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Forums - Sony Discussion - Sony paid $229 million for Insomniac

Mr Puggsly on 11 February 2020
DonFerrari said:
Dulfite said:
When adjusting for inflation, Microsoft bought Mojang for 11 times this amount.

I rather buy 10 insomniac like studios than a single mohjang.

Well its not like MS had to choose Mojang or a bunch of studios. They bought Mojang AND a bunch of other studios. They also bought the Gears IP years before and gave it a studio.

It also worth considering Minecraft generates more money than many studios combined.

It seems like Insomniac is a purchase that only made sense for Sony to do, given Sony has their big games. What would MS do with Insomniac? Hope Sunset Overdrive 2 does better?



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DonFerrari on 11 February 2020
sales2099 said:

It’s a little funny from my perspective because that’s a lot of money for a studio that has been making exclusive games for Sony almost exclusively

With this move they can invest even more on the dev and keep all the profits for it.

Mr Puggsly said:
twintail said:

Their most popular IPs belong to Sony. SM isn't theirs either.

Maybe MS overpaid for Mojang. Maybe not.

Simple really. 

Do we know any other studios that were purchased for this much while owning no significant IPs though?

Minecraft is one of the biggest video games ever. It has continued to sell great and stay active for about a decade. The story games also did well, merchandise, etc. It certainly doesen't appear to be a bad investment thus far.

Nobody is arguing Sony made a bad purchase. It just seems like a lot of money for no major IPs. Essentially no other studio would pay that much because their big games are in Sony's hands already.

And have you runned the numbers down after to purchase to see if it had paid back within 5 years?

Mr Puggsly said:
think-man said:

Sunset Overdrive is semi notable, though not worth that much of course. They are a pretty big studio usually developing 3+ games at a time. In the last few years their output on Sony only devices has slowed down alot as they became more multiplatform. Now having full control of the studio they can block their games going to the competition whilst increasing the Playstation brand.

They could have exclusively worked with Sony if they would have simply funded all their projects. Sunset Overdrive happened simply because MS paid for it.

Anyway, I just assumed they would have paid less. You'd think a studio worth that much could have funded Sunset Overdrive on their own and made it muliplat.

And Sony was doing it, the reason SO released on MS and not PS was because Insomniac wanted to have the IP (Sony would fund but keep IP), the game didn't do well and all their multiplats also didn't do to good.

It really is a matter of IP without good dev not being good just as good dev needing IPs to work, but the second one is more valuable... how much good have Rare done to MS on they having a lot of IPs?



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

DonFerrari on 11 February 2020
Mr Puggsly said:
DonFerrari said:

I rather buy 10 insomniac like studios than a single mohjang.

Well its not like MS had to choose Mojang or a bunch of studios. They bought Mojang AND a bunch of other studios. They also bought the Gears IP years before and gave it a studio.

It also worth considering Minecraft generates more money than many studios combined.

It seems like Insomniac is a purchase that only made sense for Sony to do, given Sony has their big games. What would MS do with Insomniac? Hope Sunset Overdrive 2 does better?

Yes I forgot MS is all about only releasing sequels instead of I dunno creating new IPs right?

You are here questioning Sony paying how much they paid, do you think Sony couldn't buy other 10 studios of similar price? They sure can, Playstation have been making like 3x the money Xbox do. If MS could buy 5 studios then sony could certainly buy 10.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Mr Puggsly on 11 February 2020
DonFerrari said:
Mr Puggsly said:

Well its not like MS had to choose Mojang or a bunch of studios. They bought Mojang AND a bunch of other studios. They also bought the Gears IP years before and gave it a studio.

It also worth considering Minecraft generates more money than many studios combined.

It seems like Insomniac is a purchase that only made sense for Sony to do, given Sony has their big games. What would MS do with Insomniac? Hope Sunset Overdrive 2 does better?

Yes I forgot MS is all about only releasing sequels instead of I dunno creating new IPs right?

You are here questioning Sony paying how much they paid, do you think Sony couldn't buy other 10 studios of similar price? They sure can, Playstation have been making like 3x the money Xbox do. If MS could buy 5 studios then sony could certainly buy 10.

Sony bought Insomnic to work on that hot new IP, Spiderman.

Which came after the new PS4 IP, Ratchet and Clank.

I agree, PS4 made a fortune. Sony has more money than MS now.



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Mr Puggsly on 11 February 2020
DonFerrari said:
sales2099 said:

It’s a little funny from my perspective because that’s a lot of money for a studio that has been making exclusive games for Sony almost exclusively

With this move they can invest even more on the dev and keep all the profits for it.

Mr Puggsly said:

Do we know any other studios that were purchased for this much while owning no significant IPs though?

Minecraft is one of the biggest video games ever. It has continued to sell great and stay active for about a decade. The story games also did well, merchandise, etc. It certainly doesen't appear to be a bad investment thus far.

Nobody is arguing Sony made a bad purchase. It just seems like a lot of money for no major IPs. Essentially no other studio would pay that much because their big games are in Sony's hands already.

And have you runned the numbers down after to purchase to see if it had paid back within 5 years?

Mr Puggsly said:

They could have exclusively worked with Sony if they would have simply funded all their projects. Sunset Overdrive happened simply because MS paid for it.

Anyway, I just assumed they would have paid less. You'd think a studio worth that much could have funded Sunset Overdrive on their own and made it muliplat.

And Sony was doing it, the reason SO released on MS and not PS was because Insomniac wanted to have the IP (Sony would fund but keep IP), the game didn't do well and all their multiplats also didn't do to good.

It really is a matter of IP without good dev not being good just as good dev needing IPs to work, but the second one is more valuable... how much good have Rare done to MS on they having a lot of IPs?

Again, Sony didnt need to make this purchase to get notable content from the studio. Which is why the amount they paid seems excessive.

Certainly you agree with that because its an obvious fact. They were essentially dedicated to Sony already.

If Insomnic is worth that much it seems like they could have funded SO on their own. Maybe just get some funding from a multiplat publisher as well.

Rare has had success with MS even with new IPs. There is potential for more success using old IPs, like Killer Instinct. Either way many studios purchased by Sony and MS were shut down. Yet Rare is still relevant.

Anyhow you have the impression I am bashing Sony because you're sensitive in regard to Sony. I am simply saying they seemingly paid too much unless other companies wanted to buy them as well.

If this studio is so talented on its own, then MS is dumb for not making this purchase.

Last edited by Mr Puggsly - on 11 February 2020

Recently Completed: 
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sales2099 on 11 February 2020
DonFerrari said:
Mr Puggsly said:

Well its not like MS had to choose Mojang or a bunch of studios. They bought Mojang AND a bunch of other studios. They also bought the Gears IP years before and gave it a studio.

It also worth considering Minecraft generates more money than many studios combined.

It seems like Insomniac is a purchase that only made sense for Sony to do, given Sony has their big games. What would MS do with Insomniac? Hope Sunset Overdrive 2 does better?

Yes I forgot MS is all about only releasing sequels instead of I dunno creating new IPs right?

You are here questioning Sony paying how much they paid, do you think Sony couldn't buy other 10 studios of similar price? They sure can, Playstation have been making like 3x the money Xbox do. If MS could buy 5 studios then sony could certainly buy 10.

Hey easy on the propaganda. In the last 4 months MS announced Everwild, Grounded and Project Mara. Bleeding Edge in March. You don’t have to like these games but you should at least acknowledge what they are doing now. 



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

DonFerrari on 11 February 2020
Mr Puggsly said:
DonFerrari said:

Yes I forgot MS is all about only releasing sequels instead of I dunno creating new IPs right?

You are here questioning Sony paying how much they paid, do you think Sony couldn't buy other 10 studios of similar price? They sure can, Playstation have been making like 3x the money Xbox do. If MS could buy 5 studios then sony could certainly buy 10.

Sony bought Insomnic to work on that hot new IP, Spiderman.

Which came after the new PS4 IP, Ratchet and Clank.

I agree, PS4 made a fortune. Sony has more money than MS now.

3 gens in VGC and you still think MS will put a lot of money of other areas into Xbox? Ok.

Yes Sony have a legacy of milking same IPs right? If they so much wanted they could keep Insomniac feed with unnused IPs for like another 3 gens.

Mr Puggsly said:
DonFerrari said:

With this move they can invest even more on the dev and keep all the profits for it.

And have you runned the numbers down after to purchase to see if it had paid back within 5 years?

And Sony was doing it, the reason SO released on MS and not PS was because Insomniac wanted to have the IP (Sony would fund but keep IP), the game didn't do well and all their multiplats also didn't do to good.

It really is a matter of IP without good dev not being good just as good dev needing IPs to work, but the second one is more valuable... how much good have Rare done to MS on they having a lot of IPs?

Again, Sony didnt need to make this purchase to get notable content from the studio. Which is why the amount they paid seems excessive.

Certainly you agree with that because its an obvious fact. They were essentially dedicated to Sony already.

If Insomnic is worth that much it seems like they could have funded SO on their own. Maybe just get some funding from a multiplat publisher as well.

Rare has had success with MS even with new IPs. There is potential for more success using old IPs, like Killer Instinct. Either way many studios purchased by Sony and MS were shut down. Yet Rare is still relevant.

Anyhow you have the impression I am bashing Sony because you're sensitive in regard to Sony. I am simply saying they seemingly paid too much unless other companies wanted to buy them as well.

If this studio is so talented on its own, then MS is dumb for not making this purchase.

I forgot you know the details of the contract and if it will be a good deal to Sony. Sony had to invest almost all money needed to make the game and the studio would receive a cut from the sales. Sony basically paid to whatever they invest be theirs (much better to invest in yourself than on others) and all profit be theirs as well, considering RC and SM that seems a logical move, Insomniac have been quite stable on launches and quality so a very safe and sound investment.

Being worth a lot isn't the same as having a lot of money on their pockets or assuming risks for new products. They got funding from publishers and didn't turn good. You see to be talking a lot of things you don't know about.

Please show us how much MS made of the plenty of Rare IPs for you to consider the studio having a lot of IPs the important aspect. Naughty Dog and other studios from Sony dropped a lot of successful IPs and haven't developed them anymore.

My sensitivity is towards your lack of knowledge to judge it being too much, but seems like mohjang was the purchase of the century.

Not all studios are available to everyone to buy, still waiting for MS to use all that infinite money to buy EA, Acti, Ubi, Taketwon, etc.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

DonFerrari on 11 February 2020
sales2099 said:
DonFerrari said:

Yes I forgot MS is all about only releasing sequels instead of I dunno creating new IPs right?

You are here questioning Sony paying how much they paid, do you think Sony couldn't buy other 10 studios of similar price? They sure can, Playstation have been making like 3x the money Xbox do. If MS could buy 5 studios then sony could certainly buy 10.

Hey easy on the propaganda. In the last 4 months MS announced Everwild, Grounded and Project Mara. Bleeding Edge in March. You don’t have to like these games but you should at least acknowledge what they are doing now. 

I think I already talked to you in recent past that yes they are improving.

So you do agree that not having plenty of owned IPs is irrelevant if the studio can make plenty of new games and create IPs?



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

sales2099 on 11 February 2020
Azzanation said:
Considering how much money Sony and Xbox earn via Subs, i am suprised they havnt brought the whole industry out.

The price for Insomniac is dirt cheap however curious to know why the price was that low when compared to Mojang whose value was $3b for basically 1 IP while Insomniac would have afew IPs and a incredibly successful Spider Man game.

2 billion for a game that went on to sell 150 million and 300 million F2P in China. More active players then Fortnight with sales still going strong. Micro transactions, popular LEGO liscence, spinoffs, merchandise, an upcoming movie. 2 billion might very well end up being a steal for MS, if it hasn’t already been. 

Last edited by sales2099 - on 11 February 2020

Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

Otter on 11 February 2020

They're such a consistent studio quality wise and they seem to be super efficient. They've produced like 4 AAA games this generation seemingly without any massive delays and always delivered a super polished product at the end, which feels loved and not just pumped out by a massive machine. Ratchet is still probably the best looking platformer of the generation and that game is like 4 years old.



Also I'm not sure some you have a fix on how much game studios cost.