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

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

 

 

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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. 

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

So this is like a small version of the old Square Enix situation?



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.



V-r0cK said:
I knew there had to be something.

But $250M, what can Sony get out of Epic? Free exclusive Fortnite skins? lol jk

UE5 tech is going to be incredibly important going forward. This isn't just for gaming. This is about helping all facets of Sony's business where UE5 can be applied. Don't forget that Sony has a TV division, and even PlayStation has a new TV initiative. 

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 either.

- 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. 

lol, it's incredible how petty you always are about this.

Who cares if MS has more studios using UE than Sony does. Using their engine doesn't automatically mean you have some better working relationship with Epic. It literally means that MS is more willing to use the engine. A working relationship that benefits both parties requires interaction between said parties.

And guess what? That is what Epic and Sony have had for the last 4 or so years. 

https://www.gamesradar.com/uk/epic-reveals-how-its-been-working-with-sony-for-years-on-unreal-engine-5/

A minority stake of 1.4% now, and not the 4 years working closely with another, is the only reason for Epic is talking up PS5?

Petty, indeed. 

Last edited by twintail - on 09 July 2020

sales2099 said:

- 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. 

What part of $250 Million sounds "free" to you?



Nintendo is selling their IPs to Microsoft and this is true because:

http://gamrconnect.vgchartz.com/thread.php?id=221391&page=1

Captain_Yuri said:
So much for nothing going on behind the scenes lul

It's hard to say , the couple of years of cooperation in developing PS5 SSD /IO  followed by the reception of the demo may have shown that looking at the future with new players entering the landscape and the moves already underway by the industry both parties saw a need for strategic alliances and the aforementioned cooperation may have shown synergys and pathways that have a wider focus than just unreal/ fortnite so the investment is putting the full stop on that.



Looks as though I may have spoke too soon. lol. This really makes it look as though there's a lot more to the relationship than simply liking SNY's hardware decisions for PS5. I guess it could be that Epic and SNY have finally gotten to know each other well enough that it's time for the next big step, but I dunno. If this step is $250M, I wonder how much the ring is going to cost?