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

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)



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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!

Leynos said:
*sigh* I hate the modern gaming industry

This is the same industry where these types of acquisitions have happened since its inception. 

And yes, some of you are overreacting.



                                                                                                             

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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

LMFAO



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

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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

 

 

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.