Microsoft is saying that they did not make Activision lay off people, but Activision was already planning to do it anyway. This happened because some companies in the gaming industry are having a hard time and have to cut costs. Microsoft also said if the deal to buy Activision does not happen, they can still undo the layoffs. Read from source...
- The title is misleading and sensationalized. It implies that Microsoft is defending itself against the FTC by claiming that Activision was already planning to lay off employees regardless of the acquisition deal. However, this is not a new or surprising information. It does not indicate how the acquisition would affect the gaming industry, the workers, or the consumers. A more accurate and informative title could be: "Microsoft Claims Activision Layoffs Were Planned Before Acquisition Deal".
- The article relies on a single source for the main claim, which is Microsoft's clarification. It does not provide any evidence, such as internal documents or statements from other parties, to support or challenge this claim. A more balanced and credible article would include multiple perspectives and sources, such as the FTC, Activision, Sega Sammy Holdings, or industry experts.
- The article does not address the underlying reasons for the layoffs, such as overlaps, cost structure, or industry challenges. It also does not explain how the acquisition would affect these factors, or whether it would create any new issues or opportunities. A more in-depth and analytical article would explore the potential impacts of the deal on the gaming sector, the employees, and the consumers.
- The article uses emotive language, such as "claps back", to portray Microsoft's response as defiant and confrontational. It also implies that the FTC is opposing or challenging Microsoft, rather than scrutinizing or investigating the deal. This creates a negative tone and polarizes the reader's opinion. A more objective and neutral article would use factual and descriptive language, such as "clarifies" or "responds", to convey the information without bias.
Bullish on Microsoft and Sega Sammy Holdings
1. Microsoft (NASDAQ:MSFT): BUY - The company is involved in a bidding war for Activision Blizzard (NASDAQ:ATVI), which could boost its gaming division and offer synergies with its existing products and services. However, there are risks of regulatory scrutiny and potential delays or rejections from the FTC and other agencies, as well as possible layoffs in the gaming sector due to industry challenges. The stock is trading at a forward P/E ratio of 26.43x and offers a dividend yield of 1%.
2. Sega Sammy Holdings (OTC:SGAMY): HOLD - The company has announced layoffs in its gaming division, but it also owns other profitable businesses such as arcades and casinos. However, the stock is trading at a premium valuation of 31.04x forward P/E ratio and does not offer a dividend yield. The company may benefit from increased demand for gaming and entertainment during the pandemic recovery, but it also faces competition from other gaming companies and regulatory risks in overseas markets.
3. CI Games (PK:CIEN): SELL - The company has reported disappointing sales of its latest game, Lords of the Fallen 2, and is facing a cash crunch due to high development costs and debt. The stock is trading at a low valuation of 0.86x forward P/E ratio, but it does not offer any dividend yield or growth potential. The company may face bankruptcy risk if it fails to secure additional funding or reverse its fortunes in the gaming industry.