Just wanted to throw my two cents on this whole acquisition topic.
I think MS will eventually buy a new studio, but I don’t expect anything to happen this year. And no, the deal probably won’t be leaked.
The most important question is not if MS wants to buy a studio, but rather if the studio has a reason to sell. Particularly to MS over others like Tencent and Embracer.
My pick would still be Asobo, because Sagard has bought multiple stakes and also sold them if the company has been acquired (thus making them profit from their investments).
I expect this to happen to Asobo as well, although not any time soon.
Turning down MS will require serious questions to be answered from your own shareholders - even if you are a privately held developer. You don’t walk away from a trillion dollar company - like many fanbois on the internet seem to think. And whether you like Xbox or not as a dev – is not an issue for Xbox.
An MS standing outside your door for an acquisition is headline news straightaway, and MS does not mess around, and if they sniff that you are going to do something sneaky they will walk away.
Despite the popular gaming media thinking it is a 4 way street, it is actually MS and the rest like Tencent, Embracer and Sony. Only MS has the deep pockets compared to the other four.
They are looking to fill in holes, but they keep an eye for unique talent, all the while working out if there is an angle for one of the big fish.
Asobo, Oxide Games, IOI, Avalanche Studios Group etc all seem to have a partnership with Xbox and are always worth keeping an eye on.
IMO it’s about how much premium Microsoft is willing to pay, imagine that you can afford a XSX from a scalper for 750 dollars, but you won’t pay because you know it’s not worth that. It seems that Embracer and Tencent overpay in their intention to expand ASAP as they are complete newbies in the market, Microsoft is a veteran and have influence and tact to get expansions at the right price.
Just because you have money, doesn’t mean you have to pay what’s beyond its value.
True. But in the case of acquisitions, usually, the presence of MS would mean that you are dealing in an inflated perceived marketvalue. That is the nature of the beast as you know you are dealing with a wealthy investor.
The side effect is that collectively all 4 of them along with EA and Netease have increased the perceived current value of all the studios around the world.
Under different management I think that’d be a different, otherwise I tend to agree.
The extra outside of gaming stuff they do too probably doesn’t help. If they could just purchase the Square Enix Co, Ltd sector I could see Microsoft at least looking into it.
At that point though, that seems unlikely and I’d still argue SEGA/Capcom would make more sense.
I think it would be extremely difficult, moreover the money they would ask I assure you will be overpaying hugely for what you’d get. Square West on the contrary is essentially the ex-Eidos and I doubt they would ask an absurd sum.of money considering how badly they are managing it.
Yeah but not everyone is willing to sell. If Square Enix is willing to sell, you take them. Become the home to FF and DQ and you see an immediate shift. You get not only Square Enix, but the movement of Square Enix loving gamers means that other Japanese developers can’t afford to skip Xbox.
Despite how people feel about their output, a Square Enix purchase fixes the entire Japanese game problem in a way that Capcom and Sega won’t.
The thing is I dont think Square Enix Japanese will ever sell. Square Enix is a multinational corporation and they make big money aside from their games which they own and do stuff in other media with.
How so? SE and Microsoft doesn’t seem in good terms, Microsoft simply wanted companies multiplatforming as anyone expect, not having to pay for these ports even if the western market alone would be profitable for the Xbox version. SE wants money and Microsoft won’t cave to their demands because it would be the natural behaviour to have Xbox version day and date for a huge company, they just leased Crystal Dynamics because its close to The Initiative and its where Darrel Gallagher came from. It’s easier to Microsoft just buy out SE Europe and SE Japan keeps denying ports nonethless.
Again, companies tend to do acquisition with developers they are close, Square Enix considering all the current stuff has made a huge step back in any priority line, bussiness is business, but partnership matters when it comes to acquire.