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Amazon is not going to make a bid for Electronic Arts – sources

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Re: Amazon is not going to make a bid for Electronic Arts – sources

#181

Post by stickfigure »

dd36 wrote: post #151
drexlspivey wrote: post #72

Earlier quoted context omitted.

Yes you can stretch anything to fit a narrative. Amazon runs the platform that sells everything so they shouldn’t be allowed to buy anything.

The incentives become perverse once relatively unrelated businesses are combined. History also shows conglomerates don’t out perform the stand alone companies and it hurts competition and innovation. I think there’s a certain point where executives run out of ideas but have to be doing something. Then you have investment bankers and advisors pushing these ideas and copycatting each other for that sweet, sweet commiss…

> History also shows conglomerates don’t out perform the stand alone companies

This is a self-correcting phenomenon.

Re: Amazon is not going to make a bid for Electronic Arts – sources

#182

Post by scrollaway »

feanaro wrote: post #158
nojito wrote: post #104

Earlier quoted context omitted.

Because they don't have a monopoly in any of those things. Vertical integration should be pursued by any and every company.

Why? I'd argue a world in which succeed to make vertical integration minimal would be a better one, with less manipulation and corporations vying to become states.

A word with minimal vertical integration is a world filled with middlemen and rent seekers.

The alternative to VI is every single piece of your stack is another company seeking its own piece of whatever pie you’re building (and that company in turn facing the exact same dilemma — nobody builds original things anymore, it’s b2b saas Lego all the way down)

Re: Amazon is not going to make a bid for Electronic Arts – sources

#183

Post by toddmorey »

samwillis wrote: post #26

It seems to me that Amazons long term strategy is to become a "Conglomerate of Brands", leveraging the profits from one business unit to buy out unrelated business. This sort of acquisition doesn't, as far as I can see, advance a particular core business unit (I'm aware Amazon have toyed with games publishing, but its not exactly a core business unit). I suppose it makes sense, investors want their investment to be s…

This seems fairly broad on the surface, but they've always wanted to own products right as they go pure digital / online distribution. Kindle, prime video, FireTV, etc. I'll bet they feel video games are finally at that tipping point.

With all that impressive infrastructure to get physical product to you overnight or same day, it's still a better and much much more profitable platform for digital goods.

Re: Amazon is not going to make a bid for Electronic Arts – sources

#186

Post by ParksNet »

mamonster wrote: post #3

Surely this will be the Rubicon for FTC to take a serious look at the gaming industry, assuming this actually gets announced?

No one can making any money except platform holders. 30% commissions are egregious. These aquisitions are just the side effect.

We need a commission cap on all platforms that do over $1billion in annual sales. The Apple vs Epic trial revealed 80% margins for Apple on the App Store:

https://9to5mac.com/2021/05/01/apple-runs-app-store-with-78-...

A cap of 10-15% should do it.

Re: Amazon is not going to make a bid for Electronic Arts – sources

#187

Post by yxhuvud »

dmurray wrote: post #84
InsomniacL wrote: post #47

1, Amazon runs the platform that sells the games - Amazon 2, Amazon runs the platform that people use while playing the games - Twitch 3, Amazon runs the platform that hosts the servers to play the games - AWS 4, Amazon runs the platform that you play the game on - Luna 5, Amazon runs the platform that creates the games - EA how is this not anti-competition for anyone running a company that competes in only one of th…

This is vertical integration. Horizontal integration is usually what is considered anti-competitive.

Not really, the really nasty ones are the ones leveraging their standing in one market to be dominant in another.

Re: Amazon is not going to make a bid for Electronic Arts – sources

#188

Post by AlexandrB »

psyc wrote: post #150
jwie wrote: post #69

Microsoft has acquired Bethesda, will probably acquire Activision-Blizzard, and has purchased other, smaller studios in the past already. I wonder what’s driving the desire to buy up video game publishers. There probably aren’t many left at the scope of the ones already bought or in a deal that are practically purchasable, even for big tech players.

I realize most have already made up their minds that VR will still be a gimmick with no market in the year 7000 AD, but I just can’t shake this crazy feeling that we’re going to sort it between now and then. My answer is VR. At least a hedge in case Zuckerberg turns out not to be a clown. If only he had a track record to weigh.

I think that's a bit of a straw man. The technology is just not quite there yet. At least it's a lot better than the last go round with Virtual Boy.

The killer app that would make VR desirable doesn't exist yet either. Maybe that will be the Metaverse? But I kind of doubt it. We'll see.

Re: Amazon is not going to make a bid for Electronic Arts – sources

#189

Post by syzar »

4eleven7 wrote: post #180
syzar wrote: post #95

Earlier quoted context omitted.

It seems to me most innovation comes from increased competition and upstart companies. Do large conglomerates provide the main driver of innovation?

True, and I agree, but an 'upper cap' wouldn't be used against just the companies that we don't think provide innovation (such as Amazon in this scenario). The caps would also be used against Tesla and Apple, two very big drivers of innovation, and probably many others. The world would be a worse place without Tesla, and without Apple. Arguably the world could be a better place without Amazon, but that is surely down…

From my perspective for every large innovator like Apple there are several like Comcast. While Apple would not exist in the hypothetical world where max size exists for companies who knows what other innovations would exist or would not have been quashed by large companies. There are unintended consequences with the status quo. It’s easy to overlook those because we are used to the system in place. Are those unintended consequences worth keeping? I don’t know but it’s worth exploring other options.

Re: Amazon is not going to make a bid for Electronic Arts – sources

#190

Post by haunter »

dd36 wrote: post #140
haunter wrote: post #82

Earlier quoted context omitted.

They also want to become more involved with live sport broadcasts (NFL and Premier League for example). EA has some major sport licenses (NHL, NFL, FIFA, PGA, F1, UFC)

Those licenses really shouldn’t be allowed to be exclusive.

They are in fact not.

FIFA is not the only football games, PES exist too with fully licensed leagues. Some of them shared between both.

MLB has right now two licensed games (RBI and The Show)

NBA, NHL, and NFL had multiple games between 2K (2K Sports) and EA.

It really comes down to who is willing to pay the enormous fee.

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