Grimlock, 22/06/2008 - Microsoft Games Studios is still in its infancy. There are some talented studios currently working on titles over at Microsoft such as Rare, Lionhead, and Turn 10. However since the Xbox 360s inception Microsoft seems to have let certain studios slip away that could have made great assets for their 1st party development house. With Microsoft stating previously that they want to become more focused on 1st party development to push hardware instead of relying on 3rd party exclusives one has to wonder why the management over at Redmond would let some of these potentially valuable developers slip through the cracks.
Microsoft has stated that buying out development houses isn't always the most sound strategy for both parties involved. However, it is a good way to strengthen MGS and promote growth as well as diversity. Let's take a look at what Microsft has allowed to to be taken away as well as what could be potentially wise business moves to improve the 1st party development for Microsoft Game Studios.
Blunders
1) Bizarre Creations
In a move that surprised quite a few people in the industry Activision acquired game developer Bizarre Creations in September of 2007. Bizarre Creations was behind the hugely popular Project Gotham Racing series. It is true that Microsoft owns the rights to the Project Gotham Racing franchise, but Bizarre Creations could have been a great asset to Microsoft Games Studios.
In October of 2007 Microsoft announced a plan for Bungie Studios to embark on a path to become an independent company. Microsoft retained an equity interest in Bungie, at the same time continuing its long-standing publishing agreement between Microsoft Game Studios and Bungie for the Microsoft-owned Halo intellectual property as well as other future properties developed by Bungie. This move was a little confusing but as long as Mirosoft and Bungie still have a publishing agreement I guess it isn't that bad.
3) Bioware
In October of 2007 EA payed $620 million in cash to the stockholders of VG Holding Corp which is the company that owned Bioware. EA became the owner of BioWare's original properties. Jade Empire, Mass Effect, and Dragon Age are among BioWare's original IP, which does not include such licensed hits as the Dungeons and Dragons-based Neverwinter Nights and Star Wars: Knights of the Old Republic. I don't understand why Microsoft didn't make an offer. Bioware is one of the most renowned RPG creators in the industry. They definately would have made for a great investment for any first party.
Wise Purchases for the Future
1) Epic Games
Epic developed the bestseller Gears of War and is also the owner of the Unreal franchise. Not to mention they are releasing one of the most anticipated Xbox 360 games this year, Gears of War 2. Epic may be expensive but upon purchasing Epic Microsoft would also becone the owner of the Unreal Engine. They could easily make their investmnet back just from licensing the engine over the years. Not to mention the Gears of War franchise would become a Microsoft IP.
2) Sega
Rumors have been posted of an alleged offer made by Microsoft to purchase Sega. This would be potentially a great move for Microsoft. Sega has a huge back catalogue of original IPs, not to mention a large portion of their games are of eastern heritage. Owning Sega would be a huge asset for Microsoft especially in the Japanese market. Owning all of Segas IPs would give Microsoft a huge library of exclusive games for 1st party developmnet...Shenmue 3 anyone?
3) Take Two
Microsoft should make an offer for Take Two before EA has their way with them. Grand Theft Auto is one of the top selling franchises in the industry. Any company would be unwise not to take interest in Take Two and it is quite obvious that they are for sale.
4) Tomonobu Itagaki/Team Ninja
One of the most shocking stories of the industry this year: "I, Tomonobu Itagaki, hereby announce that on the 14th of May 2008 I filed a complaint in the Tokyo District Court against Tecmo Co., Ltd. for unpaid completion bonuses, and against the President of Tecmo, Yoshimi Yasuda, for such unlawful acts as unreasonable and disingenuous statements made towards me, claiming damages in total of 148 million yen. I also announce that this complaint was delivered to the defendants on May 22nd of the same year."
Not to mention the the other employees that are leaving and sueing Tecmo. Microsoft should give Itagaki and Team Ninja a new sudio. Or wait until Tecmo shares are dirt cheap and buy them outright, fire the president and reinstate Itagaki and his team. Either way Team Ninja would be an asset to any develpment house. Don't let them slip away Microsoft.
Silicon Knights is a Canadian video game developer. Founded in 1992 by Denis Dyack, the company is headquartered in St. Catharines, Ontario. They are currently finishing Too Human and also own the right to the Eternal Darkness franchise. They have released some great games in the past and would definately be a great addition to Microsoft Games Studios.
Realtime Worlds is a video game developer based in Dundee, Scotland. It was founded in early 2002 by David Jones (formerly of DMA Design) who developed the popular franchises Grand Theft Auto and Lemmings
Their first release was the 2007 critically acclaimed action-driving game, Crackdown, an Xbox 360 exclusive title. They are presently developing a massively multiplayer online game for the Xbox 360 and Microsoft Windows, titled APB, which is expected to release in 2009.
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