and Google as the main competitors going forward," Spencer said. "That's not to disrespect Nintendo and Sony, but the traditional gaming companies are somewhat out of position. I guess they could try to re-create Azure, but we've invested tens of billions of dollars in cloud over the years." Feb 5 2020

 

[LegendOfKage]

Phil sending out the influencers as we speak to change the narrative with

"What Matt really meant was"

Messaging.

It's all starting to feel a bit like this:

 

[93xfan]

this would explain how MS were able to get FF16 as an exclusive. No limit spending. No wonder Sony can’t make a single 3rd party deal.

 

[dotnotbot]

If problems with studio management and unpredictable output didn't make it obvious that Matt Booty is more of a liability to Xbox, here is his big mouth possibly jeopardizing the ABK deal.

How ironic being bad at his job didn't get him fired but this might.

 

[dotnotbot]

this would explain how MS were able to get FF16 as an exclusive. No limit spending. No wonder Sony can’t make a single 3rd party deal.

No one said they weren't able.

 

[lmimmfn]

Glad I'm not contributing to gamepass!!!

 

[Mibu no ookami]

this would explain how MS were able to get FF16 as an exclusive. No limit spending. No wonder Sony can’t make a single 3rd party deal.

FF16 exclusivity isn't an asset and would have been far more expensive for Microsoft with less reward.

That's what Phil Spencer has alluded to when he talks about Sony's spending. Microsoft can't match Sony on deals because they can't get into an operating cost/profitability fight with Sony Interactive Entertainment. What they CAN do is have Microsoft parent company buy an asset that presumably won't lose value.

Few major AAA companies are interested in exclusivity deals with Microsoft right now.

 

[93xfan]

Phil sending out the influencers as we speak to change the narrative with

"What Matt really meant was"

Messaging.

He meant what he meant. Is that really how things played out though?

I’ve seen the same “MS can outspend Sony any day” comments here. the difference is: did they do that? Did they buy Sega and Bungie. Did they give SE a better deal for Final Fantasy 16? why give any ground to Sony at all then?

Seems reality hit him or he was stopped by others at MS.

 

[Iced Arcade]

Ohhh booty

 

[The Fuzz damn you!]

Of all the companies in gaming, there probably isn't a company that cares less about gaming than Microsoft.

Nah.

To be clear: I don’t think MS gives a shit about gaming (and it shows). But they sure do care about where people’s eyeballs are pointed.

Way back when, they wanted to get in on the thin-client model with WebTV. That failed, but they’ve never given up on having control of the living-room like they had with the “family computer”. They missed the phone screen, tried to get in on that late, failed. They missed the tablet screen, tried to get in on that late, and are still pursuing some kind of success there. They’ve always been strong in the laptop space. They put a whole lot of research into the VR/AR/XR space before deciding that it’s not a screen worth pursuing - time will tell whether that was the right call, but certainly Apple, Meta. Google and Sony all see potential there.

MS entered the gaming space because they were concerned that Sony would have a lock on what they saw as the next screen. They don’t want anyone taking control of the living room the way they themselves did of the bedroom / study / dorm room. They are looking to the future, though, and still chasing the fat pipe / thin client model. That’s why Xbox exists. That’s why Azure exists. That’s why Live exists, in all its varied forms. It’s why Office 365 and OneDrive exists. They won’t give up on that until they know they either control the cloud space, or see gaming as irrelevant to their consolidation of that market.

 

[balls of snow]

The fabled smoking gun does exist in real life.

 

[In Cold Blood]

I mean, it's true.
Every company utilises their best assets to hurt their competition.

 

[Moneal]

He meant what he meant. Is that really how things played out though?

I’ve seen the same “MS can outspend Sony any day” comments here. the difference is: did they do that? Did they buy Sega and Bungie. Did they give SE a better deal for Final Fantasy 16? why give any ground to Sony at all then?

Seems reality hit him or he was stopped by others at MS.

Bethesda and the Activision deals say hi. It doesn't make sense to do a deal with square for ff16 when 70 to 80 percent will sell on ps anyway. Its similar for most third party right now. Its why they made the decision to buy Bethesda instead. Owning the ip is worth it while they would be overpaying to get in a bidding war over year long exclusive games. With much smaller install base they would have to pay much more than Sony to get those deals.

 

[splattered]

The CMA were right. Bravo.

Except they had no issues with console, just cloud... which is odd given the new documents that released today.

 

[Mibu no ookami]

Nah.

To be clear: I don’t think MS gives a shit about gaming (and it shows). But they sure do care about where people’s eyeballs are pointed.

Way back when, they wanted to get in on the thin-client model with WebTV. That failed, but they’ve never given up on having control of the living-room like they had with the “family computer”. They missed the phone screen, tried to get in on that late, failed. They missed the tablet screen, tried to get in on that late, and are still pursuing some kind of success there. They’ve always been strong in the laptop space. They put a whole lot of research into the VR/AR/XR space before deciding that it’s not a screen worth pursuing - time will tell whether that was the right call, but certainly Apple, Meta. Google and Sony all see potential there.

MS entered the gaming space because they were concerned that Sony would have a lock on what they saw as the next screen. They don’t want anyone taking control of the living room the way they themselves did of the bedroom / study / dorm room. They are looking to the future, though, and still chasing the fat pipe / thin client model. That’s why Xbox exists. That’s why Azure exists. That’s why Live exists, in all its varied forms. It’s why Office 365 and OneDrive exists. They won’t give up on that until they know they either control the cloud space, or see gaming as irrelevant to their consolidation of that market.

Microsoft wanted to win the living room because they thought that was the battle for the future. Since then mobile became the future and they missed the boat with Windows Mobile.

Console gaming is a crumb of the overall pie. Microsoft realizes that they can probably go further in gaming outside of Xbox. Their ambition has outgrown Xbox.

 

[Mibu no ookami]

Except they had no issues with console, just cloud... which is odd given the new documents that released today.

Not entirely clear that they had access to that e-mail at the time.

 

[poppabk]

Except they had no issues with console, just cloud... which is odd given the new documents that released today.

The email is all about cloud gaming and subscriptions, it has nothing to do with consoles.

 

[The Fuzz damn you!]

Microsoft wanted to win the living room because they thought that was the battle for the future. Since then mobile became the future and they missed the boat with Windows Mobile.

Console gaming is a crumb of the overall pie. Microsoft realizes that they can probably go further in gaming outside of Xbox. Their ambition has outgrown Xbox.

Agreed, except that their ambition was always bigger than Xbox.