This article discusses the history of competition and control in the video game industry, focusing on the role of 3rd-party developers and the strategies of major console manufacturers. It also examines the recent acquisition of Activision by Microsoft and the concerns raised by the Federal Trade Commission (FTC). The article argues that Microsoft's acquisition is a response to Sony's dominance in the market and a bet on a new business model that offers consumers a better deal. The author questions the FTC's concerns and suggests that the real threat to the industry is the dominance of storefronts that extract high fees without contributing to development.
The main topic is the history of competition and business models in the video game industry.
1. The industry has seen a shift from vertical integration to modularization, with the first video game console being the Magnavox Odyssey.
2. Atari's 2600 introduced the concept of self-contained game cartridges, allowing players to use the same system for different games.
3. Activision's emergence as a third-party developer marked a major restructuring of the industry, leading to a flood of poor quality games and the video game crash of 1983.
4. Sony's PlayStation and Nintendo's Famicom/NES implemented strict control over third-party developers, with Sony later pivoting to focus on exclusives.
5. Microsoft's acquisition of Activision raises concerns about competition, but it is actually a move to build a new business model based on subscription services, which challenges Sony's exclusive strategy.
Nvidia's stock jumps after a recent slump, Microsoft submits a new deal to appease U.K. antitrust regulators regarding Activision Blizzard, and Palo Alto Networks stands out in the cybersecurity industry with its strong financials.
Microsoft has submitted a new proposal for its acquisition of Activision Blizzard, Zoom's shares rose after beating earnings projections, Kenvue will replace Advance Auto Parts on the S&P 500, Lowe's delivered an earnings beat fueled by strong spring sales, and existing home sales for July are expected to decline.
Microsoft will allow European business customers to purchase its video and chat app, Teams, separately from its Office software, following an antitrust investigation by the European Union.
Microsoft is experiencing a surge in demand for its AI products in Hong Kong, where it is the leading player due to the absence of competitors OpenAI and Google. The company has witnessed a sevenfold increase in AI usage on its Azure cloud platform in the past six months and is focusing on leveraging AI to improve education, healthcare, and fintech in the city. Microsoft has also partnered with Hong Kong universities to offer AI workshops and is targeting the enterprise market with its generative AI products. Fintech companies, in particular, are utilizing Microsoft's AI technology for regulatory compliance. Despite cybersecurity concerns stemming from China, Microsoft's position in the Hong Kong market remains strong with increasing demand for its AI offerings.
Microsoft's leaked presentation reveals their vision to create a next-generation hybrid game platform that combines the power of cloud gaming and physical hardware for deeper immersion and new game experiences.
Microsoft executives forecasted growth in gaming revenue driven by advertising and mobile purchases, as revealed in a mistakenly published court document related to their battle against the Federal Trade Commission over the Activision Blizzard acquisition. They projected gaming revenue to double to $36 billion in fiscal 2030, with advertising revenue expected to rise to $1.4 billion and mobile transactions revenue estimated to reach $2.6 billion by that year.
The UK's Competition and Markets Authority is expected to share its preliminary judgement on Microsoft's revised Activision Blizzard deal next week, with the final decision expected on October 18th.
Main topic: Microsoft's acquisition of Activision Blizzard
Key points:
1. The UK's Competition and Markets Authority (CMA) has stated that Microsoft's revised agreement addresses previous concerns and clears the way for the deal to be approved.
2. The sale of Activision's cloud streaming rights to Ubisoft is a significant change that prevents Microsoft from gaining control of important content in cloud gaming.
3. The CMA still wants assurances that the provisions in the sale of cloud streaming rights cannot be circumvented, terminated, or not enforced, but believes Microsoft's offered remedies should resolve any remaining concerns.
Microsoft is nearing final approval for its acquisition of Activision Blizzard in the UK, with the Competition and Markets Authority (CMA) completing the first phase of reviewing a revised proposal that grants Activision's cloud gaming rights to Ubisoft.
Microsoft Gaming CEO Phil Spencer's analysis of the challenges faced by AAA video game publishers in the age of subscription platforms like Xbox Game Pass highlights the declining dominance of big publishers, their dependency on established franchises, and the need for new paradigms in the industry.
Microsoft's $69 billion acquisition of Activision Blizzard has been provisionally approved by the UK's Competition and Markets Authority, with the deal now including carve-outs for cloud gaming rights to address monopoly concerns.
Microsoft's proposed acquisition of Activision moves closer to completion as the UK's Competition and Markets Authority grants provisional approval to the modified deal, signaling that the final regulatory hurdle may soon be cleared.
Microsoft had a busy week with major news, including the Xbox Series X refresh leak, Panos Panay's departure from the company, a disappointing Surface and AI event, the leak of documents revealing plans for a new Xbox console and game library, and the provisional approval of Microsoft's purchase of Activision Blizzard by the UK Competition and Markets Agency. Additionally, Intel unveiled its Meteor Lake CPUs, and Windows Central provided reviews and deals for Windows and Xbox enthusiasts.
The Federal Trade Commission (FTC) plans to proceed with its case against Microsoft's acquisition of Activision Blizzard, but without a preliminary injunction, Microsoft can still close the deal before the October 18 deadline.
Microsoft is set to announce the finalization of its $68.7 billion acquisition of Activision Blizzard next week, pending approval from the UK's Competition and Markets Authority, after overcoming regulatory battles in Europe and the US.
Microsoft is expected to complete its $69 billion buyout of Activision Blizzard next week, pending final approval from the UK, allowing for the potential integration of Activision Blizzard games onto the Xbox Game Pass platform.
Microsoft's $68.7 billion deal to acquire Activision Blizzard is set to close on Friday, October 13, after facing lawsuits, leaks, and controversy.
Microsoft is set to complete its $69 billion acquisition of Activision Blizzard next week pending approval from UK regulator, the CMA.
Microsoft's acquisition of Activision Blizzard may be nearing completion, with a possible closing date of next week, if the UK's Competition and Markets Authority does not impede the deal.
Microsoft is nearing a deal to acquire Activision Blizzard, and Activision's president believes that the acquisition will improve the "Call of Duty" franchise.
Activision Blizzard expects their games to be available on Microsoft's Game Pass next year once the Microsoft deal is finalized.
Microsoft is making strides in artificial intelligence and gaming, with plans to unveil its own AI chip and finalize the $69 billion acquisition of Activision Blizzard, solidifying its position as a global technology leader.
Microsoft's planned acquisition of Activision-Blizzard-King for $72 billion is expected to close soon pending final UK approval, with Activision CEO Bobby Kotick hinting at the revival of franchises like Guitar Hero and discussing future tech like machine learning and AI.
Microsoft is expected to avoid a fresh investigation from the EU into its $69 billion purchase of Activision Blizzard, as the changes to the deal do not need to go through the approvals process again.
UK antitrust officials have approved Microsoft's planned takeover of Activision Blizzard, clearing the final regulatory hurdle and allowing one of the biggest tech deals of all time to proceed.
Microsoft's $69 billion acquisition of Activision Blizzard has been cleared by UK regulators after the company agreed to sell streaming rights, allowing it to compete with Sony in the video-gaming market.
Microsoft has completed its $68.7 billion acquisition of Activision Blizzard, making it the company's largest acquisition ever and positioning Microsoft as the third-largest gaming company by revenue.
Microsoft has finalized its acquisition of Activision Blizzard for $68.7 billion, with Xbox chief Phil Spencer welcoming Activision Blizzard King employees in an internal memo and expressing excitement about the prospects of the unified team.
Microsoft is making big moves in the AI industry, with plans to release more extensive AI products, including AI-enhanced versions of popular tools like Word and Excel, and rolling out its own AI chip to compete with Nvidia. The company's aggressive AI push has the potential to drive its growth and establish it as a leader in the industry.
Microsoft has released an emotional trailer to celebrate its acquisition of Activision Blizzard, showcasing the wealth of games Xbox now owns and welcoming the new franchises into the Xbox family.
Microsoft completed its $69 billion acquisition of Activision Blizzard, boosting its Xbox gaming console and multi-game subscription service, despite facing opposition from the U.S. Federal Trade Commission.
The Microsoft deal to acquire Activision Blizzard may have more potential for the future of cryptocurrency than the metaverse, despite initial emphasis on the metaverse in Microsoft's announcement, as leaked documents suggest plans to integrate crypto wallets into Xbox.
Microsoft's recent acquisition of Activision Blizzard has given them ownership of a vast catalogue of classic games and IPs, including popular titles like Call of Duty, Crash Bandicoot, Diablo, Overwatch, Spyro, and Warcraft.
Microsoft completes its merger with Activision Blizzard, which is its largest deal to date, but faces a $28.9 billion back-tax claim by the IRS; Arm Holdings earns positive ratings from analysts following its IPO; Netflix receives a downgrade from Wolfe Research due to concerns about future growth.
Microsoft completes its merger with Activision Blizzard, the largest deal in its history, while owing billions in back taxes, Arm Holdings earns top ratings from analysts following its IPO, and Netflix receives a downgrade in rating from Wolfe Research.
Microsoft's acquisition of Activision-Blizzard is complete, shifting the focus to discussing potential game updates and new IPs coming to Xbox Series X|S.
Microsoft has completed its $68.7 billion acquisition of Activision Blizzard King, making it the company's largest acquisition ever and leading to speculation on how the gaming giant will handle its newfound intellectual properties.
Microsoft's Xbox boss Phil Spencer has expressed caution about the immediate impact of the company's acquisition of Activision Blizzard, but is open to exploring new game ideas and potentially bringing back titles like Guitar Hero and Tony Hawk.