I can see that you’re pretty well informed, but I think you’ve missed the point in a number of places here - the FTC would almost certainly have to approve a purchase of Warner Bros Games by Microsoft, something they’d be practically certain to not do if they are still contesting the previous purchase of a video game publisher.
Next, Sony wouldn’t be buying Warner Bros, the movie part, in this made up situation, it’d be the games bit. So, it wouldn’t be so difficult to get over the line, imo. Sony being market leader in games would of course bring challenges, I could imagine Microsoft wanting to register their opposition to the deal, much as Sony did when Microsoft bought Activision, but I think the argument would be much less strong. Whatever the case, this would not be movie news - buying the games company wouldn’t give them the rights to make films about the characters.
If Xbox ever expands to Asia they should get neowiz. They need some souls games and lies of P was amazing and my goty. On par with from games imo. Even better in some ways
Considering that so much of these actions, from downsizing and reducing costs (layoffs) and acquisitions are done to make shareholders happy, I don’t see any reason why they wouldn’t do it now.
Getting rid of $200 million in salaries makes shareholders happy, but so does making moves that make the company more valuable.
Say they acquire a Japanese publisher in the next few months, that clearly makes Xbox more capable in Japan, makes Game Pass (something that has stagnated) far more enticing and valuable, and makes Xbox more competitive against Sony and Nintendo, both Japanese companies.
Plus, you’re bringing in all of that company’s revenue. If they’re profitable and had some downsizing of their own then it’s not considered a problem.
Some acquisitions could bear skepticism, for sure, but if MS acquires “Sonic the Hedgehog” I’d gather shareholders would be pretty happy.
I do wonder if any of the big Japanese publishers (Sega, Square, Capcom, Konami, Koei & Bamco etc) would actually move the needle for Xbox in Japan.
At this rate they are so far behind they would likely need two (which I can’t see happening). They might be safer to continue investing in western studios & publishers.
They are definitely so far back that it’s a mountain to climb, but I do have to say that with localization and generally being out of touch with that market, they need to try something and this is one (pricey) way to try. SEGA has the know-how to sell consoles there, for example. But yeah, agreed that there’s a high chance that it’s too little and too late.
Another consideration is that many of these publishers have worldwide appeal, and not just Japan. So even if it didn’t help Xbox make inroads there, it could be a big move for other markets. FromSoft isn’t for sale so I’m not suggesting that but it’s a good example of a Japanese company that makes games for all markets and it’s highly successful everywhere. I think most of the big publishers have some sort of international appeal (to varying degrees).
I also wonder if shareholders have that level of education to understand the drawbacks of such a purchase. You’re more educated on the gaming industry than 99% of shareholders honestly and to them it’s all about hype. Like when Zynga went public, we all knew it wasn’t a good long term investment but we also knew that the hype around it would cause the stock to climb in that first week lol
Anyways, back to your point, a Western publisher could also cause that hype as well. If it’s safer for the Xbox business and convinces shareholders that it’ll increase the value of MS, no one really cares about the chill market (unless it looks really bad in a few months).
Capcom would be a fantastic acquisition but you’re right.
Out of the Japanese publishers Capcom and Namco Bandai are probably two of the safer ones right now. It’s not to say Microsoft couldn’t still offer them a ridiculously good offer (but unlikely).
If anything Square or Sega look more likely right now.
I think if now were a good time to acquire we’d see the companies capable of acquiring do so, but instead they are all doing layoffs. I think we probably just don’t understand the economics of this stuff enough.
Oh I dont think that when they buy them back they will be doing it to build them up… Theyll want them for being a small team.
With the size toys 4 bob is now they would have to build that studio up… with them being independent the studio can learn to function in its own way… If its a team that is well managed and puts out games good games theyll buy them back.
MS does not want to start its own teams… weve heard of the issues with how the initiative started and how alot of upper xbox crew mention its very hard for MS to get a team together and gel.
So it makes sense to cut a studio loose to try and grow.
They sign deals with them to make games and dont have to do corporate bets on how to build up the studio. IF the studio doesnt do well… Well they didn’t spend the money and effort building the studio back up.
I personally thought Tomb Raider was a valuable IP but both CD & Eidos and all their other IP (Kain, Deus Ex & Thief) all went to Embracer for only 300 million.