DForce
NaughtyDog Defense Force
I don't see how it doesn't. They were literally asked about their budget and their response is that they don't have clear criteria and it's going to be based on the benefits of their investement.
-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
Sony has $10 billion left to spend on acquisitions through 2023
- Thread starter Lunatic_Gamer
- Start date
- News
Yoboman
Member
Sony are making $10 billion + a year in profit. While they aren't on MS level, they are top 100 biggest companies in the world and top 50 for most profitable
They have weight to throw around if they need to
Sosokrates
Report me if I continue to console war
You know what, thats a good point.
Muddy
Member
Saudis have just purchased a stake in Capcom. Very unlikely now.
lastmessiah
Member
Kojima loses money for both Konami and Sony and pissed them off during development. It’s well documented. Lol at buying Kojima.
Bluepoint did not took forever.
They were grabbed less than a year after their latest collaboration (Demons Souls remake) was deemed a success by Sony.
With Kojima we're almost three years since DS in 2019 and rumors want him now developing things for Microsoft
If you think it's the same situation...
Last edited:
Ass of Can Whooping
Gold Member
That's not an issue if Sony wants Capcom
James Sawyer Ford
Member
Bluepoint did not took forever.
They were grabbed less than a year after their latest collaboration (Demons Souls remake) was deemed a success by Sony.
With Kojima we're almost three years since DS in 2019 and rumors want him now developing things for Microsoft
If you think it's the same situation...
And how long did they work with Bluepoint and Housemarque or Insomniac before any of them got acquired?
There's no rhyme or reason to the timing.
yurinka
Member
I said that this remaining budget that Sony has for acquisitions during the next two years isn't only for gaming.
And that they can also raise it if desired/needed. And that they have dozens of billions of cash in hand to use if desired or needed. Plus even if they went crazy and wanted to go beyond that, they could also get debt.
Market cap helps to get an idea of the possible value of an acquisition, but isn't a exact reference. And even less adding a random 40%. Plus to acquire a company they don't need to buy 100% of the company.
Sony will spend $10B on acquisitions from now until March 2024. Pretty likely will increase it because they started with a budget of 18B and already spent $8B in less than a year and they can afford it. Part of these $10B (and potentially more) will be for gaming and nothing points out that only 40% will be for gaming.
What was ~40% is the portion spent for gaming of the $7.6B they already spend of that budget. Pretty likely the portion of the remaining 10B will be pretty huge because it's one of their main priorities, some of the acquired IPs will also be used in other Sony segments and they already have been making big acquisitions during many years in the other segments, while not in gaming, and in the consolidation context of gaming now is the time of making big acquisitions before it's too late.
~$5-6B would be a fair price for Capcom since they make $800-900M/year in revenue so in 5-7 years they'd recoup it. Considering things like the current consolidation context or their IPs maybe to buy the 100% of it would cost now ~7-10B. Sony would have to buy slightly above half of it to own it and control it.
Last edited:
Ass of Can Whooping
Gold Member
Well documented to you probably means some reddit posts
James Sawyer Ford
Member
Sure, and IP security basically means that no one else acquires them.
I think there still are strategic aligned interests for a big publisher but it's expensive and Sony already gets most of the benefits from them anyways without needing to acquire them. And honestly out of any of them (EA, Ubi, Take2, Square, Capcom)....only the Japanese ones make sense to me. They are smaller, they are local, and they provide fairly big globally appealing IP that is different from their US studios.
There's too much redundancy with Ubisoft or EA (and I don't like either of them from a quality standpoint), and Take2 is just too big for them to buy
Last edited:
Yoboman
Member
I think Ubisoft fits well for Sonys direction with their mix of GAAS and single player projects. Plus a solid portfolio of family friendly games
I do think they need to diversify a bit with their projects but the first party safety net may allow for that.
Plus they might finally create a new Splinter Cell and Prince of Persia, and get some assistance in finishing BG&E2
I think they are anti acquisition though so I don't see it happening
Cyber_hunter026
Member
Not really, if anything that makes them even more likelier to be acquired. they poured a billion into Activision/blizzard before the Microsoft buyout deal.
yurinka
Member
The rumor was officially debunked, his next project was Death Stranding Director's Cut and Norman Reedus said the are working on the sequel. Plus Kojima said that in addition to make games he also wants to make movies and anime, and unlike MS Sony can help to make them. Kojima is happy with Sony and Sony is happy with Kojima. Sony gives him the money and creative freedom to do whatever he wants even if it's a super bizarre, expensive and risky stuff like Death Stranding. Kojima has no reason to leave Sony and go with MS, when he already has in Sony whatever MS could offer him.With Kojima we're almost three years since DS in 2019 and rumors want him now developing things for Microsoft
Oddvintagechap
Member
They will take the return in investment in cash, or get shares in Sony.
Only thing that stops Sony from getting even EA, is if they see any point. Only companies they will buy is if they can think they can make them grow. Is EA going to crash in value? Are they too reliant on licenses? FIFA, MADDEN, Star Wars, etc? What if Microsoft puts a higher bid for FIFA? What If Microsoft were to pull COD, would Battlefield be enough, or is it a mess and too risky? They have GT7, do they need Codemasters? Only thing I see for long term growth that they would own is Apex and The Sims.
Capcom and Sega in the other hand bring alot of synergies.
Sony Pictures is already heavily invested in Capcom. Sony Pictures is lost their Sonic movie project to Paramount.
lastmessiah
Member
I'd have this confidence when his next projects are announced imo.
Oddvintagechap
Member
Only thing? Thats like multiple things.
If they have those Madden and FIFA licenses on lock. They can pretty much print money by themselves. Add their baseball license, turn them all into games as services. That debt will pretty much pay itself.
yurinka
Member
One already has been announced and released: Death Stranding Director's Cut. After it, its PC port. And Reedus leaked the sequel.
RevGaming
Member
What are you talking about? Death Stranding was hated and people are still triggered it got that many awards. It was commercial flop. It's one of the games that looks the most uninteresting things ever created.
DS didn't break even after it was released on PC. They aren't self sufficient. They can be, but right now I wouldn't touch them. Lets see if he can finish that horror game and then we'll talk.
Men_in_Boxes
Snake Oil Salesman
Insanely successful company that specializes in open world multiplayer has "no value".
Riiiiight.
RevGaming
Member
That's a weird wish.
Oddvintagechap
Member
Because it’s kinda annoying how many idiots think a profitable company with market cap of 150 billion can’t purchase a 3 billion and 5 billion market cap company.
James Sawyer Ford
Member
Who is triggered? Fanboys maybe
It was the best game in 2019. It sold well. Sounds like you don't have your facts straight
RevGaming
Member
I'm so far a PS only owner (Will def pick xbox this gen and that was before the AB thing). I hate that SONY wasted time with a walking simulator (it's my opinion, we don't need to talk about it). I didn't buy it, but I've seen it multiple and multiple times and it really looks boring. Clearly the PS fanbase doesn't want another one because it didn't break even (search it) before it got a PC release. Xbox and PS were making fun of it.
Still, I'm hyped for its next horror game because of PT. Very pumped, but they should wait and see how that game turns out and it reception and then get him. Idk. Maybe he got bought already. We don't know. We're just guessing who's good enough for Sony like we know jack about it.
It wasn't the "best" game in 2019. It got the most awards (about 10 more over sekiro and re2 remake on the critics side), but it didn't win the most important one and I see nobody saying its their gotg or goty. Dmc5, MHiceborne (a DLC), RE2 remake and Sekiro sold better than DS in that year, and you're saying Capcom doesn't make sense? DS was commercial flop. At least tlou 2 got a huge gap in user awards and critics over the other 2020 games even tho that game was massacred by a minority which most of them don't know nothing about it.
Astral Chain, Fire Emblem, Mario Maker 2, DMC5, MHIceborne, RE2 remake, Sekiro etc. all scored better. So it's not the "best" game.
Last edited:
RevGaming
Member
Then tell Take Two bought Zynga for more than half of what they're worth. If they don't realize that, then they won't realize a lot of things in their lives.
Dabigkahuna76
Member
Playboy the reason I say that is because Sony a Japan company that owns a few American developers that they bought not started from the ground up like bungie and bluepoint games all American developers
SLB1904
Banned
What? What are you smoking.
Death stranding was made in 3 years sold 6 mil copies. What documents are these you talking about
Grumpy Toe Nail
Banned
My biggest fear but then again whats the point of Sony buying out companies if they end up going MS route and just put everything on PC with console sales being secondary. MS makes since cus gamepass but what reason does Sony have? Dont think they're going to buyout a company just so MS doesn't get the chance and again if its on PC anyways its not like im going to buy a PS5 for it.
But I want to play those games, I don't give a shit how much money they make on them.
Last edited:
GHound
Member
Ones that don't exist.
Hideo Kojima: Death Stranding was profitable and recouped costs; profit secured for next title
Death Stranding, Sony Interactive Entertainment and Kojima Productions’ November 2019-released PlayStation 4 title, was profitable and recouped development costs, director Hideo Kojima said i…
www.gematsu.com
Last edited:
PendekarRajawali
Member
Can Sony just develop new games or new IPs with the money instead of buying existing company which release the same games again and again?
SLB1904
Banned
Is like they don't think. Sony was like "hey! you know that failure death stranding? Double it down make a directors cut" lolOnes that don't exist.
That was before PC and Director's Cut. But I'm sure people will struggle to keep their narrative going somehow. ¯\_(ツ)_/¯Hideo Kojima: Death Stranding was profitable and recouped costs; profit secured for next title
Death Stranding, Sony Interactive Entertainment and Kojima Productions’ November 2019-released PlayStation 4 title, was profitable and recouped development costs, director Hideo Kojima said i…
SLB1904
Banned
They are doing both, in fact they are helping new studios from the ground up.
Last edited:
SLB1904
Banned
lol capcom has shit tons of ips. square doesnt own avengers or guardians lol
RevGaming
Member
Some people don't like PC. Like me.
Sanepar
Member
They own the license to make games now.
Both have more ips i was saying RELEVANT in sales > 5 million
RevGaming
Member
Yeah, but Capcom makes like 4 resident evil within a blink and FF made 2 games. Street Fighter too (consider that it's console exclusive). Square doesn't have a popular fighter.
Somebody told me they don't own Dragon Quest. Tomb Raider is not coming back at the moment. Capcom is bringing back Dragons Dogma 2 and is making a new IP (Pragmata).
Both are good gets, but I think Sony would prefer Capcom because they have more usa appeal, which it's where they lost ground.
If you make a monster hunter GaaS, it could be as big as ff14... Or Destiny.
Last edited:
SLB1904
Banned
I don't know, in my opinion dino crisis remake and dragons Dogma sounds more enticing to me. In fact square jas grate jrpg as well. If you ask me. I think both hold the same value
Javthusiast
Banned
Enough for capcom plus Konami ip, fuck the actual company and their pachinko business.
mansoor1980
Member
why would sony buy sega? for what benefit......
Sanepar
Member
Tbh both would be an awesome move and would take a big hit on Xbox in Europe and Asia.
yurinka
Member
The saudis only bought a very small stake in Capcom, it's only an investment. And basically can't or is extremely difficult to see them buying it. Capcom's treasury plus the Tsujimoto family that runs the company own over half of the company so they have full control. On top of that, the next bigger Capcom shareholders are Japanese banks who also are major stakeholders at Sony, Square, Sega, Bandai Namco, Kadokawa and other big Japanese gaming companies. These banks would prefer to sell to other company where they are also major shareholders because they'd earn a ton of money with the movement.
Recap:
- $4B market cap
- $350-450M of yearly revenue with a very small operative profit
- Over 3200 employees
- Many iconic classic IPs for the industry including the Sega one itself, tons of content perfect for game subs and PSVR2, or to grow in PC or Japan
- They want to revive dormant IPs, use their IPs on films and tv, open to the west and put more stuff on game subs
- They want o make SUPER GAMES (a.k.a. AAA GaaS)
- They have a very handsome CEO and a good karts series for Knack
They have several series that have been interesting enough to pay moneyhats for them, or would be useful if they want to take a better positioning in Japan and in PC and its strategy genre: Persona, Shin Megami Tensei, Sonic, Yakuza, Bayonetta, Total War, Football Manager, Virtua Fighter, Warhammer 40000, Alien Isolation. Some of these IPs have potential to use them in movies, tv shows or anime.
They could get the FIFA IP and use it in both Football Manager and could ask San Diego to make a soccer game with it with a 2nd team instead of making only baseball games.
Countless retro IPs, specially arcade ones that would be perfect to used for game subscriptions, mobile or even revive a few of them from time to make a AAA game, or specially would be perfect for PSVR2 games, or to let some passionate indies use them: Outrun, Afterburner, Jet Set Radio, Crazy Taxi, Sega Rally, Golden Age, Streets of Rage, Shinobi, Columns, Gunstar Heroes, Thunder Force, Shenmue, Panzer Dragoon, Nights, Puyo Puyo, Columns, Daytona USA, Virtua Cop, Alex Kidd, Wonder boy, Monkey Ball, Space Harrier, Hang-On, Virtua Racing...
Pros: Many iconic classic IPs important for seasoned gamers with potential to use them outside gaming, in VR and tons of game subs content, some important JRPG IPs, tons of arcade IPs, some important PC IPs, many workers.
Cons: small revenue and profit, they are in declining business (same goes with other companies like Capcom or Konami) that may not interest the purchaser like arcade, pachinko, pachislo or resorts. Would be great to secure all this stuff from becoming Nintendo or MS exclusive.
In terms of financials it would make more sense to get Capcom or Square, but in terms of mindshare and IPs would still be really powerful.
Last edited:
Sanepar
Member
They bought less than 5%. It will be no problem.
That's tribalism for you.
RevGaming
Member
Good. Buy the shareholders and then you get the rest. Ez pz lemon squicy
Atanascovich
Member
They will buy hello games for 8 bi