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

[VinFTW]

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.

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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).

 

[vorimenn]

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[Putfire]

It rarely ever makes sense for publishers to buy publishers, and again, the human cost of such a transaction would be awful.

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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.

 

[Mington]

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.

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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.

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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]

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.

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To be fair, you're not giving numbers for perspective.

 

[Mington]

Keep quoting people twice. Dam phone

 

[Deleted member 43]

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

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EA had a net income of $1 billion for FY18. That kinda says it all right there.

 

[LegalEagleMike]

Half expected a lot of silly talk about buying bungie in here, instead its EA talk lol.

 

[Deleted member 43]

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.

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Sega really doesn't have the ability to help anyone conquer anything.

 

[Dokkaebi G0SU]

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.

 

[Deleted member 4761]

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'

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Asian Publisher make sense for Microsoft... XGP, xCloud, etc.

 

[Sexyphobe]

Half expected a lot of silly talk about buying bungie in here, instead its EA talk lol.

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There was a few hours ago, now people won't stop with EA.

 

[Dokkaebi G0SU]

OH! I want to know if anything has been moving on the Chinese front with MS. Didnt they announce something in 2018 about setting up shop there? am i trippin?

 

[CRZYSPZ]

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.

 

[TruthSeeker]

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.

 

[SpinierBlakeD]

Do we still suspect they will acquire a publisher? Most of their acquisitions, while promising, have been sort of small fries.

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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.

 

[Deleted member 43]

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.

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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.

 

[SpinierBlakeD]

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

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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.

 

[SpinierBlakeD]

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.

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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.

 

[Sexyphobe]

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.

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I mean, if that's what it takes to get Bully 2
..

 

[Deleted member 43]

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.

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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?

 

[Deleted member 36493]

R* need only release Table Tennis 2 and the acquisition will be justified one hundred fold.

 

[SpinierBlakeD]

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?

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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.

 

[UraMallas]

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.

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I would enjoy that thread, actually.

 

[Rami Seb]

or Sega, not only is it expensive

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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.

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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).

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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]

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.

 

[Deleted member 4761]

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?

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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

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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.

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7:
343i
The Initiative
The Coalition
Playground Fable
Playground Horizon
Rare
Turn10

 

[danrbg]

Just think if they were to return to Microsoft after the Activision deal ends. Will probably never happen, but who knows!

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Recently.

 

[Camonna Tong]

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

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You forgot Obsidian.

 

[Troll]

You forgot Obsidian.

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I hope inexile gets a shot at a AAA game

 

[Hudsoniscool]

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.

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I'm a big time stock trader and a quick look at ea makes me think that an acquisition would probably be between 40-60 billion right now maybe even more. Just because their market cap is 27 billion doesn't mean that's all they would sell for.

And correct me if I'm wrong but if Microsoft did buy them couldn't the nfl have someone else make football games because Microsoft is restricting madden to their platforms.

Also Star Wars with EA is limited. The deal is around half over already.

Buying ea would be a huge mistake. Spending 50 billion on them when they could go out and get a equivalent amount of quality devs through buying a dozen studios like 4a, IO, turtle rock, remedy, life is strange devs, a44, for a fraction of the price. Literally a fraction like 1/10th the cost.

I'd guess that the studios Microsoft has gotten in the last year total less than a billion$. I've seen some say around 400 million. That right there shows you why buying a big company like Ea, Ubisoft, take-two or even CD project red makes little sense.

 

[Sexyphobe]

I hope inexile gets a shot at a AAA game

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Same with Undead Labs. Been playing through SoD2 again and it's such a gem of a game. Easily my favorite zombie franchise, and having the full financial backing of Microsoft makes me giddy inside.

 

[MCD]

I think MS will keep buying smaller devs. No point talking about EA. Bungie too bloated IMO and they sound like they had enough of big publishers up their ass.

 

[Dr. Caroll]

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

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Demanding studios hand over control of their IP in exchange for funding is a great way to make them dislike you. Look at the Metro games. Deep Silver does not own Metro. Rather they own an exclusive license for Metro games. I don't see how Deep Silver funding Metro is a "waste". It makes them money, increases their prestige as a publisher, and so on.

One reason so many studios were willing to work with EA, for example, was that EA generally didn't demand studios give them control over the IP.

I don't see how Microsoft working out a Star Wars deal with EA to create a new Knights of the Old Republic game by Bioware or Obsidian would be a waste.
I don't see how Microsoft working with Fox to resurrect that old Alien: Crucible Obsidian project would be a waste.

Microsoft are trying to make a push for PC gamers, and while MS own a number of IPs, many of the most beloved PC gaming franchises are held dormant by various publishers including EA. THQ Nordic are snatching up quite a few of them, too. If companies refused to work with other companies, a lot of games would never get made. Were Crash Bandicoot and Spyro a "waste" for Sony? I don't think so.

 

[Reynolds Woodcock]

These EA posts are starting to make me think that a certain someone has ditched Clay Davis for Ron Swanson.

 

[Mington]

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?

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You heard anything lately btw?

 

[Parker Petrov]

The only way I see Microsoft buying a major publisher is if google or amazon was making a move to buy one. I could see Microsoft getting involved in that specific situation.

 

[12Danny123]

The only way I see Microsoft buying a major publisher is if google or amazon was making a move to buy one. I could see Microsoft getting involved in that specific situation.

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It's clear Microsoft knew from a mile away that Google and Amazon were entering the market.

 

[GUNDAM STARDUST]

I'm a big time stock trader and a quick look at ea makes me think that an acquisition would probably be between 40-60 billion right now maybe even more. Just because their market cap is 27 billion doesn't mean that's all they would sell for.

And correct me if I'm wrong but if Microsoft did buy them couldn't the nfl have someone else make football games because Microsoft is restricting madden to their platforms.

Also Star Wars with EA is limited. The deal is around half over already.

Buying ea would be a huge mistake. Spending 50 billion on them when they could go out and get a equivalent amount of quality devs through buying a dozen studios like 4a, IO, turtle rock, remedy, life is strange devs, a44, for a fraction of the price. Literally a fraction like 1/10th the cost.

I'd guess that the studios Microsoft has gotten in the last year total less than a billion$. I've seen some say around 400 million. That right there shows you why buying a big company like Ea, Ubisoft, take-two or even CD project red makes little sense.

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Facts. I think people just throw EA out there because they think it would be shocking development.

 

[OneBadMutha]

When Bungie created Halo:CE, they weren't the mega studio they are today. Neither was Bethesda when they created Morrowind. BioWare when they made KOTOR. Naughty Dog with the first Uncharted.

Who was 4A games last gen? Or Techland?

I think the Microsoft gaming team has been smart with their purchases so far. Playground Games, Obsidian, Ninja Theory, InXile and even Undead Labs have all punched above their weight and on their way up. If Microsoft sees potential for the next Mass Effect, Skyrim, or Halo they can always grow those studios.

Think of Phil Spencer like an NFL GM who's got some cap space and draft picks to rebuild in the offseason. Just because you can make a splashy purchase, doesn't mean you should. Even Microsoft operates with a salary cap. Have to factor the cost of the purchase and the ongoing expense of the employees.

With that in mind, I wonder if you paired someone with the ability to craft story like Amy Hennig with a studio known for good game design like I/O if it wouldn't be a value purchase and potential superstar studio in the future.

 

[HBC_XL]

With Game Pass does anyone else want to see MS take a another chance with XSN? I don't know how an internal sports brand might hurt relationships with EA, but an annualized sports franchise included with a sub would be huuuuuuuge.

Acquire Visual Concepts and Metalhead, aHB Studios and Creature then call it a day. Maybe ressurect High Heat and Links

 

[Sexyphobe]

With Game Pass does anyone else want to see MS take a another chance with XSN? I don't know how an internal sports brand might hurt relationships with EA, but an annualized sports franchise included with a sub would be huuuuuuuge.

Acquire Visual Concepts and Metalhead, aHB Studios and Creature then call it a day. Maybe ressurect High Heat and Links

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2 problems with that:

1. Companies like EA and 2K own the exclusive rights to certain sports, and to acquire the rights to others would be very costly.

2. Phil Spencer has stated before he doesn't see the point in developing exclusive sports games. Don't know if that opinion has changed or not.

It would be cool though. Maybe have a sports game without MTX or ridiculously grindy achievements.

 

[elenarie]

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.

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While I agree that buying us would be insane in terms of costs, we're not that bad number wise. :)

https://blogs-images.forbes.com/niallmccarthy/files/2018/05/20180514_Games_Revenue.jpg

 

[WhoCaresLtsPlay]

While I agree that buying us would be insane in terms of costs, we're not that bad number wise. :)

https://blogs-images.forbes.com/niallmccarthy/files/2018/05/20180514_Games_Revenue.jpg

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Oh! Long time no see!
Welcome back!

 

[GUNDAM STARDUST]

I want MS to take risks on licensing IP to explore those universes and live a new storyline. The world of Harry Potter. Game of Thrones. Power Pack or Gen 13. Thunder Cats. Auto bots. Rising Stars. Indiana Jones. Goonies. Big Trouble In Little China. Etc. There is so much cool shit you could make right there alone.

 

[SpinierBlakeD]

I want MS to take risks on licensing IP to explore those universes and live a new storyline. The world of Harry Potter. Game of Thrones. Power Pack or Gen 13. Thunder Cats. Auto bots. Rising Stars. Indiana Jones. Goonies. Big Trouble In Little China. Etc. There is so much cool shit you could make right there alone.

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If Microsoft is going to license an IP I pray to the heavens above it's James Bond.

 

[Rami Seb]

I wonder if you paired someone with the ability to craft story like Amy Hennig with a studio known for good game design like I/O if it wouldn't be a value purchase and potential superstar studio in the future.

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Perfect Dark?

With Game Pass does anyone else want to see MS take a another chance with XSN?

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What they should do is get the devs behind Session. Pump money it and make it a full fledged service based game and you'd have the people creaming their pants for a Skate 4 running toward Game Pass.

The world of Harry Potter

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Auto bots.

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. Indiana Jones

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Not a big Harry Pothead fan but I'd be down with Transformers or Indie getting the Spider-man treatment, a serious full budget AAA game

James Bond.

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This but who could make it? Maybe 4A or Coalition?

 

[SpinierBlakeD]

This but who could make it? Maybe 4A or Coalition?

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The Initiative. Boom

 

[Steverulez]

What studios could MS buy for the price of EA?

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Literally all of them

 

[Rami Seb]

The Initiative. Boom

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They're way too high profile to make a licensed game, they'll either work on a new IP or an MS IP

Hell it'd be better for them to take over Perfect Dark than James Bond but I really think if MS does get IO that'll be there franchise