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 is poised to become the leading operating system for AI, as it takes advantage of the expanding AI market and leverages its existing ecosystem and user base, according to Oppenheimer analyst Timothy Horan.
Microsoft is reportedly planning to release a "hybrid game platform" in 2028 that combines local hardware and cloud computing to deliver a more immersive gaming experience.
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.
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.
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.
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.
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.
Capcom's president, Haruhiro Tsujimoto, stated that while the company aims to sell 100 million copies of their games, they will maintain a central focus on PC and reject any acquisition deal from Microsoft.
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'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 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.
