Sony is offering Bungie employees a $1.2 billion incentive program in an effort to keep them at the company following the buyout.

Seems like keeping talent in the gaming industry is more important than ever.

I guess number of experience, talent workforce is very important for Sony.
 
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MonarchJT said:
my god this is embarassin
5 b for destiny? ...what drug Jimbo taking?
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8LjmBoS.gif
 
Smart guys. SONY knows companies don't make good games, people make good games. If you can't keep your employees it doesn't matter how many IPs you buy, you have nothing.
 
Bungie doesn't own a lot of IP and Sony made it clear this was about the talent and expertise working on live service games just as much (or more) than it was about Destiny.

So it makes sense to ensure that the talent actually stays. Otherwise you end up with a Bioware: beloved studio with a rich history and well liked IP's.......but no one left who can actually make something worthwhile with it.
 
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Emoji Thinking GIF


hmm whats Sony hiding...??? They have been know to know how to Control the narrative... Wow all of sadden live services and soon MTX are good looking at most responds from PSgaf. Lol
 
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Edgelord79 said:
Explain how then.
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Remember RARE? That company behind 007, Banjo, etc...

So, what are they doing now? Wonder why?

I already lost the counts about how many times I need to repeat, either neoGAF, twitter, resetera... Companies are just names... fucking names.

Without the people who made the company famouns to begin with, they're nothing.

Or you either let them leave from the company or do something about. This choise will affect the quality of future games.
 
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Fake said:
Remember RARE? That company behind 007, Banjo, etc...

So, what are they doing now? Wonder why?

I already lost the counts about how many times I need to repeat, either neoGAF, twitter, resetera... Companies are just names... fucking names.

Without the people who made the company famouns to begin with, they're nothing.

Or you either let them leave from the company or do something about. This choise will affect the quality of future games.
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Depends on where the value is. If I buy Konami it's for the IP. I fire everybody.
 
Fake said:
Remember RARE? That company behind 007, Banjo, etc...

So, what are they doing now? Wonder why?

I already lost the counts about how many times I need to repeat, either neoGAF, twitter, resetera... Companies are just names... fucking names.

Without the people who made the company famouns to begin with, they're nothing.

Or you either let them leave from the company or do something about. This choise will affect the quality of future games.
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You are derailing the thread. That happened years ago. Microsoft would need a time machine to go back and change it. Besides Rare is doing just fine.

Go make a thread about that if you want to discuss that.
 
Retention incentives are common in mergers, acquisitions and bankruptcies. It's a smart business practice.
 
Imagine how many games or studios you could start and fund with that amount of money. Instead, it is spend on a developer that makes one game and can't even create a proper new player experience.

What a joke.
 
Amiga said:
Depends on where the value is. If I buy Konami it's for the IP. I fire everybody.
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Is a double edge sword, like this one. Lets see how this can be benefic or not. Again, Sony is sending a good amount of money.


Edgelord79 said:
You are derailing the thread. That happened years ago. Microsoft would need a time machine to go back and change it. Besides Rare is doing just fine.

Go make a thread about that if you want to discuss that.
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Is on the same subject. If you don't want to discuss press the ignore button and move on.
 
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Rykan said:
Imagine how many games or studios you could start and fund with that amount of money. Instead, it is spend on a developer that makes one game and can't even create a proper new player experience.

What a joke.
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Oni was a helluva game though.
 
I WAS RIGHT. Thats what I been saying. 1 billion is for expenses. Not for the actual value of the studio. BET. It now all makes sense.

Paying top talent is every important.
 
Lognor said:
This is very standard. I deal with this regularly in my industry
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Interesting. The terms of the deal are far from standard according to Hoeg Law. What do you see here that makes you think otherwise? Genuinely asking here.
 
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Mibu no ookami said:
Yeah, if you buy Kojima Productions, you'd have to have him sign pretty lengthy non-compete and structure his payments in a certain way that makes financial sense.

Kojima Productions is a good studio to look at, but I wouldn't pay through the nose for them at this point.
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Kojima is almost 60 so even if you buy his studio you need to be confident in a post Kojima world for the studio
 
$1.2B retention bonus?

Google says Bungie has "900+ employees" Ok, let's round it off to 1,000 employees.

So Sony's bonus structure rewards the average Bungie employee who sticks around $1,200,000 each?

LOL. Doesn't sound like a lot of confidence that'd stay under normal conditions. So really Bungie is worth $2.4B but they tossed in an extra $1.2B. Makes sense as just about everyone thinks it's crazy for $3.6B straight up for a studio that just makes Destiny.

It's like buying a house whose market price is $240,000, but you tell the sellers you'll pay $360,000 if they promise not to mess up the house before you take ownership.
 
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James Sawyer Ford said:
As it should be.

Without talent you have nothing

It's far more important than the IP
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I agree with this but why agree for them to be multiplatform developers moving forward? It sounds like multiplat is their strategy moving forward according to Jim Ryan which doesn't seem like Sony.
 
so a third of that cost is just bribe money for them not to leave?

this deal sounds worse and worse the more we find out, looks like there's not much real asset that Sony got out of this deal
 
ChuckeRearmed said:
No, I believe it is not a standard practice. But it shows how important Bungie is for Sony.
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KingGhidorah said:
so a third of that cost is just bribe money for them not to leave?

this deal sounds worse and worse the more we find out, looks like there's not much real asset that Sony got out of this deal
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www.forbes.com

Apple Offers Bonuses Ranging Up To $180,000 To Retain Workers And Ward Off Meta From Poaching Top Talent

Apple, one of the largest tech companies in the world, is worried, as the war for talent is heating up. The company is particularly concerned over the thousands of new employees Meta—formerly Facebook—will need to build the metaverse.
www.forbes.com www.forbes.com

Damn poor little apple.
 
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GigaBowser said:
I agree with this but why agree for them to be multiplatform developers moving forward? It sounds like multiplat is their strategy moving forward according to Jim Ryan which doesn't seem like Sony.
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They are a GaaS focused studio.

Being playable on as many platforms as possible is essential to community growth. Exclusivity makes zero sense. Sony is calling MS' bluff with this move.
 
Edgelord79 said:
Interesting. The terms of the deal are far from standard according to Hoeg Law. What do you see here that makes you think otherwise? Genuinely asking here.
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I wasn't speaking of specifics around the contract but the application of retention programs. They are being used very frequently now given high turnover everywhere.
 
This is one of the worse times for finding talent in many skilled technology fields. It is easier to offer incentives for people to stay than to hire replacements.
 
Oddvintagechap said:
www.forbes.com

Apple Offers Bonuses Ranging Up To $180,000 To Retain Workers And Ward Off Meta From Poaching Top Talent

Apple, one of the largest tech companies in the world, is worried, as the war for talent is heating up. The company is particularly concerned over the thousands of new employees Meta—formerly Facebook—will need to build the metaverse.
www.forbes.com www.forbes.com

Damn poor little apple.
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Apple has HUGE bank account, even bigger than Microsoft's......Sony on the other hand doesn't have that unlimited fund
 
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This would be an incentive package of around 1.3 million US American dollars per employee, in addition to probably all of them owning a significant stake of the private shares Sony paid 2.4 billion for. If I worked for Sony's other studios (Naughty, Sucker, Santa, an especially Insomniac) I'd be holding an all hands on deck meeting and have everyone walking out the door by Monday unless they matched this offer.
 
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StreetsofBeige said:
$1.2B retention bonus?

Google says Bungie has "900+ employees" Ok, let's round it off to 1,000 employees.

So Sony's bonus structure rewards the average Bungie employee who sticks around $1,200,000 each?

LOL. Doesn't sound like a lot of confidence that'd stay under normal conditions. So really Bungie is worth $2.4B but they tossed in an extra $1.2B.

It's like buying a house whose market price is $240,000, but you tell the sellers you'll pay $360,000 if they promise not to mess up the house before you take ownership.
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It is a long term incentive plan.
It is not money on employees hands.

It can be courses, certifications, a better health plan, a retired plan, etc etc etc… and long terms means at least for the next 3 years.
 
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Lognor said:
I wasn't speaking of specifics around the contract but the application of retention programs. They are being used very frequently now given high turnover everywhere.
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Oh yes. I agree especially now with it being an employee market. Retention programs are definitely becoming more common.
 
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ethomaz said:
It is a long term incentive plan.
It is not money on employees hands.

It can be courses, certifications, a better health plan, a retired plan, etc etc etc… and long terms means at least for the next 3 years.
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Most of it is two years as Sony is prepping for it. And sounds like payment to me. The employees just got to wait it out. Where does it say any of it is for health and retirement plans etc....? You really think 900 employees across $1.2B of incentive bonus (over $1.2M per employee on average) is going to get most of it in back end health and retirement plans? lol

Even though they might have to wait even 5 years for it, that's still $1.2M per employee to make them stick around.
Deferred payments are planned across multiple years following the buyout closure. The company is prepared to pay about $792 million in deferred incentive payments in the first two years after the deal ends.
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