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Xbox wins, FTC loses again
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this post was submitted on 15 Jul 2023
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Microsoft are in last place in the gaming industry, so why wouldn't (and shouldn't) they be able to buy a publisher? If they were the overwhelming market leader like Sony then there's not a chance in hell this would get approved..........but they're not. They're last.
It's absurd how everyone is now like "this opens the floodgates and means that everyone can buy everyone!". It means nothing of the sort. If sony were to try and buy EA or Take 2, as people are now suggesting, it would be blocked almost universally because they're the overwhelming market leader. The companies position in the industry matters. The point is to stop monopolies, and allowing the leader to get bigger goes against that. Allowing the last placed competitor to buy companies doesn't.
Microsoft, producer of 1 of 4 popular gaming devices, owner of the windows operating system, is in last place?
Yes, they are.
They're currently getting outsold over 2:1 by Playstation. They have tens of millions less service subscribers than Playstation has. They are being skipped by many big third party games. Owning windows doesn't get them any money from games sold on Steam/Epic/etc.
How are they not in last place in gaming? They're last in revenue. They're last in software sales. They're last in hardware sales. They're last in subscriber numbers. They're last in peripheral sales. They're last in.....you get the point.
Sony has a market cap of 76 billion dollars.
Microsoft has a market cap of 1.9 trillion.
Cool, why do you think that's relevant?
Who is the market leader in the video game industry?
Tencent
Let me rephrase the question - who do you think is the market leader in the video game console manufacturer industry? What position out of the "big 3" do you think Microsoft is in?