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US FTC Revives Microsoft-Activision Deal Challenge
(www.bloomberg.com)
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this post was submitted on 28 Sep 2023
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You just listed a bunch of Microsoft made products + GitHub + openAI (who they don’t control) - why shouldn’t they be allowed to control products they created?
You’re also talking like Microsoft is the market leader in game consoles when they’re a distant last and getting further behind. If this acquisition was blocked it would basically be game over for Xbox, and I would bet it would be sold off or go third party software only and exit the hardware market within a few years. Sony are the ones people need to be worried about here as they have a long history of abusing their dominant position and making blatantly anti-consumer moves based on that position.
Without Xbox as a competitor Sony would have free reign with no one to stop them. The video game industry is one of the most expensive industries any company can get into. Google tried and failed. Sega exited. Xbox is the last real competitor that entered and stayed and that was over 20 years ago, and the only reason it’s still around is to stop Sony from getting a monopoly in the living room.
You're right. A company should be allowed to create and acquire other companies, no doubt in that.
The problem, as I listed above in the very long post, is unique to the big tech players where they can create such synergetic businesses that it's pretty difficult for anyone to compete or break free from that.
What you're saying makes great sense. Xbox indeed needs more and more IPs and more importantly much better quality control to compete with Sony. They lost the last generation, and they need to do everything in their power to course correct. After ABK, they would match Sony in number of IPs and maybe surpass them in number of studios. Fair enough. But, as a whole, this gives a lot more power to MSFT, and my question is simply whether it's too much power or not.