lustyargonian, rok temu (edited rok temu)

Idk first thing about any of this, but I do think with MSFT controlling Windows, Azure, Xbox, GitHub, OpenAI, Teams; at some point one has to ask if MSFT is just too big for no good.

Think about it, a competing game studio might be paying MSFT for Windows licenses, Teams for internal communication, Azure for game servers, GitHub for hosting their source code, ChatGPT Pro for using AI in smart ways and finally a 30% cut to Xbox Store, only to compete with bazillions of first party titles under Xbox Game Studios.

Now think of a big publishers, they need to somehow compete with GamePass, which takes all the money MSFT can throw at it and makes game sales kinda irrelevant. Why would a consumer buy a $70 game when they can play other games for $15 max a month. Even if it’s $30 a month, it’s still a steal. Why would a studio go to a big publisher and give up bigger chunk of revenues (Outriders didn’t get much under Square Enix despite being on GamePass) when they could just become a second party developer with XGS and rake in whatever cash flow positive MSFT would give them before the game is even launched, with a bonus of marketing of “Day One With GamePass”.

In nut shell, MSFT makes a tonne money during development even if the game isn’t released on Xbox, and Xbox Game Studios slowly hollows out competing publishers by using the MSFT money to secure deals with third party studios or straight up acquiring them. They can adjust profitability by tweaking prices at several touch points of this huge Microsoft services pipeline.

If Xbox was broken away from MSFT, they’ll become yet another publisher, though a pretty big one, without the daddy money. It would make the industry more competitive between publishers, but it may also probably lead to egregious monetization strategies like we already see these days, because MSFT is uniquely positioned to do what they’re doing.

Similar things can be said about Amazon or Google. How is it that if Netflix succeeds AWS wins and if Prime succeeds, AWS still wins? How can Google make the search engine, video hosting platform, dominant browser and a ads platform and cross pollinate money like crazy? If big companies weren’t allowed to build such synergetic businesses, consumers might be paying to several different companies, but they’ll also be seeing competition in each of those domains, driving prices lower, hopefully.

So yeah, I support the idea of breaking up companies that start dealing with orthogonal domains that end up creating a nest of services that no competitor can easily break free from.

Thank you for coming to my Ted talk.