Right so you don’t know. They don’t route the bulk of their Uk sales through their Uk limited company for tax reasons. It goes through others including Ireland and other lower tax haven subsidiaries.
I thought you were erroneously trying to use Microsoft UK revenue and clearly you weren’t aware.
This is going back some way but when I worked for a Microsoft partner early two thousands I think it was a third of their revenue was from Uk. Don’t know how that is now but still….
Yeah, but fighting is different than pulling out. Microsoft pulling out of a major market leaves an opening for competitors to grow and become a threat in areas where Microsoft currently has a strong foot hold. It puts their entire business at risk.
I am for some reason is less concerned about this acquisition. FTC reasoning to sue the deal was stupid and if or when the transaction passes FTC won’t be able to sue MSFT anymore - they literally stated that only EA, T2, Ubisoft are the only AAA game publishers. Meaning that outside of those, none is important as they don’t produce AAA games.
No wonder Chinese regulator cares more about EU decision - FTC is useless
Microsoft won’t pull out of a big 5 market because ABK. I think we just need to calm down with these type of takes because would be insane to pull out of a major market like uk. Anyways, we need to wait and see what concessions are and Microsoft will most likely bend the knee unless it involves can’t release games on gamepass
Right. I think that would be absolute last resort beyond every other attempt at remedy. Thats how I meant it way back when I mentioned it during phase 1.
I dont know if other feasible means around this scrutiny would be setting up a new entity that strikes an IP License agreement with COD for 100 years, while MS bring on all the studios. So they dont technically own COD. Really not sure on that, just thinking of crazy things to try.
There is no way that Microsoft pulls out of the UK over gaming.
The argument could be made that Microsoft threatening to pull out of the UK market could put political pressure on the UK to hash something out. Losing access to products and services that UK businesses rely on would be devastating, but you run the risk of the UK being insane and calling your bluff. As much as Microsoft is “all in on gaming”, I doubt they would do so at the detriment of their overall business.
There is a reason why smaller countries like New Zealand are waiting to see what the big three will do. Microsoft could pull out of these countries and it would be a blip on the overall revenue. The same can’t be said for the EU, UK and US.
""MLex emailed the European Commission about the FTC accusation and they provided a very interesting answer:
Microsoft didn’t mislead EU over ZeniMax deal, watchdog says in response to US concerns
Microsoft didn’t make any “commitments” to EU regulators not to release Xbox-exclusive content following its takeover of ZeniMax Media, the European Commission has said.
US enforcers yesterday suggested that the US tech giant had misled the regulator in 2021 and cited that as a reason to challenge its proposed acquisition of Activision Blizzard.
“The commission cleared the Microsoft/ZeniMax transaction unconditionally as it concluded that the transaction would not raise competition concerns,” the EU watchdog said in an emailed statement.
The absence of competition concerns “did not rely on any statements made by Microsoft about the future distribution strategy concerning ZeniMax’s games,” said the commission, which itself has opened an in-depth probe into the Activision Blizzard deal and appears keen to clarify what happened in the previous acquisition.
The EU agency found that even if Microsoft were to restrict access to ZeniMax titles, it wouldn’t have a significant impact on competition because rivals wouldn’t be denied access to an “essential input,” and other consoles would still have a “large array” of attractive content.
Click to shrink…
As I mentioned yesterday, so much focus on the Zenimax case and the exclusivity issues didn’t make any sense.
And the EC is almost accusing the FTC of lying, things could get serious.“”
Divesting the COD IP would never happen, but it would be hilarious if Microsoft somehow worked with a third party like Valve, Embracer or even Nintendo , sells them the IP and signs a development deal to produce the next ‘X’ amount of Call of Duty titles in exchange for Game Pass/mobile rights.
Microsoft retains the Activision developers, reaps the benefits of Game Pass/mobile, while Valve/Nintendo reap the profits from their own platform plus PlayStation (assuming of course they would want to continue releasing on said platform .
edit: NPD is out and Xbox is 3rd in sales and revenue in the US, such a monopoly. Not a single AAA Microsoft title in the top 20 sales, Sony has 3, Nintendo has 5 and Activision 1. All this is for November.