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Microsoft considers U.K. game grab | |
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| Time: 04:41 EST/09:41 GMT | News Source: CNET | Posted By: Alex Harris | ||
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Software giant Microsoft is considering acquiring U.K. game developer Rare in a bid to spur development of its own video games for the Xbox, a source close to the discussions said Wednesday. Separately, a source close to Nintendo, which owns 49 percent of Rare, said the Japanese game and console maker had the opportunity to buy Rare outright and passed, clearing the way for a possible Microsoft acquisition. The source familiar with the discussions said Microsoft is "definitely looking at (Rare) as an acquisition target." He said Microsoft had approached Rare recently, but said he was unaware of the status of talks. Microsoft is facing increasing pressure to publish more exclusive titles for its Xbox game console. The shooting game "Halo" was a breakthrough hit for the game machine, but Microsoft needs fresh titles as the holiday shopping season approaches. Calls to Rare were not immediately returned Wednesday. A spokeswoman for Microsoft declined to comment. | ||
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| #1 By 3653 (63.162.177.140) at 9/12/2002 10:45:11 AM |
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No comment on the Rare story. Just too little info out there right now.
However, I would like to make an XBox observation. Since launch, the critics (lacking any technical shortcomings in the console) have focused on the profitability of the console. I remember early on there were some absolutely wild assertions that Microsoft was losing upwards of $300 per console. In light of that, I found the following quote from news.com interesting... "Microsoft, for example, is believed to be losing anywhere from $76 to $150 on each Xbox, which retails in the United States for $199." SO, one might suggest that at the ORIGINAL price ($299), Microsoft brought in somewhere between a profit of $24 and a loss of $50. Thoughts? If true, you have to really wonder if Microsoft isn't going to begin making a profit rather soon. The profit comes from the games themselves normally, and Microsoft has a slew of first-party (the most lucrative) games. They have also announced that some plants are moving (China, I think) to reduce costs. They have also had a couple of announcements around new cheaper component vendors. And don't forget, nvidia just said they aren't making much money off the chip itself. |
| #2 By 1868 (141.133.144.220) at 9/12/2002 1:11:09 PM |
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I hope to see more acquisitions by Microsoft in the gaming world, and I would love to see Microsoft buyout Nintendo and Sega, so that they could cement there place in the gaming world.
I love the x-box and will be buying my own on Sept 24th, when the price will fall to $140. I really want to see Microsoft dominate the gaming market, because they have such a horizontal(and yes vertical) integration in so many markets that by being a major player in the gaming market, it will allow them to compete against Sony so that BOTH companies will have to bring forth their visions for the connected home and lifestyle much faster. Then we will all benefit by having more powerful technology in our hands and accessible in more places. Additionally we won’t have to deal with 4 or 5 different platforms(if Nintendo, Sega, Sun, and Oracle were all actively promoting their “standard”), we will only have to deal with 2, Microsoft’s and Sony’s. And I can only hope that it will promote fierce competition, unlike what could be fragmentation and chaos.. Go Ms for buying Rare, now support the x-box and your gamming platform for the next 5 years(atleast) and in the process spend that 40 billion dollars buying out companies that should have no presence in the market(Sega, Sun, and Oracle) My 2 cents |
| #3 By 1845 (12.254.162.111) at 9/12/2002 1:29:09 PM |
| What do Sun and Oracle have to do with the gaming industry? Or were you referring to network computers when you mentioned them? |
| #4 By 3653 (63.162.177.140) at 9/12/2002 3:33:17 PM |
| Confused by the Sun and Oracle inclusion too... but we should all understand that there is a lot of interest in the games market... outside the familiar game names. IBM stands to gain alot from Sony's next console. And Linux companies will likely gain from nintendo's continued involvement (assuming they make another console). Hardware companies (nvidia, RAM makers, disk makers, etc.) definitely gain from a hot console market. ISPs will gain too, from development of the online console market. EVERYBODY WINS! |
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