Intrinsic said:
Azzanation said:
I agree with part of your post. However its all about the profits. We dont know whos making more money. If its costing MS more money to hold Remedy as 2nd party than theres no point. Sony hold 18 studios however how many of those studios make profit?
It seems MS is focusing on pure profit and less expenses. XB1 doesnt have to outsell the PS4 to achieve profits. Aslong as Xbox makes money i dont think MS really care otherwise.
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To say that would be to imply that sony's studios are not making a profit. I think thats a completely baseless assumption to make being that sony has also shown they have no qualms shutting studios down. So they cut off the slack so to speak, but still have a LOT of studios
On another note, try looking at it from a platform holder publisher perspective. For sony, its not even about individual studios making money but instead about thesony world wide studios (SWWS) group making money at the end of every fiscal year. The reason why an approach like that is better is because its ensures a very well fleshed out portfolio and allows sony take all manner of risks with whatever games they are publishing and seeing to completion.
That way not every game has to sell 3-5M copies to be a success. Cause the more successful games will pick up the slack. All the other games have to do is just break even. And when looking at horizon that had a budget of around $48M, I think its safe to say that games like Gravity rush/Until dawn/Bloodborne has a significantly lower production budget. And all those games have or would sell more than a1M in their lifetime.
And again, this isn't evn about making a profit, this is about giving "value" to your brand as a whole. thats the big picture that I think MS is missing here. Cause the very same place MS seems focused on making money from (3rd parties) sony has got those too and thanks to their larger install base is making almost twice as much on those games than MS is making.
Sony's way of doing things is why studios like media molecule could have been making dreams for the past 4 years and when that game comes out it may not even sell that well. They may "lose" money on media molecule in this case.... but in the grand scheme of things SWWS would have overall made a profit. Thats a far better business strategy than seemingly only investing in things that are sure to be a gaurnateed hit.
And why this surprises me is that when the 360 came along, MS proved emphatically that games sell hardware and not brand loyalty or power. All of a sudden that narrative seems to have been lost to them completely this gen. Its mind boggling to me.
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Sony is just as guilty as MS in closing down Studios and Sony has come out saying that only afew of there studios actually make profit. Ill google it for you but im at work.
Also MS close studios and also buy studios. They closed Lion Head and brought Mojang etc. They also merged Esemble Studios into there main MS Studios.
Companies is just a brand. You dont need 100 companies to be successful. MS seem to like paying devs to make there games and only housing afew profitable ones to maintain and manage. Its hard to debate this between us however just look at the health of both Corporations. MS know how to make money. Sure there Xbox devision is selling less than PS however they could still be making just as much money.
Owning studios does not count as there financial year so the costs will most likely come under a different devision and not Xbox and PS. Sony might be losing heaps holding 18 studios however PS might be making money. If that makes some sort of sense.
It's also not an assumption to say having studios eats money to operate. You have staff and investments to pay.