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The ABK deal is the biggest thing to happen to the console business since SEGA stopped making consoles - Agree or disagree?

Do you think that the ABK deal is the biggest thing to happen since SEGA left console development?

  • Yes

    Votes: 65 62.5%
  • No

    Votes: 32 30.8%
  • I think it's something else (Say in post)

    Votes: 7 6.7%

  • Total voters
    104
I had a pretty interesting discussion today with a few friends over a game of FF:Stranger of Paradise - please don't judge us too harshly for playing that. We just gotta kill chaos, kay?

Gaming discussion ensues and we talk about the biggest things that have happened in the console business before the proposed ABK acquisition and honestly, the biggest thing I could think of was when SEGA hung up their boots and called it a day as a console manufacturer. I genuinely couldn't think of anything that was as BIG as that.

We've seen studio closures. Publishers sold to other publishers such as Eidos to Square and then Embracer etc. Publishers that have gone out of business completely. Consoles have come and go. OnLive and Gaikai both ended up under Sony but no Cloud gaming service has really had a major impact on the industry. Google I think we all knew would close Stadia. VR has been interesting so far but I think it's a ways off having a huge industry impact. Ouya never fulfilled it's promise. Mobile gaming is pretty big but I'm talking specifically console, Cloud gaming has been a part of consoles. I mean even the Zynga acqusition was around $12 billion, nevermind nearly $70 billion.

I mean acquisitions have taken place throughout the industry for years, but never on this scale. This past couple of years have been crazy.

Please don't be an ass and make sarcastic comments. If you don't agree, please do something constructive and tell us what you think is the biggest event in the console business since SEGA bowed out and why. Or if you feel there's been something bigger then throw it out there. Given Atari were never as successful as SEGA at any period of time, I can't really include them. Especially considering they contributed to the video game crash in the States.
 

0neAnd0nly

Gold Member
I voted yes, but there is an asterisk.

I assume you are bundling all console releases into the same boat. Like I would consider ps2 -> ps3 / XB -> 360 a huge leap in many ways; visuals, online, etc.

But if we aren’t talking about legacy consoles and releases/ updates, yes - this is a groundbreaking thing for sure that sends waves across the industry.
 
Right now, this purchase is close to top 20 biggest merger in the world.
so far, we only have 11, so activision deal, is close to that.
https://dealroom.net/blog/successful-acquisition-examples#:~:text=1.,German-owned industrial conglomerate company.

for video games, here is the list.
https://www.visualcapitalist.com/visualizing-the-biggest-gaming-company-acquisitions-of-all-time/

Well this is exactly my point. Putting it into perspective, Sony turned over $32 billion in gross profit last year. That is roughly the same as Tencent. Nintendo made a gross profit of just $5 billion dollars. Microsoft however turned over $132 billion in gross profit. So financially, nobody could compete with that deal.

But equally if you look at the list of IP Microsoft will own as a result and in excess of another 10 video game development studios, it is a pretty big deal. Certainly makes huge changes to the dynamic and land scape.
 

Lasha

Member
Well this is exactly my point. Putting it into perspective, Sony turned over $32 billion in gross profit last year. That is roughly the same as Tencent. Nintendo made a gross profit of just $5 billion dollars. Microsoft however turned over $132 billion in gross profit. So financially, nobody could compete with that deal.

But equally if you look at the list of IP Microsoft will own as a result and in excess of another 10 video game development studios, it is a pretty big deal. Certainly makes huge changes to the dynamic and land scape.

Tencent or Sony could have done the deal. Tencent has 30+ billion cash on hand and Sony has around 25 billion ( used to be 50 or so two years back). They could not have made an all cash offer but either could have probably financed it.
 

Trogdor1123

Member
I said something else as I think Microsoft joining was bigger than sega leaving but I generally agree with the comment
 

Fabieter

Member
Its really funny since Microsoft is arguing that deals like this is pretty normal wirh little to no impact and on the other hand people disscuing that it's the biggest gaming event the last two decades. That's really funny somehow
 

Fredrik

Member
And if it fall through someone further down on the bidding list will make the deal instead. I pray it’s not Apple, I like Apple but I want Diablo on Windows PCs and Apple would probably lock it down to MacOS.
I would be perfectly okay wity Gabe and Valve opening the wallet.
 

Three

Member
And if it fall through someone further down on the bidding list will make the deal instead. I pray it’s not Apple, I like Apple but I want Diablo on Windows PCs and Apple would probably lock it down to MacOS.
I would be perfectly okay wity Gabe and Valve opening the wallet.
No they really wouldn't. I don't understand why people think this way. If apple wanted game publishers/studios it would actually be buying some already.
 

TLZ

Banned
Sony entering the console business shook up the whole realm imo. Nintendo saw a crushing competitor like it's never seen. SEGA disrupted and tapped out. Atari done for. All the other smaller ones ceased. If it weren't for Nintendo's portable side I believe they would've tapped out a long time ago too. Thank God they didn't.

The Sega fan in me still hopes they come back..
 
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Mr Hyde

Member
Sega's exit and, subsequently, Microsoft's entry in the console space, was a far bigger deal for the industry than the ABK deal. But what's going on right now is definitely industry changing, that's for sure. What's even more interesting is all the behind the scenes stuff about MS and Sony that is being leaked publicly. It's a shit show of which I've never seen before.
 
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Daneel Elijah

Gold Member
Steam success (and the fact that no big publisher had tried to buy/compete ) is for me almost as good. But the money involved is huge. Microsoft could have put more efforts in their consoles or could have made a deal with AMD to have them sooner with that kind of money.
 

Same ol G

Member
I believe Microsoft entering the console business had a lot more impact then buying a studio.
Sony thought they fucked everyone up and where the new king on the block and now suddenly they had to compete, the PS360 era almost killed them.

Also after PSP Nintendo made them cry in a corner with their Vita and they had to bow out of the handheld bussines.

I believe those things had a lot more impact than the acquistion of a studio
 

Fredrik

Member
No they really wouldn't. I don't understand why people think this way. If apple wanted game publishers/studios it would actually be buying some already.
So who were bidding then?
My guess: Microsoft, Apple, Google, Tencent
Your guess?

I think Apple was there for King and for wanting to expand in gaming for their VR/AR move.
 
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Three

Member
So who were bidding then?
My guess: Microsoft, Apple, Google, Tencent
Your guess?
Nobody, the SEC filing shows MS approached Activision and proposed it. Having got that proposed deal Activision asked for more from MS, rumour has it they asked facebook too, then MS came back and accepted the higher price.
 
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Fredrik

Member
Nobody, the SEC filing shows MS approached Activision and proposed it. Having got that proposed deal Activision asked for more, rumour has it they asked facebook too, then MS came back and accepted the higher price.
Early talk said there was a bidding war. Was it just Facebook and Microsoft?

Edit: Does this mean that Facebook will get a chance to buy them if MS can’t do it? 😰
 
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Fredrik

Member
There wasn't really, some others did approach them years ago but they were nothing but preliminary and no discussion on price. Here is the SEC filing page 31

https://www.sec.gov/Archives/edgar/data/718877/000110465922025210/tm225196-3_prem14a.htm
I’m not reading all that but I kinda got stuck on your earlier Facebook comment now. If MS can’t buy them, will Facebook get a chance instead since ABK approached them after MS? I’ve been against this thing since the start but that would get me to change my stance completely!
 

IDKFA

I am Become Bilbo Baggins
I believe Microsoft entering the console business had a lot more impact then buying a studio.
Publisher. They bought a publisher (actually their second publisher) that comes with multiple studios.

Sony thought they fucked everyone up and where the new king on the block and now suddenly they had to compete, the PS360 era almost killed them.

That was a great era with absolute bangers from both Sony and Microsoft. Although, I wouldn't say that era almost killed Sony.

It's true the PS3 had a rough start and didn't hit the same numbers as the PS2. However, it didn't end so badly as Sony ended up selling over 87 million PS3 consoles, which is more than the number of 360s that were sold.
 

Three

Member
I’m not reading all that but I kinda got stuck on your earlier Facebook comment now. If MS can’t buy them, will Facebook get a chance instead since ABK approached them after MS? I’ve been against this thing since the start but that would get me to change my stance completely!
Facebook may not have been interested at all, rumour was they were approached by ABK as another tech giant after getting the MS offer. Unless it was for Quest or data mining I don't think Facebook would have cared to buy them at the price ABK were asking for and if they did would have been challenged by regulators too.

This was the rumour https://www.gamesradar.com/activisi...ut-before-selling-to-microsoft-report-claims/

The SEC filing doesn't mention it at all though so it could have all been bullshit.
 
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DaGwaphics

Member
Voted No.

Most of ABK exists outside of the console space, and much of what constitutes ABK on console is staying multiplat. A big nothingburger on that front really.
 
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Same ol G

Member
Publisher. They bought a publisher (actually their second publisher) that comes with multiple studios.



That was a great era with absolute bangers from both Sony and Microsoft. Although, I wouldn't say that era almost killed Sony.

It's true the PS3 had a rough start and didn't hit the same numbers as the PS2. However, it didn't end so badly as Sony ended up selling over 87 million PS3 consoles, which is more than the number of 360s that were sold.
Yes but they sold them at a loss, two years after launch they were in the red.
They had to change their strategy and really invest to keep things going.
https://www.google.com/amp/s/amp.th...ogy/blog/2008/jun/25/sonyhaslostmorethan3bill
It's probably also the reason they killed Vita, something had to go and they weren't able to compete with Nintendo.
Apart from some things the PS3 era was a really bad time for Sony and it was all thanks to Microsoft and partly their own arrogance.
 

Ozriel

M$FT
The tentpole franchise will remain multiplatform, so I don’t see how the acquisition can be considered a major inflection point.

I’d put the absolutely astounding success of the Wii there. Absolutely unexpected after GameCube.
 
Meta and their metaverse talk probably disagree. And while I have yet to hear a convincing argument why this could succeed, if it does, in the scale they envision it, it would be bigger.
 
Yeah it's massive. The only other acquisition that could compare is take two. It's crazy to think Microsoft are about to buy and own one of the biggest gaming ip there is. That's after already buying other huge ips like elder scrolls and fallout. Things like this never happened before.
 
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Rykan

Member
It depends. If Microsoft chooses to make Call of Duty exclusive to Xbox, it could indeed cause a monumental shift that changes the entire industry.

Or, Microsoft chooses to keep Call of Duty multiplatform, which makes the entire acquisition largely irrelevant when it comes to the impact it will have on the industry.
 

yurinka

Member
No, MS has been moving to becoming a 3rd party publishing in all consoles and PC, but even if Xbox isn't their priority they continue being a platform holder/1st party.

Regarding ABK, PC and mobile will remain as they were, and in console at least for a while seems ABK will continue full multiplatform. And well, CoD is a very successful games but there are tons of other very successful games, including many that get better reviews and more awards.

Sega quitting from being a platform holder was bigger, because during a very long period they were one of the only two (and later three) console makers. So to "lose" them was a very big deal that changed things a lot. CoD being purchased, or even made exclusive if it's the case in 10 years from now, has way less impact.
 
Tencent or Sony could have done the deal. Tencent has 30+ billion cash on hand and Sony has around 25 billion ( used to be 50 or so two years back). They could not have made an all cash offer but either could have probably financed it.
I really don't think so. Cash on hand or not Microsoft can give it up front with their well.
 

Lasha

Member
I really don't think so. Cash on hand or not Microsoft can give it up front with their well.

Dell bought EMC for 67 billion dollars while only having a market cap of around 20 billion back in 2015. Dell closed the deal with a combination of cash and debt. Sony or Tencent could have done the same.

Tencent's vision doesn't really need ATVI. Sony probably just assumed that buying ATVI wasn't worth it because it makes a lot of money from ATVI's games without buying the company.
 

Lunarorbit

Member
Nintendo fucking Sony out of their contract in the early 90s is bigger in my opinion. Directly led to sonys boss saying they would make a console because of Nintendos insult.
 

Celine

Member
Sony entering the console business shook up the whole realm imo. Nintendo saw a crushing competitor like it's never seen. SEGA disrupted and tapped out. Atari done for. All the other smaller ones ceased. If it weren't for Nintendo's portable side I believe they would've tapped out a long time ago too. Thank God they didn't.

The Sega fan in me still hopes they come back..
Nintendo never "tap out" because they were always more profitable than Sony's console division on a consistent basis so they were always in good financial shape to take on new challanges.
The reason of Nintendo's resilience at the face of paradigm shifts which would kill similar competitors (game companies with hardware business like Atari and Sega) is that Nintendo's management after the NES breakout hit built up their empire on the principle of being self-sufficient so they could somewhat counter a new arising negative trend with their own strength alone.
1) This meant Nintendo was always a debt-free company with a big amount of cash available (which gives them stability and room for taking risks that may pay off handsomely),
2) very profit oriented (not just in term of present profits but also how to not ruin the chance of future profits) to the point of endangering their marketshare,
3) since inception adopted a "first-party driven" mentality* for the platforms meaning that third-party support has merely an additional effect, always relied very lightly on external licenses due to their unreliability and how they generally hurt profitability (think about Sega's reliance on star power endorsement in the Mega Drive era...) instead opting to foster in-house brands that by becoming popular thropugh videogames would earn additional source of revenue by licensing to external companies,
4) from quite early one Nintendo became obsessed for designing new genre kings and seeking uniqueness instead of crap out clones of the flavour of the day which netted them, after decades of commitment, an amazing arsenal of software directly controlled by them,
5) an integrated hardware/software attitude that let them create trend-setters (and some stinkers) instead of being forced to follow what's setup by others.

Sony scoped in with the first successful exemplary of third-party driven consoles that run havoc to what were back then the traditional console makers? Nintendo made billions in profits while the other succumbed.
Sure the Nintendo was reduced to a second place also-run in the TV console segment but N64 has sold as much as Sega's most successful console and more importantly unleashed a array of software hits that have become classics (in the videogame business the true profits lies with software and digital services) and in the handheld segment that vanquished all the opposition so they could coast with the Game Boy for 12 years (GB basically had two life cycle sustained by hardware revisions and killer apps published by Nintendo).

* In truth all the game companies with a console business had a "first-party driven" mentality because all those companies grew in relevance thanks to their own software on their own hardware (in the arcades or home consoles) so by nature they considered themself the "leading party" and prided their own creations over the software of other independent software providers that wanted to deal with the hardware platforms.
Nintendo is simply the perfect incarnation of that mentality and an one off exception.

Y27Aekq.jpg
 
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TLZ

Banned
C Celine

I see what you're saying, but no one is immune. As you can see from your graph, Nintendo went into loss for years during the Wii U. That can kill a company. What would've happened if the Switch wasn't as successful? Or say they made another device that wasn't as successful and hit them hard like the Wii U?

But back to my main point, Sony's entrance into the console realm did the biggest disruption in console history imo. Nintendo had a headlock on the industry for many years, with SEGA trying hard to break that. Even Atari suffocated. Then came Sony and disrupted that whole system. Heck even Bill Gates saw PlayStation as a threat to his Windows, being in every living room. Imagine that. That spurred the creation of the Xbox.
 
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Chastten

Banned
Hmm, not sure. SEGA dropping out of the console race wasn't really a big deal if I'm being honest. Neither the Saturn nor the Dreamcast made any kind of waves anywhere so them dropping out didn't really matter to anyone. I mean, I was pretty active in the gaming community at the time and I only ever visited one place that carried Dreamcast stuff and to this day I don't think I've ever seen a Saturn in reallife. SEGA was only relevant in memories by the time they dropped out of the console business.

Call of Duty potentially going exclusive probably influences 10+ million people on an annual basis so in that regard the Activision takeover is probably bigger.
 

Banjo64

cumsessed
Xbox buying Zenimax is the biggest thing I can remember happening in this industry. CoD, GTA and FIFA are juggernauts but also mainstream cannon fodder.

There’s something about mythical franchises like Doom, The Elder Scrolls and Fallout that puts them on a level playing field to games like Zelda.

I couldn’t believe it at the time. It was a nuke being dropped.
 

adamsapple

Or is it just one of Phil's balls in my throat?
Xbox buying Zenimax is the biggest thing I can remember happening in this industry. CoD, GTA and FIFA are juggernauts but also mainstream cannon fodder.

There’s something about mythical franchises like Doom, The Elder Scrolls and Fallout that puts them on a level playing field to games like Zelda.

I couldn’t believe it at the time. It was a nuke being dropped.

It's a monumental purchase, unfortunately the covid related delays and the 2 contractually obligated games have made its impact not fully realized yet.

2023 and Redfall, Starfield, Tango's new game etc will start that.
 

Kataploom

Gold Member
No. Steam is. ABK being with MS changes almost nothing in gaming.

edit: nvm. This is about console bubble only.
I'd say steam and Wii/DS are both way more socially and culturally impacting imo... I'd even say Switch too considering how it made high end handheld having explode overnight basically
 
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