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

PotentHerbs said:

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. 

Right. I mean, people have their preferences and that feeds rivalry POV, but think about what technical professionals actually find interesting and compelling. Xbox has always favored off the shelf approach to Sony's heavier customization, what COULD they say about Series X "uhh... yeah lots of FLOPS/Ghz"? "More of the same" just isn't compelling because that happens every day in PC world, it isn't game changer like totally overhauled I/O controller stack architecture. This isn't about gimping Xbox, leveraging unique PS5 I/O is benefit for Playstation, but Series X isn't any worse off than PC, which is competive and innovative. Clearly Epic didn't just have detached technical interest as Carmack, but they were after all coordinating development of UE with Sony to leverage these features... They felt it worthwhile to develop around in the first place, which they wouldn't have done if they didn't think it was worth the effort (which is notable difference in PS5 vs PS3 for example).

Really the main area I see this triggering more competition with MS is if MS decides to pursue PC gaming store in serious way, maybe thu other purchase/tieup. Their own effort their wasn't exactly successful, and significant 3rd party stores are limited. Steam probably has the most presence and consumer engagement, but they have weak 3rd party relation currently with their high cut of sales, which is where Epic has been doing well. MS could lower that cut if they bought Steam, but they would have to pay premium atop high current business valuation. Although they could approach as merger with spun-off Xbox business added to JV. Doing a deal with CDPR with GOG would be other route, which could be interesting, but I don't necessarily see signs of that I would bet on it happening per se. I'm not really sure if MS sees the need for any of that. They already own Azure which Sony uses, so they could be getting cut of this business anyways. Growing their dev/publishing business is reasonable route forward, and they clearly aren't fixated on Xbox console itself with that, esp. with PC but not just.

Last edited by mutantsushi - on 09 July 2020

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LMFAO



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LurkerJ said:
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. 

I will the reveal was 2 mins tops



 "I think people should define the word crap" - Kirby007

Join the Prediction League http://www.vgchartz.com/predictions

Instead of seeking to convince others, we can be open to changing our own minds, and seek out information that contradicts our own steadfast point of view. Maybe it’ll turn out that those who disagree with you actually have a solid grasp of the facts. There’s a slight possibility that, after all, you’re the one who’s wrong.

hunter_alien said:
sales2099 said:

It finally makes sense why Epic showed a demo PS exclusives go to Pc they will be Epic store exclusive. 

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.

Sony can easily pull the game from Steam whenever they like it’s just one game after all. Not sure how MS “pays for PR every day” that’s news to me. I’d say the Fortnight deal is a precursor to their relationship today. 

I get your stance but you can’t fully disprove my concerns either. The UE5 demo only benefitting Sony despite MS being a actual user of it tells me the $250 million is buying a considerable PR advantage. 

I am assuming negative consequences for the Xbox brand, as a fan I can speculate. I said if I was a PS fan I’d have a field day so the console war pendulum isn’t lost on me. 

Last edited by sales2099 - on 09 July 2020

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

 

It's not a huge deal yet as long as Sony won't get more shares in the future but it explains a lot about how Sweeney and other guys from Epic tried their best to push PS more than anything.



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LurkerJ said:
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. 


Realistically this just means positive PR for PS and lesser acknowledgement of Xbox in future UE developments. Which I see now is no big deal in the grand scheme.
But it’s your rationalize comment that I think that’s more of a personal annoyance then any actual threat in the console brand war. 

From my perspective, Xbox has Coalition, Obsidian, InXile, Ninja Theory among others that are using UE4 and UE5 when it becomes available. The only PS studio that used UE was Bend for Days Gone (correct if wrong). A quality game but wasn’t a graphical showpiece of the engine either. The dev made high caliber PS Vita games in the past if I’m not mistaken.

So I guess it just boils down to the audacity of it. That 2 minute demo should have got Xbox gamers excited based on what Xbox studios who are using the engine would do on Series X. But instead it benefited solely Sony while they have only 1 studio that uses it.

Its just weird is all. Their $250 million is all ready proving to provide a considerable PR boost. I said my piece and gave credit to where it’s due. At least you know where I’m coming from. 

Last edited by sales2099 - on 09 July 2020

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

 

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. 

So they're valuing Epic at $17.8Billion? Seems expensive to me. Take2's about 17Billion right now and I'd rather own the company that makes GTA over Fortnite.



4 ≈ One

250m is peanuts.

It's a joke to even call it a minority stake.

Didn't Sony just recently 'give' $100m out to indie devs?



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PotentHerbs said:
shikamaru317 said:
A partnership like this must be more than a little scary for Microsoft honestly. Microsoft has 12 different 1st party studios using Unreal Engine currently, plus alot of 2nd party studios most likely. To have your closest competitor owning a stake in the company that creates the engine that so many of your studios use seems scary to me. MS might want to look into moving more of their studios over to in-house engines after their current Unreal projects are done, either that or maybe acquire Crytek and turn CryEngine into a 1st party engine for their studios to use.

I don't see how Sony having a minority stake in Epic impacts Microsoft at all. Its not like they're going to make UE5 exclusive to the PS5.

Probably doesn't.
Sony still needs to be elected to the board in order to even have a say.

This could potentially have been a counter move on Tom Sweeny's behalf to stave off tencent who owned 48.4% of Epic at one point... COVID is making the marketplace a very concerning time, especially when chinese investors are concerned.

Dgc1808 said:
PotentHerbs said:

Sony bought a 1.4% stake lol. 

So they're valuing Epic at $17.8Billion? Seems expensive to me. Take2's about 17Billion right now and I'd rather own the company that makes GTA over Fortnite.

Epics revenue is about 5-6~ billion a year, plus they have their store to fall back on and Unreal Engine has always been popular and well supported by the entire industry.
Valuation is also partly about future prospects and Epic is in a very good place.




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Seems like a move for Sony to leverage their way into the PC market easier. That, and they can also get in on that Epic tech that made Mandalorian for their own movies. Highly unlikely that this affects MS in any way whatsoever. Epic makes money off licensing the UE out. Why would they gimp one of their biggest customers?

At least this explains the bizarre gushing Sweeney has been doing the last couple months. He always oversells the new Sony console versus PC stuff but he went HAM this time.