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E.Balboa

Member
Oct 30, 2017
2,455
Florianópolis, Brazil
Because by allowing this regardless of how you got to it are setting precedent. Allowing this is saying Platform Holders Purchasing large Publishers is now deemed "Competitive." Thats all somebody like Sony would have to point to. They can say "You were fine with our competition purchasing publisher's what's wrong with us, another competitor in the market doing it?"
Acquisitions are not a kindergarten class.
LOL
 
OP
OP
Idas

Idas

Antitrusting By Keyboard
Member
Mar 20, 2022
2,025
This is a public article from DealReporter published a few days ago (February 20th):


It includes new info about the negotiations between MS and Sony. Some suggestions are obviously wrong now that we know about the provisional approval by the EC. But it's an interesting read about some of the topics that are going to be discussed during the next weeks.

Some highlights:

The software giant's 10-year pledge to retain access to Call of Duty to Microsoft's platform competitors, most notably Sony's PlayStation, will likely form the basis of the remedy proposal that Microsoft intends to make to the EC, said one of the sources.

In December, Microsoft President Brad Smith said that it would offer equal access to Call of Duty to Sony, Nintendo and Valve's Steam for a period of 10 years. The ten-year pledge would mean parity on content, features, quality, playability as well as on pricing, said Microsoft Deputy General Counsel Rima Alaily in a statement.

The EC generally market tests remedies with third parties after submission.

Sony, which has been a vocal third party in this review, is likely to voice multiple concerns around the abovementioned remedy, said a third source familiar with the matter. These range from the enforceability of such a complex behavioural remedy to issues around pricing, should Call of Duty be included in Microsoft's GamePass subscription service, this source said.

Microsoft's parity commitment could be very difficult to encode in a contract and enforce, said the third source. As it currently stands, Sony works with Activision from an early date to ensure that its controller is not just responsive, but offers one of the best console player experiences, the source noted.

Another source of concern could stem from the fact that Sony's current contracts with Activision are on terms that are better than parity, noted Joost Rietveld, Associate Professor at University College London's School of Management and a gaming industry specialist. Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

Finally, a key area of dispute may also be around pricing. Sony takes the view that it needs to be enabled to price Call of Duty competitively to what Microsoft could offer, said the third source familiar.

A factor here is the shifts in the industry from console gaming offers, where games can be priced at around EUR 70 for and where the revenue split is typically 30% to the platform and 70% to the publisher, to a subscription service model, said the source.

Under the subscription service model, publishers are typically either paid upfront for the rights to their game, which can be good for smaller gaming studios but less beneficial for blockbuster games like Call of Duty, which would likely see limit to their upside, said Rietveld. Another model for subscriptions is the Spotify-style model where it would be paid for share of time spent on a game, he noted.

A third option would see a licensee, such as Sony, paying the wholesale price for Call of Duty multiplied by the number of users who play the game for more than a set amount of time, he noted.

Sony is likely to take the view that the contract on offer by Microsoft result in diminished revenues for PlayStation, leaving it unable to put investments into its own games, said the third source. It would be forced to offer its PS Plus subscription service at a higher price than GamePass, they noted.

As for Microsoft, it takes the view that the 10-year remedy covers access to Call of Duty on its subscription service PS Play and will offer a 'much better' revenue split that Sony's existing contract with Activision, said the first and a fourth source familiar. It would likely result in hundreds of millions of windfall revenues for SIE, the first source said.

Last week in its remedy notice, the CMA said that Activision/Microsoft did appear to be a suitable case for behavioural remedies, noting that it had been informed of Microsoft's proposed contractual arrangements.

A structural remedy would also be very complicated, noted Rietveld. There are three studios that are working on Call of Duty within Activision, and any carve-out would likely require the development capabilities and not solely the IP for the game, he said. The fourth source familiar with the transaction said that a structural remedy would call into question the deal and would likely prove to be exceptionally complex.

I already mentioned weeks ago that historically the main issue with access remedies is the pricing and it sounds like in this case this is going to be a hot topic too.

Interesting that DealReporter believes that the COD remedy includes PS Plus (we know that MS already offered that option to the FTC in December 2022). The article sounds like Sony is not happy with COD being available on their subscription service because it would diminish their revenues.

On the other hand, I'm not sure what this part means:

Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔
 
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Lant_War

Classic Anus Game
The Fallen
Jul 14, 2018
23,580
Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔
30 days might be the Modern Warfare 2 remaster. One year is most definitely the DLC
 

SRV

▲ Legend ▲
Member
Oct 29, 2017
2,393
This is a public article from DealReporter published a few days ago (February 20th):



It includes new info about the negotiations between MS and Sony. Some suggestions are obviously wrong now that we know about the provisional approval by the EC. But it's an interesting read about some of the topics that are going to be discussed during the next weeks.

Some highlights:



I already mentioned weeks ago that historically the main issue with access remedies is the pricing and it sounds like in this case this is going to be a hot topic too.

Interesting that DealReporter believes that the COD remedy includes PS Plus (we know that MS already offered that option to the FTC in December 2022). The article make it sounds like Sony is not happy with COD being available on their subscription service because it would diminish their revenues.

On the other hand, I'm not sure what this part means:

Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔
If it means past exclusive dlc, I remember that MW2019 had a survival game mode exclusive to PS for one year. It could be that?
 

HonestAbe

Member
May 19, 2020
1,905
On the other hand, I'm not sure what this part means:

Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔

I think it was the game mode that was PS only for a year and maybe early access. I think it's relating to the note that Sony says their version of COD is not on par but better than others due to : content access, controller stuffs, etc. So they don't like the parity clause in the MS agreement since it's less than what they current have in the agreement.
 

Native_Vel

Member
Jun 5, 2022
1,180
Whelp.

Another reason why Sony does not their contracts made public. It is definitely referencing whatever that mode Sony had for a year. But according to Sony: Parity is crucial.
 

Azerth

Prophet of Truth - Chicken Chaser
Member
Oct 27, 2017
6,189
I feel like I'm missing something here. If the developer is making an Xbox game, Microsoft can't sign a deal to keep it an Xbox game? Like, it would be illegal to have sole rights to any specific 3rd party game or IP?

What if the developer wants it to be an Xbox game and enjoys that association?
A dev would still be able to choose to just put there game just one,two, or all platforms. I think what they are saying is that a platform holder could not pay a 3rd party dev money to keep it off the other platform.
 

christocolus

Member
Oct 27, 2017
14,932
This is a public article from DealReporter published a few days ago (February 20th):



It includes new info about the negotiations between MS and Sony. Some suggestions are obviously wrong now that we know about the provisional approval by the EC. But it's an interesting read about some of the topics that are going to be discussed during the next weeks.

Some highlights:



I already mentioned weeks ago that historically the main issue with access remedies is the pricing and it sounds like in this case this is going to be a hot topic too.

Interesting that DealReporter believes that the COD remedy includes PS Plus (we know that MS already offered that option to the FTC in December 2022). The article make it sounds like Sony is not happy with COD being available on their subscription service because it would diminish their revenues.

On the other hand, I'm not sure what this part means:

Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔
Last week in its remedy notice, the CMA said that Activision/Microsoft did appear to be a suitable case for behavioural remedies, noting that it had been informed of Microsoft's proposed contractual arrangements.
what is this part about?


The quote below is referencing the current CoD deal btw Sony and ABK. It has to be a full game mode/ DLC and other timed exclusive content. The game mode will probably be exclusive for 3 months while others 1 year.. and this would once again make the PS versions superior.
Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.
 
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LD50

Banned
May 11, 2022
904
A dev would still be able to choose to just put there game just one,two, or all platforms. I think what they are saying is that a platform holder could not pay a 3rd party dev money to keep it off the other platform.
In the original post, it was a PS5 game. It could also be an Xbox game. Possibly a Nintendo game?

I was asking if they meant no manufacturer could ever sign exclusivity contracts with an IP holder, even if that were the developer's intention from the start.
 

Deleted member 93062

Account closed at user request
Banned
Mar 4, 2021
24,767
Sony is going to bang that "hard to enforce" behavioral remedy drum hard despite them utilizing them in the past:
"The company has offered the necessary remedies in accordance with the regulator's guidelines," Zee said in a statement.

Zee and Sony had offered concessions such as pricing discounts to help ease the concerns of the regulator over their merger, sources told Reuters last month.
www.reuters.com

Zee, Sony unit merger approved by India's competition regulator

India's competition regulator on Tuesday approved a merger between the Indian unit of Japan's Sony and Zee Entertainment Enterprises that will create a $10-billion TV behemoth, but with certain conditions.
 

Mubrik_

Member
Dec 7, 2017
2,725
This is a public article from DealReporter published a few days ago (February 20th):



It includes new info about the negotiations between MS and Sony. Some suggestions are obviously wrong now that we know about the provisional approval by the EC. But it's an interesting read about some of the topics that are going to be discussed during the next weeks.

Some highlights:



I already mentioned weeks ago that historically the main issue with access remedies is the pricing and it sounds like in this case this is going to be a hot topic too.

Interesting that DealReporter believes that the COD remedy includes PS Plus (we know that MS already offered that option to the FTC in December 2022). The article sounds like Sony is not happy with COD being available on their subscription service because it would diminish their revenues.

On the other hand, I'm not sure what this part means:

Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔
If MS is going to offer parity then offer it completely, sub services included. lol
Sony lawyers are having a field day, but then again i think its a small price to pay for the deal to go through

A structural remedy would also be very complicated, noted Rietveld. There are three studios that are working on Call of Duty within Activision, and any carve-out would likely require the development capabilities and not solely the IP for the game, he said. The fourth source familiar with the transaction said that a structural remedy would call into question the deal and would likely prove to be exceptionally complex.
I agree with this.

Overall tho, if sony is willing to negotiate contract i think they might be seeing the deal unstoppable as well, good signal for MS.
That or they are arguing the 10 year deal being bogus.

You mean, like they already did?
www.eurogamer.net

Microsoft reportedly offered Sony the option to put Call of Duty on PlayStation Plus

Microsoft reportedly offered Sony the option to add Call of Duty to its PlayStation Plus subscription service as part o…
ah, i must have missed it.
it was actually highlighted, missed it twice:
As for Microsoft, it takes the view that the 10-year remedy covers access to Call of Duty on its subscription service PS Play and will offer a 'much better' revenue split that Sony's existing contract with Activision, said the first and a fourth source familiar. It would likely result in hundreds of millions of windfall revenues for SIE, the first source said.

Finally, a key area of dispute may also be around pricing. Sony takes the view that it needs to be enabled to price Call of Duty competitively to what Microsoft could offer, said the third source familiar.

A factor here is the shifts in the industry from console gaming offers, where games can be priced at around EUR 70 for and where the revenue split is typically 30% to the platform and 70% to the publisher, to a subscription service model, said the source.

Under the subscription service model, publishers are typically either paid upfront for the rights to their game, which can be good for smaller gaming studios but less beneficial for blockbuster games like Call of Duty, which would likely see limit to their upside, said Rietveld. Another model for subscriptions is the Spotify-style model where it would be paid for share of time spent on a game, he noted.

A third option would see a licensee, such as Sony, paying the wholesale price for Call of Duty multiplied by the number of users who play the game for more than a set amount of time, he noted.

Sony is likely to take the view that the contract on offer by Microsoft result in diminished revenues for PlayStation, leaving it unable to put investments into its own games, said the third source. It would be forced to offer its PS Plus subscription service at a higher price than GamePass, they noted.
hmmm.
I mean yeah, after 10 years, will be tough to compete with COD on GP, that is even if MS offers COD still to be on another sub service.
But without the relevant number to judge how much the shift will hurt Sony wallet hereby affecting their ability to make other games and compete, nothing much to say.
Quite frankly a bit surprised that COD players are big spenders, Sony really don't want to lose it's big boys and girls eh.
 
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Chaos Legion

The Wise Ones
Member
Oct 30, 2017
16,923
Lol that's not how this works. As sheepinator above me said, Main thing these regulators consider is Marketshare. SONY literally dominates in a insane fashion everywhere outside of the USA. Them making the case to Acquire Take Two would be impossible.
Which market share?

The market share of a combined Sony/Take Two would be smaller than Nintendo (and perhaps Microsoft/Bethesda/ATVI) for console gaming and smaller than a multitude of companies of including Microsoft/ATVI in mobile.

Take Two isn't a platform holder. Sony would likely have Take Two be an independent subsidiary that remains multiplatform. Through Sony Music publishing titles on the Switch instead of the PS, Sony could even highlight that today it can easily demonstrate its ability within the Sony Group to not favor a sister company over a rival console.

Sony isn't going to buy Take Two, but I'd say they could make a compelling argument to get it through regulatory scrutiny, with requisite concessions.
 

Sheepinator

Member
Jul 25, 2018
28,018
Just don't bother, 99% of people in here don't care. Phil Spencer has already said they are going to keep buying even after Activision, it doesn't bother anyone because of gamepass and some weird belief it will make Sony more pro-consumer, when in reality it will probably just make them increase and strengthen their third party deals. We saw this sort of corporate cheerleading when Disney was trying to purchase Fox, and the amount of people who were calling for them to buy Sony Pictures so they could get the rights to Spider-man back. Once this is done, the conversation will turn to who will Microsoft buy next, and the usuals of Capcom and Koei and all that will start up.

This thread has made me open my eyes to the real Era, basically.
That's very disingenuous imo. I don't have a current gen console nor GP, nor do I play COD, and I'm in favor of the deal for the simple reason that it appears to be fully legal, and most experts have said that since day one, and therefore it should go ahead. I've yet to see a compelling legal reason for it not going ahead, and what is the alternative wrt regulation? I don't believe govt should pick and choose winners and losers using arbitrary criteria, nor do I believe that all buyouts and mergers should be banned. Brazil's CADE summed this one up well imo, when they passed it with no restrictions. I've read this thread since day one and I don't believe I am in the 1% here.
 
Oct 27, 2017
4,927
The problem with EA is a lot of their worth is tied up in the rights to publish sports games for various leagues.

Several of the popular leagues like signing exclusivity contracts for game adaptations, and EA currently has most of them. And when they don't do that, they sign exclusive licensing for their brands.

So should sports leagues start flexing their muscles by raising licensing costs or deciding to break contracts for new partners. EA would be at a loss.

We saw last year FIFA pulled the rights for EA to use their branding after EA refused to pay the increased licensing cost. That would give any competitor a legup since its means the name is free for anyone to license, should they be willing to pay the price.
That's true. FIFA is being FIFA and made a whole mess of the situation. Will definitely be interesting to see a "FIFA" game competing side-by-side with whatever EA calls it's 2024 game as EA has all the non-national teams lol.
 

bananas

Prophet of Truth
Member
Oct 25, 2017
2,857
This is a public article from DealReporter published a few days ago (February 20th):



It includes new info about the negotiations between MS and Sony. Some suggestions are obviously wrong now that we know about the provisional approval by the EC. But it's an interesting read about some of the topics that are going to be discussed during the next weeks.

Some highlights:



I already mentioned weeks ago that historically the main issue with access remedies is the pricing and it sounds like in this case this is going to be a hot topic too.

Interesting that DealReporter believes that the COD remedy includes PS Plus (we know that MS already offered that option to the FTC in December 2022). The article sounds like Sony is not happy with COD being available on their subscription service because it would diminish their revenues.

On the other hand, I'm not sure what this part means:

Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔
"We don't like parity, because we already have versions that are better than our competitors. Also if we are forced to be on equal footing we will make less money."

Is this their argument? Not even trying to argue whether this benefits consumers, just we will make less money even though we're the market leader.
 

Deleted member 93062

Account closed at user request
Banned
Mar 4, 2021
24,767
I really hope that Microsoft's rebuttal to Sony complaining about Call of Duty not being on PS+ is them just showing the section of the latest State of Play where they market Minecraft Dungeons as a PS+ game for March.
 

DukeBlueBall

Banned
Oct 27, 2017
9,059
Seattle, WA
This is a public article from DealReporter published a few days ago (February 20th):



It includes new info about the negotiations between MS and Sony. Some suggestions are obviously wrong now that we know about the provisional approval by the EC. But it's an interesting read about some of the topics that are going to be discussed during the next weeks.

Some highlights:



I already mentioned weeks ago that historically the main issue with access remedies is the pricing and it sounds like in this case this is going to be a hot topic too.

Interesting that DealReporter believes that the COD remedy includes PS Plus (we know that MS already offered that option to the FTC in December 2022). The article sounds like Sony is not happy with COD being available on their subscription service because it would diminish their revenues.

On the other hand, I'm not sure what this part means:

Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔

I heard that Sony is proposing these adjustments to the remedies.

Sony guaranteed Playstation Advantage for 10 years for AKB games. After 10 years, MS negotiates with Sony for parity on a case by case basis.
AKB titles day and date with PS Plus. Gamepass day and date too but 23 hours and 58 minutes after PS Plus.
Sony gets 50% reduction from market rate for AKB on PS plus and 50% of AKB DLC proceeds on Xbox.
All Xcloud button prompts to be replaced with Playstation button prompts.
Jim Ryan get first dibs on Phil's lunch. Jim eats first. Then Phil eats after Jim leaves the building. Phil cannot eat while Jim is in the building.
 

Frieza

Member
Oct 25, 2017
3,850
Which market share?

The market share of a combined Sony/Take Two would be smaller than Nintendo (and perhaps Microsoft/Bethesda/ATVI) for console gaming and smaller than a multitude of companies of including Microsoft/ATVI in mobile.
Isn't Sony still bigger than Microsoft + Activision? How would Sony + Take Two become smaller than Microsoft + Activision? And Nintendo as far I know is the smallest of the big three when it comes to overall revenue
 

Deleted member 93062

Account closed at user request
Banned
Mar 4, 2021
24,767

WinFonda

Member
Oct 27, 2017
2,436
USA
They did buy a publisher previously, though that was forever ago.

"But when people roll up in this thread and argue in favor of this deal, but bemoan every exclusivity deal Sony has ever done... I think it's pretty transparent."

I feel like you could flip this comment pretty easily.

If the deal fails, so be it, the market authorities will have made what they consider their best informed decision. People liking or not doesn't really matter.
My bad, totally forgot about Psygnosis. You'd have to forgive me, what with with the decades-old dissolution and fade to obscurity n all. I mean, I don't know about you, but I was only 5 when that happened and I only played Nintendo 😅 But that's a sad fate which, if anything, argues against these types of acquisitions, no? But this is the kind of thing that we'll imagine is in any way comparable; in scope or recency, or what with Sony having a fledgling share and workforce as an entrant into a nascent market when they acquired them... in order to justify a completely disproportionate market behavior in 2023. These are incredibly important qualifiers I think, but you're free to dismiss them. I know you said 'forever ago' but the fact you mentioned it at all suggests you believe there's some degree of equitabilty here. Does anyone wanna compare employees of Psygnosis vs AKB too? I feel like if we're gonna bring it up, we should really get into the similarities. Thankfully, I guess, we don't really have to; since it never raised competition concerns and was cleared by the CMA.

On your latter point, I totally agree. Fortunately it is not for people on the internet to decide. It's for regulators and courts.
 

christocolus

Member
Oct 27, 2017
14,932
I think they meant to say 'did not appear'. The sentence that follows also makes that clearer - 'The CMA rather suggested several structural options, from a carve-out of Call of Duty to a divestment of the entire Activision unit. ', taking 'rather' to mean 'instead'.Thanks.
Ah! Thanks for the explanation. Makes sense.
 

killerrin

Member
Oct 25, 2017
9,238
Toronto
"We don't like parity, because we already have versions that are better than our competitors. Also if we are forced to be on equal footing we will make less money."

Is this their argument? Not even trying to argue whether this benefits consumers, just we will make less money even though we're the market leader.

It really is a weird argument to pull out in front of regulators.

"We're admitting to doing literally everything we claim Microsoft will do, despite being the market leader. But if Microsoft is allowed to do it we won't be able to compete. Also the proposed Microsoft behavioural remedy can't be done because we already signed exclusivity contracts with Activision to make PlayStation versions of the game better."

And it's like:
  • If you can't compete on a level playing field, doesn't that mean you are abusing your market position knowing Microsoft can't compete right now?
  • Nothing says you have to stop helping Activision to "create the best experience possible" in terms of controls, if you truly cared about that. If this is so complex, how come other developers don't have this problem
  • If you have Activision's tied up in other contracts that guarantees you'll have a better game, which Microsoft will be forced to Inherit... Why do you care? You'll still have a better game. The behavioral remedy and the Microsoft contracts can just be set to take over once the original contract expires next year.
 

christocolus

Member
Oct 27, 2017
14,932
It really is a weird argument to pull out in front of regulators.

"We're admitting to doing literally everything we claim Microsoft will do, despite being the market leader. But if Microsoft is allowed to do it we won't be able to compete. Also the proposed Microsoft behavioural remedy can't be done because we already signed exclusivity contracts with Activision to make PlayStation versions of the game better."

And it's like:
  • If you can't compete on a level playing field, doesn't that mean you are abusing your market position knowing Microsoft can't compete right now?
  • Nothing says you have to stop helping Activision to "create the best experience possible" in terms of controls, if you truly cared about that. If this is so complex, how come other developers don't have this problem
  • If you have Activision's tied up in other contracts that guarantees you'll have a better game, which Microsoft will be forced to Inherit... Why do you care? You'll still have a better game. The behavioral remedy and the Microsoft contracts can just be set to take over once the original contract expires next year.
It really is eye opening when put this way.
 

LanceX2

Member
Oct 25, 2017
6,821
This is a bad look for Sony. I mean I guess they need to fight but these documents show that Sony is not consumer friendly and MS is looking more consumer friendlym
 
Sep 13, 2022
6,582
Its obviously not about being evil, its business, not morality :P More like I had thought Era in general had an anti-capitalist, anti-consolidation stance and this thread has highlighted to me that at the very least, a reasonable percentage of posters do not. I met someone the other day who didn't like Shawshank Redemption and it was a big Whoa moment for me, much as is this thread was after the first hundred pages or so. Ultimately a lot of my frustrations regarding this thread come from any actual rebuttal people attempt they typically get labelled as console warriors or not wanting competition, so I tend to be quick and rash to jump in and support those who are against it. Usually to my detriment.

I am very anti-big business, very anti-corporate, very anti a lot of things really.
The people in this thread represent maybe....maybe 5% of gaming side. Probably even less.
 

Scottoest

Member
Feb 4, 2020
11,357
From an ideal competition/antitrust aspect, I think this acquisition should be denied - and indeed I think nearly all acquisitions should be denied apart from distressed assets. That includes individual studios as much as publishers (which are ultimately just collections of studios). I also think you could argue that contractually enforced exclusives and first-party studios should be illegal in general, since they create massive competitive and financial barriers to entry for new prospective console platforms.

If we are talking about maximum choice and competition for consumer benefit, let's get real. Let consoles compete on their feature sets, interface, specs, form factor, price etc. And let all games compete on their own terms. A new console only has to compete as a console, and not against a multimedia empire of existing exclusive franchises and studios that are OWNED by the existing platforms. That's true competition, though of course regulators would never in a million years do any of this. As it stands it's virtually impossible for anyone new to compete in the console space, except perhaps another megacorp.

Break up these corporations into their constituent divisions too, it should go without saying.

From an actual legal/precedent perspective, I don't see any real reason this acquisition should be denied and I think the hangups about Call of Duty in particular are kinda farcical. This is the entire reason most industry people at the time expected it to sail through with some minor regulatory concessions at most - including anti-consolidation industry people like Matt on this forum.

From a purely short-term, completely self-interested perspective... I don't care. I'm a GP sub, but the only ABK game on the horizon I give the remotest of fucks about is Diablo, which will come out long before this circus is concluded. There are almost objectively far more exciting targets Microsoft could've pursued than the Call of Duty sausage factory.

The people in this thread represent maybe....maybe 5% of gaming side. Probably even less.

I think a lot of this thread is just a proxy war between the PlayStation and Xbox OTs, lol.
 

Deleted member 93062

Account closed at user request
Banned
Mar 4, 2021
24,767
From an ideal competition/antitrust aspect, I think this acquisition should be denied - and indeed I think nearly all acquisitions should be denied apart from distressed assets. That includes individual studios as much as publishers (which are ultimately just collections of studios). I also think you could argue that contractually enforced exclusives and first-party studios should be illegal in general, since they create massive competitive and financial barriers to entry for new prospective console platforms.
Ideal competition is platform holders investing into exclusives to appeal to their platform. These games are usually much higher quality than third party releases and don't have as much predatory MTX to them because platform holders don't need the individual games to generate as much money as possible, rather they need them to be so enticing that it brings people into their ecosystem and gets them spending in stores.

Banning first-party studios and exclusives would be so anti-competitive because the companies with the lead will basically never be challenged.

If we are talking about maximum choice and competition for consumer benefit, let's get real. Let consoles compete on their feature sets, interface, specs, form factor, price etc. And let all games compete on their own terms. A new console only has to compete as a console, and not against a multimedia empire of existing exclusive franchises and studios that are OWNED by the existing platforms. That's true competition, though of course regulators would never in a million years do any of this. As it stands it's virtually impossible for anyone new to compete in the console space, except perhaps another megacorp.
There isn't really much differentiation that can be done with gaming. Whatever there is, already exists under the current system and doesn't require banning exclusive games which are a necessity to differentiate your platform from another. Ironically, you need exclusives to push any major differentiation: VR is a very novel and pretty groundbreaking technology that very little people give a fuck about because there are no must-have games and companies aren't going to invest into VR and make those must-have games because there are no people there. Cloud gaming promises no downloads and no upfront hardware costs, possibly the lowest barrier of entry into gaming outside of mobile gaming, but no one gave a fuck because the game library wasn't there and there were no must-plays there.

You keep bringing up that it is virtually impossible for anyone new to compete in the console space, but this is true regardless of exclusives. Google had to pay so much money just to get Ubisoft and Rockstar games on Stadia. You can't just release a console and have publishers willing to port to your platform. Ironically enough, the easiest way for new platforms to get into this space is having meaningful exclusive titles that aren't found anywhere else.

So, to get into the industry it's either: acquire some studios/publishers and lock down a good exclusive library OR pay a fuck ton to get third party publishers to support your platform which all these games are already available on existing platforms that people have built up their roots in for decades. Your world would mean that the second one is the only option.

Your idea for the gaming industry would be catastrophic and the complete opposite of what you're advocating for.
 
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BobLoblaw

This Guy Helps
Member
Oct 27, 2017
8,302
I think a lot of this thread is just a proxy war between the PlayStation and Xbox OTs, lol.
This. I don't have a PS or Xbox. I do have stock in ABK, though. I'd like to consider myself neutral since I'm a PC gamer. That being said, it's abundantly clear that Sony is the market leader and they have been for over 20 years. In my eyes, there are far more positives to this acquisition than negatives (those being to consumers and ABK developers most directly).

If this acquisition forces Sony just a little bit to be more consumer friendly (no upgrade fees, no paying for cloud saves, no console price hikes in all but one territory, slightly less market power to throw their weight around, etc.) then that's great for consumers and competition.
 

dlauv

Prophet of Truth - One Winged Slayer
Member
Oct 27, 2017
11,513
This. I don't have a PS or Xbox. I do have stock in ABK, though. I'd like to consider myself neutral since I'm a PC gamer. That being said, it's abundantly clear that Sony is the market leader and they have been for over 20 years. In my eyes, there are far more positives to this acquisition than negatives (those being to consumers and ABK developers most directly).

If this acquisition forces Sony just a little bit to be more consumer friendly (no upgrade fees, no paying for cloud saves, no console price hikes in all but one territory, slightly less market power to throw their weight around, etc.) then that's great for consumers and competition.
The cloud saves wouldn't be as premium in that instance.
 

Lorul2

Member
Jan 4, 2018
770
Once this is over I hope there's a dedicated MS acquisitions thread because this one has been a ton of fun to read/follow (I mean assuming whatever outcome doesn't somehow discourage MS from attempting to buy more studios or publishers.)

YES, I agree the nonsense here has been quite entertaining. I hope after this hard-fought battle Microsoft takes a few months to let the dust settle and then goes on a "mini shopping spree" of smaller studios. Asobo, IO, and then pull out the big gun and cause the great "Gnashing of TEETH" with an attempted purchase of the WB! If they would be successful or not I could care less.
 

AAION

Member
Dec 28, 2018
1,606
From an ideal competition/antitrust aspect, I think this acquisition should be denied - and indeed I think nearly all acquisitions should be denied apart from distressed assets. That includes individual studios as much as publishers (which are ultimately just collections of studios). I also think you could argue that contractually enforced exclusives and first-party studios should be illegal in general, since they create massive competitive and financial barriers to entry for new prospective console platforms.

If we are talking about maximum choice and competition for consumer benefit, let's get real. Let consoles compete on their feature sets, interface, specs, form factor, price etc. And let all games compete on their own terms. A new console only has to compete as a console, and not against a multimedia empire of existing exclusive franchises and studios that are OWNED by the existing platforms. That's true competition, though of course regulators would never in a million years do any of this. As it stands it's virtually impossible for anyone new to compete in the console space, except perhaps another megacorp.

Break up these corporations into their constituent divisions too, it should go without saying.

From an actual legal/precedent perspective, I don't see any real reason this acquisition should be denied and I think the hangups about Call of Duty in particular are kinda farcical. This is the entire reason most industry people at the time expected it to sail through with some minor regulatory concessions at most - including anti-consolidation industry people like Matt on this forum.

From a purely short-term, completely self-interested perspective... I don't care. I'm a GP sub, but the only ABK game on the horizon I give the remotest of fucks about is Diablo, which will come out long before this circus is concluded. There are almost objectively far more exciting targets Microsoft could've pursued than the Call of Duty sausage factory.



I think a lot of this thread is just a proxy war between the PlayStation and Xbox OTs, lol.

this is probably the first post in this thread that 100% matches my own opinion
 

silentq15

Member
Aug 15, 2022
487
This. I don't have a PS or Xbox. I do have stock in ABK, though. I'd like to consider myself neutral since I'm a PC gamer. That being said, it's abundantly clear that Sony is the market leader and they have been for over 20 years. In my eyes, there are far more positives to this acquisition than negatives (those being to consumers and ABK developers most directly).

If this acquisition forces Sony just a little bit to be more consumer friendly (no upgrade fees, no paying for cloud saves, no console price hikes in all but one territory, slightly less market power to throw their weight around, etc.) then that's great for consumers and competition.
Yeah personally I prefer PC myself but I have all the consoles as well. I am not against the status quo of exclusive deals via negotiation with independent third parties as I feel this is what the competition is. My fear all along has been precedent. I don't like the idea of any of the platform holders being empowered to control vast swaths of IP especially ones they didn't develop in house. While I see the inherent pros of this particular merger I feel like the downstream consequences are a little too big for the industry as a whole regardless of all the perks this deal would entail.

I want all the platform holders to be competitive, but I prefer an environment where we have lots a publishers and the platform holders vying for deals with them via negotiation. I think this way also has the side effect of making the publishers foster the best projects they can and simultaneously rewarding some of the best of the best by getting deals from the platform holders not to mention the top notch projects the platform develop in house.

Thats just me though, I understand the pro merger end as well.
 
Sep 13, 2022
6,582
From a purely short-term, completely self-interested perspective... I don't care. I'm a GP sub, but the only ABK game on the horizon I give the remotest of fucks about is Diablo, which will come out long before this circus is concluded. There are almost objectively far more exciting targets Microsoft could've pursued than the Call of Duty sausage factory.
I see this alot here, , people having no interest in Activision. But Microsoft isn't trying to cater to the people's taste on this forum. The games they want to put out will cater to the people who don't visit forums.

Activision has a lot of "this is the only game I play year in and year out" for alot of their ip's
 
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Chaos Legion

The Wise Ones
Member
Oct 30, 2017
16,923
Isn't Sony still bigger than Microsoft + Activision? How would Sony + Take Two become smaller than Microsoft + Activision? And Nintendo as far I know is the smallest of the big three when it comes to overall revenue
As a publisher of console games, Microsoft/Bethesda/Activision would be larger than Sony Interactive Entertainment in terms of marketshare (Activision is larger than Sony currently). If you combined Sony and Take Two, it's probably pretty close.

Nintendo is currently larger than all of them.
22-11-23%20Microsoft-ABK%20CMA%20Figure%205.png
 

Art_3

Banned
Aug 30, 2022
5,089
From an ideal competition/antitrust aspect, I think this acquisition should be denied - and indeed I think nearly all acquisitions should be denied apart from distressed assets. That includes individual studios as much as publishers (which are ultimately just collections of studios). I also think you could argue that contractually enforced exclusives and first-party studios should be illegal in general, since they create massive competitive and financial barriers to entry for new prospective console platforms.

If we are talking about maximum choice and competition for consumer benefit, let's get real. Let consoles compete on their feature sets, interface, specs, form factor, price etc. And let all games compete on their own terms. A new console only has to compete as a console, and not against a multimedia empire of existing exclusive franchises and studios that are OWNED by the existing platforms. That's true competition, though of course regulators would never in a million years do any of this. As it stands it's virtually impossible for anyone new to compete in the console space, except perhaps another megacorp.

Break up these corporations into their constituent divisions too, it should go without saying.

From an actual legal/precedent perspective, I don't see any real reason this acquisition should be denied and I think the hangups about Call of Duty in particular are kinda farcical. This is the entire reason most industry people at the time expected it to sail through with some minor regulatory concessions at most - including anti-consolidation industry people like Matt on this forum.

From a purely short-term, completely self-interested perspective... I don't care. I'm a GP sub, but the only ABK game on the horizon I give the remotest of fucks about is Diablo, which will come out long before this circus is concluded. There are almost objectively far more exciting targets Microsoft could've pursued than the Call of Duty sausage factory.



I think a lot of this thread is just a proxy war between the PlayStation and Xbox OTs, lol.
This is the best post in this thread and it totallt reflects my thoughts on this acquisition,separating the idealistic argument and legal argument was perfect and it also where i think some regulators are coming from, the FTC and the CMA are itching to deny this buyout because regardless of context a big trillion dollar company throwing 70b at a big publisher is WRONG.Me as an individual i would also shut that shit down withtout thinking twice, but as government regulators they can't do this shit,there are rules and a bunch of lawyers just waiting for you to trip up on your own arguments
 

cyrribrae

Chicken Chaser
Member
Jan 21, 2019
12,723
This is a public article from DealReporter published a few days ago (February 20th):



It includes new info about the negotiations between MS and Sony. Some suggestions are obviously wrong now that we know about the provisional approval by the EC. But it's an interesting read about some of the topics that are going to be discussed during the next weeks.

Some highlights:



I already mentioned weeks ago that historically the main issue with access remedies is the pricing and it sounds like in this case this is going to be a hot topic too.

Interesting that DealReporter believes that the COD remedy includes PS Plus (we know that MS already offered that option to the FTC in December 2022). The article sounds like Sony is not happy with COD being available on their subscription service because it would diminish their revenues.

On the other hand, I'm not sure what this part means:

Microsoft disclosed in its CMA filings that under Sony's current exclusivity contract with Activision, Call of Duty would be exclusive to PlayStation for a period of 30 days, while one version of the game was exclusive for a period of one year.

I don't remember this from the PF. Maybe he means exclusive DLC? 🤔
Some interesting quotes / strange interpretations. But I do think a lot of these small things really highlight that core problem that Xbox faces re: PlayStation. it's not just about access to games or exclusivity or better terms or favored marketing deals... Sony just has the market power and the commercial influence to affect all sorts of small, but significant in aggregate levers that Xbox simply can't touch in most games, let alone for the claimed biggest console franchise in the world.

That is the point, right? There's no amount of money that will allow MS to "organically" fix this tomorrow. Or even in 5 years. They might just be starting to make real progress in 10 years. Is that real competition? Maybe. Is that better competition that allowing acquisitions to enable Microsoft to challenge some of that strength from new angles - especially when it truly has MINIMAL impact on the PlayStation business and almost zero impact on PS players? I'm not so sure.

I really never understood the whole "behavioral remedies are hard to enforce" thing, basically dismissing all contracts ever.
It makes sense if the person enforcing it isn't one of the self-interested parties, but a 3rd party government regulator without much cash. Or if you believe, like some regulators, that contracts are worthless and unenforceable at some fundamental level XD

But yea, MS offering to pay for it all kinda throws a lot of that out the window.

As a publisher of console games, Microsoft/Bethesda/Activision would be larger than Sony Interactive Entertainment in terms of marketshare (Activision is larger than Sony currently). If you combined Sony and Take Two, it's probably pretty close.
But also, it's a non-issue which is why every regulator so far has thrown that aspect out immediately. There's no credible competition concern in that realm.

From an ideal competition/antitrust aspect, I think this acquisition should be denied - and indeed I think nearly all acquisitions should be denied apart from distressed assets. That includes individual studios as much as publishers (which are ultimately just collections of studios). I also think you could argue that contractually enforced exclusives and first-party studios should be illegal in general, since they create massive competitive and financial barriers to entry for new prospective console platforms.

If we are talking about maximum choice and competition for consumer benefit, let's get real. Let consoles compete on their feature sets, interface, specs, form factor, price etc. And let all games compete on their own terms. A new console only has to compete as a console, and not against a multimedia empire of existing exclusive franchises and studios that are OWNED by the existing platforms. That's true competition, though of course regulators would never in a million years do any of this. As it stands it's virtually impossible for anyone new to compete in the console space, except perhaps another megacorp.

Break up these corporations into their constituent divisions too, it should go without saying.
I don't agree with this unless we go all the way with it. It's interesting that I often get push back for suggesting that all console exclusives should be killed, but you're going further even than I am haha. Sounds like you want consoles to be more like PC hardware, basically. They all run the same OS (mostly), but you choose what parts and features you want to provide/run that common layer. If that's what happens, I'm personally all for it. We're certainly closer to this than we were in the past. We'll have to see if that's where the market continues to go. After all, PC hardware/software may be starting to get a little weird itself. Who knows lol.
 

Scottoest

Member
Feb 4, 2020
11,357
I see this alot here, , people having no interest in Activision. But Microsoft isn't trying to cater to the people's taste on this forum. The games they want to put out will cater to the people who don't visit forums.

Activision has a lot of "this is the only game I play year in and year out" for alot of their ip's

Oh I know why they are going after ABK, which is why I put it in the personal opinion section of my post. For me personally, I don't give a shit about CoD. For the price they're paying for ABK, 70% of which is probably due to the collective CoD factory, they could've acquired about a dozen other more interesting studios - or co-funded a hundred interesting third-party games, or probably cured cancer and the common cold.
 
Sep 13, 2022
6,582
Feature and content parity still means we keep dual sense features right?
Dual sense doesn't impact the game, I turned it off because it impacts my gameplay. But if Microsoft were to win I doubt they would for example turn off gyro controls because it's already there. (it is there right? I don't use gyro but I think it's there)

Gyro is just one big money grab Microsoft could capitalize on if they were smart. But yeah I don't see Microsoft removing haptic feedback, it's already part of the game and Microsoft's own fault it's not there on their system.
 

LilScooby77

Member
Dec 11, 2019
11,112
Dual sense doesn't impact the game, I turned it off because it impacts my gameplay. But if Microsoft were to win I doubt they would for example turn off gyro controls because it's already there. (it is there right? I don't use gyro but I think it's there)

Gyro is just one big money grab Microsoft could capitalize on if they were smart. But yeah I don't see Microsoft removing haptic feedback, it's already part of the game and Microsoft's own fault it's not there on their system.
Yeah COD isn't as exciting as Destiny/doom for me so haptic feedback keeps me engaged so I don't fall asleep playing a match.
 

UraMallas

Member
Nov 1, 2017
18,926
United States
It would probably have to be hashed out, but I would assume 'parity' would mean they keep things like gyro and haptic feedback in the Playstation versions. Because the problem is Xbox doesn't have that tech, not that Sony does.