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January 18, 2022 2:02 PM Subscribe
Microsoft Closing In On $70 Billion Deal To Buy Activision Blizzard – The Xbox owner is close to buying the beleaguered Call Of Duty publisher, Kotaku, John Walker, Jan 18, 2022: “In an extraordinary turn of events, Microsoft is getting near to a deal to buy Activision Blizzard, the Wall Street Journal reported today. This would not only be one of the most major shake-ups in the gaming industry in years but could also finally signal the end for its horrendous CEO, Bobby Kotick. Activision Blizzard has been going through a tumultuous time after widespread issues of sexual harassment and trauma were revealed within the enormous company…” [previously on MeFi.]
The news also comes on the same day that the FTC and DOJ announce they're going to modernize their merger guidelines to "better detect and prevent anticompetitive deals." Make megacorps while the sun doesn't shine, or something.
posted by jedicus at 2:17 PM on January 18, 2022 [5 favorites]
posted by jedicus at 2:17 PM on January 18, 2022 [5 favorites]
I hope we are buying the company and not an NFT of the company - @jsnover Jeffrey Snover: Microsoft Technical Fellow
posted by Lanark at 2:21 PM on January 18, 2022 [18 favorites]
posted by Lanark at 2:21 PM on January 18, 2022 [18 favorites]
First Mojang, now Blizzard. Is there a game company with frat-boy executives who should be radioactive (but will no doubt land on their feet with big ol' golden parachutes) that Microsoft WON'T buy?
posted by Mayor West at 2:24 PM on January 18, 2022 [2 favorites]
posted by Mayor West at 2:24 PM on January 18, 2022 [2 favorites]
In addition, it's being reported that Kotick has been concealing the scope of the firings and other disciplinary measures in past months, most likely to drag this deal over the finish line.
posted by NoxAeternum at 2:25 PM on January 18, 2022 [4 favorites]
posted by NoxAeternum at 2:25 PM on January 18, 2022 [4 favorites]
First Mojang, now Blizzard. Is there a game company with frat-boy executives who should be radioactive (but will no doubt land on their feet with big ol' golden parachutes) that Microsoft WON'T buy?
It's a dumpster fire sale in the case of ABK (they literally burned $20B of market cap in six months.) As for Mojang, Notch didn't fall into a well, actually until after the sale, and ever since he's been treated as the family shame by Mojang.
posted by NoxAeternum at 2:28 PM on January 18, 2022 [2 favorites]
It's a dumpster fire sale in the case of ABK (they literally burned $20B of market cap in six months.) As for Mojang, Notch didn't fall into a well, actually until after the sale, and ever since he's been treated as the family shame by Mojang.
posted by NoxAeternum at 2:28 PM on January 18, 2022 [2 favorites]
Per this tweet, Kotick stands to make over $250M in severance if he's fired due to a change in control and without cause. With cause, he'd get about a tenth of that.
Before considering appreciation in whatever stock he owns.
posted by snuffleupagus at 2:40 PM on January 18, 2022 [5 favorites]
Before considering appreciation in whatever stock he owns.
posted by snuffleupagus at 2:40 PM on January 18, 2022 [5 favorites]
More on that compensation at Firing CEO Bobby Kotick wouldn’t be cheap for Activision, Chris Morris, Fortune, November 17, 2021: “Activision, in a proxy statement [executive summary compensation table] to the Securities and Exchange Commission last June, spelled out just how much it could cost to fire Kotick. And it could run as high as $265 million.”
posted by cenoxo at 2:46 PM on January 18, 2022 [1 favorite]
posted by cenoxo at 2:46 PM on January 18, 2022 [1 favorite]
That sounds like a $265 million incentive to make sure every shitty thing Kotick has done will be brought into the sunlight so that Microsoft don't have to pay him a dime more than they have to.
posted by Your Childhood Pet Rock at 2:53 PM on January 18, 2022 [16 favorites]
posted by Your Childhood Pet Rock at 2:53 PM on January 18, 2022 [16 favorites]
In addition, it's being reported that Kotick has been concealing the scope of the firings and other disciplinary measures in past months, most likely to drag this deal over the finish line.
Wait, is the idea that he had to make it look like they weren't doing anything in order to keep the stock price down and thus within Microsoft's comfort zone?
posted by Holy Zarquon's Singing Fish at 3:18 PM on January 18, 2022
Wait, is the idea that he had to make it look like they weren't doing anything in order to keep the stock price down and thus within Microsoft's comfort zone?
posted by Holy Zarquon's Singing Fish at 3:18 PM on January 18, 2022
As of Sept 2021, Microsoft had $131 billion in cash on hand. $70 billion is going toward the acquisition, leaving $61 billion.
$215 million to Kotick = less than 1/3 of 1 percent of $61 billion. Microsoft couldn't give less of a shit about the financial impact of his departure
posted by BadgerDoctor at 3:21 PM on January 18, 2022 [1 favorite]
Incorrect. M&A teams will scour the books for every last dime to shave. That's their job.
posted by seanmpuckett at 3:30 PM on January 18, 2022 [7 favorites]
posted by seanmpuckett at 3:30 PM on January 18, 2022 [7 favorites]
I keep hearing about how Microsoft/Xbox is "pro-consumer", and while I won't deny that Game Pass is A Good Thing, I can't quite wrap my head around why people would think such a thing.
$70 billion for a collection of cookie cutters is a pretty shitty deal, to my mind, but then, people do like cookies.
posted by turbid dahlia at 3:38 PM on January 18, 2022 [3 favorites]
$70 billion for a collection of cookie cutters is a pretty shitty deal, to my mind, but then, people do like cookies.
posted by turbid dahlia at 3:38 PM on January 18, 2022 [3 favorites]
It's worth pointing out that the consolidation of the games industry has been a thing these past few years.
In the past year, THQ Nordic has bought Gearbox, EA has bought Codemasters, Epic has bought Mediatonic and Harmonix, Take-Two has bought Zynga, Tencent has bought Sumo Digital and Turtle Rock, NetEase has bought Grasshopper, and so on. It's also barely been a year since Microsoft bought Bethesda.
I've seen some speculation today that we're heading toward a situation where only a few companies own the vast majority of gaming studios, much like how it's been for decades with movies and TV. Given the scope of this sale, it feels like nothing's out of the question now, though ActiBlizz's circumstances with the investigations and stock price declines were certainly a contributing factor here. I would like to say this couldn't be replicated again with EA, or Bandai Namco, or Ubisoft (well, maybe Ubisoft), but I can't. Games industry consolidation is going to continue. It's a worrying trend.
As for Mojang, Notch didn't fall into a well, actually until after the sale, and ever since he's been treated as the family shame by Mojang.
Notch? Who's that? Minecraft's creator is Hatsune Miku.
posted by May Kasahara at 3:59 PM on January 18, 2022 [16 favorites]
In the past year, THQ Nordic has bought Gearbox, EA has bought Codemasters, Epic has bought Mediatonic and Harmonix, Take-Two has bought Zynga, Tencent has bought Sumo Digital and Turtle Rock, NetEase has bought Grasshopper, and so on. It's also barely been a year since Microsoft bought Bethesda.
I've seen some speculation today that we're heading toward a situation where only a few companies own the vast majority of gaming studios, much like how it's been for decades with movies and TV. Given the scope of this sale, it feels like nothing's out of the question now, though ActiBlizz's circumstances with the investigations and stock price declines were certainly a contributing factor here. I would like to say this couldn't be replicated again with EA, or Bandai Namco, or Ubisoft (well, maybe Ubisoft), but I can't. Games industry consolidation is going to continue. It's a worrying trend.
As for Mojang, Notch didn't fall into a well, actually until after the sale, and ever since he's been treated as the family shame by Mojang.
Notch? Who's that? Minecraft's creator is Hatsune Miku.
posted by May Kasahara at 3:59 PM on January 18, 2022 [16 favorites]
Consolidation is kind of inevitable given that AAA games these days cost more to make than all but the most star and SFX-laden movies. (I honestly don't know how Bioware is still a going concern given they've released two AAA flops in the past five years, but I guess we have consolidation to thank for that. And Mass Effect Legendary.)
posted by seanmpuckett at 4:10 PM on January 18, 2022
posted by seanmpuckett at 4:10 PM on January 18, 2022
Bobby Kotick interview: Why Activision Blizzard did the deal with Microsoft, Dean Takahashi, GamesBeat, January 18, 2022:
posted by cenoxo at 4:11 PM on January 18, 2022
GamesBeat:And was the sexual harassment investigation factor in this, as it certainly seemed to affect the stock price?And that’s all he had to say about that.
Kotick: I think what affected the stock price more than that is pushing out Overwatch and Diablo. And then I think people started to see that this year’s Call of Duty wasn’t performing as well. So I think certainly the [California Department of Fair Employment and Housing] filing and the Wall Street Journal article contributed to that, but stocks go up and down for a variety of reasons. I think our view was that at $95 a share with all cash, that’s a really great deal for our shareholders. And so that was an easy and independent judgment. It’s a great deal.
posted by cenoxo at 4:11 PM on January 18, 2022
I've seen some speculation today that we're heading toward a situation where only a few companies own the vast majority of gaming studios, much like how it's been for decades with movies and TV.
Yeah but with gaming there's literally no barrier to entry and no economies of scale. Plus the experiences lend themselves to huge value propositions in terms of fun received vs money paid. It's a lot easier to make it as an indie developer than it is as an indie musician or indie movie maker.
posted by Your Childhood Pet Rock at 4:19 PM on January 18, 2022
Yeah but with gaming there's literally no barrier to entry and no economies of scale. Plus the experiences lend themselves to huge value propositions in terms of fun received vs money paid. It's a lot easier to make it as an indie developer than it is as an indie musician or indie movie maker.
posted by Your Childhood Pet Rock at 4:19 PM on January 18, 2022
Yeah but with gaming there's literally no barrier to entry and no economies of scale. Plus the experiences lend themselves to huge value propositions in terms of fun received vs money paid. It's a lot easier to make it as an indie developer than it is as an indie musician or indie movie maker.
Is this still true? The term "indiepocalypse" is a few years old now and things haven't improved in the indie space since then. Nowadays, it seems like luck is a much bigger factor in "making it" as an indie developer, and more and more good games are failing in terms of sales.
Besides, some Triple I indies are being bought out, too.
posted by May Kasahara at 4:36 PM on January 18, 2022 [3 favorites]
Is this still true? The term "indiepocalypse" is a few years old now and things haven't improved in the indie space since then. Nowadays, it seems like luck is a much bigger factor in "making it" as an indie developer, and more and more good games are failing in terms of sales.
Besides, some Triple I indies are being bought out, too.
posted by May Kasahara at 4:36 PM on January 18, 2022 [3 favorites]
It's fine, it's not like games have been slowly converging on a single microtransaction-driven grind machine designed to joylessly frustrate you into emptying your wallet or anything.
posted by lumpenprole at 4:48 PM on January 18, 2022 [3 favorites]
posted by lumpenprole at 4:48 PM on January 18, 2022 [3 favorites]
Activision Blizzard Inc. stock outperforms market on strong trading day, MarketWatch, Jan. 18, 2022 at 4:38 p.m. ET:
- Shares of Activision Blizzard Inc. ATVI, +25.88% rocketed 25.88% to $82.31 Tuesday…
- The stock outperformed some of its competitors Tuesday, as Microsoft Corp. MSFT, -2.43% fell 2.43% to $302.65.
I keep hearing about how Microsoft/Xbox is "pro-consumer", and while I won't deny that Game Pass is A Good Thing, I can't quite wrap my head around why people would think such a thing.
I, a mostly-non-gamer, bought an Xbox and Gamepass and at first I was like, great, I get to play Flight Simulator, which is all I really wanted. But holy hell, there are so many great games on Gamepass! I am having a blast!
Which makes me wonder, sure… when will the other shoe drop? The more of the market MS gobbles up, the less value I expect to see in Gamepass, long term.
Short term, though? They’re pushing to hook as many subscribers as possible, which means we can probably expect continued great stuff for at least a little while.
posted by uncleozzy at 5:25 PM on January 18, 2022 [1 favorite]
I, a mostly-non-gamer, bought an Xbox and Gamepass and at first I was like, great, I get to play Flight Simulator, which is all I really wanted. But holy hell, there are so many great games on Gamepass! I am having a blast!
Which makes me wonder, sure… when will the other shoe drop? The more of the market MS gobbles up, the less value I expect to see in Gamepass, long term.
Short term, though? They’re pushing to hook as many subscribers as possible, which means we can probably expect continued great stuff for at least a little while.
posted by uncleozzy at 5:25 PM on January 18, 2022 [1 favorite]
Short term, though? They’re pushing to hook as many subscribers as possible, which means we can probably expect continued great stuff for at least a little while.
It's a slippery slope, with Epic Game Store giving away games every week. But slippery is also fun, so no complaints here!
posted by pwnguin at 5:43 PM on January 18, 2022
It's a slippery slope, with Epic Game Store giving away games every week. But slippery is also fun, so no complaints here!
posted by pwnguin at 5:43 PM on January 18, 2022
Is there any analysis out there of what MS thinks they're getting out of this deal? I can't get past the WSJ paywall to see what they say. I assume the attraction for them is the IP? Nearly all of the staff that created the games that really built Blizzard's brand have left for greener pastures...
posted by Wretch729 at 6:38 PM on January 18, 2022
posted by Wretch729 at 6:38 PM on January 18, 2022
huge amounts of money
posted by Sebmojo at 6:44 PM on January 18, 2022 [2 favorites]
posted by Sebmojo at 6:44 PM on January 18, 2022 [2 favorites]
like staggeringly vast bags of spondulicks
posted by Sebmojo at 6:46 PM on January 18, 2022 [3 favorites]
posted by Sebmojo at 6:46 PM on January 18, 2022 [3 favorites]
private space craft type of money.
posted by clavdivs at 7:17 PM on January 18, 2022 [3 favorites]
posted by clavdivs at 7:17 PM on January 18, 2022 [3 favorites]
Is there any analysis out there of what MS thinks they're getting out of this deal?
The IP is probably the big thing, and is reminiscent of the Rare buyout a decade and a half back. Another big thing is that this gets Microsoft into the mobile gaming space in a big way thanks to King Games, which tends to be the forgotten part of the ABK tryptich.
posted by NoxAeternum at 7:17 PM on January 18, 2022 [1 favorite]
The IP is probably the big thing, and is reminiscent of the Rare buyout a decade and a half back. Another big thing is that this gets Microsoft into the mobile gaming space in a big way thanks to King Games, which tends to be the forgotten part of the ABK tryptich.
posted by NoxAeternum at 7:17 PM on January 18, 2022 [1 favorite]
Wait, is the idea that he had to make it look like they weren't doing anything in order to keep the stock price down
The Hanzo Proxy
posted by overeducated_alligator at 7:21 PM on January 18, 2022 [2 favorites]
The Hanzo Proxy
posted by overeducated_alligator at 7:21 PM on January 18, 2022 [2 favorites]
I wish I could be fired with cause and receive ~$25 million. As it stands, I won't make that in my entire lifetime. The last time I was made redundant, I had to fight for that third week's pay I was entitled to under the award.
posted by krisjohn at 7:28 PM on January 18, 2022 [4 favorites]
posted by krisjohn at 7:28 PM on January 18, 2022 [4 favorites]
Yeah but with gaming there's literally no barrier to entry and no economies of scale ... Is this still true?
One of the my very favorite games of the past few years, Supraland, was made almost entirely by one person. And it looks and plays like a AAA game from ... not very long ago.
As long as video games are made on personal computers, individuals and small groups will be able to create things that try something new or continue in directions that the big studios have abandoned. It's still very possible for a small group to make the next Minecraft or DOTA or battle royale (Epic's Fortnite may have eclipsed PUBG, the battle royale game made by a small team originally as a mod of another game, but PUBG is still an almost Minecraft-level success).
posted by straight at 8:04 PM on January 18, 2022 [2 favorites]
One of the my very favorite games of the past few years, Supraland, was made almost entirely by one person. And it looks and plays like a AAA game from ... not very long ago.
As long as video games are made on personal computers, individuals and small groups will be able to create things that try something new or continue in directions that the big studios have abandoned. It's still very possible for a small group to make the next Minecraft or DOTA or battle royale (Epic's Fortnite may have eclipsed PUBG, the battle royale game made by a small team originally as a mod of another game, but PUBG is still an almost Minecraft-level success).
posted by straight at 8:04 PM on January 18, 2022 [2 favorites]
I remember being blown away by the original Bright Memory trailer in 2018 which looked like something a big studio could have put out. Made by one Chinese UE4 developer in his spare time. He probably went, shooters are boring, why don't we add swords, flying, and magic to this as well???
The final product is now out, Bright Memory Infinite which still looks really impressive.
The Wikipedia article on this game says the solo developer admitted to "reusing" some 3D models from other games.
posted by xdvesper at 9:00 PM on January 18, 2022
The final product is now out, Bright Memory Infinite which still looks really impressive.
The Wikipedia article on this game says the solo developer admitted to "reusing" some 3D models from other games.
posted by xdvesper at 9:00 PM on January 18, 2022
This buyout is huge. Once these titles are added, the Xbox Gamepass will be unstoppable. They’re already seamlessly omni-touch across all devices; for a household, it’s seriously good. (The purchasing, onboarding and setup journeys blew my mind, too.)
Sony will be almost entirely eclipsed by this. You still can’t even gift someone a game over there; money sitting on the table I’ve always thought.
posted by iamkimiam at 11:51 PM on January 18, 2022 [1 favorite]
Sony will be almost entirely eclipsed by this. You still can’t even gift someone a game over there; money sitting on the table I’ve always thought.
posted by iamkimiam at 11:51 PM on January 18, 2022 [1 favorite]
Sony will be almost entirely eclipsed by this.
Eh, this is more MS trying to compete with the constellation of first and second party studios that Sony has been building since the PS1 era. MS has never had a studio under their umbrella that could compare to Naughty Dog, Insomniac, or Sucker Punch among others - but they do have a warchest, so they can buy that constellation.
posted by NoxAeternum at 12:23 AM on January 19, 2022 [3 favorites]
Eh, this is more MS trying to compete with the constellation of first and second party studios that Sony has been building since the PS1 era. MS has never had a studio under their umbrella that could compare to Naughty Dog, Insomniac, or Sucker Punch among others - but they do have a warchest, so they can buy that constellation.
posted by NoxAeternum at 12:23 AM on January 19, 2022 [3 favorites]
Is there any analysis out there of what MS thinks they're getting out of this deal?
They're getting people like me, Blizzard fans. (Not a fan of the current Blizzard, obviously).
posted by polymodus at 1:07 AM on January 19, 2022
They're getting people like me, Blizzard fans. (Not a fan of the current Blizzard, obviously).
posted by polymodus at 1:07 AM on January 19, 2022
One of the my very favorite games of the past few years, Supraland, was made almost entirely by one person. And it looks and plays like a AAA game from ... not very long ago.
Yes, but that wasn't what I was talking about at all. The tools are definitely there, but finding success with them is much, much harder.
I should have clarified that my original comment in this thread was primarily about A-tier, B-tier, and "big" indie studios, not the Thomas Happs and Christine Loves of the world. Those have existed for decades, will continue to exist, and will sometimes do amazing things that find an audience, just like in any other medium. This should not mean that consolidation of the big studios isn't a problem.
posted by May Kasahara at 4:45 AM on January 19, 2022 [2 favorites]
Yes, but that wasn't what I was talking about at all. The tools are definitely there, but finding success with them is much, much harder.
I should have clarified that my original comment in this thread was primarily about A-tier, B-tier, and "big" indie studios, not the Thomas Happs and Christine Loves of the world. Those have existed for decades, will continue to exist, and will sometimes do amazing things that find an audience, just like in any other medium. This should not mean that consolidation of the big studios isn't a problem.
posted by May Kasahara at 4:45 AM on January 19, 2022 [2 favorites]
I played the heck out of the original Diablo, Diablo II, StarCraft, and dabbled in Warcraft but even though it was fun never got into anything past Warcraft III. Found some hacky ways to make Diablo run on our computer so my son could try it, and I’ll be danged, it holds up well even now - could be nostalgia but I had fun re-playing it; I never did play all the way through with each class, and am now most of the way through doing that.
So now Microsoft buys it. Which is good for the IP, but… I don’t look forward to never being able to play these games again because Microsoft can’t be bothered to make anything run on platforms other than Windows.
Before we went macOS only in the house, back in grad school, I played Halo on my laptop and it was really fun (side note: Halo was originally developed as a multiplatform game from a company known for producing Mac games… until Microsoft bought them and killed the Mac version.) But then Microsoft decided all future versions would not just be Microsoft platform only, but would require their gaming system and not just a computer. Fast forward, house is macOS only, kid and I get into Minecraft… then Microsoft buys them. The promise of multiplatform play in Minecraft was exciting, but then Microsoft decided their bedrock edition would work on every goddamn thing EXCEPT macOS. (I mean it works on my iPad, for gods sakes, but not my actual ridiculously overpowered M1 MacBook Pro?) Adding insult to injury, the Minecraft launcher has an option to load Minecraft or Minecraft Dungeons. The latter of which is not available on macOS and yet the button to load it is baked into the program launcher on macOS. (Yes I know the launcher is multiplatform code, but still, it’s aggravating.)
I fully understand that Microsoft has no reason to push players towards competitor’s operating systems. Really, I expect that for their own developed-in-house stuff, but when they grab up properties that always were cross-platform, and make them Windows/Xbox only, it just blows. Who knows, they could surprise me, but given past history I am pretty much expecting that any cross-platform efforts they make from here out with Activision-Blizzard IP will be limited to ensuring it maybe also runs on the PlayStation or Switch, with zero consideration given to macOS.
posted by caution live frogs at 5:30 AM on January 19, 2022 [6 favorites]
So now Microsoft buys it. Which is good for the IP, but… I don’t look forward to never being able to play these games again because Microsoft can’t be bothered to make anything run on platforms other than Windows.
Before we went macOS only in the house, back in grad school, I played Halo on my laptop and it was really fun (side note: Halo was originally developed as a multiplatform game from a company known for producing Mac games… until Microsoft bought them and killed the Mac version.) But then Microsoft decided all future versions would not just be Microsoft platform only, but would require their gaming system and not just a computer. Fast forward, house is macOS only, kid and I get into Minecraft… then Microsoft buys them. The promise of multiplatform play in Minecraft was exciting, but then Microsoft decided their bedrock edition would work on every goddamn thing EXCEPT macOS. (I mean it works on my iPad, for gods sakes, but not my actual ridiculously overpowered M1 MacBook Pro?) Adding insult to injury, the Minecraft launcher has an option to load Minecraft or Minecraft Dungeons. The latter of which is not available on macOS and yet the button to load it is baked into the program launcher on macOS. (Yes I know the launcher is multiplatform code, but still, it’s aggravating.)
I fully understand that Microsoft has no reason to push players towards competitor’s operating systems. Really, I expect that for their own developed-in-house stuff, but when they grab up properties that always were cross-platform, and make them Windows/Xbox only, it just blows. Who knows, they could surprise me, but given past history I am pretty much expecting that any cross-platform efforts they make from here out with Activision-Blizzard IP will be limited to ensuring it maybe also runs on the PlayStation or Switch, with zero consideration given to macOS.
posted by caution live frogs at 5:30 AM on January 19, 2022 [6 favorites]
Is there any analysis out there of what MS thinks they're getting out of this deal?
• Activision Sexual Misconduct Fallout Prompted Microsoft to Pursue Deal – Game publisher canvassed other would-be bidders, but didn’t receive an offer, Bloomberg, Dina Bass and Liana Baker, January 18, 2022.
• Sony Slumps Most in 13 Years as Microsoft Goes for Call of Duty, Dhirendra Tripathi, Investing.com, Jan 19, 2022.
posted by cenoxo at 6:17 AM on January 19, 2022 [1 favorite]
• Activision Sexual Misconduct Fallout Prompted Microsoft to Pursue Deal – Game publisher canvassed other would-be bidders, but didn’t receive an offer, Bloomberg, Dina Bass and Liana Baker, January 18, 2022.
• Sony Slumps Most in 13 Years as Microsoft Goes for Call of Duty, Dhirendra Tripathi, Investing.com, Jan 19, 2022.
posted by cenoxo at 6:17 AM on January 19, 2022 [1 favorite]
disney : microsoft :: disney+ : xbox game pass
posted by i used to be someone else at 6:23 AM on January 19, 2022 [2 favorites]
posted by i used to be someone else at 6:23 AM on January 19, 2022 [2 favorites]
Is there any analysis out there of what MS thinks they're getting out of this deal?
Yes? Lots? It's a huge deal?
See also the Minecraft acquisition.
posted by snuffleupagus at 7:03 AM on January 19, 2022
Yes? Lots? It's a huge deal?
See also the Minecraft acquisition.
posted by snuffleupagus at 7:03 AM on January 19, 2022
See also the Minecraft acquisition.
Having not followed Minecraft much since the very early days, how has this acquisition worked out? Is it largely seen as a positive thing by the gaming community, or not? Has it been good for Microsoft? I haven't seen as much Minecraft stuff out in public (costumes and clothing, toys, books) as I did a few years ago, but it seems like it's still got a large and active fanbase.
posted by msbrauer at 7:12 AM on January 19, 2022
Having not followed Minecraft much since the very early days, how has this acquisition worked out? Is it largely seen as a positive thing by the gaming community, or not? Has it been good for Microsoft? I haven't seen as much Minecraft stuff out in public (costumes and clothing, toys, books) as I did a few years ago, but it seems like it's still got a large and active fanbase.
posted by msbrauer at 7:12 AM on January 19, 2022
I mean, they haven't killed it. They've haven't pissed off large portions of the playerbase, and have kept on updating the game and adding new things. That's a much better track record than Activision has a reputation for.
posted by Zalzidrax at 8:01 AM on January 19, 2022
posted by Zalzidrax at 8:01 AM on January 19, 2022
Is there a reason why Microsoft is so into gaming in the first place? I mostly think of the company as office/productivity software and web services and stuff so they can offer whole solutions to big corporations. The gaming stuff brings in billions, but a pretty small amount of billions compared to total revenues.
posted by snofoam at 9:32 AM on January 19, 2022
posted by snofoam at 9:32 AM on January 19, 2022
Is there a reason why Microsoft is so into gaming in the first place?
Well - Flight Simulator has been out for decades...
But - having been inside the borg for a few years and watching them for most of my adult life, I have come to the conclusion that Microsoft management is quite often taken with "consumer popularity envy".
If something is popular in the consumer space, they need to be there too - they are the nerd who wants to hang-out with the cool kids.
The thing is... Since the introduction of the Xbox, in the gaming space, they have been mostly succeeding. (Unlike... their other consumer-space failures.... Zune, Windows Phone, etc...)
posted by rozcakj at 9:49 AM on January 19, 2022 [4 favorites]
Well - Flight Simulator has been out for decades...
But - having been inside the borg for a few years and watching them for most of my adult life, I have come to the conclusion that Microsoft management is quite often taken with "consumer popularity envy".
If something is popular in the consumer space, they need to be there too - they are the nerd who wants to hang-out with the cool kids.
The thing is... Since the introduction of the Xbox, in the gaming space, they have been mostly succeeding. (Unlike... their other consumer-space failures.... Zune, Windows Phone, etc...)
posted by rozcakj at 9:49 AM on January 19, 2022 [4 favorites]
Darn - I forgot to link to my favourite Zune 'product placement' burn ever...
While I was inside the mothership... they gave us all one... 8gb, not bad!... But... wouldn't work at this internal soft-launch for non-US 'Microsoft Accounts' (or whatever they were called at that time.. Live/xbox/passport, who can remember...) ... and... it was "oh.. so.. tasteful" in "brown"...
posted by rozcakj at 10:15 AM on January 19, 2022 [1 favorite]
While I was inside the mothership... they gave us all one... 8gb, not bad!... But... wouldn't work at this internal soft-launch for non-US 'Microsoft Accounts' (or whatever they were called at that time.. Live/xbox/passport, who can remember...) ... and... it was "oh.. so.. tasteful" in "brown"...
posted by rozcakj at 10:15 AM on January 19, 2022 [1 favorite]
Why Microsoft is splashing $69bn on video games – The tech giant’s acquisition of Activision Blizzard is its biggest-ever deal, The Economist, Jan 18th 2022 [Google cache]:
EVEN FOR Microsoft, which boasts a market capitalisation of around $2.3trn, $69bn is a lot of money. On January 18th the firm said it would pay that sum—all of it in cash—for Activision Blizzard, a video-game developer. It is both the biggest acquisition ever made in the video-game industry and the biggest ever made by Microsoft [Google cache], more than twice the size of the firm’s purchase in 2016 of LinkedIn, a social network, for $26bn (see chart [image link]). The move, which caught industry-watchers by surprise and propelled Activision Blizzard’s share price up by 25%, represents a huge bet on the future of entertainment. But not, perhaps, a crazy one.posted by cenoxo at 10:44 AM on January 19, 2022 [1 favorite]
The gaming industry was growing apace before the pandemic. Covid-19 lockdowns bolstered its appeal [Google cache] —to hardened gamers with more time on their hands and bored neophytes alike. Worldwide revenues shot up by 23% in 2020. NewZoo, an analysis firm, puts them at nearly $180bn. Microsoft is already a big player in the business, thanks to its Xbox games console. It has made a string of gaming acquisitions since 2014, when Satya Nadella, its chief executive, took the reins. The Activision Blizzard deal would cement its position. Once completed in 2023, it will make Microsoft the third-largest video-gaming firm by revenue, behind only Tencent, a Chinese giant, and Sony, Microsoft’s perennial rival in consoles….
Not the most serious source, but:
7 YEARS LATER: MINECRAFT $2.5B DEAL MICROSOFT’S MOST SUCCESSFUL ACQUISITION?
The official sales are astonishing between 2016 – 2019. The nearest competitor for Minecraft in terms of copies sold is GTA V which has sold more than 110 million across all platforms.
Minecraft has roughly sold around 100 million copies after Microsoft’s acquisition. And that accounts for almost $1.5B in revenue alone.
Apart from these sales, Minecraft-themed products made a lot of buzz including official Minecraft World Lego sets, merchandise, and even novels.
Post-Mojang Minecraft also launched a lot of influencers who remain at least notionally attached to it, and lots of people never entirely age out of it.
posted by snuffleupagus at 11:03 AM on January 19, 2022
7 YEARS LATER: MINECRAFT $2.5B DEAL MICROSOFT’S MOST SUCCESSFUL ACQUISITION?
The official sales are astonishing between 2016 – 2019. The nearest competitor for Minecraft in terms of copies sold is GTA V which has sold more than 110 million across all platforms.
Minecraft has roughly sold around 100 million copies after Microsoft’s acquisition. And that accounts for almost $1.5B in revenue alone.
Apart from these sales, Minecraft-themed products made a lot of buzz including official Minecraft World Lego sets, merchandise, and even novels.
Post-Mojang Minecraft also launched a lot of influencers who remain at least notionally attached to it, and lots of people never entirely age out of it.
posted by snuffleupagus at 11:03 AM on January 19, 2022
All round industry veteran and nice chap John Davison posted this in response to the news:
https://www.ign.com/articles/opinion-its-not-a-console-war-its-a-content-war
And this is where we're at. The old days are done in gaming, and big content means big money changing the business. In some ways it's surprising that gaming hasn't already gone this way, but there's certainly no avoiding it now.
posted by onebuttonmonkey at 11:52 AM on January 19, 2022 [1 favorite]
https://www.ign.com/articles/opinion-its-not-a-console-war-its-a-content-war
And this is where we're at. The old days are done in gaming, and big content means big money changing the business. In some ways it's surprising that gaming hasn't already gone this way, but there's certainly no avoiding it now.
posted by onebuttonmonkey at 11:52 AM on January 19, 2022 [1 favorite]
snuffleupagus: "Post-Mojang Minecraft also launched a lot of influencers who remain at least notionally attached to it, and lots of people never entirely age out of it."
Yeah I do complain a bit upthread about bedrock omitting macOS but really, we run Java, we've had our own server world for years now (from version 1.8 to 1.18!), and they kick the new updates out for the Java version just as fast (and sometimes faster) than they do for bedrock. I'm closing in on 50 years old and I have as much fun screwing around in Minecraft as my 12 year old kid does.
posted by caution live frogs at 12:26 PM on January 19, 2022 [2 favorites]
Yeah I do complain a bit upthread about bedrock omitting macOS but really, we run Java, we've had our own server world for years now (from version 1.8 to 1.18!), and they kick the new updates out for the Java version just as fast (and sometimes faster) than they do for bedrock. I'm closing in on 50 years old and I have as much fun screwing around in Minecraft as my 12 year old kid does.
posted by caution live frogs at 12:26 PM on January 19, 2022 [2 favorites]
What is Microsoft getting out of the deal is a funny question.
They own Halo, Call of Duty and DOOM now. The only shooter franchise that in any way competes with these is Battlefield, and that latest launch is a true trash fire.
posted by OnTheLastCastle at 1:40 PM on January 19, 2022
They own Halo, Call of Duty and DOOM now. The only shooter franchise that in any way competes with these is Battlefield, and that latest launch is a true trash fire.
posted by OnTheLastCastle at 1:40 PM on January 19, 2022
They are getting Overwatch, World of Warcraft, Starcraft, Diablo, and some other minor IPs.
Weird to think I'd be saying this is an improvement, but with how shitty Blizzard has been of late...
I have had a lot of fun with many of their games. WoW was awesome for it's time, (until they changed the Troll skins and animations and made my cool Troll mage a dork, but I digress), and despite my not really being into FPS games, I still enjoy Overwatch a ton.My video card has been out for about 6 months, and have really enjoyed being able to play again.
I have lots of stored bile for Microsoft, but this would be a good thing I think.
posted by Windopaene at 2:03 PM on January 19, 2022
Weird to think I'd be saying this is an improvement, but with how shitty Blizzard has been of late...
I have had a lot of fun with many of their games. WoW was awesome for it's time, (until they changed the Troll skins and animations and made my cool Troll mage a dork, but I digress), and despite my not really being into FPS games, I still enjoy Overwatch a ton.My video card has been out for about 6 months, and have really enjoyed being able to play again.
I have lots of stored bile for Microsoft, but this would be a good thing I think.
posted by Windopaene at 2:03 PM on January 19, 2022
The official sales are astonishing between 2016 – 2019…Minecraft has roughly sold around 100 million copies after Microsoft’s acquisition. And that accounts for almost $1.5B in revenue alone.
In that period, Microsoft’s annual revenue went from $85B to $125B. Successful for a game, but not very significant financially. Conversely, Apple has zero cred in gaming, but financially it is pulling in quite a bit from games via the App Store, enough to be one of the biggest gaming companies out there.
posted by snofoam at 2:56 PM on January 19, 2022
In that period, Microsoft’s annual revenue went from $85B to $125B. Successful for a game, but not very significant financially. Conversely, Apple has zero cred in gaming, but financially it is pulling in quite a bit from games via the App Store, enough to be one of the biggest gaming companies out there.
posted by snofoam at 2:56 PM on January 19, 2022
I suppose one question is whether MS will start restricting Activision titles to its platforms. No CoD on Playstation?
posted by snuffleupagus at 3:00 PM on January 19, 2022
posted by snuffleupagus at 3:00 PM on January 19, 2022
I suppose one question is whether MS will start restricting Activision titles to its platforms. No CoD on Playstation ?
When they gave up on phones, they switched strategy from using software to sell windows to getting their software everywhere. Wouldn’t the equivalent be to make gamepass cross-platform? I feel like it would be odd to try to protect a hardware product that is not necessarily profitable.
posted by snofoam at 3:12 PM on January 19, 2022
When they gave up on phones, they switched strategy from using software to sell windows to getting their software everywhere. Wouldn’t the equivalent be to make gamepass cross-platform? I feel like it would be odd to try to protect a hardware product that is not necessarily profitable.
posted by snofoam at 3:12 PM on January 19, 2022
Except that that depends on closed platforms letting them in. Sony and Nintendo wouldn't, and nor would Apple for iOS. That leaves Windows, Mac and Linux.
Microsoft as a Linux gaming powerhouse is an amusing idea.
posted by acb at 3:48 PM on January 19, 2022 [1 favorite]
Microsoft as a Linux gaming powerhouse is an amusing idea.
posted by acb at 3:48 PM on January 19, 2022 [1 favorite]
Currently no one can get a PS5; and if the balance of platform exclusives were different than so might be the history of the last couple rounds of the console wars. EA already has a special relationship with Gamepass. Taking it to extremes, maybe they'd pull the annual AAA titles (including the big eSports titles) from Steam too.
None of the above should be allowable under antitrust, but the appetite for enforcement against the big digital cash cows is extremely low.
posted by snuffleupagus at 4:41 PM on January 19, 2022
None of the above should be allowable under antitrust, but the appetite for enforcement against the big digital cash cows is extremely low.
posted by snuffleupagus at 4:41 PM on January 19, 2022
No CoD on Playstation ?
My guess is that this will depend on the amount of effort involved in continuing to make the underlying game engine cross-platform. IW 8.0, the engine CoD Vanguard uses, was basically rewritten for 2020 at great cost and expense, and supports the PS5 as a first-class platform. A lot of the hard, expensive work has already been done at this point.Seems likely to me that if the expense of releasing a game on a competing platform is minimal, they'll continue to do so and cash the checks.
But when it comes time to write a brand-new engine in a few years, I could easily see Microsoft deciding not to invest the money to optimize it for a competing platform, particularly if the platforms start to diverge architecturally.
posted by Kadin2048 at 6:05 PM on January 19, 2022 [1 favorite]
My guess is that this will depend on the amount of effort involved in continuing to make the underlying game engine cross-platform. IW 8.0, the engine CoD Vanguard uses, was basically rewritten for 2020 at great cost and expense, and supports the PS5 as a first-class platform. A lot of the hard, expensive work has already been done at this point.Seems likely to me that if the expense of releasing a game on a competing platform is minimal, they'll continue to do so and cash the checks.
But when it comes time to write a brand-new engine in a few years, I could easily see Microsoft deciding not to invest the money to optimize it for a competing platform, particularly if the platforms start to diverge architecturally.
posted by Kadin2048 at 6:05 PM on January 19, 2022 [1 favorite]
IGN: Sony Stock Took a $20 Billion Hit After Xbox's Activision Deal
(and Activision had considered buying out some retailers for reputation management purposes)
posted by snuffleupagus at 7:02 PM on January 19, 2022
(and Activision had considered buying out some retailers for reputation management purposes)
posted by snuffleupagus at 7:02 PM on January 19, 2022
But when it comes time to write a brand-new engine in a few years, I could easily see Microsoft deciding not to invest the money to optimize it for a competing platform, particularly if the platforms start to diverge architecturally.
Company with established technology don't write brand new engines for games anymore. Sure some parts will get upgrades or rewrites (especially renderers back-ends), but starting from scratch (if you have something) is too much work/delay until you have users producing content. So far MS and Sony have been shipping with very similar GPUs & CPUs for the last 2 gen, so a lot of decisions on algorithms/techniques port well from one to the other (very different from the PS3/X360 era). Different APIs but that's not the hard part.
posted by WaterAndPixels at 7:13 PM on January 19, 2022 [1 favorite]
Company with established technology don't write brand new engines for games anymore. Sure some parts will get upgrades or rewrites (especially renderers back-ends), but starting from scratch (if you have something) is too much work/delay until you have users producing content. So far MS and Sony have been shipping with very similar GPUs & CPUs for the last 2 gen, so a lot of decisions on algorithms/techniques port well from one to the other (very different from the PS3/X360 era). Different APIs but that's not the hard part.
posted by WaterAndPixels at 7:13 PM on January 19, 2022 [1 favorite]
Company with established technology don't write brand new engines for games anymore.
Without getting into a lot of semantics about what constitutes a "brand new engine", Activision Blizzard is reported to have basically done exactly that for IW 8.0, via a dedicated team in Poland that just cranked on it for like five years.
I'm not imagining that they'll want to do it again anytime soon, though.
But yes, I agree that the similarities in platform architecture right now bode well for cross-platform games. Ever since the PS4 / Xbox One, it seems like Sony and Microsoft have basically converged on the same basic recipe: multicore x86-64, big pile of SGRAM, commodity storage, optional BluRay.
The major difference seems to be one of business strategy: Microsoft has basically bracketed Sony's price points, undercutting the PS5 Digital Edition by $100 with the Xbox Series S, and offering higher theoretical performance at the $500 price point with the Series X. I don't know if that's going to turn out to be a good move or not; will game devs actually make use of the Series X's hardware advantage if they have to support the lower-spec'd Series S as well? Sony lets you target a single configuration and wring the hell out of it. (At least, until they bring out a PS5 Pro.)
I'll be honest, I kinda miss the days when Sony cranked out a totally new architecture seemingly with each generation. PS2? MIPS, but its own special flavor. (And Rambus.) PS3? Forget all that, now it's IBM Cell. PS4? Screw that, we're all-in on x86-64 now. Really made backwards-compatibility a pain, but kept things interesting.
posted by Kadin2048 at 9:18 PM on January 19, 2022
Without getting into a lot of semantics about what constitutes a "brand new engine", Activision Blizzard is reported to have basically done exactly that for IW 8.0, via a dedicated team in Poland that just cranked on it for like five years.
I'm not imagining that they'll want to do it again anytime soon, though.
But yes, I agree that the similarities in platform architecture right now bode well for cross-platform games. Ever since the PS4 / Xbox One, it seems like Sony and Microsoft have basically converged on the same basic recipe: multicore x86-64, big pile of SGRAM, commodity storage, optional BluRay.
The major difference seems to be one of business strategy: Microsoft has basically bracketed Sony's price points, undercutting the PS5 Digital Edition by $100 with the Xbox Series S, and offering higher theoretical performance at the $500 price point with the Series X. I don't know if that's going to turn out to be a good move or not; will game devs actually make use of the Series X's hardware advantage if they have to support the lower-spec'd Series S as well? Sony lets you target a single configuration and wring the hell out of it. (At least, until they bring out a PS5 Pro.)
I'll be honest, I kinda miss the days when Sony cranked out a totally new architecture seemingly with each generation. PS2? MIPS, but its own special flavor. (And Rambus.) PS3? Forget all that, now it's IBM Cell. PS4? Screw that, we're all-in on x86-64 now. Really made backwards-compatibility a pain, but kept things interesting.
posted by Kadin2048 at 9:18 PM on January 19, 2022
The only thing that Sony is pissing me off about right now is making some games that are dual PS4/PS5 releases separate SKUs. Lots of games they've shipped lately are buy once, play on whatever machine you have. But HFW and Elden Ring are separate drops. Maddening. I hope this gives Sony a little push to fix that. I can't even buy a PS5 in the shops 14 months after it's "release." Assholes.
posted by seanmpuckett at 5:28 AM on January 20, 2022
posted by seanmpuckett at 5:28 AM on January 20, 2022
bill gates is buying my friends again
posted by inpHilltr8r at 9:52 PM on January 29, 2022
posted by inpHilltr8r at 9:52 PM on January 29, 2022
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