[HN Gopher] Microsoft Can Close Its $75B Buy of Activision Blizz...
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       Microsoft Can Close Its $75B Buy of Activision Blizzard, Judge
       Rules
        
       Author : htk
       Score  : 32 points
       Date   : 2023-07-11 19:44 UTC (3 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | user3939382 wrote:
       | Great let's add another merger on top of a merger that was
       | already horrible for consumers and creates even less competition.
        
         | plopz wrote:
         | Are you talking about the Vivendi and Activision merger?
        
         | solardev wrote:
         | What? How does this lessen competition?
         | 
         | The PC gaming market is thriving thanks to Steam and indies.
         | 
         | Playstation is doing well. Switch is doing great.
         | 
         | Microsoft? Aside from providing Windows and DirectX, they're
         | basically invisible. Xbox is just a cheap wannabe PC with no
         | great games. It's a wonder they've supported it for this long.
         | Maybe this acquisition gives them a fighting chance against
         | Sony and Nintendo.
         | 
         | It's not like Activision and Blizzard are even particularly
         | beloved, just pumping out endless sequels. They're steady but
         | relatively soulless cash machines that don't really innovate
         | anymore anyway.
         | 
         | Having Microsoft in control might improve their internal
         | cultures, maybe make Blizzard games finally available on Steam,
         | get more and Bethesda Xbox games on GeForce Now, etc. Maybe
         | even make more games cross platform and with good controller
         | support. Those all seem great. Meanwhile the real innovation
         | will continue to come from indies while the behemoths just keep
         | pumping out new graphics (which are often just Unreal anyway,
         | which is again not Microsoft).
         | 
         | Microsoft is just too minor to be dominant in modern gaming,
         | and Activision is a has-been that just keeps making filler
         | titles. It's not some great loss to the industry. Now if
         | someone acquired Valve, that would be a tragedy...
        
           | worrycue wrote:
           | > Playstation is doing well. Switch is doing great.
           | 
           | For now. Fortunes change pretty quick in the console world.
           | One generation you are on top, the next you are struggling
           | for second place.
           | 
           | MS buying Activision is bad. This gives MS a long term
           | advantage. It signals to companies like Sony and Nintendo
           | that they shouldn't bother competing since they can never
           | counter the buying out of huge publishers as they aren't
           | worth 2.47 trillion USD like Microsoft.
        
             | solardev wrote:
             | That just isn't true though. Sony and Nintendo have no
             | problem competing _at all_ by the quality of their first-
             | party and exclusive games. For every Call of Duty there is
             | a Horizons or a God of War or Zelda or whatever. Xbox is
             | the worst of all the platforms in terms of that. Even PC
             | and mobile have more (good) games that aren 't available on
             | Xbox.
             | 
             | Has Microsoft has any major successes since Halo and Fable,
             | years and years ago? They're desperate for games.
             | Activision isn't going to suddenly make the dominant
             | overnight. If anything, it would barely help stop the
             | bleeding. Microsoft is so far behind right now it's not
             | funny. I'd be way more afraid of competition dying because
             | Microsoft gave up on it rather than buying Activision.
        
               | worrycue wrote:
               | MS is playing the long game. They don't care about this
               | generation. They want to win all future generations.
               | 
               | 3rd party support plays a big part in a console's
               | success. MS is effectively buying out one of the largest
               | 3rd party studios denying its competitors their support.
        
               | developerDan wrote:
               | The huge concern here is not that Microsoft can't
               | compete, because they can as they have far more studios
               | than Sony does. The issue is their strategy overall which
               | is top earning multi-platform companies, like Bethesda
               | and ActiBlizz, to cut off revenue from competitors.
               | Meanwhile Sony's biggest acquisitions were studios that
               | mainly focused on their platform to begin with.
        
               | solardev wrote:
               | I see. That's fair. They offered a 10-year license for
               | Call of Duty, at least, not sure about the other
               | franchises.
        
               | worrycue wrote:
               | The 10 year guarantee means nothing as I can see
               | Microsoft crippling non-Xbox versions of CoD - e.g. it
               | has poorer performance on PS5.
        
               | HWR_14 wrote:
               | The 10 year guarantee includes similar performance
               | promises. I don't know how enforceable they are.
        
             | HWR_14 wrote:
             | Does Activision have any major titles on the Switch right
             | now? Nintendo seems happy to be doing their own thing. It's
             | not like they need to buy huge publishers, since they own
             | all the important IP (Mario, Zelda, 1/3 or 1/2 of Pokemon,
             | etc)
        
           | bob1029 wrote:
           | > Now if someone acquired Valve, that would be a tragedy...
           | 
           | Honestly I would cherish the moment. It would be the most
           | likely path to actually seeing HL3 released. The one time the
           | filthy capitalists manage to do a good thing...
           | 
           | Valve to me has become a pathetic, rent-seeking platform
           | owner. No clue why the gaming community still holds them in
           | such regard. Linux support and not being publicly traded must
           | be a massive deal for some gamers I suppose. The indie
           | developers who launch on their platform are much more
           | deserving of your attention & praise. The guys who developed
           | battle bit have done more to improve my gaming experience
           | than anything all of Valve has done since Portal 2 was
           | released over a decade ago.
        
             | goosedragons wrote:
             | The Steam Deck is pretty great. Probably the biggest leap
             | in PC gaming for me in the past 15 years.
        
             | JohnFen wrote:
             | > It would be the most likely path to actually seeing HL3
             | released.
             | 
             | The thought of seeing HL3 actually released makes me a
             | little nervous. When I look at great game franchises that
             | had a large time gap before another sequel is released, it
             | seems pretty rare for that sequel not to be terrible.
        
             | solardev wrote:
             | I don't think it's fair to understate the impact Steam has
             | had on indie game dev. We went from "maybe hearing about
             | this shareware on the PC Gamer floppy if you're lucky" to
             | spamware sites like Tucows to a huge centralized
             | marketplace of phenomenal games because the devs had a way
             | to let people discover their one-hit wonder, get great
             | reviews, etc.
             | 
             | Yes, I want HL3 as much as anyone, but Alyx was pretty cool
             | (still one of the better VR demos), the Steam Deck is
             | innovative in its own way (and Aperture Desk Job is a fun
             | HL universe spinoff), GeForce Now integration is really
             | useful for some of us, Cloud Save is awesome, etc. Not to
             | mention the sales... because of Steam sales and resellers
             | (isthereanydeal.com) games are far more affordable than
             | they ever were before, especially compared to the consoles.
             | 
             | The platform is WORTH paying rent for. If you want to see
             | how bad it could be otherwise, it's not a hypothetical...
             | Epic, Windows Games Marketplace (or whatever it's called
             | these days), GOG, etc. are all far inferior in terms of
             | ease of use, features, selection, pricing, etc. As someone
             | who's been PC gaming since Lode Runner and Commander Keen,
             | Steam is by far the best thing that's happened to it in
             | three decades. It was even more transformative than 3DFX or
             | DirectX in terms of the quality and quantity of games made
             | available to gamers.
        
               | JohnFen wrote:
               | I hear what you're saying, and don't disagree. But Steam
               | has become something I dislike enough that I stopped
               | using it years ago. For me, it's GOG, unless I can get
               | the game directly from the publisher.
        
       | WhyQ wrote:
       | They better not FU COD!!
        
       | TillE wrote:
       | Just the UK CMA standing in the way then, with its flimsy
       | decision resting almost entirely on speculation about the "cloud
       | gaming" market.
       | 
       | Microsoft _should_ be offering to to swear off cloud gaming
       | entirely, they should be delighted. Game streaming is a lousy
       | solution that requires enormous investment in specific
       | infrastructure, it would be smart to ignore it and focus on their
       | great subscription service that only requires a $500 Xbox.
        
         | bob1029 wrote:
         | > Game streaming is a lousy solution
         | 
         | I feel like it's only bad because it's still mostly a half-way
         | house. Slapping existing AAA titles onto networked GPUs and
         | calling it a day <> streaming gaming in my view.
         | 
         | Streaming gaming is actually a thing for me when someone builds
         | a game using it that would _absolutely not_ be possible using
         | traditional technology. For example, an MMO so massive that the
         | average player 's network stack couldn't handle all of the
         | events, so the only rational option is to render everything on
         | some supercomputer and ship the final frames.
         | 
         | Consider also that you can get a lot of reuse out of a
         | particular scene graph if multiple players are in the same one.
         | Many such cases in streaming gaming. There are new, multi-
         | server engine architectures that _will not be possible_ until
         | we start saying things like  "this will be a streaming-only
         | exclusive". That is probably the scariest proposal an MBA in
         | any AAA studio could hear in 2023, so I don't expect you will
         | see Blizzard or Sony playing in this flavor of traffic any time
         | soon.
        
           | nightowl_games wrote:
           | You can fit a ton of data down a consumer's pipe. Can you
           | actually design a game that would have those network
           | requirements? A single frame of video is a ton of data
           | compared to traditional game state constructs.
        
             | postalrat wrote:
             | What's more exciting to me the client doesn't need that
             | data or assets you can actually make games thatb need to be
             | discovered though the game. No peeking local files or state
             | for what's possible in the game.
        
           | donmcronald wrote:
           | And the thing is, latency can be "good enough" for some
           | games. I tried out the top end tier of GeForce NOW for a
           | month just to see what it was like since I've always been
           | skeptical of game streaming. I picked Last Epoch as a game
           | since it has (had?) a reputation for being hard to run at 4k.
           | 
           | Even at 4k, I could play it and my views on game streaming
           | have changed a bit. This was last year and I was using an i7
           | 4770k based system. I can say pretty confidently that I found
           | the local lag spikes from not having a high end gaming PC to
           | be far more frustrating than the consistent 40ms of latency
           | via streaming. Maybe it's because I'm getting older and don't
           | have the same reflexes anymore, but I couldn't even really
           | notice the latency via streaming.
           | 
           | I also think people are seriously overlooking the trend
           | towards secure computing. What if you put a TPM in a video
           | card? Then your video for the game stream can be encrypted
           | and only gets decoded just before being sent to your HDCP
           | compliant monitor. I think it's much harder to build cheats
           | if the client side doesn't have any data to work with beyond
           | video that gets decrypted as it's sent to your monitor.
           | 
           | Heck, even just a lack of local game data gets rid of most
           | cheating, right?
        
             | [deleted]
        
         | solardev wrote:
         | Oh man, I hope they don't get rid of cloud gaming. It's been
         | amazing, especially with their new partnership with GeForce Now
         | (which IMO is the smarter move... rather than sunsetting xCloud
         | entirely, just partner with Nvidia to make GFN the default
         | since most cross platform Xbox/Windows games support
         | controllers anyway).
         | 
         | Streaming games is an amazing convenience (and value) for those
         | of us who don't want to be limited to an Xbox (poor graphics,
         | limited mouse/keyboard support) but also don't want to shell
         | out $3k for a RTX 4080 rig and all its associated noise and
         | heat.
         | 
         | Where Stadia failed, GeForce Now, Luna, Shadow, and Xbox and PS
         | streaming are still alive and well. And very useful!
        
       | kemotep wrote:
       | Microsoft still needs more studios to make Game Pass a "Netflix
       | for Gaming" service. WoW and CoD and the rest of the ActiBlizz
       | back catalogue help but Microsoft still doesn't have enough
       | studios to be pumping out a new major release every month.
        
       | from wrote:
       | The FTC's incredibly low win rate in federal court should be a
       | source of agency-wide embarrassment. The only place they reliably
       | win is their kangaroo "administrative courts" in which they act
       | as the judge, jury and executioner but those are probably on
       | their way out. But it doesn't even matter anyways because the new
       | strategy is going to be outsourcing enforcement to Europe.
        
         | Accujack wrote:
         | The FTC is still spooling anti trust enforcement back up from a
         | nonexistent state. A lot of the rules governing mergers and
         | acquisitions haven't been enforced since the 1980s due to
         | regulatory capture.
         | 
         | Read up on developments in anti-trust in the last couple of
         | years here:
         | 
         | https://www.thebignewsletter.com/
        
         | anyoneamous wrote:
         | Is the low win rate a surprise though? As a foreign observer,
         | the US justice system seems to largely be based on who can
         | spend the most - so large company > government > small company
         | > citizen is pretty much the assumed outcome. I have a vague
         | sense the order also wraps around (individual > large company)
         | because of cases like the McDonald's boiling coffee, but in
         | those cases headlines and bad PR are just acting as a proxy for
         | money.
        
         | HWR_14 wrote:
         | I would expect the FTC to have a low win rate. Let's leave
         | aside how atrophied enforcement of antitrust has been over the
         | last 40 years, and the subsequent implications for case law,
         | regulations and human skill of litigators.
         | 
         | This is a 75 billion dollar event between two giant companies.
         | They can pay for legal advice. That legal advice is well
         | incentivized to predict how the case will go, and signed off on
         | it. I assume MS has to pay a hefty fee if the acquisition is
         | blocked for antitrust reasons, in addition to the time and
         | embarrassment for all involved.
         | 
         | Therefore, the only cases the FTC should expect to see are ones
         | where highly paid lawyers said "we will probably win this
         | case". They might be wrong (and the FTC does seem unable to
         | stop too many cases), but no matter how tough the enforcement
         | gets, I would expect the FTC to usually lose at trial. The
         | standards will just be applied pre-merger announcement (or
         | probably pre-offer).
         | 
         | It might be an exciting couple of years when the FTC regrows
         | its backbone and the lawyers assessing mergers have not caught
         | up yet.
        
         | notquitehuman wrote:
         | Can you share a link to that strategy memo?
        
       | morgango wrote:
       | https://archive.is/8Ln5E
        
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