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>> We can't afford it But they've already spent the money. They spent about 70 billion on activision blizzard. That was and still is an outrageous amount of mo
by joe_mamba 3mo ago
>> We can't afford it
But they've already spent the money. They spent about 70 billion on activision blizzard. That was and still is an outrageous amount of money that will take fever to break even let alone turn a profit.
- thomastjeffery 3mo agoThey can't afford to buy every other successful studio, which means that their anticompetitive moat has to be competitive. Otherwise, they could have made the whole thing profitable the usual Microsoft (monopolist) way.
- appreciatorBus 3mo agoJust because they already spent the money yesterday, it does not follow that the best decision today is to just carry on as if was still the correct decision. Yes they cannot get that 70B back, but if they have to choose between: 1. a long dragged out distraction over decades trying to make it work 2. a painful but quick 40B write down and the ability to refocus the company on better projects tomorrow .. then they are, quite rightly imo, going to pick #2. In fact I would assume this going to be the next announcment.
- iAMkenough 3mo agoThey bought a content competitor, now they get to "reset" their vision for it. Mission successful.
- swiftcoder 3mo ago> They spent about 70 billion on activision blizzard A cynic might say they spent most of that for King, which continues to be profitable. The rest of Activision Blizzard just came along for the ride
- disgruntledphd2 3mo agoCall of Duty absolutely prints money, fwiw. King are weird because they basically have been doing the same game in different skins for like 15 years now.
- swiftcoder 3mo ago> Call of Duty absolutely prints money, fwiw It does print money, but it is also extraordinarily expensive to keep the money-printer fed. Current estimates place the production + marketing costs of a Call of Duty north of a billion dollars. At that kind of spend, it only really takes 1 or 2 botched releases to make the financial equation look a whole lot less rosy...
- muddi900 3mo agoWhat is MS board doing? How did Xbox spend 70 Billion without C-Suite approval? There seems to be no consequences for top management.