If M$ bought out Activision, would it be game over for Sony?

Wrong.

Nintendo survived without 3rd parties, Sony has both 1st and 3rd... Plus Sony doesn't really need COD to be successful althou there are rumors about Diablo3 comming to consoles which could save Acti after COD dries a bit.

Anyways why would MS buy Acti? They only care about kinect anyways.

Elitro

No one in their right business mind would complete one of these transactions.

The current value of a multiplat company is based upon their multiplat status. In other words, the value of the shares is directly tied to expectations of selling software on multiple platforms.

On top of that, you have to pay a premium to buy a controlling interest in a buyout.

So youpay full fair market value + a premium. Then you become an exclusive company and destroy half or more of your invested value overnight. Worse still, you get to pay even more in severance and wind down costs to get rid of all the additional multiplat staff you no longer need. Those staff you just turfed are then going to go to the competitors or start their own company.

Either way, the software competition is going to launch new IPs to compete with the ones you just bought. They are going to sell those IPs to your console competitors to replace the ones they no longer have on their system. This is because the people who own your competitors console are not going to suddenly not like sports games (say you buy EA sports). Someone else is just going to make a new sports game...likely with your ownex-employees :lol:

Awesomely dumb move. You can never possibly sell enough hardware units to make up for the all the software units that you can no longer sell on other platforms. Might as well burn buckets full of money in the parking lot.

The reason MS, Sony or N don't buy these large 3rd party multiplat companies is because the first CEO that seriously proposes such an act would be fired.

Actually that'd give Sony the chance to become the new Nintendo.

they are trying to distint themselves away from activision....thats why they are already putting in tons for homefront 2

No one in their right business mind would complete one of these transactions.

The current value of a multiplat company is based upon their multiplat status. In other words, the value of the shares is directly tied to expectations of selling software on multiple platforms.

On top of that, you have to pay a premium to buy a controlling interest in a buyout.

So youpay full fair market value + a premium. Then you become an exclusive company and destroy half or more of your invested value overnight. Worse still, you get to pay even more in severance and wind down costs to get rid of all the additional multiplat staff you no longer need. Those staff you just turfed are then going to go to the competitors or start their own company.

Either way, the software competition is going to launch new IPs to compete with the ones you just bought. They are going to sell those IPs to your console competitors to replace the ones they no longer have on their system. This is because the people who own your competitors console are not going to suddenly not like sports games (say you buy EA sports). Someone else is just going to make a new sports game...likely with your ownex-employees :lol:

Awesomely dumb move. You can never possibly sell enough hardware units to make up for the all the software units that you can no longer sell on other platforms. Might as well burn buckets full of money in the parking lot.

The reason MS, Sony or N don't buy these large 3rd party multiplat companies is because the first CEO that seriously proposes such an act would be fired.

SUD123456

You're forgetting something. If MS buys Activision and Take Two for example, they would OBLITERATE the competition. They would have so many exclusives that next gen Xbox 720 would sell over 100 million units vs the 50+ million they've sold this year. Sony on the other hand would be done as a hardware company.

This would give MS the hardcore market to themselves. Who cares if Call fo Duty or Grand Theft Auto is not multiplat when the Xbox 720 has 90% market share?

Why is it assumed that if MS did make the investment they wouldn't continue normal operations and release games for Sony under Activision?:?

I'm sure Kotick doesen't want to be bought out, he would be pissed and he couldn't milk COD anymore.

[QUOTE="SUD123456"]

No one in their right business mind would complete one of these transactions.

The current value of a multiplat company is based upon their multiplat status. In other words, the value of the shares is directly tied to expectations of selling software on multiple platforms.

On top of that, you have to pay a premium to buy a controlling interest in a buyout.

So youpay full fair market value + a premium. Then you become an exclusive company and destroy half or more of your invested value overnight. Worse still, you get to pay even more in severance and wind down costs to get rid of all the additional multiplat staff you no longer need. Those staff you just turfed are then going to go to the competitors or start their own company.

Either way, the software competition is going to launch new IPs to compete with the ones you just bought. They are going to sell those IPs to your console competitors to replace the ones they no longer have on their system. This is because the people who own your competitors console are not going to suddenly not like sports games (say you buy EA sports). Someone else is just going to make a new sports game...likely with your ownex-employees :lol:

Awesomely dumb move. You can never possibly sell enough hardware units to make up for the all the software units that you can no longer sell on other platforms. Might as well burn buckets full of money in the parking lot.

The reason MS, Sony or N don't buy these large 3rd party multiplat companies is because the first CEO that seriously proposes such an act would be fired.

Xplode_games

You're forgetting something. If MS buys Activision and Take Two for example, they would OBLITERATE the competition. They would have so many exclusives that next gen Xbox 720 would sell over 100 million units vs the 50+ million they've sold this year. Sony on the other hand would be done as a hardware company.

This would give MS the hardcore market to themselves. Who cares if Call fo Duty or Grand Theft Auto is not multiplat when the Xbox 720 has 90% market share?

Yes, MS buying Activision and Take-Two. Let's say hypothetically, MS was allowed to do so by the US government (which would probably bar MS from doing so due to anti-competitive laws). Activision alone would set MS back $13 billion, not counting premium and goodwill. Then Take-Two I would guess is another $10 billion, again not counting premiums and goodwill. So is blowing Sony out worth the 25+ billion dollars they just invested?

well if MS bought Acti, at least they would get bungie back!slvrraven9

IF they did that than Sony would probably offer EA and outrageous sum of money to buy them, which would be the end for MS since all Activision publishers for consoles in Call of Duty.

Either way that would never happen

BPoole96

can't Mircosoft just outbid Sony for EA as well?

[QUOTE="BPoole96"]

IF they did that than Sony would probably offer EA and outrageous sum of money to buy them, which would be the end for MS since all Activision publishers for consoles in Call of Duty.

Either way that would never happen

AdmiralBison

can't Mircosoft just outbid Sony for EA as well?

If Microsoft goes for both Activision Blizzard and EA, the US government would likely get involved and stop that from happening.

IF they did that than Sony would probably offer EA and outrageous sum of money to buy them, which would be the end for MS since all Activision publishers for consoles in Call of Duty.

Either way that would never happen

BPoole96

[QUOTE="AdmiralBison"]

[QUOTE="BPoole96"]

IF they did that than Sony would probably offer EA and outrageous sum of money to buy them, which would be the end for MS since all Activision publishers for consoles in Call of Duty.

Either way that would never happen

Phoenix534

can't Mircosoft just outbid Sony for EA as well?

If Microsoft goes for both Activision Blizzard and EA, the US government would likely get involved and stop that from happening.

why?

Just lol at this thread in general.

Microsoft just spent ~17% of their cash reserves overpaying for Skype.

It would incredibly stupid for them to spend 20-30% of their remaining cash reserves to purchase a business unit that would see it's revenues halved in becoming a subsidiary, assuming an XBOX console exclusivity.

Just lol at this thread in general.

Microsoft just spent ~17% of their cash reserves overpaying for Skype.

It would incredibly stupid for them to spend 20-30% of their remaining cash reserves to purchase a business unit that would see it's revenues halved in becoming a subsidiary, assuming an XBOX console exclusivity.

shinrabanshou

that's something the business people in Microsoft will have to determine. Not us in SW.

MS should buy Activision and EA. That would be funny day on SW.

jimmypsn

And sony should buy microsoft. That would be even funnier :lol:

[QUOTE="jimmypsn"]

MS should buy Activision and EA. That would be funny day on SW.

el3m2tigre

And sony should buy microsoft. That would be even funnier :lol:

SW would go into meltdown mode.

[QUOTE="Phoenix534"]

[QUOTE="AdmiralBison"]

can't Mircosoft just outbid Sony for EA as well?

AdmiralBison

If Microsoft goes for both Activision Blizzard and EA, the US government would likely get involved and stop that from happening.

why?

Microsoft would control too many of the third-party developers and it would kill off the other console makers and the US has antitrust laws in place to combat those sorts of anti-competitive mergerers and buy-outs.

they potential could cause a few months bak their im gonna call them handcuffs were taken off them. thats why microsoft was allowed to buy skype cause its free from all the protectism laws that it once had against it. i dont think they would buy acti thou. not a easy thing to convince other board members to buy

[QUOTE="AdmiralBison"]

[QUOTE="Phoenix534"]

If Microsoft goes for both Activision Blizzard and EA, the US government would likely get involved and stop that from happening.

Phoenix534

why?

Microsoft would control too many of the third-party developers and it would kill off the other console makers and the US has antitrust laws in place to combat those sorts of anti-competitive mergerers and buy-outs.

didnt the gov put a hold on MS from creating a monopoly?

Yes, MS buying Activision and Take-Two. Let's say hypothetically, MS was allowed to do so by the US government (which would probably bar MS from doing so due to anti-competitive laws). Activision alone would set MS back $13 billion, not counting premium and goodwill. Then Take-Two I would guess is another $10 billion, again not counting premiums and goodwill. So is blowing Sony out worth the 25+ billion dollars they just invested?

OneLazyAsian

[QUOTE="OneLazyAsian"]

Yes, MS buying Activision and Take-Two. Let's say hypothetically, MS was allowed to do so by the US government (which would probably bar MS from doing so due to anti-competitive laws). Activision alone would set MS back $13 billion, not counting premium and goodwill. Then Take-Two I would guess is another $10 billion, again not counting premiums and goodwill. So is blowing Sony out worth the 25+ billion dollars they just invested?

fernandmondego_

If the government determines that MS holds too much sway over the market, then yes they will intervene. And you are right, Take-Two isn't worth that much. I mixed them up with EA. However, I do believe they are worth somewhere around a $1 billion. And do you seriously think MS would take time exclusivity from two companies they hypothetically bought for around $14+ billion? If they were gonna time exclusive everything, then why buy the companies? Activision is already giving MS timed exclusive content anyways. And they got timed exclusive content for GTAIV as well. They spent well less than $14 billion for that stuff so buying a company for time exclusive content is really a redundancy.

[QUOTE="el3m2tigre"]

[QUOTE="jimmypsn"]

MS should buy Activision and EA. That would be funny day on SW.

walkingdream

And sony should buy microsoft. That would be even funnier :lol:

SW would go into meltdown mode.

Apple's evil plan. Why join the gaming industry when you can BUY IT!!!

It would not be game over for sony, but microsoft would probably finally have at least some exclusives for xbox.

And this is why your not the CEO of M$

Actually M$ has the cash to buy out Activision, EA and Ubisoft tomorrow and put an end to the console wars. Nintendo would still exist in their niche market but Sony would be history.

I think MS should at least buy one of those companies so they can have a bunch of "exclusives" which everyone here goes crazy for.

Xplode_games

Nintendo niche market? This would be the company that crushed MS and Sony this gen? DOn't get me wrong I'm not a fan of the wii but still 'niche' really?