This is a good read for those interested.
Still think it would be a smart idea for Xbox to put together a proposal for the THQ label and 10 studios. They clearly can get what they want for a great price and the drop of games for game pass would be significant. My top 10 as follows.
Crystal Dynamics
Eidos Montreal
Gearbox
Gunfire games
Milestone
Flying Wild hog
Tripwire
Dambuster
Black Forest Games
Lamplight studios
It makes me wonder what Embracer will be holding on to after all is done.
I can’t remember their exact words but they said something along the lines of they would be divesting but keeping hold of key studios. Most of their revenue was actually coming from Saber which is now gone, followed by Gearbox (which is rumoured to be going) so what are they actually planning?
I definitely think Crystal Dynamics, Eidos Montréal, Gunfire games and Flying Wild Hog could flourish under Xbox. Potentially Gearbox too if they can sort out the IP rights. The others might be a bit of a gamble if I’m honest. Milestone could be pretty interesting as they could rebrand MotoGP to Forza MotoGP.
Honestly, I’ve become against new acquisitions, it does not seem to me Xbox executed properly the merging in some cases, I’d wait at least a couple of years after ABK official closing (oct. '23).
ABK has tipped the scale for me, it brought only issues for Xbox as of now (perception and strategy drastically shifted and not for the best for Xbox consoles I’d say).
Maybe some studios with games you can keep for the platform (I know it’s almost offensive nowadays) and at the same time a real chance to be a big win and that’s difficult to find.
I remember saying at the time that I would have preferred they went after individual studios, I understand from a business perspective why they would go after ABK as it’s cemented them as a gaming giant just I selfishly would have preferred other studios/IP’s.
A selection of the following would have been far more interesting (to me):
That or some of the smaller publishers (Focus, SEGA & Team17 etc).
The results would be the same regardless of who they went for. The situation is like getting a phone that takes an hour to charge, simply changing owners doesn’t change the charge time. All the studios that Xbox are amassing have an addressable market that the business operated on. If Obsidian needed to have 10 million software sold at 60 bucks a year to remain as a business that money would still be needed even under Xbox. Game Pass is the business model Xbox has chosen to fund their business and to maintain this acquisitions the subs will have to grow.
While the studios you list are interesting, they were not accelerants to their vision. Also, of all those studios I think Crytek would have been the only one considered.
I see where your coming from and to use your analogy I suspect ABK will charge their phone much quicker, especially with COD & King. I really do understand the logic behind ABK from a business perspective.
Many of the studios I have listed would take them much longer to ‘charge’ their phone, however the experiences they would provide (me) once the phone is ‘charged’ would be more enjoyable (again my personal preference) 
.
Phil is cooking
https://twitter.com/GearboxOfficial/status/1770865538949911025
I totally see your perspective and I’m actually more keen on Microsoft acquiring SEGA in a non-controversial fashion because MS have made games multi-platform.
Where the Yakuza series, Atlus games, and such could be multiplatform and it would seem pretty natural. But the next Sonic games could Xbox exclusive. Where there is more funding towards experimental titles that could recoup costs through multiplatform availability. And with 100% of titles available on Gamepass.
Gearbox sold to Take Two
March 28 (Reuters) - U.S. video game publisher Take-Two Interactive Software (TTWO.O) said on Wednesday it would acquire Gearbox Entertainment, best known for the first-person shooter game Borderlands, from Sweden’s Embracer (EMBRACb.ST) for $460 million.
The Swedish group is selling the game developer for a steep discount, having bought it in a deal that valued the business at up to $1.4 billion in 2021.
In a separate statement, Embracer said the deal with Take-Two would cut its net debt by about 3.2 billion crowns to 3.5 billion crowns and that it expected the transaction to be immediately accretive to its free cash flow generation.
Embracer, the owner of the Tomb Raider video game franchise, has been carrying out a restructuring programme since last year, aiming to cut debt. However, it said last month that it may fall short of its March net debt target of 8 billion Swedish crowns ($753.22 million).
Gearbox will operate as a studio within 2K, a publishing label owned by Take-Two, and will be led by founder and CEO Randy Pitchford, Take-Two added.
Reuters reported last year, citing people familiar with the matter, that Embracer had been considering options for Gearbox Entertainment as it looked to shore up its finances.
The Swedish company suffered a setback in May last year when a $2 billion partnership deal with an undisclosed company fell through, which led it to announce a major restructuring plan in June.
Sega has sold Relic Entertainment, and will cut 240 roles across Sega Europe, Creative Assembly and Sega HARDlight
Relic is best known for the Company of Heroes and Dawn of War games, and recently developed the new Age of Empires for Microsoft. Relic will transition to an independent studio and will no-longer be part of the Sega group of studios.
The majority of the 240 job cuts are across Creative Assembly and Sega Europe, while there will be a ‘small number’ cut from Sega HARDLight. There was no mention of other Sega UK studios, including Two Point Studios and Sports Interactive.
This is the more surprising news if I’m honest.
I always thought Relic and Creative would be standout assets for someone like Xbox with Age of Empires and Ara etc.
I wonder if TakeTwo also acquired Relic? As part of the Gearbox deal they also acquired Homeworld (which Relic used to work on).
EDIT: It seems they’ve brought their independence:
https://twitter.com/relicgames/status/1773244490171458017?t=RCTtuY8Odu4yXjL3qMqS-g&s=19
Seems the heat is on. Phil Spencer says the industry is projected to shrink further next year. This Sega move has a similar energy to square Enix selling their western studios. Sega definitely looking more like an acquisition target.
So Take Two buys Gearbox and Relic becomes independent. Wow, what a week! I’m surprised and disappointed for Relic (and the layoffs). This is a big loss for SEGA. Take Two becomes a much more attractive target now that they own Gearbox, but I doubt regulators will allow the acquisition by Microsoft. I’m curious who is going to get EIDOS and Crystal Dynamics. I have a feeling we’re going to be disappointed once again…
I think MS isnt acquiring small studios anymore because with the new strategry MS can buy another pub with valuable IP like Sega, Capcom or Square.
Yes I agree, even if I think that certain studios with a big IP and good profitability are still possible. The multiplatform releases and the new hardware strategy could help them acquire another publisher, but I think regulators will always be a barrier to big acquisitions. If regulators did not exist, Take Two and EA would obviously be the next acquisitions. Microsoft has a long-term strategy, so it is obvious that they will focus on profit and growth even if it means making some sacrifices. The industry is changing so quickly, I’m really curious to know what’s next.
They’ll be bargain prices too.
I’m not convinced they are even considering additional acquisitions any time soon at this point. I think they’ll need to see how their strategies pan out.
Yeah I have come to accept that they likely won’t target any individual studios that ‘we’ as gamers will want going forward.
It will likely be publishers with the most monthly active users so they can expand rapidly, the moves they are making might even allow them to go after another big publisher.
As much as I love both Eidos and Crystal Dynamics their games don’t attract gamers month to month. They are typically big budget one and done type games, as amazing as they are.
Iet’s see if they can grow Rovio.
Yes, I think studios like Asobo and Certain Affinity will unfortunately never be part of Xbox. As you say, they will most likely focus on active user numbers and annual profits, but they will still have to deal with regulators. Microsoft Gaming has become an important part of Microsoft and I expect them to make more big acquisitions to achieve their goal of becoming the largest publisher in the industry.