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The battle between Sony, Microsoft and Nintendo

7 min read

The opinions of the employees of You are personal.


The battle between Sony, Microsoft and Nintendo
The battle between Sony, Microsoft and Nintendo

When I did my annual prepaid service for Sporting event channels In January of this year, I never thought that my indecision of which channel to put in the background while preparing my work for the next day would be reduced for six months to the following finalists: Horse Racing 1970 (by mere appearance and curiosity ) vs. The world leagues of international e-sports all day, every day of the week, in any language, with commentators, subtitles and even the option to activate a comment field in sign language. If this is not avant-garde and mass acceptance then I don’t know the definition of these two words.

Don’t get me wrong, it’s not critical. In fact, I’ve learned to live and accept myself without having to hide it: I’m a lawyer during the day and player at night. And I don’t feel so alone because, according to Statista data, at the end of August this year it was me and another 2.7 billion casual or professional players in the world. in Latin America alone around 266 million.

Despite all the adversities, my passion for the black and white screens and “cartridge” operating systems of that time was brought to life by my mother. My first memories in the world of video games are in the summer without school. I sit in front of the box TV, connect my Super Nintendo with yellow, red and white cables and listen to my mother’s instructions, although she has never played a video game. She was more involved in the story of the mustache and red hat plumber than I was. Prove for? The magazines she bought have clear instructions on how to finish the game 100 percent perfectionistically.

But what in reality appears to be an industry of good times, leisure, and to some vices, is a world of corporate jealousy, the fierce battles that unfold on the edge of what the world’s antimonopoly authorities, and especially billions, allow – Dollar transactions (valued at US dollars) with one goal: That my 2.7 billion colleagues player and I consume.

The undeniable need in the world in these tight times to do everything from the comfort of your home and on cell phones goes unnoticed by the valuations, returns, and profits that the major video game companies have brought to their investors during these months. Proof of this is the performance of EA (Electronic Arts) of approximately 20% of the value of its shares since January of this year to date, or the nearly 45% increase in value of the share of Nintendo In the same period.

According to Statista / Image: Depositphotos.com, there are 2.7 billion casual or professional gamers worldwide

It is obvious, The Washington Post published it after a study they carried out themselves: the sale of video games, consoles, accessories and “Add-ons“They increased by 35% of sales in the same period in 2019.

This news only goes unnoticed as the revenues of streaming entertainment companies, service companies buying and selling goods online, monopolize the front pages for their increases well above the above percentages.

It is precisely in this “dark side” and camouflage of the video game industry that my daytime job meets my nightly hobby. any of these transactions, negotiations, and acquisitions in general Power games The top three players in this industry (Microsoft, Sony, and Nintendo) face complex negotiations, lengthy due diligence, pull-and-loops, and lots of lawyers.

I talked to colleagues about it a long time ago: Today we are in the middle of a battlefield where Microsoft and Sony are fighting to treat as much content as possible, exclusive and jealous of their respective consumers. Nintendo watches from afar because its consumers and users are usually also consumers and users of Microsoft or Sony, but never both. This phenomenon is known in slang player as “Console Wars”;; Sony and Microsoft are fighting to limit video games that could previously be played on both consoles to only one, forcing consumers who consider themselves loyal to a video game franchise to switch consoles to the games of their choice to be able to continue playing. Consoles have new models every two or three years, and the average price for recent generations of consoles has ranged from $ 400 to $ 500. Let’s take that number against the number of active consumers in the world and get a good idea of ​​the amounts that these hardware sales represent.

Evidence of this is the news that a few days ago the world of financial markets, intellectual property and media law firms, and us gamers were shaken. Microsoft’s surprising acquisition of Zenimax, a controlling company of video game development studios, was announced. The surprising thing: Zenimax has 8 development studios, each studio has an extensive catalog of intellectual property and video game franchises that have been the consumer focus for decades, and the price Microsoft had to pay for this overall acquisition was 7, $ 5 billion. American dollars.

What a surprise I was when, on issues of monopoly prevention and unfair competition, before reading the details and figures of the acquisition, the authorities were unable to stop the transaction because the operation did not meet the original requirements for an investigation, which warranted it the operation NO It was a merger between competitors (horizontal merger / acquisition), but the acquisition of a content development company by a company responsible for distributing that content.

Today we’re in the middle of a battlefield between Microsoft and Sony / Image: Depositphotos.com

I anticipate this acquisition will be included in the academic textbooks for the corporate management, attorney, accountant, and software developer professions, and the lessons I had to learn in similar books with operations like: Disney Buying From will remain obsolete war of starsor the fundamental example of mergers and acquisitions in the entertainment industry: Time Warner and Fox News in 1997.

It will be interesting to see how this affects the “Console Wars” landscape and gives Microsoft a significant advantage over rival Sony. It will be even more interesting to see the video game world shift from the third pages to the front pages of Amazon and Tesla to the front pages of Wall Street.

In the meantime, I recommend being aware of this change in the world of entertainment. I sit back, relax and look forward to the next updates, turn on my console and invite my friends over to a game of our favorite video game.

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