[wiseprince]

Purchasing of Bethesda, Activision and a bunch of other studios tell me they don’t have a proper mechanism in place to allocate capital. All the buybacks they could have funded instead of burning 100 billion should make investors more than a little annoyed.

[Dr. Sivana]

Purchasing of Bethesda, Activision and a bunch of other studios tell me they don’t have a proper mechanism in place to allocate capital.

They might have done that ensure that desirable products are developed for xbox, or even prioritized. Microsoft is going to have internal conflict with subsidiaries like Activision that continue to develop for competing platforms. Also, video game companies, like the movies, have become accustomed to a handful of mega-tentpole games instead of releasing a lot of product for different audiences. One miss or change in a popular game type can be catastrophic.