Microsoft/Activision Deal: We Can't Agree! - WAN Show January 21, 2022

Episode Summary

Executive Summary: The episode centered on Microsoft’s $68.7B acquisition of Activision Blizzard, with strong debate over whether consolidation helps clean up Blizzard’s culture or worsens long-term monopoly risks for gamers. The hosts also covered Lenovo/AMD CPU-locking via PSB, AMD’s controversial RX 6500 XT launch and deleted VRAM post, Twitter’s NFT profile-picture rollout, Valve’s Steam Deck verification program, and several merch/product updates.

Main Topics: Microsoft’s acquisition of Activision Blizzard (Priority: 5/5): The hosts debated the pros and cons of Microsoft buying Activision Blizzard: potential cultural cleanup and Game Pass growth versus long-term consolidation, monopoly power, and cloud-first dependency. Lenovo and AMD CPU locking via Platform Secure Boot (Priority: 5/5): They criticized Lenovo’s ThinkCentre AMD Pro systems for enabling PSB by default, effectively fusing CPUs to motherboards and creating anti-consumer, right-to-repair-hostile e-waste risks. AMD RX 6500 XT launch controversy (Priority: 5/5): The discussion covered AMD hiding a prior VRAM-awareness post, the card’s 4GB/64-bit limitations, PCIe x4 bottleneck, and whether a low-end card still has value during a severe GPU shortage. NFT profile pictures on Twitter (Priority: 4/5): They mocked Twitter’s NFT avatar feature as cosmetic status signaling, but also acknowledged it is functionally similar to paid in-game cosmetics and reflects growing NFT mainstream interest. Valve’s Steam Deck game verification program (Priority: 4/5): The hosts viewed Valve’s verified/playable/unsupported labeling as a major win for Linux and a strong incentive for developers to support Steam Deck properly. Merch/product and company updates (Priority: 3/5): The show included several LTT Store updates: the desk pad configurator, new hoodies/shirts, screwdriver development delays, and future product plans like socks, exercise gear, and better free add-ons.

Key Arguments: Microsoft is one of the few companies able to afford a purchase this size, making the deal plausible even if it is undesirable for market competition. Activision Blizzard was already in decline and plagued by severe cultural problems, so Microsoft may be the least-bad buyer for cleanup, though Bobby Kotick’s involvement remains troubling. Consolidation in gaming is dangerous because it increases dependence on Microsoft’s ecosystems, cloud infrastructure, and Game Pass, which can create a single point of failure for multiplayer and services. Lenovo’s default-enabled CPU locking is especially unacceptable during a chip shortage because it destroys reuse value and worsens e-waste. AMD’s RX 6500 XT is a flawed product technically, but any GPU that can actually be bought may help relieve broader GPU scarcity and lower pressure on other cards. Twitter’s NFT profile-picture feature is mostly superficial, but it shows that users will pay for digital cosmetics, even when the real underlying asset is dubious. Steam Deck verification is important because it gives developers a commercial incentive to make Linux-compatible builds and helps consumers identify working titles. The right-to-repair and net neutrality issues discussed are broader examples of how lobbying and platform control shape tech policy. The hosts argued that many consumers simply need affordable, functional hardware; artificial restrictions on reuse or repair punish lower-income users. A recurring theme was that modern software and platform ecosystems increasingly depend on centralized services, which can fail catastrophically when a provider goes down.

Data Points: Microsoft acquisition price: $68.7 billion - Microsoft’s bid for Activision Blizzard Purchase price per share: $95 per share - Terms of the Activision Blizzard deal Post-announcement share price: $84 - Activision shares after the deal was announced Microsoft first-party studios: 32 studios - The hosts noted Microsoft’s studio count after the acquisition Xbox Game Pass subscribers: 25 million - Phil Spencer’s subscriber figure discussed during the acquisition talk WoW subscriber count: 4.74 million - A 2021 estimate mentioned as potential Game Pass additions Thought experiment on return: ~30+ million monthly revenue scale implied - They estimated $10–$15/month subscription revenue against the acquisition price RX 6500 XT VRAM: 4GB GDDR6 - AMD’s low-end GPU specification RX 6500 XT memory interface: 64-bit - A major bottleneck discussed in relation to performance and price RX 6500 XT PCIe interface: PCIe 4.0 x4 - Concern that older PCIe 3.0/2.0 systems would be heavily bottlenecked RX 6500 XT compute units: 16 CUs - GPU spec mentioned during the review of the card RX 6500 XT clock speed: 2.8–2.9 GHz - Reported boost clocks for the card RX 6500 XT Infinity Cache: 16 MB - Another constraint contributing to performance issues Steam Deck verification categories: 3 categories - Verified, playable, unsupported Nintendo Switch online save backup: requires paid Nintendo Online - Used as an example of hostile platform design LTT desk pad reviews: 3,582 reviews - Shown as evidence of product popularity FreshBooks usage: 24 million users - Sponsor mention Seasonic Prime TX1000: 80+ Titanium - Sponsor mention for the power supply Screwdriver goal price: around $69 - Target price discussed for the LTT screwdriver

Pivotal Quotes: "But if there's anything that history has ever taught us, it's that once a monopoly exists, it always, always screws you." — Linus: Core argument against long-term consolidation in gaming "It is bound to that craptastic Lenovo motherboard for life." — Linus: Critique of Lenovo/AMD CPU locking via PSB "The point is not an outage. The point is the single point of failure." — Linus: Concern about Microsoft-run multiplayer infrastructure and centralization

Implications: Listeners should expect continued consolidation, more platform dependency, and more fights over repair, resale, and digital ownership. The industry’s future may hinge on whether Microsoft, Valve, Sony, and others prioritize openness or lock-in.