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.
Main topic: Nintendo's next-generation gaming console and its tech demos showcased at Gamescom.
Key points:
1. Nintendo showcased tech demos of its next-gen system at Gamescom, including a beefed-up version of The Legend of Zelda: Breath of the Wild.
2. The tech demos featured NVIDIA's DLSS upscaling tech, ray-tracing, and visuals comparable to those on the PS5 and Xbox Series X.
3. Nintendo is expected to release its next console in 2024, and there is speculation about what its unique feature or trick will be.
Nintendo is reportedly showcasing tech demos of its next-gen system, the Switch 2, at Gamescom, including a beefed-up version of The Legend of Zelda: Breath of the Wild and The Matrix Awakens, featuring NVIDIA's DLSS upscaling tech, ray-tracing, and visuals comparable to the PS5 and Xbox Series X.
Nintendo has discussed the successor to its Nintendo Switch console with Activision-Blizzard executives, aiming to attract third-party titles and upgrade technical capabilities to match PlayStation and Xbox.
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 is reportedly planning a mid-generation refresh of the Xbox Series X with a new disc-less cylindrical design, leaked documents reveal, along with the existence of a new controller and refreshed Xbox Series S, potentially damaging Xbox's gaming business.
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.
Xbox boss Phil Spencer expressed interest in acquiring Nintendo in an email accidentally made public as part of the Microsoft versus Federal Trade Commission trial, but acknowledged the challenges of such a merger due to Nintendo's current position and reluctance to sell.
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.
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.
Microsoft has announced new titles coming to Xbox Game Pass from late September to early October, including Party Animals, Gotham Knights, PAYDAY 3, and more.
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's leaked plans for an all-digital Xbox refresh in 2024 have sparked concerns about game preservation and the disappearance of physical game discs.
### 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.
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.
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.
Microsoft is one step closer to acquiring game publisher Activision Blizzard, which would make Microsoft one of the top three video game publishers in the world.
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.
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.
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.
Gaming consoles offer better optimization, lower upfront costs, lower recurring costs, exclusive titles, no need for upgrades, uninterrupted gaming experience, plug-and-play convenience, and simplicity, making them a compelling choice over gaming PCs for many gamers.