721–730 of 1001 posts
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They are still missing a mobile platform and that's why I believe they will retry within the next few years
Convinced they're just going to do the Netflix/Stadia route with mobile etc. Sell a controller, use the device you already have and stream games running from azure. Long term plan, obviously.
With these kind of acquisitions, other companies are going to find it very hard to compete with Game Pass. I think we'll look back in 10 years and wonder why antitrust regulators did nothing, but it may be too late by then.
Blizzard is dead weight compared to the incredible profitability of Skylanders + CoD. I'd be willing to bet Blizzard gets spun off within a year.
It's wild how Microsoft has been able to vertically integrate gaming. They now own the distribution (Xbox Cloud Gaming, Xbox Game Pass), the games (Call of Duty, WoW, Starcraft + what they owned before), the OS (Windows, Xbox), the hardware (Xbox, many PCs), and the back end compute (Azure). The only thing they're missing, the network bandwidth, is mostly a commodity anyway. That's a heck of a moat.
People may be flooding into vertical integration, though the history of that isn’t great. (Look at AOL/TimeWarner or Verizon/AOL/Tumblr/Yahoo) All it takes is missing one generation and the house of cards gets written down. Someone can create the next generation blockbuster for a lot less than $69bln. To argue against myself, they’ve become a lot better at picking trends since Balmer left too.
Earlier quoted context omitted.
People may be flooding into vertical integration, though the history of that isn’t great. (Look at AOL/TimeWarner or Verizon/AOL/Tumblr/Yahoo) All it takes is missing one generation and the house of cards gets written down. Someone can create the next generation blockbuster for a lot less than $69bln. To argue against myself, they’ve become a lot better at picking trends since Balmer left too.
Intel has also been feeling the pain of vertical integration. Like with most things, double edged sword. They fabricated their chips - not sure if they still do. Initially this was great, they owned the equipment and got things 'at cost'. However, they had trouble refining their tooling to get This made them less competitive for a while, while having a pile of expenses a more lean design house wouldn't have. They'll…
Two years ago I would have expected this trend to continue and for Intel to stop in-house fabrication, but with their new CEO and some prodding from the US government, they are now investing many billions of dollars into new fabs.
I wonder if this will trigger any antitrust lawsuits. I know Microsoft isn't that of the 90's but it seems like the political situation is ripe for politicians to go after "big tech" and this is a pretty major acquisition that will help Xbox be the dominant player in terms of content.
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> other companies are going to find it very hard to compete with Game Pass I haven't really ever used it. I used to buy everything Blizzard made (OK that's an exaggeration, but I was all about WarCraft/StarCraft/Diablo...). Before Steam, I bought lots of games on disk. Now I buy most things on Steam. And I haven't bought anything Blizzard since Diablo III. Why wouldn't Steam continue to be competitive against Game Pa…
> Why wouldn't Steam continue to be competitive against Game Pass? Game pass is significantly cheaper, unless you buy very few games on steam (and/or only buy them on deep, deep sale. Which doesn't really exist anymore in any meaningful way).
Earlier quoted context omitted.
People may be flooding into vertical integration, though the history of that isn’t great. (Look at AOL/TimeWarner or Verizon/AOL/Tumblr/Yahoo) All it takes is missing one generation and the house of cards gets written down. Someone can create the next generation blockbuster for a lot less than $69bln. To argue against myself, they’ve become a lot better at picking trends since Balmer left too.
AOL/TimeWarner was a failure because because it valued AOL at $200B and TimeWarner at $164B. AOL was just way over-valued. It wasn't really an integration failure so much as paying too much for something. If Time Warner had bought AOL for $2B, it would have been fine. The problem is that they merged valuing AOL at 100x that when it wasn't worth it and later sold for $4.4B to Verizon. Likewise, Yahoo/Verizon bought a…
MS announced today that it was acquiring Activision Blizzard Inc. (ATVI). This news comes on the heels of a year filled with government lawsuits, internal leaks, low morale and poor performance. Many analysts have commented that years of failing to invest in their IP and a string of poorly-received sequels have diluted customer and stockholder faith.
The past year has seen ATVI stock plummet after it was made public that the company was not being managed or governed in any meaningful way, down approx. 30% prior to today's announcement.
With these kind of acquisitions, other companies are going to find it very hard to compete with Game Pass. I think we'll look back in 10 years and wonder why antitrust regulators did nothing, but it may be too late by then.
We're way past the point where government is meant to be a check on unchecked capitalism. Mega monolith corps are the now and future.
With these kind of acquisitions, other companies are going to find it very hard to compete with Game Pass. I think we'll look back in 10 years and wonder why antitrust regulators did nothing, but it may be too late by then.
It'll depend on the perspective. For the gaming industry, this seems to push Microsoft into 3rd place (by size) behind Sony and Tencent. So hardly a monopoly and akin to T-Mobile's acquisition of Sprint a few years ago. It makes Microsoft much more competitive against Sony and even Nintendo since it'll likely bolster their 1P offerings in the future. But if Microsoft uses their ownership to favor their own game subsc…