@Tharsman oh I know all that, but the point is you don’t burn 70% of your cash reserves on one transaction. And by the time the transaction goes through, inflation will have dropped to reasonable levels. So wind your neck in dude.
Lots of Xbox owners on here chuckling. You won’t be when your game pass subscription starts to rocket. MS will not want its gaming division making losses forever, and GP is a loss making subscription service as it stands. MS are gambling on getting enough subscribers signed up before they start ramping up the price. Doesn’t matter how much people think they can write off losses and shrug their shoulders, eventually the CEO of MS wants a return on his 69b dollar asset and his gaming division overall.
Also, somebody on here has said they will stump up the cash for this outright. No. Companies don’t blow 70% of their cash reserves on a purchase, especially when their cash reserves have been falling for the past few years (Google it). And before you ask, I know they won’t because I work in finance for a multinational company. So this will be serviced by debt to some extent. And debt has become very expensive in the last 12 months. The days of cheap game pass are numbered.
Comments 2
Re: UK Regulator No Longer Concerned About Activision Buyout's Impact on Console Competition
@Tharsman oh I know all that, but the point is you don’t burn 70% of your cash reserves on one transaction. And by the time the transaction goes through, inflation will have dropped to reasonable levels. So wind your neck in dude.
Re: UK Regulator No Longer Concerned About Activision Buyout's Impact on Console Competition
Lots of Xbox owners on here chuckling. You won’t be when your game pass subscription starts to rocket. MS will not want its gaming division making losses forever, and GP is a loss making subscription service as it stands. MS are gambling on getting enough subscribers signed up before they start ramping up the price. Doesn’t matter how much people think they can write off losses and shrug their shoulders, eventually the CEO of MS wants a return on his 69b dollar asset and his gaming division overall.
Also, somebody on here has said they will stump up the cash for this outright. No. Companies don’t blow 70% of their cash reserves on a purchase, especially when their cash reserves have been falling for the past few years (Google it). And before you ask, I know they won’t because I work in finance for a multinational company. So this will be serviced by debt to some extent. And debt has become very expensive in the last 12 months. The days of cheap game pass are numbered.