The Microsoft merger with Activision Blizzard.

[Harrison]

The Microsoft merger with Activision Blizzard.

This is just my take on this whole situation, so I could be completely wrong. Would like to hear your views on this.

I keep seeing arguments on social media at the moment that are reminiscent of the 80s and 90s playground platform/gaming arguments. Saying its about exclusive games on Xbox or Playstation. And arguing that Sony have exclusives so why shouldn't Microsoft be allowed some too.

But my take on this is that the issue here is not really exclusive games on any one platform at all. It is foremost really the size of the companies. Go and look at the current market value of each. Activision Blizzard is currently worth more than the whole of Nintendo. That in itself highlights an issue as they are just a software developer. But then you look at Microsoft. Gaming is not their main sector at all and not the market they ever make much money from. Their money is made from the business sector with servers and cloud hosting technology. They are always in the top 5 richest companies in the world list, sometimes even in the top 3 alongside Apple and Amazon. Currently as of June they are valved at $2.49 Tillion, placing them currently as the second richest company in the world. Apple being at the top, worth $2.94 Trillion.

What's more worrying is that these companies keep growing. Both have increased in value by half a Tillion since the start of this year. Yet years ago monoploy and fair competition laws would have seen both broken up into smaller component companies to keep the various markets competitive. It's what Europe forces, which therefore came as a surprise that they gave the green light for this merger last month.

Then look at the value of Sony. $116 Billion. Only 1/3 more than Activision Blizzard which is mad when you consider what Sony do in contrast to the software developer. Film studios, TV companies, Music studios, TV, mobile and, still camera and video equipment (both consumer and professional), gaming, Gaming hardware, software development etc.

Finally the reason Microsoft want Activision Blizzard. If you think it's for the handful of yearly regurgitated games you are very wrong. They want the server technology behind their products. Look at the success of Candy Crush f.ex. and thy fact is big in Asia. Microsoft isn't viewing this as an acquisition to gain market share against Sony and the PS5. They don't really care how the Xbox does. It's just a test platform for other technologies, especially server, streaming and most importantly AI. Apple, Microsoft, Alphabet and Amazon are all currently in a technology race to develop the best AI technologies, streaming services, cloud technologies and data collection systems. They want Activision Blizzard for their server technologies and skill. The gaming side is just an added bonus.

And that's not even considering government and military interest in server, cloud and AI technology that could pull in even more funded contracts.

[J T]

Isn't this just businesses doing what businesses do, though?

I mean, whether we agree with it or not isn't the whole set up that businesses exist to make money, and as much money as possible.

[Kin Hell]

Like J T says.....

Just another merry go round Butt F**k.

[Harrison]

Yes very true. But as gamers we really don't want corporations obtaining all successful development houses, because they only want the profitable IPs, not those who were behind making them so. Plus any technologies they have developed such as cloud gaming.

Microsoft has a track record of buying up developers and then running them into the ground, splitting them up, or just not doing much with them. They already own 21 development houses. Where are the exclusives?

By contrast, whilst Sony does buy up developers, they also like to fund independent developers in exchange for exclusive deals. Sony have been an entertainment company for a very long time. They were making games in the 80s on NES as Sony Imagesoft so were not new to the market with the Playstation. And they have been in the wider entertainment market with film and TV for a very long time. They know the market. Microsoft don't seem to, and it now seems they only managed to have success with the 360 by accident. Being the second richest company in the world ($2.48 Trillion) with so many resources it's hard to understand why they are struggling so much. US corporate capitalism and no understanding of creative markets seems to be the most obvious reason. Pinning all their hopes on Gamepass.

[J T]

21 dev houses? good grief - that's a lot.