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Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

theguardian.com

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Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#71

Post by snowski3 »

capableweb wrote: post #24
daniel-s wrote: post #18

I don't mind the complaint about CMA being undemocratic because it's a council of unelected bureaucrats, it's just trash-talk from someone that didn't get what they wanted; to be expected. IMO the reason why this decision is really dumb is because the reason given was cloud gaming. I think that people are missing this. This isn't a market. Almost nobody plays on cloud gaming platforms, like Stadia which recently clos…

Did you actually read the report that the CMA released? They are not basing the block on some "maybe" future, but on current reality. > Microsoft already accounts for an estimated 60-70% of global cloud gaming services and has other important strengths in cloud gaming from owning Xbox, the leading PC operating system (Windows) and a global cloud computing infrastructure (Azure and Xbox Cloud Gaming). Microsoft alread…

This information is incorrect though. It suggests that everyone subscribing to Xbox Game Pass Ultimate is doing so for cloud gaming, which is obviously nuts.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#72

Post by judge2020 »

capableweb wrote: post #24
daniel-s wrote: post #18

I don't mind the complaint about CMA being undemocratic because it's a council of unelected bureaucrats, it's just trash-talk from someone that didn't get what they wanted; to be expected. IMO the reason why this decision is really dumb is because the reason given was cloud gaming. I think that people are missing this. This isn't a market. Almost nobody plays on cloud gaming platforms, like Stadia which recently clos…

Did you actually read the report that the CMA released? They are not basing the block on some "maybe" future, but on current reality. > Microsoft already accounts for an estimated 60-70% of global cloud gaming services and has other important strengths in cloud gaming from owning Xbox, the leading PC operating system (Windows) and a global cloud computing infrastructure (Azure and Xbox Cloud Gaming). Microsoft alread…

> 60-70% of global cloud gaming services

Their point is that cloud gaming is likely way less than 1%, maybe even 0.01% of any gaming activity. The cloud gaming experience still isn't 100% there in terms of latency, so it only makes sense to play single player games, and then most people who have an xbox just use their existing hardware rather than pay Microsoft to play it remotely.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#73

Post by dogma1138 »

etempleton wrote: post #26
endisneigh wrote: post #8

What would happen if Activision is acquired anyway by Microsoft? Could they simply exist as two separate entities in the UK, and a unified entity elsewhere? With all of the repercussions that entails for the users? Or simply they exit the market in the UK?

I think they could possibly say that they will move forward with the merger, but cease to publish or sell games in the UK, but I very much doubt they would. The UK is still too big / profitable of a market. As an aside, it is interesting to see how this merger is received in the tech space vs gaming space. Most folks in gaming seem to welcome the merger because Activision has long been anti-consumer / bad stewards of…

The CMAs rationale is definitely not bizarre and is in line with how UK regulators operate.

They tend to look far further into the future and are very much risk averse since they know that their powers are diminished when it comes to managing monopolies than preventing them emerging in the first place.

Yes Cloud Gaming and GAAS is very much a meme still but what about 10 or 20 years down the line?

Microsoft currently owns 70% of that market through the Xbox Pass.

They are also the 2nd largest CSP which means they have the tech and infrastructure to deliver these services anywhere without being dependent on any one.

With this deal they’ll also become true 3rd largest publisher and by sheer IP clout possibly even the biggest.

The argument that the CMA makes is basically that they already have a massive first mover advantage and unlikes the likes of Sony, Valve and Epic they also have their own cloud infrastructure to deliver these services without having to make deals with anyone else. If they’ll also have a massive library of IP and titles that would give them even a larger advantage over other competitors.

The logic behind the CMA’s decision is that this would give Microsoft a natural monopoly in cloud gaming which is hard to argue against. Arguing that it might not be that important is possible but it’s an argument that is very hard to actually back up with any substance since it’s all hypothetical.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#74

Post by logistark »

capableweb wrote: post #24
daniel-s wrote: post #18

I don't mind the complaint about CMA being undemocratic because it's a council of unelected bureaucrats, it's just trash-talk from someone that didn't get what they wanted; to be expected. IMO the reason why this decision is really dumb is because the reason given was cloud gaming. I think that people are missing this. This isn't a market. Almost nobody plays on cloud gaming platforms, like Stadia which recently clos…

Did you actually read the report that the CMA released? They are not basing the block on some "maybe" future, but on current reality. > Microsoft already accounts for an estimated 60-70% of global cloud gaming services and has other important strengths in cloud gaming from owning Xbox, the leading PC operating system (Windows) and a global cloud computing infrastructure (Azure and Xbox Cloud Gaming). Microsoft alread…

Microsoft have in 2021 the 60-70% of global cloud gaming services representing 1-3% of the gaming industry. Is true that this number have been growing, but anyway the reasons that are using is backed by the idea that ultimately the Cloud Gaming Services will take over all the industry. But this is just especulation, and probably even if this is true this would happen even without Microsoft buying Activision.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#75

Post by masfuerte »

judge2020 wrote: post #68
hgsgm wrote: post #58

Earlier quoted context omitted.

Limited Liability Corporations aren't citizens. Satya Natella is welcome to take MS private as a sole proprietorship.

Corporations have the same rights as people; otherwise your freedom of speech and other rights could be abridged while you're conducting business as a corporation, which we don't want.

You don't conduct business as a corporation. The corporation conducts business.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#76

Post by qwytw »

mrkramer wrote: post #47
etempleton wrote: post #26

Earlier quoted context omitted.

I think they could possibly say that they will move forward with the merger, but cease to publish or sell games in the UK, but I very much doubt they would. The UK is still too big / profitable of a market. As an aside, it is interesting to see how this merger is received in the tech space vs gaming space. Most folks in gaming seem to welcome the merger because Activision has long been anti-consumer / bad stewards of…

>I also think the CMAs rationale for their decision is bizarre and shows a lack of understanding of the space. They blocked the acquisition on a premise that cloud gaming will be huge in the future and that Microsoft might make Activision Blizzard games exclusive to their Xbox Cloud. Taking in consideration Microsoft's enormous comparative advantages like owning Xbox, Xbox Cloud, Game Pass, Windows, Microsoft Azure p…

> likely these franchises will never see a day of light on any other cloud gaming platform except Xbox Cloud.

Do you know somebody nobody else outside MS does? Cause that doesen't seem at all likely to me.

I looked at some of the most recent games released or to be released by Microsoft, like:

Grounded

- Age of Empires IV

- Forza Horizon 5

- Halo Infinite

- Psychonauts 2

- Minecraft Legends

- Ara: History Untold

Guess what, every single one of them is available on Steam.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#77

Post by gruez »

snapcaster wrote: post #59
gruez wrote: post #53

Earlier quoted context omitted.

>who elected Microsoft? citizen: I want to paint my house blue mayor: I unilaterally forbid you from doing that, on the grounds that blue houses look unsightly citizen: that's undemocratic! mayor: who elected you to decide painting your house blue?

Do you think this is a good analogy? You think we should have the same process for an individual painting their house and a multi-trillion dollar corporation attempting to dominate markets? Do you see any differences in the two situations?

>You think we should have the same process for an individual painting their house and a multi-trillion dollar corporation attempting to dominate markets?

I'm not claiming that microsoft should be allowed to do the merger on the basis that individuals can choose to paint their house blue, only pointing out that "microsoft isn't elected either" isn't a valid rebuttal to the objection that unilateral decisions by unelected bureaucrats are undemocratic.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#78

Post by qwytw »

mrkramer wrote: post #67
etempleton wrote: post #52

Earlier quoted context omitted.

The problem is by size Sony is larger, with more studios and more exclusives. Nintendo is also huge. Cloud gaming has a lot of competition and they all are companies with deep pockets: Microsoft, Sony, Nvidia, Google, Amazon. They can afford to do what Microsoft is doing if they so choose. This isn’t some new paradigm. This is how this business is run. If it is not console exclusives it is platform exclusives. It is…

But Microsoft has the upper hand in the cloud gaming industry according to CMA. Apparently Xbox Cloud has 60-70% of the market share. Activision Blizzard acquisition would only strengthen Microsoft's position and would not improve competition.

> Apparently Xbox Cloud has 60-70% of the market share. Activision Blizzard acquisition would only strengthen Microsoft's position and would not improve competition.

The same way they "controlled" the smartphone market with Windows Mobile in the pre iPhone/Android days?

It's an entirely new market. 60-70% of all current users is an insignificant proportion of all potential users so it doesen't mean much. And well it's not their fault that they other megacorps like Google are so incompetent.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#79

Post by sofixa »

Red_Leaves_Flyy wrote: post #40
dingledork69 wrote: post #11

Earlier quoted context omitted.

Direct democracy is not a good idea, unfortunately.

Citation?

Take a look at Switzerland. Universal suffrage only became universally applied when courts forced the last holdout cantons, in the 1990s. They also recently refused decarbonision efforts because those would result in higher taxes.

Masses of common people are fundamentally unprepared for voting and compromising on important and complex legislation. That's why (supposedly expert) agencies and lawmakers exist, to handle that with some higher level goals and objectives and strategic thinking.

Re: Ignore Microsoft’s whines about the Activision takeover. The CMA did its job

#80

Post by qwytw »

blibble wrote: post #43
endisneigh wrote: post #8

What would happen if Activision is acquired anyway by Microsoft? Could they simply exist as two separate entities in the UK, and a unified entity elsewhere? With all of the repercussions that entails for the users? Or simply they exit the market in the UK?

very large fines (10% of global turnover per year), arrest of directors/officers/senior managers of Microsoft UK, disapplication of copyright of Microsoft products, possibly extradition requests too and the shareholders would want the current board out not to mention the complete total global reputational damage of ignoring a G7 country's competition regulator

Neither side would really win if it came to that. Of course MS would be in a much worse position.
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