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.
Microsoft CEO of Gaming, Phil Spencer, states that there is "huge demand" for the new Starfield video game, which is expected to be accessible to hundreds of millions of players across various devices.
Xbox Game Pass Core, the successor to Games with Gold, will be launched on September 14th and will offer 36 titles, including popular games like Gears 5, Fallout 4, and Halo 5.
Xbox's Phil Spencer considered Nintendo as a potential acquisition, stating that it would be a good move for both companies, although he acknowledged the difficulty in securing Nintendo and the unlikelihood of a hostile takeover.
Microsoft Gaming chief Phil Spencer considered acquiring Nintendo a "career moment" and believed it was Microsoft's best bet for consumer relevance in gaming, however, previous attempts to acquire Nintendo were met with laughter and resistance.
Microsoft has announced that five new games, including Gotham Knights and Payday 3, will be coming to Xbox Game Pass and PC Game Pass in the next two weeks, while also confirming that eight games, such as Outriders and Weird West, will be leaving soon.
Xbox boss Phil Spencer expressed optimism about Xbox's superior hardware, software, and services compared to PlayStation 5 in leaked emails from 2020, despite Xbox's historical struggle in console sales.
Xbox chief Phil Spencer acknowledges the Xbox leak and assures Microsoft employees that the leaked documents are outdated and plans have evolved, promising to share the "real plans" when they are ready.
The leaked Xbox documents reveal that Microsoft may pay upwards of $300 million to secure games for Game Pass, shedding light on the significant financial impact of subscription services in the gaming industry.
Microsoft executives were initially not enthusiastic about bringing Baldur's Gate 3 to Xbox Game Pass, referring to it as a "second-run Stadia PC RPG," according to leaked emails.
Microsoft's court document leak revealed plans for new consoles, a new controller, and a list of game projects, with Xbox chief Phil Spencer stating that Nintendo could be Microsoft's best bet for consumer relevance in gaming.
### Summary
The leaked Xbox emails reveal interesting insights, such as Xbox's interest in acquiring Nintendo and Valve, Phil Spencer's nerdy and approachable management style, and the misclassification of Baldur's Gate 3 as a "second-run Stadia PC RPG" in internal Game Pass projections.
Microsoft's leaked documents reveal discussions of the company considering acquisitions of Nintendo, Valve, and Warner Bros. Games, as well as potential remasters of Bethesda's Oblivion and Fallout 3, and the majority of Xbox gamers using the lower-powered Series S console.
Xbox CEO Phil Spencer argues that major AAA game publishers have been slow to adapt to the growth of game subscription services, relying on production scale and existing franchises rather than investing in new IPs.
Microsoft underestimated the success of Baldur's Gate 3 on its Game Pass subscription service, but developer Larian Studios is understanding of the situation, stating that it "comes with the genre."
Microsoft is one step closer to acquiring Activision Blizzard after UK regulators accepted their concessions on cloud gaming, a move that is seen as a brilliant strategy similar to Netflix's business model by industry experts.
Microsoft's Phil Spencer warns of the risks faced by AAA game publishers relying on old IPs rather than taking risks with new ones, citing the success of independent studios like Fortnite and Minecraft as a challenge for the industry moving forward.
Console strategy gaming has seen a surge in popularity and success, marked by the release of games like Halo Wars and the porting of PC classics such as Age of Empires 2 to Xbox platforms, as hardware advancements and a shared understanding of controller use make strategy games more accessible to console players.
Xbox boss Phil Spencer confirms that more Microsoft-published games from Japanese developers can be expected in the future, including potential JRPG projects, while also mentioning the progress of the highly-anticipated game from Hideo Kojima.
Buying Halo 3 and an Xbox 360 changed the trajectory of the writer's life, leading to a career in gaming journalism and a passion for video games.
Microsoft has announced new titles coming to Xbox Game Pass in early to mid-October, including Forza Motorsport, Warhammer 40,000: Darktide, and From Space, while several games such as Eville and The Legend of Tianding will be leaving the service.
Activision Blizzard expects their games to be available on Microsoft's Game Pass next year once the Microsoft deal is finalized.
Activision Blizzard has announced that it will begin adding games to Xbox Game Pass next year once its deal with Microsoft is finalized, although popular titles like Modern Warfare III and Diablo IV will not be included in 2023.
Xbox Game Pass is adding new games like Like A Dragon: Ishin!, F1 Manager 2023, Cities: Skylines 2, Dead Space, Mineko's Night Market, Frog Detective: The Entire Mystery, Headbangers: Rhythm Royale, and Jusant, while Gunfire Reborn, Kill It With Fire, Persona 5 Royal, Signalis, and Solasta Crown of the Magister will be leaving the service.
Xbox chief Phil Spencer confirms that Activision Blizzard games will not be coming to Xbox Game Pass until 2024 due to regulatory processes and integration work.
Xbox fans will have to wait until 2024 for any Activision Blizzard King (ABK) games to appear on Xbox Game Pass, as Microsoft needs time to work on integrating ABK games following the recent acquisition.
Xbox Game Pass announces a lineup of new games for the second half of October, including Dead Space and Cities: Skylines 2, while also revealing the departure of Persona 5 Royale and other titles at the end of the month.
In November, Xbox Game Pass will be adding seven new games, including Thirsty Suitors, Football Manager 2024, Roboquest, Like a Dragon Gaiden: The Man Who Erased His Name, Dungeons 4, Coral Island, and Persona 5 Tactica.
Microsoft's acquisition of Activision Blizzard positions the company as a major player in the mobile gaming market, provides opportunities for revenue via mobile game advertising, and strengthens its Xbox Game Pass and Xbox Cloud Gaming services.
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.
