The Risks of Big Gaming Acquisitions [Gameindustry.biz]

Gizmo_Duck

blathering blatherskite!
Joined
Aug 15, 2018
Messages
28,093
Reputation
1,370
Daps
50,757
This is a good article and why I think sony won’t rush into buying any publishers.

Buying Activision Blizzard is the industry's biggest gamble | Opinion


9-A6-D26-F4-B241-471-B-B90-E-98-DEAEFF5-D1-A.jpg


The price tag is only one facet of the scale of the deal, though; Activision Blizzard is also a huge company in other respects, with roughly 10,000 employees and a large number of internal studios, several of which would be pretty decently-sized companies in their own right.

The scale and complexity of what's being attempted with this acquisition -- with the full complexity only really starting at the point where the deal itself closes -- makes it into a genuinely risky proposition. There's an obvious temptation to read it as a major competitive broadside aimed at Sony and thus to present the deal as a huge coup for Microsoft, but that obscures just how difficult the task ahead for Microsoft actually is, and the many ways in which an acquisition like this can actually fail, ultimately delivering far less value than the acquiring company was hoping for.

Why Microsoft needs to be careful:
In truth, mergers and acquisitions fail to deliver real value all the time; we need look no further than close-to-home examples, like EA's various studio acquisitions or Microsoft's own expensive buyout of Rare, for instances where acquisitions ultimately underdelivered on expectations.
Such failures can be due to a cultural mismatch, poor management of the merger, badly calibrated expectations on either side, or a host of other reasons ranging from internal politics to simple bad timing.

Microsoft is still in the process of really trying to get its first-party game studios off the ground, so it's not like there's a well-established studio system and product pipeline that Activision Blizzard's various studios can be integrated with. And Microsoft is still in a process of integrating its last major gaming acquisition, Bethesda, which remains in the "hugely promising" pile regarding its contribution to the Xbox platform and is unlikely to actually start delivering major first-party titles for quite some time.

Why Sony won't be rushing to respond:
Sony will be perturbed by this deal, but also keenly aware of the complexity of what Microsoft is undertaking and the risks involved, and thus wary of making any rushed or panicked moves in response.
Sony is a little less vulnerable to a rival buying up third-party publishers than it used to be. Microsoft buying Activision a couple of console generations ago would have been a devastating blow to PlayStation, but all Sony's work on building up its first-party exclusives now cushions that blow significantly.
 

PS5

Wiz a 1/2 seed right now ya dig Tekashi1223
Joined
Feb 28, 2013
Messages
29,547
Reputation
-10,650
Daps
20,546
Reppin
The Original Rec Room Gang
This is a good article and why I think sony won’t rush into buying any publishers.

Buying Activision Blizzard is the industry's biggest gamble | Opinion


9-A6-D26-F4-B241-471-B-B90-E-98-DEAEFF5-D1-A.jpg






Why Microsoft needs to be careful:
Because they spent 70 billion, and who’s to say everyone won’t leave call of duty next year? All those ips might flop and they wouldn’t miss the money. But they should be mindful :whoa:




Why Sony won't be rushing to respond:
They too broke to play that game so with their stock dropping a whopping 20 billion in a day, and Sony did respond, immediately, Lying to everyone about details of a deal that has nothing to do with them :mjlol: But hey,, they can buy companies like marketsquare or whatever they’re called. First party game sold 500k I hear :patrice: Sony actually paid to create that smash hit :bryan:

Poor man’s Gamepass will feature old games, I for one believe in generations so you can miss me with that bulshyt lotto :win:
I agree :handshake:
 

-DMP-

The Prince of All Posters
Joined
Apr 30, 2012
Messages
28,173
Reputation
7,370
Daps
82,707
Reppin
LWO/Brady Bunch/#Midnightboyz
What’s really the risk to msft tho.

At worst, game streaming/game pass doesn’t take off like Netflix and the juice not being worth the squeeze for Nadala and Phil

Only acquisition I could think of, for msft, that went flat out wrong was Nokia.

Skype and rare have just been mediocre but serviceable.

playground games have been good and consistent.

343 is turning it around it seems.

I don’t really know enough about the others : yeshrug:
 

iceberg_is_on_fire

Who the hell knows what is happening in Allen Park
Joined
Jun 11, 2012
Messages
18,514
Reputation
4,050
Daps
49,267
Reppin
Done eating kneecaps, we need Ws now
What’s really the risk to msft tho.

At worst, game streaming/game pass doesn’t take off like Netflix and the juice not being worth the squeeze for Nadala and Phil

Only acquisition I could think of, for msft, that went flat out wrong was Nokia.

Skype and rare have just been mediocre but serviceable.

playground games have been good and consistent.

343 is turning it around it seems.

I don’t really know enough about the others : yeshrug:

This article is a bunch of Juelzing, that's why. The company 25x bigger woke up and started acting like the 25x bigger company and nikkas are losing their minds.
 
Joined
Aug 27, 2014
Messages
16,195
Reputation
-4,290
Daps
68,771
Their first party doesn't sell enough to protect from becoming a third party publisher like Sega in the future. In short, there is only one Nintendo.

The highest selling COD game of all time is black ops with over 30 Million copies sold.

Both Spider-Man and GOW sold over 20 million copies…

why do y’all keep saying Sony first party titles don’t sell enough?
 
Top