Swift_Star
Banned
You said a bunch of meaningless stuff, typical from people that knows nothing about business.
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Analysts give opinions on Sony acquiring EA, Ubisoft or Take Two in response to Acti-Blizz deal
- Thread starter Michele
- Start date
Swift_Star
Banned
ChuckeRearmed
Member
You look down on Nintendo too much. It dominates almost everywhere and their games sell 20m+ on a regular basis, constantly charting across the countries. Why would they want anything that Sony is gonna offer? Why would they need to release anything on PS4 for additiona couple of miliions copies when they can produce more consoles and sell the same amount if not more.
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FrostyLemon
Member
What reality are you living in? Within the next year Switch will have outsold the PS4 and has outsold everything the last five years.
Mibu no ookami
Member
I think you are buying into historic events a little too much.
Hiroshi Yamauchi hated Sony because Sony counterpunched him. Have you ever heard any recent animosity between the two companies?
i did read those things. probably you should do the same.....then use Wikipedia and study how actually Sony usually do m&a....then look at their market cap and their budget for m&a....and then with your feet actually on the ground .... start to understand why they can't buy a company for 40b 50b or even more. Meanwhile you will read those stuff this rumor had been proved basically nothing (clearly) by the actual person who started this
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Absolutely zero point in this.
Microsoft is the threat here. They've sold about 5 consoles in Asia. In other words Microsoft is not a threat in Asia. Therefore buying an Asian publisher doesn't give you any upper hand on your threat.
It needs to be a western publisher.
Mibu no ookami
Member
The switch costs less than the PS4. I don't think you know how Sony and Nintendo make their money. Sony makes their money on hardware sales yes, software sales, yes, but they make their meat on licensing. Nintendo used to as well, but now they just make their money on hardware and software sales. Sony's a bigger gaming company than Nintendo today.
Not looking down at them at all...
a couple of million copies? Is that really your argument? That if Mario Kart came to PS4/5 it would sell 2 million copies?
Hitchyhero
Banned
PlayStation fans really overestimate the importance of japanese games. I mean I like (some of) them, but you'd be wasting money
ChuckeRearmed
Member
My argument is that Nintendo does not need anything that Sony offers and they offers operate as much. In a hundred of years, after the giants will fall, Nintendo will be still here selling something weird.
Nintendo will release the next console and it will immediately surpass almost everything on the market regarding sales and fast. So merging over... what? Threat from the west? LoL. The high probability is Nintendo siding with Microsoft than merging with Sony.
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FrostyLemon
Member
What's the cost got to do with anything? Explain why the Switch Lite isn't the best selling version of the Switch then? Why is the PS5 outselling the Series S? You said they have been relegated to sidelines and used to be the market leader for hardware. This is not reality. They are the market leader in hardware using all measurements.
Mibu no ookami
Member
Cost is a factor in everything, doesn't mean it is the only factor.
PS1 outsold the Dreamcast even when the Dreamcast was cheaper than the PS1 and PS2 was out.
But the switch doesn't bring in as much revenue as the PS4/5. That's something you don't seem to understand. The Switch is a handheld hybrid console that does not compete directly with PlayStation/Xbox.
Mibu no ookami
Member
They offer them a huge platform and audience that they otherwise haven't been able to obtain. This includes a sharp increase in their profitability.
FrostyLemon
Member
Why does revenue determine 'market leader' status when it comes to hardware sales?
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ChuckeRearmed
Member
LMAO. Imagine saying that Nintendo needs Sony to get access to a bigger platform. * laughing in Nintendo *
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The_Mike
I cry about SonyGaf from my chair in Redmond, WA
None, because they remove the games from every non Sony platform.
Also, Sony can't afford any of these probably
lastmessiah
Member
Some people here seem to live in an internal world of make-believe. I guess that's fine but eventually reality smacks you right in the face.
Mibu no ookami
Member
Because not all things are equal.
If you have two companies. One sells their hardware at a loss and one sells them at a profit and they sell the same number of units, which company is the real market leader or in your mind are they tied?
beyond just hardware, revenue is the royalties that come from the attachment rate, which is the entire reason why these companies make hardware rather than just being a publisher.
Rhazer Fusion
Member
I just don’t see Sony acquiring anyone that large and expensive if any major company at all.
PhaseJump
Banned
Nintendo needs only to develop a store client to run games on PC, to obtain a larger platform and audience, without benefiting their competition.
FrostyLemon
Member
The latter - which is Nintendo. PS5 is sold at a loss and Switch isn't. Not to mention Nintendo is more profitable than Playstation.
Yoboman
Member
Of course they can. Zynga just paid $13 billion for Zynga and Take2 is a much smaller company than Sony
Rhazer Fusion
Member
I’m beginning to think Microsoft doesn’t care about a return on investment. I think it will take a long time to get a return investment on Bethesda, let alone Activision/Blizzard especially if their games end up XBOX exclusive on Gamepass.
Yoboman
Member
PS5 is sold at a profit now
Sony's standard PS5 has become profitable, but the Digital Edition is still being sold at a loss
Sony recently held its Q1 2021 earnings call, where Hiroki Totoki, Sony's CFO, announced that the PlayStation 5 Standard Edition ($499) is no longer sold at a...
www.google.com
Razvedka
Banned
I don't think that the PS5 is sold at a loss. What's your source for this?
ChuckeRearmed
Member
Considering that they are making 20b per quarter in pure profits....Unless it tanked their Azure division, I don't think MS cares about other stuff.
FrostyLemon
Member
ps5 sold at a loss - Google Search
www.google.com
Dream-Knife
Banned
Does Sony have the money to buy a big publisher?
bitbydeath
Gold Member
Epic Games would be a better get, if they want something COD sized to call their own.
skit_data
Member
Razvedka
Banned
I had no idea, thanks for that. Apparently the disc version is now no longer at a loss, but the discless one is.
Yoboman
Member
Did you even read your own link?
Snake29
RSI Employee of the Year
They only care about acquisition more then gaming because of Gamepass. Otherwise they still had to pay full price for the games, so they act differently now. In their eyes, MS should just buy the whole gaming industry, only so they do not have to pay for any game anymore.
FrostyLemon
Member
Well I mean they've been selling it at a loss for longer than they have at a profit (that could be anything) and the digital version is still selling at a loss so we don't know what the offset is.
FrostyLemon
Member
Yes? They've been selling the PS5 at a loss since launch (until August) and the digital version is still being sold at a loss.
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Mibu no ookami
Member
/cdn.vox-cdn.com/uploads/chorus_asset/file/22015306/vpavic_4278_20201030_0292.jpg)
Sony’s $499 PS5 is no longer selling at a loss
The PS5 won’t be costly like the PS3.
www.theverge.com
Tell me you don't know what you're talking about without telling me you don't know what you're talking about
Mibu no ookami
Member
And they probably will at some point.
Sony pushed against publishing their games on PC for the longest time until they realized the loss in profit involved in doing so. You can have the best of both worlds by supporting platforms that you don't have ownership of.
FrostyLemon
Member
Well according to your arbitrary rules for 'market leader' this would mean that the Playstation isn't that - as they had to sell their console at a loss from launch and one of the models is still selling at a loss, whereas the Switch has been profitable since day one.Sony’s $499 PS5 is no longer selling at a loss
The PS5 won’t be costly like the PS3.
Tell me you don't know what you're talking about without telling me you don't know what you're talking about
Mibu no ookami
Member
Epic is an interesting one.
First Tencent already owns 40 percent of the company.
Second, how do you benefit from owning Epic? What do you get that you don't already have?
UE? Sony barely uses it internally.
Their profit? Sure, but can you get better ROI elsewhere?
Fortnite? Does making Fortnite exclusive warrant the cost of buying epic?
Epic Game store? Can sony come out with their own storefront for a lot less money?
Not sure buying Epic makes any sense at all.
Mibu no ookami
Member
How many units of ps5 digital are they selling vs discs?
How much profit do they make on attachment software royalties and mtx for each unit of hardware sold?
You just don't get this, which is fine.
prinz_valium
Member
Over 15% of all P5 are digital editions.PS5 is sold at a profit now
Sony's standard PS5 has become profitable, but the Digital Edition is still being sold at a loss
Sony recently held its Q1 2021 earnings call, where Hiroki Totoki, Sony's CFO, announced that the PlayStation 5 Standard Edition ($499) is no longer sold at a...
For simplicity:
PS5 break even
PS5 $100 loss.
All PS5 $15 loss per unit.
If you give PS5 $1 or $2 profit and DE $75 loss, you have $10 loss per Playstation.
FrostyLemon
Member
How about we just look at overall profit and you can stop posting?
Nintendo has officially made more profits with Nintendo Switch(2017-2020) than Sony Gaming division with Playstation 4(2013-2020)
Nintendo - 12.22 billion USD of operating profits from 2017-2020 Sony gaming division - 10.98 billion USD of operating profits from 2013-2020 Nintendo and Sony GnS operating profits 1st party games and Nintendo hardwares are the primary contributors to the high operating profit...
bitbydeath
Gold Member
If they were worried about losing a massive shooter playerbase to Xbox and COD, they could counter it by keeping Fortnite to themselves making that decision to move not so easy.
lastmessiah
Member
Seriously cracking up over here at the idea that Epic Games would sell to Sony 
.
.
Yoboman
Member
And if you give $15 profit per unit then the whole think is profitable
Ass of Can Whooping
Member
Seriously cracking up over here at the idea that Epic Games would sell to Sony
Tim doesn't mind being china's bitch so why not?
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ZywyPL
Banned
If only it was really as easy as you paint it... PS360 generation was very different then today, games didn't cost a fortune to make and didn't need 4-6 years to develop, 3-5M units sold was a huge success back then, hence the publishers weren't afraid to experiment, and as a result the generation spawned a ton of new, unique IPs people still talk about and want sequels/remasters/remakes. But with PS4/XB1 the dev time and cost skyrocket, so much that it's really hard to get back that investment, let alone make a profit. That's why that generation was so safe, so boring, almost everything was the same old IPs or copied formulas with added open-world design, no innovation whatsoever, and your AC example is the very best proof.
Which speaking of, AC with dozen installments already showed it has indeed stood the test of time, GoT has yet to prove it. But that's just one game, what about The Order 1886? Driveclub? Knack? Dreams? The Last Guardian? Days Gone? Death Stranding? Examples are there, it's NOT easy to establish a completely new IP in today's landscape.
Now, while your math is correct and instead of buying other publishers Sony could fund tens of new games instead, there's a huge problem with that, something that cannot be bought - time. With a limited number of studios they can create only so many games within one generation, so to buying an already established studio is the fastest and easiest way to expand capabilities, while starting a new one from scratch is the exact opposite - it takes a lot of time and money just to build a studio, then it has to make a game, and at the end of the day you're not guaranteed it'll be all worth it.
So you just buy a publisher, its studios, its games, and what's more important - you get all its community within the purchase. If for example Sony bought Ubisoft - that's a lot of great, popular IPs, Tom Clancy's license is there as well, but there's also gigantic community who who plays Ubisoft's games on a daily basis - Assassin Creed, Ghost Recon, R6, For Honor, The Crew, they also published Brawhalla, so with such an acquisition you could potentially lure some of that crowd inside your ecosystem where they'd be leaving you their money, which is the ultimate goal of every platform holder.
bitbydeath
Gold Member
Tencent have already been in hot water with their Epic shares, there’s 40% already Sony could move in on if they wanted.Seriously cracking up over here at the idea that Epic Games would sell to Sony
/cloudfront-us-east-2.images.arcpublishing.com/reuters/FEBRUSPXRROUFNSYOTAO6ZXZ3I.jpg)
EXCLUSIVE China's Tencent in talks with U.S. to keep gaming investments -sources
Tencent Holdings Ltd (0700.HK) is negotiating agreements with a U.S. national security panel that would allow it to keep its ownership stakes in U.S. video game developers Riot Games and Epic Games, according to people familiar with the matter.
www.reuters.com
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Mibu no ookami
Member
None of those games had the AAA budget of Tsushima with the exception of Death Stranding.
I'm not saying it is easy to make a successful IP, but it's a better investment to try than to buy a company for an IP on decline.
You can't buy time, but that is why it is key for companies like Sony to manage their resources intelligently. Sony doesn't have a small number of studios and they can organically and strategically grow these studios and add others in a methodical way.
Buying a major publisher that is in decline doesn't help you much even if they have some IP.
You can lose the Tom Clancy license any time. The rest of the games you mentioned don't have successful sequels.
Not at all worth the cost involved when you can buy smaller and better.