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Microsoft Studios |OT3| I thought they were supposed to be sold off by now

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Dec 22, 2018
1,047
A fraction of a percent of what EA costs.

I’d be very curious to see your math here.

Also, let’s stop saying $25 billion. If it was only $25 billion, that would be a better deal.
Retaining the licences would be key. EA are not worth the acquisition price without them.

Fifa, Madden, SW generate billions each year.

And as I said, keeping all established IP multiplatform means MS as they do with Minecraft receive the profit that's generated.
 
Oct 24, 2018
136
I forget, but isn't Certain Affinity currently working on a Transformers game???
I'm not sure if they have exclusive game rights for the IP currently or if they're going the way of Marvel and allowing multiple devs.
Certain Affinity is working on a Transformers game for their investor Leyou Technologies. When Leyou announced that they got a license to the franchise, they didn't mention anything about exclusivity (see http://www.files.services/files/359/2017/0803/20170803191501_86497041_en.pdf).
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
What studios could MS buy for the price of EA?
All of them.
Many, I would buy many Publishers.
It makes no sense to buy EA, to make much better purchases for a lower price.
Again, publishers buying publishers would be bad for the industry and the people working in it. I don’t know why some seem excited about such an idea.
 
May 12, 2018
181
All of them.

Again, publishers buying publishers would be bad for the industry and the people working in it. I don’t know why some seem excited about such an idea.
Sorry the translator betrayed me. I wrote wrong. I meant that Microsoft could buy multiple publishers with the money from an EA purchase. As I said the other day, I just think it would be worth Sega or Take Two for the rest I find a waste of money.
Buying studios is a much better bet.
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
Retaining the licences would be key. EA are not worth the acquisition price without them.

Fifa, Madden, SW generate billions each year.

And as I said, keeping all established IP multiplatform means MS as they do with Minecraft receive the profit that's generated.
I still think you don’t get the actual money involved here. It would take decades (if ever) for MS to recoup their investment based on EA’s current profits.
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
Sorry the translator betrayed me. I wrote wrong. I meant that Microsoft could buy multiple publishers with the money from an EA purchase. As I said the other day, I just think it would be worth Sega or Take Two for the rest I find a waste of money.
Buying studios is a much better bet.
It rarely ever makes sense for publishers to buy publishers, and again, the human cost of such a transaction would be awful.
 
Oct 27, 2017
7,990
Microsoft buying EA is almost certainly not going to happen. The amounts of money involved are ludicrous. A lot of folks don't realise just how huge EA are. And it's not like EA need the money. What is more plausible, though, is Microsoft cutting some deals with EA in order to exclusively license some of the valuable properties EA holds.
 
Dec 27, 2018
77
I still think you don’t get the actual money involved here. It would take decades (if ever) for MS to recoup their investment based on EA’s current profits.
Yea I guess I didn’t realize how much EA was worth. It wouldn’t make sense financially to buy them. adding Madden FIFA ect would be a huge deal for game pass but I would rather money being pumped into smaller teams with a lot of talent.
 
Dec 9, 2018
120
Sorry the translator betrayed me. I wrote wrong. I meant that Microsoft could buy multiple publishers with the money from an EA purchase. As I said the other day, I just think it would be worth Sega or Take Two for the rest I find a waste of money.
Buying studios is a much better bet.
Take Two no, we would give a game lock image. I prefer Bungie than Rockstar or CDPR for the same.
 
Dec 27, 2018
77
It rarely ever makes sense for publishers to buy publishers, and again, the human cost of such a transaction would be awful.
This would absolutely happen as their a lot of positions and teams that ms don’t have a use for. Off the top of my head would they really want Ghost games when they have turn 10 and playground.
 
Dec 22, 2018
1,047
I still think you don’t get the actual money involved here. It would take decades (if ever) for MS to recoup their investment based on EA’s current profits.
They'd get access to markets, ecosystems, install bases they can never get to with Xbox.

But they could if they acquired EA and if they retained the licences. EA are in possession of IP and the aforementioned licences that sell in every install base, in every country where MS could only dream of getting.

I think it would be worth any cost to them if it means MS getting more access to users
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
They'd get access to markets, ecosystems, install bases they can never get to with Xbox.

But they could if they acquired EA and if they retained the licences. EA are in possession of IP and the aforementioned licences that sell in every install base, in every country where MS could only dream of getting.

I think it would be worth any cost to them if it means more MS getting more access to users
Well no, that’s a pretty outlandish statement. Users have a pretty clear return on investment, and that return is not unlimited.

And if EAs games were to remain multi platform, I’m not sure where this new access for MS comes from?
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
Take Two no, we would give a game lock image. I prefer Bungie than Rockstar or CDPR for the same.
Those three companies would cost very different amounts.
This would absolutely happen as their a lot of positions and teams that ms don’t have a use for. Off the top of my head would they really want Ghost games when they have turn 10 and playground.
Not just that, there would be thousands of people out of a job, both developers and all the non developers that work at EA.
 
Dec 12, 2018
528
I can't imagine Microsoft ever acquiring a publisher like EA or Sega, not only is it expensive, it'd duplicate so much administration and honestly integration would probably be hell. All the management and PR and legal departments merging with such different cultures and hierarchies, it'd be chaos that probably wouldn't be worth it.

But what I do see happening is Microsoft spending a lot of money, possibly a studios worth, to make exclusive deals with publishers like EA or Ubisoft to create either new IP or games off of dormant licenses. Imagine Ubisoft being to sole maker of Blinx the Time Sweeper games. Think about it.

In all seriousness, I see some partnerships that go beyond what we're used to with exclusive content or betas or whatever. Maybe tapping publishers to create full on new flagship IP series for platforms.

I also definitely can see Microsoft partnering with Chinese companies to potentially distribute Chinese games outside of China as Xbox exclusives (or timed exclusives), like how Netflix distributes BBC and TV Tokyo shows as 'Netflix Originals'
 
Dec 22, 2018
1,047
Well no, that’s a pretty outlandish statement. Users have a pretty clear return on investment, and that return is not unlimited.


And if EAs games were to remain multi platform, I’m not sure where this new access for MS comes from?
Fifa or Battlefield sell millions on Steam,PS.

MS acquire EA, keep both IP on those platforms and as they do with Minecraft, it's MS who see the returns
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
Fifa or Battlefield sell millions on Steam,PS.

MS acquire EA, keep both IP on those platforms and as they do with Minecraft, it's MS who see the returns
But, as I keep trying to explain, EA doesn’t make nearly enough money for MS to get a return on their investment in the situation you described. It’s not even close.

You seem unwilling to actually engage with the real numbers here.
 
Oct 25, 2017
1,996
Those three companies would cost very different amounts.

Not just that, there would be thousands of people out of a job, both developers and all the non developers that work at EA.
Always appreciate you coming in and providing some insight.

Any ideas on who MS might be eyeing next? Or rather, any ideas on good pick-ups for MS?

Not necessarily asking for insider information, just your thoughts on good fits for MS at this point.

I think we're thinking TOO highly with stuff like RAD, Certain Affinity, Turtle Rock, etc. and should be looking at start-ups with veteran leaders (Typhoon, for example, Alex Hutchinson's studio).
 
May 12, 2018
181
It rarely ever makes sense for publishers to buy publishers, and again, the human cost of such a transaction would be awful.
Sega would make sense for Microsoft to conquer territory in Asia. I think it's the only way to do that. But we should have no worries, I doubt that any movement is taking place to buy Publishers.
 
Dec 22, 2018
1,047
But, as I keep trying to explain, EA doesn’t make nearly enough money for MS to get a return on their investment in the situation you described. It’s not even close.

You seem unwilling to actually engage with the real numbers here.
But, as I keep trying to explain, EA doesn’t make nearly enough money for MS to get a return on their investment in the situation you described. It’s not even close.

You seem unwilling to actually engage with the real numbers here.
I can't seem to find any real numbers in this conversation.

And I find it hard to believe MS getting the Fifa, SW and Madden licences would not over time generate the revenue required to make the take over worthwhile.

All 3 are billion dollar franchises, Anthem and BF have huge potential as well.

Edit. MS as well would be coming into ownership of world class developers
 

Sexyphobe

Banned
Member
Aug 14, 2018
828
But, as I keep trying to explain, EA doesn’t make nearly enough money for MS to get a return on their investment in the situation you described. It’s not even close.

You seem unwilling to actually engage with the real numbers here.
To be fair, you're not giving numbers for perspective.
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
I can't seem to find any real numbers in this conversation.

And I find it hard to believe MS getting the Fifa, SW and Madden licences would not over time generate the revenue required to make the take over worthwhile.

All 3 are billion dollar franchises, Anthem and BF have huge potential as well.

Edit. MS as well would be coming into ownership of world class developers
EA had a net income of $1 billion for FY18. That kinda says it all right there.
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
Sega would make sense for Microsoft to conquer territory in Asia. I think it's the only way to do that. But we should have no worries, I doubt that any movement is taking place to buy Publishers.
Sega really doesn’t have the ability to help anyone conquer anything.
 
Nov 2, 2017
1,942
Denver, CO
Well bungie is probably going to push out a new IP soon. But idk ... d2 had me for a while but the end game lost me quite quick which did not temp me to buy the expansions. of course im probably in the minority but i look more forward to a new IP than destiny 3 tbh.
 

Oluasc

Be more dog!
Member
Oct 25, 2017
1,317
...
I can't imagine Microsoft ever acquiring a publisher like EA or Sega, not only is it expensive, it'd duplicate so much administration and honestly integration would probably be hell. All the management and PR and legal departments merging with such different cultures and hierarchies, it'd be chaos that probably wouldn't be worth it.

But what I do see happening is Microsoft spending a lot of money, possibly a studios worth, to make exclusive deals with publishers like EA or Ubisoft to create either new IP or games off of dormant licenses. Imagine Ubisoft being to sole maker of Blinx the Time Sweeper games. Think about it.

In all seriousness, I see some partnerships that go beyond what we're used to with exclusive content or betas or whatever. Maybe tapping publishers to create full on new flagship IP series for platforms.

I also definitely can see Microsoft partnering with Chinese companies to potentially distribute Chinese games outside of China as Xbox exclusives (or timed exclusives), like how Netflix distributes BBC and TV Tokyo shows as 'Netflix Originals'
Asian Publisher make sense for Microsoft... XGP, xCloud, etc.
 
Jan 3, 2018
98
Fargo, ND
I don't like the idea of MS buying a publisher.... if we're even going anywhere close to that route, I'd rather they purchased studios off of publishers if it makes sense.
I'm still rooting for independent developers like Moon, Tripwire, 4A, Supergiant, etc. who can really bring some strong diversity to the portfolio, but also only if those devs feel its in their best interest.
I also really want MS to invest like crazy in Asian territories. That's a market that they should be getting into and make some big plays in.
 
Jun 5, 2018
22
Pretty sure Phil Spencer already said... Look at the acquisitions we've done and that's the strategy going forward. They aren't looking for big, gigantic publishers like EA, Square probably even mid-range publishers like Sega etc... They are looking for small to mid-range studios that impress them with their work and shows a great deal of promise with the right funding or increase in manning... It'd be nice to not have 15 pages talk about buying EA, Square, Sega and Take two... I also doubt MS buys any studio with the desire for that studio to keep making multi-plat games... They are for Xbox/Win 10 exclusives and to push Game-Pass and Xcloud (when released). Minecraft was a completely different scenario.
 
Oct 28, 2018
781
Do we still suspect they will acquire a publisher? Most of their acquisitions, while promising, have been sort of small fries.
If MS was to buy a publisher, the best one would be Take Two. Rockstar would have to release one game before the acquisition paid for itself. Pipe dream, but it's fun to play what if.
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
If MS was to buy a publisher, the best one would be Take Two. Rockstar would have to release one game before the acquisition paid for itself. Pipe dream, but it's fun to play what if.
I think maybe I need to do a deep dive into the actual money side of the games business, as statements like this are just bananas.
 
Oct 28, 2018
781
It depends if they came into possession of the licences EA own.

Fifa, Madden, SW, all kept multi platform but on XGP day one would make MS a lot in terms of subs and revenue
I don't know that EA can sell the licenses to the NFL, FIFA and Star Wars. I'd imagine in the event of a buyout or merger, the license would revert back to the owner and they'd sell it off to the highest bidder.
 

Matt

The terror that flaps in the night
Moderator
Oct 24, 2017
1,731
I majored in finance, it's hyperbole and I know it. But Rockstar would be a huge get, and the mindshare that would be gained is almost priceless.
I mean, the other problem with buying a publisher is you destroy a ton of their value by making them exclusive. GTA would not be GTA if it was only on Xbox.

And if you don’t make them exclusive, what was the point of buying them?
 
Oct 28, 2018
781
I mean, the other problem with buying a publisher is you destroy a ton of their value by making them exclusive. GTA would not be GTA if it was only on Xbox.

And if you don’t make them exclusive, what was the point of buying them?
While an exclusive will never sell as well as a multiplat, I still think GTA has the clout to sell a lot of consoles. And it'd immediately be the biggest franchise Microsoft (in this hypothetical scenario) has.
 

Rami Seb

Banned
Member
Sep 28, 2018
801
or Sega, not only is it expensive
I don't think Sega would be anywhere near as expensive as EA but honestly it'd be better just to get Persona and Yakuza on Xbox since that's all there really missing from Sega

But what I do see happening is Microsoft spending a lot of money, possibly a studios worth, to make exclusive deals with publishers like EA or Ubisoft to create either new IP or games off of dormant licenses.
Hope not, don't want to see them fund anything they don't own, if they have a third party dev make a game they need to own an IP.

Ryse, Sunset Overdrive, Dead Rising, Titanfall were all waste IMO

I think we're thinking TOO highly with stuff like RAD, Certain Affinity, Turtle Rock, etc. and should be looking at start-ups with veteran leaders (Typhoon, for example, Alex Hutchinson's studio).
Certain Affinity and Turtle Rock seem to fit the profile perfectly. Has Typhoon actually made anything else because their new game seems pretty lame
 

Rami Seb

Banned
Member
Sep 28, 2018
801
Right now Microsoft has 5 AAA developers but I hope they don't go more than 50/50 on the ratio of AA and AAA studios. Like if they get 20 studios I hope at least 10 of them are AAA studios.
 

Oluasc

Be more dog!
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Oct 25, 2017
1,317
...
I mean, the other problem with buying a publisher is you destroy a ton of their value by making them exclusive. GTA would not be GTA if it was only on Xbox.

And if you don’t make them exclusive, what was the point of buying them?
Xcloud, Game Pass subscribers.

But yeah, some games are better remain multiplat.

I don't think Sega would be anywhere near as expensive as EA but honestly it'd be better just to get Persona and Yakuza on Xbox since that's all there really missing from Sega

Hope not, don't want to see them fund anything they don't own, if they have a third party dev make a game they need to own an IP.

Ryse, Sunset Overdrive, Dead Rising, Titanfall were all waste IMO



Certain Affinity and Turtle Rock seem to fit the profile perfectly. Has Typhoon actually made anything else because their new game seems pretty lame
From Sega they need Relic and Creative Assembly, and partnership for launch Japanese games with Game Pass and Xcloud.

Right now Microsoft has 5 AAA developers but I hope they don't go more than 50/50 on the ratio of AA and AAA studios. Like if they get 20 studios I hope at least 10 of them are AAA studios.
7:
343i
The Initiative
The Coalition
Playground Fable
Playground Horizon
Rare
Turn10
 
Mar 2, 2018
1,153
Xcloud, Game Pass subscribers.

But yeah, some games are better remain multiplat.



From Sega they need Relic and Creative Assembly, and partnership for launch Japanese games with Game Pass and Xcloud.



7:
343i
The Initiative
The Coalition
Playground Fable
Playground Horizon
Rare
Turn10
You forgot Obsidian.
 
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