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Forums - Sony Discussion - Sony invests $250m in Epic Games to acquire a minority stake

PotentHerbs said:
shikamaru317 said:

Best case scenario, the company that makes the Engine that so many of your studios use is acting as a PR mouthpiece for your closest competitor, which is something we've already been seeing since the PS5 Unreal demo, with Tim Sweeney doing multiple interviews praising PS5 while barely acknowledging Xbox Series' existence. 

Worst case scenario, Sony continues buying up Epic stock and uses their larger sway as a shareholder in a far more underhand way to attack Microsoft. Maybe not blocking Microsoft off from using Unreal entirely, but maybe attempting to get priority Unreal engine updates for their own studios, while Xbox studios have to wait longer to get those updates. 

I doubt Sony is underhanded enough to try something like that to attack Xbox, but you never know, business can get pretty cutthroat at times. In the unlikely event that Sony were to try something like that, it's better to have the majority of your studios on other engines, rather than the majority on Unreal. 

Honestly, that just seems like a bunch of fear mongering. 

Epic is not the only third party developer heaping praise on the PS5. Industry legend John Carmack, among other third party developers, have praised the SSD setup for the PS5. At this point in time, MS has bigger issues with the Xbox brand, than a lack of PR praise from a third party publisher. Also, you do realize Tencent has about a 48% stake in Epic as well?

Sony getting the UE5 engine optimized for the PS5 hardware doesn't mean it will be gimped for Xbox. It just makes it easier for third party developers, who use the UE5 engine, to more easily take advantage of the PS5 architecture. 

Can’t say that now. When just the demo hit there was plausible deniability. The Q&A praised the PS5 tech (which is fine) however everything was done to avoid acknowledging the Series X, only saying “UE5 will work amazing on all platforms”. The transcript is clear as day a bit one sided, and now we know why. 

It was a huge PR boost for PS only when it should have benefited both equally, arguably Xbox more so because they have numerous high profile games being developed with it in mind.

The fact that only Sony got good PR from the demo reveal is a proven example that this meagre minority stake is allready paying off. 



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

 

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PotentHerbs said:
sales2099 said:

And that’s 1.4% more then what MS owns. My initial view and it’s 4 possible implications, I stand by it. 

And? Why would Sony have more of a say than Tencent who benefits from all platforms?

I don’t think Tencent cares about Epic giving away free PR to PS and exclusive Fortnight bundles. 

Edit: CGI, I recognize I am a little excited here. If I cross a line, please PM me to desist. 



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

 

Lol, some of you have wild imagination. Whatever rationalization works for you, go with it I guess.

Rationalize this: Sony managed to create more buzz with a 2:08 minutes demo than what MS did with their entire 28 minutes Xbox X reveal. 



sales2099 said:

It finally makes sense why Epic showed a demo for a engine Sony has little interest in actually using while the competition has several teams using it. . 

Don’t like the other implications one bit. Especially 3 and 4

- Like MS has their own store built in windows OS, Sony now has a online store they can call home in the PC space. 

- Any future PS exclusives go to Pc they will be Epic store exclusive, giving Epic something Steam doesn’t have. 

- Free PR in the console industry that MS would frankly have to pay for. Nothing positive can ever be said about the Xbox brand going forward. All future UE versions will only have PS PR attached to it. 

- Timed exclusivity or full exclusivity for any Epic games going forward. Exclusive Fortnight deals and bundles for PS5. 

Edit: Kinda have a sour satisfaction knowing I was right when I called the UE demo a PS deal with Epic and I was reported and banned for baiting. That Epic just picked PS5 because it was just a nice piece of tech...I’m more realistic then that. 

1 & 2. Sony just released Horizon onto Steam, I doubt they are going to backtrack with any new release on PC, and they wil pretty much want to cover as much of the industry as possible.

3. MS pays for PR every day. They did the same and got the benefit with UE3, now that Sony is doing it, the house is on fire. It's not like we don't already know and Epic wasn't vocal enough about the fact that its engine is scalable to the moon and back. They simply chose the more popular platform to showcase their new engine.

4. The Fortnite deal is pretty natural, considering how much bigger the PS4 base is. It's simply where people play the game the most.

You are assuming a whole lot of negative consequences from this deal. I have a feeling this is mostly because the investor is Sony. Don't blame Sony, blame MS for pretty much running the Xbox brand into the ground in the last 8 years. It's a game of corporate chess, and Sony is just making moves after the studio acquisition stroke MS made.



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sales2099 said:
PotentHerbs said:

Honestly, that just seems like a bunch of fear mongering. 

Epic is not the only third party developer heaping praise on the PS5. Industry legend John Carmack, among other third party developers, have praised the SSD setup for the PS5. At this point in time, MS has bigger issues with the Xbox brand, than a lack of PR praise from a third party publisher. Also, you do realize Tencent has about a 48% stake in Epic as well?

Sony getting the UE5 engine optimized for the PS5 hardware doesn't mean it will be gimped for Xbox. It just makes it easier for third party developers, who use the UE5 engine, to more easily take advantage of the PS5 architecture. 

Can’t say that now. When just the demo hit there was plausible deniability. The Q&A praised the PS5 tech (which is fine) however everything was done to avoid acknowledging the Series X, only saying “UE5 will work amazing on all platforms”. The transcript is clear as day a bit one sided, and now we know why. 

It was a huge PR boost for PS only when it should have benefited both equally, arguably Xbox more so because they have numerous high profile games being developed with it in mind.

The fact that only Sony got good PR from the demo reveal is a proven example that this meagre minority stake is allready paying off. 

Epic has praised the Xbox Series X architecture outside of the initial UE5 reveal.

If positive PR for the PS5 is the worst that comes from Sony's minority stake then its an overreaction. 



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PotentHerbs said:
sales2099 said:

Everyone should just use the Slipspace Engine lol. Just makes a little less sense in giving royalties to a company that isn’t neutral anymore. 

Damn, well played Sony. Id have a field day with this if I was on the other side. 

Sony bought a 1.4% stake lol. 

Yupp... Sony buys a 1.4% stake in Epic the world goes crazy. MS buys 11 studios, but it is fair play That's how things work, it would seem.



Vote the Mayor for Mayor!

This "OMG Sony will keep UE from MS" stuff is funny, like Sony running PSN on MS' Azure didn't already happen.
Fanboys aside, does anybody think Sony cares enough about MS to even bother? That's just not real threat to them.
UE is already successfully licenced to 3rd parties despite Epic's own games competing in market, that's just not real issue.
There's plenty of industries where one player even fully owns "tool maker" widely used in industry, e.g. Dassault (CATIA).
Or MS' own Word which was always available on their main "competitor", Apple/Macintosh, because everybody makes $.
Could be interesting if Sony's 1st party engines merge with UE, although that would be a good ways into the future likely.

I've always been saying Sony wants to get into crossplatform/PC like MS has, and teaming with existing player who is relatively
neutral with good 3rd party relations is solid way to do so, rather than trying to start own PC store from scratch and so forth.
Somebody said they didn't think much of Epic Store besides their free games, but I think consumers can miss business side of things.
Epic Store seems to have great developer/publisher relations, and that is really what matters for building store/distribution business.
It just makes sense for Sony to partner with 3rd party with inertia like Epic, than try to build own thing from scratch (look at history).

If there a full tie-up with Epic in the future, I don't see it in form of "buying" Epic which is currently %20 of Sony,
and buying it off the hands of the VCs invested in Epic would come at purchase premium, so vastly more likely would be
at least partial merger with Sony contributing assets possibly including it's entire Playstation business, which could also bring
cash (from VCs cashing out, if only partially) to re-invest in their other business lines (HW) that could use the investment funds.
Sony's position with PSVR also seems aligned with Epic and driving that forward could also be major route of synergy with Epic.
Extending Epic Store platform in other areas, to include film/TV streaming as well as "chat" and so forth, also holds promise.
(btw, interesting that Disney also has a stake in Epic, probably more than Sony's current investment although unclear being private)



sales2099 said:
PotentHerbs said:

And? Why would Sony have more of a say than Tencent who benefits from all platforms?

I don’t think Tencent cares about Epic giving away free PR to PS and exclusive Fortnight bundles. 

Edit: CGI, I recognize I am a little excited here. If I cross a line, please PM me to desist. 

Yeah and Tencent won't let Sony gimp the Xbox version of UE5 as they benefit from every platform and have more of say within Epic. That's the absolute worse case scenario for Xbox gamers. 

Not some Fortnite costumes or positive PR. That's trivial as far as I'm concerned. 



Isn't that what fortniters spend daily there. Minority stake is over selling it.



*sigh* I hate the modern gaming industry



Bite my shiny metal cockpit!