Read Klobs comments. Nothing on that scale will happen
I think xbox will monitor certain studios and make decisions based on how the market dictates it but I think most of the focus will finally be on supporting these teams to get games out.
Personally If I were to acquire a publisher to fill a gap on xbox’s aspirations Id go for Paradox but that’s just me.
You couple all that with Nadella and Spencer saying that acquisitions are not stopping ( not taking any insiders into account, just true statements from high-profile people at Microsoft ), and I don’t know why people could be saying acquisitions are stopping. They are not. When is going to be the next one ? Don’t know, maybe this year, maybe next, acquisitions are hard to predict and not an exact science.
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You take Klobrilles word over Phil and Satyas?
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Satya refers to the whole of MS when he says they will be acquiring. Discord falls under Satya Nadellas vision etc. Expecting more publishers to be bought is unwise
My dude the satya nadella interview back when they announced the bethesda acquisition was specifically about gaming.
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i’m not expecting another big publisher unless they really really needs publisher IPs for xbox vision or they come for MS for acquisition talk.
So, are you saying MS Is actually talking with other studios?
Out of curiosity, why are you so adamant that they won’t buy on that scale again? I’ll admit the Bethesda situation was a very unique opportunity with how they were structured, their relationship and the fact they were private. But if they are serious about Xcloud in certain markets like Japan and reaching customers beyond their core console demographic then they are going to need significantly more games that cater to those audiences on Game Pass. They can certainly go the third party licensing route to start out, but eventually it will make far more sense to have first party capability to cater to those customers.
PS. Satya Nadella was clearly asked about video game acquisitions specifically in an interview and said they would consider more in the future. But more importantly Phil Spencer has literally said he wants to expand their first party capabilities beyond what they currently have.
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Though I think Microsoft doesn’t need more studios. I think that if they do go after more than they shoudnt look at teams that don’t have the potential to make GOTY level games. I see a lot of people throw around studios that only make ok games. I don’t think Xbox should acquire studios and hope their games become good. Ya Xbox will give them more time and resources but that’s not turning ok studios compulsion or undead labs into naughty dog or playground. I think only really good games will push subscriber growth for gamepass, so the focus should be studios that make great games.
IOI interactive, larian, bungie, Playdead, moon studios. Teams of this caliber, what’s the point otherwise.
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I think people need to realize that negotiations are always in flux and even Klob would admit to people he doesn’t know everything. I mean, no one saw Bethesda coming at all, that was done so secretly. We’ve also been told that publishers and developers have been pitching to MS on acquisitions as well. But this stuff is all handled at the top level that only a few execs would know it’s going on and eventually it could get to the press like the Discord negotiations. And will surface again if there is a credible bid for a publicly traded company.
Sega will always be associated with a buyout because MS have tried before and got close back when they were getting into the industry. That rumor will run longer than the wait for a new Shenmue game.
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Not going to pretend to be an insider but Satya is the one proclaiming studio purchases and IP. Nobody can be sure the exact scale because talks don’t equal deals. It takes two and if nothing is agreed upon, it means there’s nothing to hold your breaths about. Here’s the things to consider when thinking about scale:
- Microsoft’s cash on hand is near $140 billion. This is not a good market to keep your capital. They are looking to invest through acquisitions.
- Gaming is a safe investment. Not only because of their current strategies but also because the market is expected to grow considerably in the next five to ten years.
- Gaming is in an extremely aggressive growth phase. They are not slowly building. They cannot build their studios quickly one by one. Publishers or large developers who don’t need hand holding are the logical option.
- Nadella said they need IP. Do you think he’s talking mid level IP? There’s no reason to believe that. IP that moves the needle will cost a lot of money and is generally held by publishers.
- Discords primary value is with gaming. Yes it extends beyond that however that’s the primary foundation. The user base is why it’s worth so much. They reached out to Spencer.
The short of it is nobody should be surprised if they’re talking to multiple publishers. When or if something hits is never a sure thing. It’s pretty safe to assume they’re talking and trying to make deals though.
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Just to add on to your post. Microsoft has cash on hand on offshore accounts that they cannot bring back into the US or else it would be taxed. It will only sit there unable to be used except for acquisitions. When Microsoft acquired Minecraft/Mojang, a lot of business papers reported it as an absolute steal because MS essentially got a “Free deal” by using their off shore accounts to pay $2.5 billion for it.
If they have a lot of offshore cash that’s just sitting there. And especially in current market conditions. They will start looking to use it and acquiring game dev/publishers is an ideal way to use cash that would otherwise just sit unused and lose value over time.
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Looking forward to seeing whatever you’re hinting at come to fruition…the wait is tough, though!
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However things eventually work out, it certainly seems like Microsoft is at least trying to make acquisitions in Japan. Besides Phil Spencer stating that Tango Gameworks was a great step to having a larger presence in Japan, there was also the Bloomberg article back in November (posted before in this thread):
where it sounds like they’re trying for both collaborations and acquisitions which would make sense:
“The U.S. company has been stepping up discussions with Japan-based game developers about releasing titles on the Xbox, said Sarah Bond” and “Koei Tecmo Games Co. is one of those firms. Hisashi Koinuma, president of the Japanese publisher, said he’s willing to consider releasing more games for the Xbox if the U.S. company shows continued interest in Japan.”
“On top of that, there’s evidence Microsoft is seeking to make acquisitions in the country, though it hasn’t yet landed a deal with a big name there. Several Japan-based game developers, from small to big, said it had approached them about buying their businesses.”
It’s of course a question of finding a studio/publisher that fits and is willing to sell at the right price etc. Probably something will fall into place at some point.
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Acquisitions will be happen and soon. MS should be fast as it needs to secure as many IPs as possible.
But the current number of studios they have doesn’t seem like enough though. Netflix released 371 original TV shows/movies in 2019. And I know its an apples to oranges comparison.
But there has to be a number that MS is looking at in terms of original content. Maybe 52 original games per year or 1 game a week? Maybe 35-40 games a year? and those games need to be in various genres to cater to all different gaming preferences.
By acquiring a publisher like WB games for example you fill in that original content gap that is needed to keep people subscribed. I signed up for CBS all access and after I was done watching all the shows I wanted I dropped it. MS has to keep people engaged and you need more studios for that to happen.
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I - for one - expect publisher purchase. Not only because their price increase due to the growth of gaming - but because they need to prevent Sony’s money hats and they need to get IPs. I mean Disney purchased Pixar, Lucasfilms, Fox and got huge chest of IPs that led to success of Disney+. MS needs more IPs, needs more studios. And on the market - it is one of not many companies that can pull it off.
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I think they won’t purchase WB. Looking at recent AT&T executive comments (or whoever it was) who said that they were looking to more tight coupling between their gaming and movie division I think they will try to go Sony’s way with movie IPs used for gaming and gaming IPs used for movies. I mean even Disney made Lucasfilm Games or something.
ahhh Netflix funded a lot of shows made by external studios
while they do have studios but it’s not enough to release 371 content a year
while i understand MS need more studios. but Publisher acquisitions is not easy, who says they want MS ? while money is main reason for selling company there is other factors play in
that why i’m not expecting another publishers anytime soon unless Phil really needs publisher IPs or Publishers want to sell to MS