Microsoft is Buying Activision Blizzard $68.7B ***Update: Acquisition Finalized***

Wow this is crazy. Call of Duty alone is going to bring in a massive amount of people to Xbox.
 
Zazen said:
Can someone explain to me how this method is profitable?

These guys just keep spending and yet fewer people are buying games and just subbing instead. How do they make profit on these AAA games?
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It's not about maximizing the profit of any individual game, it's about becoming the dominant platform. In Microsoft's case they want Xbox/PC to be the dominant platform and they can make that work as a symbiotic relationship. The PS4 sold 115 million consoles to the Xbox One's 40 million (ballpark). If you can create a platform that steals even half the PS market you've now sold nearly 100 million consoles and maybe converted some Mac users to PC users along the way. That alone is worth billions. Also, they're now serving ads on the console so each additional user bumps their ad revenue.

The subscription model isn't about maximizing the profit you get from hardcore gamers who buy one or two games a month. That's a relatively small group. Most console owners probably buy one or two games a year if that, and if one of those is used the studio isn't even getting that sale.

However if you can get half of the existing users to subscribe that's 20 million users to giving you $15 a month that's 300 mil a month nearly a billion dollars a quater without a single upsell. But some of those customers will still buy games, some will buy in game purchases, some will buy other services. If they can get that number up to 100 million users, with 50 or 60 subscribing that starts to become an obscene amount of money.
 
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Bobby Kotick was such a shit CEO he makes anti-consumerism look appealing.
 
Crash, Spyro and Banjo.. please actually do something with them Xbox.
 
Zazen said:
Can someone explain to me how this method is profitable?

These guys just keep spending and yet fewer people are buying games and just subbing instead. How do they make profit on these AAA games?
Click to expand...

Microtransactions.

They don't give a shit if you buy the games anymore. All the money is in cosmetics.

Really at this point, these games exist only to lure you to their online storefront.
 
How far will Activision/Blizzard fall was answered three years later.
 
If Microsoft buys Sega (including Atlus), then I'll probably move to Xbox.
 
Blizzard has been dead for awhile. It's nothing but IP's now.

I have little faith that this will change anything. Expect to see more gaming as a service I guess.
 
This is nuts. I haven't decided how happy I am about it, but they can't make Activision worse. If Microsoft manages to turn things around at Blizzard, they'll be heroes to the PC gaming community.
 
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