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by thewebguyd 25 days ago
The industry could have been in a better place already if the DOJ hadn't allowed Microsoft to buy up all these studios.

I have near zero hope we'll see any meaningful antitrust action in the future either without a complete overhaul of the incentives in politics.

Xbox div's annual revenue is $23 billion. Its big enough to be its own company and sit upper-mid pack of the F500 on its own. It'd be the number 3 or 4th top gaming company globally, beating out Nintendo even. No reason for Microsoft to not have been broken up by now, let alone have been allowed to buy all the studios they did. Don't forget they also mislead the FTC to convince them to allow the Activision/Blizzard acquisition to go forward, and then once allowed laid off 1900 employees, mostly admin/HR & support, forcing it to integrate into Microsoft gaming and operate less independently.

3 comments

When UK blocked the merger this very board flamed anti business old Europe.
One does wonder how many bots were involved in the flaming
I’d love to blame collective internet myopia on bots, just as I’d love to blame leaded gas for the mental state of geriatric politicians, but in my heart I don’t buy it.
I like the concept "Goomba fallacy", but it is a bit confusing since Goombas are exactly the same, where as board users are at least me and not me.

Edit: Keeping to SMB1 for simplicity.

> The industry could have been in a better place already if the DOJ hadn't allowed Microsoft to buy up all these studios.

Yes, but it's not the DOJ's job to tell Microsoft when they're lighting their money on fire. There's no unfair competition from this kind of thing. It wasn't any different when leather companies or old media would buy up studios and run themselves out of business.

Microsoft buying out studios could be anti-competitive, but Microsoft would have to not be Microsoft.

The acquisitions don't have to be successful to run afoul of antitrust laws or to be anticompetitive. Slash and burn often does violate the law.

Firing thousands of people and closing studios reduces the overall capacity of the industry to produce diverse, competing games. Just because Microsoft is Microsoft and is incompetent doesn't mean the rest of the industry and consumers don't lose out on what those independent studios could have created on their own.

In terms of antitrust/whether the FTC should have allowed the mergers is purely predictive. Microsoft looking like idiots from it has no bearing on whether the behavior of buying them up itself is anticompetitive.

I could see it being anticompetitive if it benefited Microsoft products.

Ex: if Microsoft buys out office competitors or webmail competitors to shut them down, because those customers are going to be likely to buy more Microsoft stuff.

Buying games studios could be anticompetitive if Microsoft were going to keep them alive and make their output platform exclusive (but iirc they made a commitment not to do that). It could be anticompetitive if they were going to kill them and funnel consumers into their games with continuing development... It could also be anticompetitive if Microsoft were going to give these studios some uberengine secret access to Xbox/Windows that allowed them to make the best games that outside studios couldn't come close to...

But what's happened is Microsoft is killing the studios; all at once is a surprise, but death within like 3-7 years could be predicted. Most of those people will pop up again at other studios or start new studios. Some of them will realized gamedev sucks and do something else. This is the lifecycle of studios purchased by corporate overlords. When key people make enough from the purchase to allow significant but not complete creative freedom, they often make some really good games at their next venture. Too little freedom -> pump out sequels or gacha games; too much freedom -> interesting games that don't end up being much fun.