For the gaming industry, this seems to push Microsoft into 3rd place (by size) behind Sony and Tencent. So hardly a monopoly and akin to T-Mobile's acquisition of Sprint a few years ago. It makes Microsoft much more competitive against Sony and even Nintendo since it'll likely bolster their 1P offerings in the future.
But if Microsoft uses their ownership to favor their own game subscription services (aka GamePass) as well as platforms (aka Windows 11, Xbox console), then certainly that'll be monopolistic behavior. Interesting to note that they're probably #1-#2 in either of those sub-industries. It's possible to end up with an "Internet Explorer-esque" antitrust scenario if Microsoft removes or heavily discourages Activision and Bethesda from making their titles cross-platform.
When they bought Bethesda last year they announced that Elder Scrolls 6 would no longer be a multi platform title, it would be a Microsoft exclusive. I wouldn't be surprised if they would try to take something like the Call of Duty franchise and make it Xbox/Windows only.
They don't even need to do that. They can keep releasing CoD on Playstation, but if they add it to Gamepass, that increases the value of Gamepass so significantly that it could tilt the console market toward Microsoft.
This is exactly the play I think will happen. I can also see them including for example a WoW subscription and maybe a monthly hearthstone pack or gems as part of Gamepass.
Ah, come on. That’s what any reasonably similar sized company does all the time. It’s what shareholders demand (not that i think that makes it any better). But always singling out Microsoft for a decades-old stereotype is just getting old.
I think this was unneeded. Nobody singled out Microsoft, it's just that the discussion is about Microsoft, which happens to still practice this strategy. I think nobody would argue against the strategy being practiced by other corporations too.
Nintendo and Sony are small potatoes compared to MSFT in 2022. 70B and 150B market cap against a 2.27T one. Japanese tech companies are happy to stay in their niche. But now Microsoft has an incomprehensible advantage in available capital. Apart from the Japanese government blocking the sale they could just buy them
You’re not wrong, but Microsoft has also never successfully out sold their consoles (well...except wii-u, but that’s not much of an achievement). That might change now of course, but it’s not like they are solidly number one. They’re actually last of the big three.
Whoah, why is Sony group valued so low? They do a lot of things... Their P/E is half of Microsoft. But they're bleeding money, so something is amiss there.
It should be worth noting that T-mobile + Sprint succeeded on the third try after the first two were more or less blocked by regulators in the same decade (it didn't actually get all the way to them, but they signaled there was no way they would approved.)
The only reason it got approved the third time was that regulators were convinced that either way, the US would only have three mobile operators because it did not look like Sprint could be a going concern.
People also forget Microsoft’s Xbox sales are 3rd place - I.e. last - behind PlayStation and switch. The 360 is the only console they’ve sold that outsold a PlayStation, but technically that flipped at the very end of the console’s lifespan. It’s not like they dominate the market (yet).
Now if they buy Sony or Nintendo then I’ll actually be concerned. But for now they’re hardly controlled opposition or anything lol
For the gaming industry, this seems to push Microsoft into 3rd place (by size) behind Sony and Tencent. So hardly a monopoly and akin to T-Mobile's acquisition of Sprint a few years ago. It makes Microsoft much more competitive against Sony and even Nintendo since it'll likely bolster their 1P offerings in the future.
But if Microsoft uses their ownership to favor their own game subscription services (aka GamePass) as well as platforms (aka Windows 11, Xbox console), then certainly that'll be monopolistic behavior. Interesting to note that they're probably #1-#2 in either of those sub-industries. It's possible to end up with an "Internet Explorer-esque" antitrust scenario if Microsoft removes or heavily discourages Activision and Bethesda from making their titles cross-platform.