Saturday, January 14All That Matters

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48 Comments

  • sophisticaden_

    Makes more sense to buy up studios that already exist, especially when those studios are some of the best/some of the largest. You:

    – Don’t have to worry about creating brand identity/building a fan base

    – Don’t have to worry about initial talent acquisition

    – Don’t have to worry about building prestige to attract top-tier talent

    – Don’t have to worry about creating and adjusting to new dev pipelines

    – Get to benefit from existing IPs that are already beloved and successful, rather than trying to break in.

  • Practical_Gas8750

    Yes because starting a game development studio is anywhere near the amount of work of just acquiring an already-profitable, preexisting studio

  • Raeandray

    Hard disagree, only because actiblizz has turned to shit and I hope Microsoft turns them around.

    At minimum its not like it can get worse.

  • Laspheryys

    Probably because they don’t want to end up like Meta with their Metaverse or whatever the fuck is it called,it’s not fun when you spend billions and you get 30 ish active users

  • J11ghtman

    Sony has been buying studios and publishers since 1996. The concept of “home grown” studios is 100% corporate marketing. There is one difference here: Microsoft is doing it faster, and they’re finally acquiring games Sony players want. Believe it or not, “they’re making me want an Xbox for the games on Xbox” is not anti-competitive any more than it was when Sony bought Insomniac to make Spider-Man right after Insomniac made Sunset Overdrive—an Xbox exclusive.

  • PalpitationNo4375

    Sony invested money in the studios they braught and now we have Uncharted, TLoU, Spiderman, Returnal etc

    Purchasing other studios is investing in themselves. It’s not just IP they get, they get a lot of talent and tech with that IP to make existing services better. The obvious one being gamespass.

    If Microsoft held onto Bungie we might have some half decent Halo games.

    Is purchasing studios the answer? No not really but it’s not inheritly a bad thing, especially when you consider the success of a major rival. Sure they do it a little different and work with a smaller studio and then buy them out, but it’s clearly worked well

  • KayJune001

    Yeah Microsoft of this gen is honestly faceless and non-creative compared to 360. They’ve failed so terribly at making their own, decent, original games during the Xbox One that they’ve got to resort to purchasing other already-successful studios and franchises. Quite sad, actually.

  • MrMunday

    Money doesn’t work like that. The talents are held up at activision blizzard. The IPs are also quite important.

    People don’t make AAA games, TEAMS make AAA games

  • Objectivism101

    Microsoft probably would’ve invested that $70 billion into their own studios if Sony wasn’t investing their own money into blocking games from coming to GamePass

    Sony forced Microsoft to money-hat even harder

  • tigojones

    Yeah, they didn’t spend that much for the studio/staff, you do realize that, right?

    They spent that much for Warcraft, COD, Overwatch, etc.

  • offensiveniglet

    Activision is a cash flow machine. They have an extensive history of growth on all fronts of the business especially over the last 5 years via King in the mobile space. They also have all the IP and engines built for their games. You could throw 70 billion dollars into trying to found a new studio and try and make it profitable. That didn’t work out well for Disney. It’s a huge unknown whether starting a new business will ever be cash flow positive or more importantly how long it will take to realize a return. Instead you have the option to scoop up an incredible business at a fair price, realizing that cash flow immediately. It’s almost a no brainer to acquire in these situations. Not to mention its not easy to spend 70 billion dollars, that cash is a drag on company performance if it’s not being utilized, fastest way to use it effectively is purchasing a cash flow positive business.

  • Asuka-02-

    The thing is though, here is the Microsoft videogame strategy – buy up all of the legendary studios who are prolific about regularly producing a large number of quality titles. Then…….that’s it actually. Just buy them, keep them afloat with just enough budget to spend 5-10 years making one bornerline throwaway title….and yeah……that’s it.

    The idea isn’t that they regularly are producing games for XBox or PC now, the idea is that they *AREN’T* making games for Playstation and Nintendo systems.

    Bonus fun points: Microsoft has literally admitted to this strategy before in other realms, and in fact became infamous for it during the 90’s and early 2000’s in the general software, UI, and OS realms. They would just buy up companies that they considered in any way a vague threat to their empire, then either just shut them down or wittle them away until they were useless and ineffective. The idea wasn’t that they produced for Microsoft, it was that they weren’t producing for anyone else.

    If it were up to Microsoft they would buy up the entire industry and then just shut it down so it wasn’t distracting anyone from buying Microsoft Office 365. They are a vile, toxic company. Always have been. And no, I am not an Apple fan, nor a Google fan, nor an *insert shitty multinational with a storied history of stiffling technology and creativity* fan.

    Microsoft has spent the past ten years just trying to move all of the control panel features over to the new “settings” menu and after somehow failing to do so they just kinda said fuck it and gave up. Now Windows settings are spread about a mishmash of interfaces and locations in the most lazy, pain in the ass way possible. You think this company has the cohesive drive to envision a game and see it to completion? Nah.

  • AangAndTheFireLord

    Competing takes hard work and good ideas. Buying your competitors requires little work, and your ideas no longer matter because the consumer has no other choice.

  • Verdeiwsp

    People forgetting two main reasons:
    1) they’re in a better position to enter the mobile market with King
    2) with Gamepass, the acquisition will allow them to easily dump 20 games on there, making it a very appealing subscription service.

    Investing in their own studios to accomplish those two goals two goals will take easily decades or more, whereas they can just obtain in ASAP

  • JerrodDRagon

    Look at Halo

    Microsoft basically took one of the biggest IPs ever and let it die slowly over years for zero reasons

    Focus on what you have

  • knowitallz

    Amazon and Google tried to do this and failed miserably. Building gaming companies is way harder than it seems..

    Its a craft and culture that is hard to build so you just buy it instead

  • DanLim79

    No. It’s always better to acquire something that has been established and proven to work rather than building something from ground up.

  • FReeDuMB_or_DEATH

    They suck at that. They can barely manage successful IPs when they get full control (I’m looking at you Halo and Gears)

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