MS to buy Vivendi (and therefore Blizzard)????
01-22-03 | 01:32 PM
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MS to buy Vivendi (and therefore Blizzard)????
Well here's more grist for the Rumor Mill. Who knows if it will happen but I'm sure everyone will have an opinion about. Does this mean Half-Life 2, Warcraft IV and Starcraft:Ghost become XBOX exclusives??? 
http://www.computerandvideogames.com...n.php?id=85976
http://www.computerandvideogames.com...n.php?id=85976
Wednesday 22nd January 2003
MICROSOFT TO BUY VIVENDI?
Fevered speculation points to a shock swoop by Bill Gates's company, with an announcement imminent
19:25 If insider speculation is to be believed, Microsoft has bought US publisher Vivendi, with an announcement to that effect due soon. Take a deep breath and reflect on the implications of that, if true.
Half-Life 2, Warcraft, Counter-Strike, Crash, Spyro, Lord of the Rings... Vivendi has an enormous portfolio boasting some of the biggest titles on all formats, and it would be an ultra-smart move on Microsoft's part to snap them up. Such a buyout, of course, would come at a terrifically high price, making the 365 million acquisition of Rare look like peanuts. But if anyone has the necessary funds, it's Microsoft.
Rumours regarding potential buyout targets for Microsoft are nothing new, of course, and have been spreading for months, with the likes of Sega and Capcom both mentioned in dispatches. However, talk of the Microsoft/Vivendi deal seems far more serious, with one insider suggesting the buyout could be confirmed as early as Friday.
Furthermore, an email from Universal was accidentally sent out to developers last week stating that all work on GBA titles should be suspended. The email was promptly recalled and branded an error, but could it be that this was in some way tied in with this alleged deal?
We contacted Vivendi for comment and a spokesperson told us: "We've heard all sorts of rumours over the past months - Activision, EA and many more. They'd all like to get their hands on Blizzard. I guess Microsoft are one of the few companies that has enough money."
A Microsoft spokesperson would only state: "This is a rumour and we do not comment on rumours."
If the rumours prove true, this will be a huge boost for Microsoft's soaring Xbox console, providing it with a broad spectrum of big-name games that would either appear as Xbox lead or as Xbox exclusives outright.
We'll keep you posted on all developments
MICROSOFT TO BUY VIVENDI?
Fevered speculation points to a shock swoop by Bill Gates's company, with an announcement imminent
19:25 If insider speculation is to be believed, Microsoft has bought US publisher Vivendi, with an announcement to that effect due soon. Take a deep breath and reflect on the implications of that, if true.
Half-Life 2, Warcraft, Counter-Strike, Crash, Spyro, Lord of the Rings... Vivendi has an enormous portfolio boasting some of the biggest titles on all formats, and it would be an ultra-smart move on Microsoft's part to snap them up. Such a buyout, of course, would come at a terrifically high price, making the 365 million acquisition of Rare look like peanuts. But if anyone has the necessary funds, it's Microsoft.
Rumours regarding potential buyout targets for Microsoft are nothing new, of course, and have been spreading for months, with the likes of Sega and Capcom both mentioned in dispatches. However, talk of the Microsoft/Vivendi deal seems far more serious, with one insider suggesting the buyout could be confirmed as early as Friday.
Furthermore, an email from Universal was accidentally sent out to developers last week stating that all work on GBA titles should be suspended. The email was promptly recalled and branded an error, but could it be that this was in some way tied in with this alleged deal?
We contacted Vivendi for comment and a spokesperson told us: "We've heard all sorts of rumours over the past months - Activision, EA and many more. They'd all like to get their hands on Blizzard. I guess Microsoft are one of the few companies that has enough money."
A Microsoft spokesperson would only state: "This is a rumour and we do not comment on rumours."
If the rumours prove true, this will be a huge boost for Microsoft's soaring Xbox console, providing it with a broad spectrum of big-name games that would either appear as Xbox lead or as Xbox exclusives outright.
We'll keep you posted on all developments
01-22-03 | 01:53 PM
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Furthermore, an email from Universal was accidentally sent out to developers last week stating that all work on GBA titles should be suspended. The email was promptly recalled and branded an error, but could it be that this was in some way tied in with this alleged deal?
01-22-03 | 02:33 PM
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I'd be very surprised if anything really became an XBOX exclusive because of something like this (if it really happened). That kind of stuff cuts into the individual company profits (like why would Blizzard only releasing a game like Ghost for one console if they can be guranteed to make more money for the relatively little additional work of porting it over). It doesn't do MS any good to buy a company and then handcuff its earning potential . They might do it on one or two titles, but more likely it'll be set up like Splinter Cell, where its release for other platforms is delayed a little while.
01-22-03 | 03:07 PM
#8
Originally posted by Captain Harlock
First Rare now Vivendi. Looks like MS is using it's standard M.O.
If you can't beat 'em, BUY 'EM!
First Rare now Vivendi. Looks like MS is using it's standard M.O.
If you can't beat 'em, BUY 'EM!
Vivendi is for sale to the highest bidder. Vivendi put themselves up for sale, MS didn't them without just cause.
01-22-03 | 03:10 PM
#9
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Same reply as usual from me. I hope it isn't true. I don't like any console maker buying third party developers. It reduces competition among developers and will likely be bad for gamers in the long run.
01-22-03 | 03:29 PM
#10
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Originally posted by finbogg
I'd be very surprised if anything really became an XBOX exclusive because of something like this (if it really happened). That kind of stuff cuts into the individual company profits (like why would Blizzard only releasing a game like Ghost for one console if they can be guranteed to make more money for the relatively little additional work of porting it over). It doesn't do MS any good to buy a company and then handcuff its earning potential . They might do it on one or two titles, but more likely it'll be set up like Splinter Cell, where its release for other platforms is delayed a little while.
I'd be very surprised if anything really became an XBOX exclusive because of something like this (if it really happened). That kind of stuff cuts into the individual company profits (like why would Blizzard only releasing a game like Ghost for one console if they can be guranteed to make more money for the relatively little additional work of porting it over). It doesn't do MS any good to buy a company and then handcuff its earning potential . They might do it on one or two titles, but more likely it'll be set up like Splinter Cell, where its release for other platforms is delayed a little while.
Microsoft could make more money putting Halo out on all platforms as well, but they don't.
01-22-03 | 03:42 PM
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Originally posted by kvrdave
The individual company profits are irrelevant if they are bought out. And the buy out would be to MS's great benefit in having an incredible game line to have as exclusive.
Microsoft could make more money putting Halo out on all platforms as well, but they don't.
The individual company profits are irrelevant if they are bought out. And the buy out would be to MS's great benefit in having an incredible game line to have as exclusive.
Microsoft could make more money putting Halo out on all platforms as well, but they don't.
If they're left to operate as is, under the MS umbrella, then I would argue that MS will want them continue to profit as individual companies.
01-22-03 | 03:51 PM
#12
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Originally posted by finbogg
That depends on whether MS lets them operate as individual divisions or absorbs them. If it absorbs them, takes they're intellectual properties and dissolves the companies, then yes their profits don't make a difference.
If they're left to operate as is, under the MS umbrella, then I would argue that MS will want them continue to profit as individual companies.
That depends on whether MS lets them operate as individual divisions or absorbs them. If it absorbs them, takes they're intellectual properties and dissolves the companies, then yes their profits don't make a difference.
If they're left to operate as is, under the MS umbrella, then I would argue that MS will want them continue to profit as individual companies.
The could buy them and keep it profitable today, or they could buy them, lose some profits in the short term, but make the Xbox a bigger force to contend with in the long run with more and better exclusives.
Microsoft doesn't do short term, and they don't mind losing money if they see a payoff down the road.
01-22-03 | 04:34 PM
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Good point. I definitely agree that this is a move to help XBOX. There's really no other reason to do it.
But I still think that not every game would be XBOX exclusive (the main ones probably will). Blizzard will probably still release Mac versions of Warcraft. Crash and Spyro will still be seen on PS2. It just puts money in the pockets of MS to continue to release multi-platform versions of lesser titles.
But I still think that not every game would be XBOX exclusive (the main ones probably will). Blizzard will probably still release Mac versions of Warcraft. Crash and Spyro will still be seen on PS2. It just puts money in the pockets of MS to continue to release multi-platform versions of lesser titles.
01-22-03 | 05:07 PM
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Vivendi has been selling off bits and pieces of itself to fix their balance sheet. There's sort of a bidding war going on to buy their US entertainment division which includes Universal Studios and the price will probably be well over $20B.
So, it's not entirely out of the question that Vivendi would sell Vivendi Universal Games. However, this is from their last earnings report:
http://biz.yahoo.com/bw/021126/262157_1.html
So, it's not officially on the block, but that doesn't mean they would never sell it. It probably just means that any purchase price would include a huge premium.
Strategically, though, I don't think it makes much sense for MS to buy Vivendi Universal Games. The place where MS needs to shore up XBox sales is in Japan and the exclusives that could be had from such a deal wouldn't buy them any traction there at all.
Now I guess one could argue about whether MS really needs to succeed in Japan, but that's really a topic for another thread. Suffice it to say, however, that XBox will forever be relegated to 3rd place worldwide if they can't manage to be anything but a laughing stock in a region that represents almost 1/3 of the worldwide market.
So, it's not entirely out of the question that Vivendi would sell Vivendi Universal Games. However, this is from their last earnings report:
Publishing assets in the U.S., in Europe and in Latin America are in the process to be sold, with the exception of the Games Division, which reported revenues that were up 22% for the third quarter, due primarily to the Warcraft III launch on the PC platform in July 2002 and the success of The Thing and Crash Bandicoot on the console platform and 35% for the nine month period. Operating income for the first nine months reached E37 million versus a prior-year loss of E13m, and break-even for the third quarter.
So, it's not officially on the block, but that doesn't mean they would never sell it. It probably just means that any purchase price would include a huge premium.
Strategically, though, I don't think it makes much sense for MS to buy Vivendi Universal Games. The place where MS needs to shore up XBox sales is in Japan and the exclusives that could be had from such a deal wouldn't buy them any traction there at all.
Now I guess one could argue about whether MS really needs to succeed in Japan, but that's really a topic for another thread. Suffice it to say, however, that XBox will forever be relegated to 3rd place worldwide if they can't manage to be anything but a laughing stock in a region that represents almost 1/3 of the worldwide market.
01-22-03 | 06:09 PM
#17
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Try out this scenario. It won't make them much as much money, but what if the target audience is not to steal additional Japanese gamers and PS2 gamers, but to sway PC gamers. What if you came out with Warcraft4 and only on the Xbox and not even on the PC? Would people buy the Xbox for it? If it is good enough they would.
Also, their profits were up because of the launch of W3, but look at the loss from the previous quarter. This has always been their problem...they take far too long in between games. They do the games right and make sure they don't release crap, but they don't always release anything. If I were going to sell them, it would be now while the Warcraft 3 press is everywhere.
Also, their profits were up because of the launch of W3, but look at the loss from the previous quarter. This has always been their problem...they take far too long in between games. They do the games right and make sure they don't release crap, but they don't always release anything. If I were going to sell them, it would be now while the Warcraft 3 press is everywhere.
01-23-03 | 01:22 AM
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Originally posted by belboz
Strategically, though, I don't think it makes much sense for MS to buy Vivendi Universal Games. The place where MS needs to shore up XBox sales is in Japan and the exclusives that could be had from such a deal wouldn't buy them any traction there at all.
Strategically, though, I don't think it makes much sense for MS to buy Vivendi Universal Games. The place where MS needs to shore up XBox sales is in Japan and the exclusives that could be had from such a deal wouldn't buy them any traction there at all.
Microsoft has placed a billion dollar bet on X-Box Live. Buying Vivendi Games would give them access to games that they can convert from pc to x-box live if the game has already been released, or they can release it simultaneously on both the PC & X-Box. Releasing it on the PC would allow them to harvest the mods and maps that are one of main reasons people still play older releases and apply them to Live with very little cost. These constant free releases are a major benefit to Microsoft because it gives people more incentive to sign up for Live and keep paying $10/month for it.
Seriously, how many people are still playing Counterstrike after all this time. Lots. Of course, there are still lots more people who haven't played it. Now imagine that Microsoft releases CounterStrike for X-Box Live. How many X-box owners who've never played it before wouldn't want to get Live for it? For those who stopped playing, would you come back if there was an environment in which there could be no hacking, al la Live? CounterStrike is around 3 years old or more. It could easily be ported to the X-box and made to run on the hardware. How about Warcraft 3. I stopped playing the ranked modes a few months ago, but I'm still on occasionally playing the mods, especially AOS.
01-23-03 | 01:27 AM
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Blizzard takes so long to release games however maybe they feel that they will get them to increase the rate of games being released just like they hope to do with Rare.
I personally do not like the buying of third party developers , but what is a gamer to do
By the way if Warcraft 4 was exclusive to the XBox i would just not be playing it. I do not buy a console for one game.
I personally do not like the buying of third party developers , but what is a gamer to do
By the way if Warcraft 4 was exclusive to the XBox i would just not be playing it. I do not buy a console for one game.
01-23-03 | 09:40 AM
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Originally posted by keyed
Buying Vivendi Games would give them access to games that they can convert from pc to x-box live if the game has already been released, or they can release it simultaneously on both the PC & X-Box.
Buying Vivendi Games would give them access to games that they can convert from pc to x-box live if the game has already been released, or they can release it simultaneously on both the PC & X-Box.
01-23-03 | 10:01 AM
#21
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Am I the only one that would like to see a Diablo for the XBox live?
I just want someone that will work on games at a faster pace than Blizzard currently does. I mean I waited over 2.5 years for D2, then about 2 years for the expansion. And now there is no plans or rumors for a D3, or Diablo replacement series.
I just want someone that will work on games at a faster pace than Blizzard currently does. I mean I waited over 2.5 years for D2, then about 2 years for the expansion. And now there is no plans or rumors for a D3, or Diablo replacement series.
01-23-03 | 11:31 AM
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Originally posted by Cusm
Am I the only one that would like to see a Diablo for the XBox live?
I just want someone that will work on games at a faster pace than Blizzard currently does. I mean I waited over 2.5 years for D2, then about 2 years for the expansion. And now there is no plans or rumors for a D3, or Diablo replacement series.
Am I the only one that would like to see a Diablo for the XBox live?
I just want someone that will work on games at a faster pace than Blizzard currently does. I mean I waited over 2.5 years for D2, then about 2 years for the expansion. And now there is no plans or rumors for a D3, or Diablo replacement series.
The major complaint for Diablo II is that graphically it looked like a game made a year or more earlier (which it basically was), but still great.
01-27-03 | 05:53 PM
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There's some more speculation about a deal here:
http://www.europemedia.net/shownews.asp?ArticleID=14605
The most interesting part of that is that they peg the probable price at somewhere between $1B and $2B. That's at least 3x more than what MS paid for Rare.
The piece also mentions Sony and EA as other possible suitors.
http://www.europemedia.net/shownews.asp?ArticleID=14605
The most interesting part of that is that they peg the probable price at somewhere between $1B and $2B. That's at least 3x more than what MS paid for Rare.
The piece also mentions Sony and EA as other possible suitors.
01-28-03 | 09:23 AM
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Saw this on CBS Marketwatch:
http://www.marketwatch.com/news/stor...D&siteid=yhoo&
Looks just a big higher than the Rare deal, but makes sense. It also mentioned EA to be a potential suitor for Vivendi. Interesting that they make specific mention to XBOX exclusivity.
jeremy
http://www.marketwatch.com/news/stor...D&siteid=yhoo&
Vivendi is seen asking $1 billion to $2 billion for the division. However, sales for Vivendi's game division are in the $400 million range, analyst Arvind Bhatia, of SWS Securities, said.
"We believe Microsoft's offer might be less than $1 billion," Bhatia wrote in a research note Monday.
A sale to Microsoft would further increase the installed base of Xbox, since these titles would be offered exclusively on the game console.
"We believe Microsoft's offer might be less than $1 billion," Bhatia wrote in a research note Monday.
A sale to Microsoft would further increase the installed base of Xbox, since these titles would be offered exclusively on the game console.
jeremy
01-28-03 | 12:49 PM
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From: Space Junk Galaxy
Originally posted by kvrdave
Try out this scenario. It won't make them much as much money, but what if the target audience is not to steal additional Japanese gamers and PS2 gamers, but to sway PC gamers. What if you came out with Warcraft4 and only on the Xbox and not even on the PC? Would people buy the Xbox for it? If it is good enough they would.
Try out this scenario. It won't make them much as much money, but what if the target audience is not to steal additional Japanese gamers and PS2 gamers, but to sway PC gamers. What if you came out with Warcraft4 and only on the Xbox and not even on the PC? Would people buy the Xbox for it? If it is good enough they would.