Biggzy
(Hassan )
January 22, 2022, 2:14pm
22
profjjj:
… no anti-trust system anywhere that would continue to allow Tencent and Sony to make acquisitions while denying Microsoft that ability. For example, if a bidding war broke out over Take-Two, regulators would not allow Playstation to buy it, while simultaneously telling Microsoft, “No, you just got Activision.”
Why would regulators allow the #1 or #2 companies in a fragmented market to continue to acquire, while denying that ability to the #3 firm? Short answer - they wouldn’t.
If Microsoft stops acquiring it will more likely be due to concerns about PR and partner relationships, not regulators.
That’s what I think anyway.
BTW, the dollar amounts and market shares I provided above are not precise because they come from slightly different points in time due to differences in fiscal years, etc.
If you just look at the deal at face value there is no resonable basis to deny the acquisition. As you say, Microsoft would nowhere near holding a monopolistic position, or even threaten one with the deal, plus the videogame industry is still far less consolidated than other forms of media and is still rapidly growing.
The only way the deal is denied is due to regulators being fearful of big-tech and really broadening the criteria they are looking at, although I think this would leave the decision on far more shaky legal ground. It would also signal that regulators might as well just break up the big tech companies because clearly they think they are already too big. Microsoft buying Activision is hardly the crossing of the Rubicon as to when you decide they are too big.
7 Likes
Sikamikanico:
I changed the OT name.
We heard rumors of an Avalanche…… instead we got a Blizzard….
23 Likes
profjjj:
… no anti-trust system anywhere that would continue to allow Tencent and Sony to make acquisitions while denying Microsoft that ability. For example, if a bidding war broke out over Take-Two, regulators would not allow Playstation to buy it, while simultaneously telling Microsoft, “No, you just got Activision.”
Why would regulators allow the #1 or #2 companies in a fragmented market to continue to acquire, while denying that ability to the #3 firm? Short answer - they wouldn’t.
If Microsoft stops acquiring it will more likely be due to concerns about PR and partner relationships, not regulators.
That’s what I think anyway.
BTW, the dollar amounts and market shares I provided above are not precise because they come from slightly different points in time due to differences in fiscal years, etc.
Hammer meet nail, the rest of the “noise” online by the emotional gamers and “journalists” is just hilarious when you consider the actual facts here. And any additional acquisition moves by Tencent or Sony prior to this deal with Activision Blizzard closing only strengthens all of this of course.
12 Likes
profjjj:
… no anti-trust system anywhere that would continue to allow Tencent and Sony to make acquisitions while denying Microsoft that ability. For example, if a bidding war broke out over Take-Two, regulators would not allow Playstation to buy it, while simultaneously telling Microsoft, “No, you just got Activision.”
Why would regulators allow the #1 or #2 companies in a fragmented market to continue to acquire, while denying that ability to the #3 firm? Short answer - they wouldn’t.
If Microsoft stops acquiring it will more likely be due to concerns about PR and partner relationships, not regulators.
That’s what I think anyway.
BTW, the dollar amounts and market shares I provided above are not precise because they come from slightly different points in time due to differences in fiscal years, etc.
Always a joy to read your take on things. Thanks for sharing.
3 Likes
Xbox has been very quiet. Wonder when they’ll buy something.
17 Likes
Ha, love the title. It’s perfect.
3 Likes
Anyone else hoping take two is outbid by Facebook for Zynga? Would help tank their share price😂
Mort
January 22, 2022, 2:45pm
32
Satya would swoop in like a hawk.
10 Likes
Knottian
(Daniel)
January 22, 2022, 3:01pm
36
profjjj:
… no anti-trust system anywhere that would continue to allow Tencent and Sony to make acquisitions while denying Microsoft that ability. For example, if a bidding war broke out over Take-Two, regulators would not allow Playstation to buy it, while simultaneously telling Microsoft, “No, you just got Activision.”
Why would regulators allow the #1 or #2 companies in a fragmented market to continue to acquire, while denying that ability to the #3 firm? Short answer - they wouldn’t.
If Microsoft stops acquiring it will more likely be due to concerns about PR and partner relationships, not regulators.
That’s what I think anyway.
BTW, the dollar amounts and market shares I provided above are not precise because they come from slightly different points in time due to differences in fiscal years, etc.
Always appreciate the well-articulated thoughts by our local professor
ProgStopper:
No Prog, we’re not
And I changed the title to something a little more appropriate, given you bastards’ insatiable appetites
3 Likes
Paxton
January 22, 2022, 3:04pm
38
Bring the regulators over how Sony was under pricing the PS1 and PS2, selling at loss rather than at even or profit day one like videogame only companies used to do, as they was using their multibillion multi segment power to be able to afford losses. That screwed Sega and Nintendo but who cares?
1 Like
pg2g
January 22, 2022, 3:04pm
39
It’s pretty crazy that even after buying Activision, MS will still be #3 in gaming revenue. That gap was huge.
javycane
(Javier Ruiz)
January 22, 2022, 3:05pm
40
So they run the worst Monopoly ever? Damn
10 Likes