4 ms·

If the US part has all the talent and all the profit, seems like that'd still be a pretty viable move, wouldn't it?

by Firmwarrior 3y ago

nozzlegear 3y ago
One would think the US part owns all of the IPs as well.
- nonethewiser 3y ago
  Seems like the main thing of value at this point. It would be great to get rid of the toxic bureaucracy milking the IP.
fckthisguy 3y ago
Why would the US part ha e all of the talent? Are/were Activision's development teams based solely in the US? I thought they had devs elsewhere too. Might make sense if their EU/UK offices were mostly admin.
capableweb 3y ago
I don't think the US has all of neither, but especially not revenue. Asia tends to be the biggest market, with the US being the second and EU third. Usually, US has maybe half of the profits as the Asia counterpart, while EU has half of that. So if the acquisition gets blocked in the EU, they'll miss out on a ton of revenue, for sure. Not to mention the operational overhead of actually operating the machinery when the machinery is banned in the EU but not the US.
- bastardoperator 3y ago
  You can see that games in other highly populated regions sell for much less. This is the 7th most popular game on steam that isn't free to play. https://steamdb.info/app/252490/ https://steamdb.info/app/252490/ 39.99 in the US, 22-23 dollars in China and India. In indonesia the game sold for as little as 13 cents a license. It is slightly higher in the EU and UK but by very little. In this case 24% of all players are American. The UK is 2%. So even with a slightly higher price, they're not getting anywhere close to the revenue that US consumers are generating. Russia has 10% of the player population and the game sells for 13 dollars. I don't think the population correlates to revenue when the game in nearly every market is going to see for less, or attract much less players.
  - capableweb 3y ago
    According to sources gathered by Statista, Asia Pacific is the largest market for gaming: https://www.statista.com/statistics/539572/games-market-revenue-by-region/ https://www.statista.com/statistics/539572/games-market-reve... (in billion U.S. dollars) - Asia Pacific - 87.9 - North America - 48.4 - Europe - 32.9 - Latin America - 8.4 - Middle East & Africa - 6.8
    - nonethewiser 3y ago
      That’s not the question. The question is what share of revenue it is for Activision. Edit: found the numbers here https://investor.activision.com/news-releases/news-release-details/activision-blizzard-announces-fourth-quarter-and-2022-financial https://investor.activision.com/news-releases/news-release-d... Americas: 1,211 Europe and Middle East: 742 Asia Pacific: 381 Total: 2,334 So Asia is 16%.
- nonethewiser 3y ago
  > Usually, US has maybe half of the profits as the Asia counterpart, while EU has half of that. But is this actually the case with Activision? Aren’t most of their games banned in China (this shrinking the Asian audience massively) and don’t they charge a lot less?
WorldMaker 3y ago
Some of Microsoft's top game development studios, specifically right now, Rare and Playground Games are based in the UK and contribute at least some of the profit and arguably a lot of talent. (Microsoft has a really interesting history of UK game development teams, going way back, including ones they ultimately shut down such as Lionhead.)

If the US part has all the talent and all the profit, seems like that'd still be a pretty viable move, wouldn't it?

nozzlegear 3y ago

One would think the US part owns all of the IPs as well.

nonethewiser 3y ago
Seems like the main thing of value at this point. It would be great to get rid of the toxic bureaucracy milking the IP.

fckthisguy 3y ago

Why would the US part ha e all of the talent? Are/were Activision's development teams based solely in the US? I thought they had devs elsewhere too. Might make sense if their EU/UK offices were mostly admin.

capableweb 3y ago

I don't think the US has all of neither, but especially not revenue. Asia tends to be the biggest market, with the US being the second and EU third. Usually, US has maybe half of the profits as the Asia counterpart, while EU has half of that. So if the acquisition gets blocked in the EU, they'll miss out on a ton of revenue, for sure. Not to mention the operational overhead of actually operating the machinery when the machinery is banned in the EU but not the US.

bastardoperator 3y ago
You can see that games in other highly populated regions sell for much less. This is the 7th most popular game on steam that isn't free to play. https://steamdb.info/app/252490/ https://steamdb.info/app/252490/ 39.99 in the US, 22-23 dollars in China and India. In indonesia the game sold for as little as 13 cents a license. It is slightly higher in the EU and UK but by very little. In this case 24% of all players are American. The UK is 2%. So even with a slightly higher price, they're not getting anywhere close to the revenue that US consumers are generating. Russia has 10% of the player population and the game sells for 13 dollars. I don't think the population correlates to revenue when the game in nearly every market is going to see for less, or attract much less players.
- capableweb 3y ago
  According to sources gathered by Statista, Asia Pacific is the largest market for gaming: https://www.statista.com/statistics/539572/games-market-revenue-by-region/ https://www.statista.com/statistics/539572/games-market-reve... (in billion U.S. dollars) - Asia Pacific - 87.9 - North America - 48.4 - Europe - 32.9 - Latin America - 8.4 - Middle East & Africa - 6.8
  - nonethewiser 3y ago
    That’s not the question. The question is what share of revenue it is for Activision. Edit: found the numbers here https://investor.activision.com/news-releases/news-release-details/activision-blizzard-announces-fourth-quarter-and-2022-financial https://investor.activision.com/news-releases/news-release-d... Americas: 1,211 Europe and Middle East: 742 Asia Pacific: 381 Total: 2,334 So Asia is 16%.
nonethewiser 3y ago
> Usually, US has maybe half of the profits as the Asia counterpart, while EU has half of that. But is this actually the case with Activision? Aren’t most of their games banned in China (this shrinking the Asian audience massively) and don’t they charge a lot less?

WorldMaker 3y ago

Some of Microsoft's top game development studios, specifically right now, Rare and Playground Games are based in the UK and contribute at least some of the profit and arguably a lot of talent. (Microsoft has a really interesting history of UK game development teams, going way back, including ones they ultimately shut down such as Lionhead.)