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Forums - Sony Discussion - Herman Hulst confirms that PlayStation is not done with acquisitions yet

Sony has shown no interest in buying massive 3rd parties so I wouldn't worry about it. They have a great relationship with many Japanese publishers and are literally the gateway to their Global success (see Tales of Arise), so there is little to be won by securing whole publishers that they can otherwise just bargain with to get their big guns (FFXVI)



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Manlytears said:

I ask dear colleagues, how much is Capcom worth today? And kadokawa (since buying only Fromsoftware would be nearly impossible), how much would the entire Kadokawa conglomerate be worth?

If you ask me... Capcom > Zenimax / From Software > Bethesda Softworks.

SE = 6.31B, Capcom = 5.8B , Bethesda was bough for 7.5B

Kadokawa  = 4B iirc

Otter said:

Sony has shown no interest in buying massive 3rd parties so I wouldn't worry about it. They have a great relationship with many Japanese publishers and are literally the gateway to their Global success (see Tales of Arise), so there is little to be won by securing whole publishers that they can otherwise just bargain with to get their big guns (FFXVI)

The Sony of then is different to Sony now.

Playstation barely made acquisitions in PS3/4. They have bought 5 studios in one year in the PS5 era

Sony is buying billion dollar companies left right center.

This is one year. Add to that Bluepoint, Nixxes, Housemarque, Firesprite, Discord investment....

If people expect Sony not buy billion dollar+ gaming companies then expect to be mistaken. Its not a matter of if, its a matter of when.



Thinking about this more.....

If Sony intends to compete in streaming, they'll need to join in the acquisition race in a big way, so something like SE makes sense. If they don't intend to compete in streaming..... I don't think that's even a real possibility, as that is pretty clearly the way gaming is headed.



src said:

Sony is buying billion dollar companies left right center.

This is one year. Add to that Bluepoint, Nixxes, Housemarque, Firesprite, Discord investment....

If people expect Sony not buy billion dollar+ gaming companies then expect to be mistaken. Its not a matter of if, its a matter of when.

Sony is stake in billion dollar companies, which is exactly what 18B for strategic purchases is for. Yet, we have no idea how Sony has divided up this amount for their different divisions. 

Just because their gaming division is incredibly profitable, doesn't mean that they will double down on it with more money for them to spend. They could very easily decide to put that money to beefing up other divisions, which is a sound business move to make. 

I personally think you're overestimating the chances of Sony putting top money to secure companies like SE. Because, that doesn't even take into account the amount of financing they are going to have to foot to keep the operations of that company around + salaries to all involved staff. Additionally, a lot of these other companies being talked about have a lot more complex business structures than Zenimax. 

While I think it would be great for Sony to acquire a company like SE (but equally frustrating that multiplatform development is being consolidated to a single console), I think the PlayStation division is going to continue pursuing single studios, as these will more easily be absorbed into the overall company ecosystem they have. 

VAMatt said:

Thinking about this more.....

If Sony intends to compete in streaming, they'll need to join in the acquisition race in a big way, so something like SE makes sense. If they don't intend to compete in streaming..... I don't think that's even a real possibility, as that is pretty clearly the way gaming is headed.

PS5 hardware and software sales suggest that Sony doesn't need to jump all in at streaming at all for at least the rest of this gen. Long-term viability may be there, and it's something I hope becomes the norm, but there's no need for Sony to move quickly into it. Regardless, they can't until they can set aside PS5-like hardware for their PS Now servers: that's not easy atm.

Having SE doesn't necessarily make streaming a more viable option for them: the amount of staff, the amount of money needed to finance titles like FF (especially when SE is working on many many games simultaneously) is not going to be easy to recoup. I highly doubt Sony would recoup the money they invest in their current 16 studios via streaming, let alone the addition of SE.



I love hearing news like this. When Sony does it, they're basically just putting a ring on the finger of close partners, anyway. I can't remember the last time they bought some company that regularly made cross-platform games or actually did a bunch of stuff for other consoles. Their acquisitions were making second party companies like Sucker Punch and Insomniac into first party studios, not buying major third-party developers and publishers with the express intention of taking stuff away from the competition.

the stuff like that matters.



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twintail said:
VAMatt said:

Thinking about this more.....

If Sony intends to compete in streaming, they'll need to join in the acquisition race in a big way, so something like SE makes sense. If they don't intend to compete in streaming..... I don't think that's even a real possibility, as that is pretty clearly the way gaming is headed.

PS5 hardware and software sales suggest that Sony doesn't need to jump all in at streaming at all for at least the rest of this gen. Long-term viability may be there, and it's something I hope becomes the norm, but there's no need for Sony to move quickly into it. Regardless, they can't until they can set aside PS5-like hardware for their PS Now servers: that's not easy atm.

Having SE doesn't necessarily make streaming a more viable option for them: the amount of staff, the amount of money needed to finance titles like FF (especially when SE is working on many many games simultaneously) is not going to be easy to recoup. I highly doubt Sony would recoup the money they invest in their current 16 studios via streaming, let alone the addition of SE.

The point is that streaming needs lots of content.  More exclusive content than consoles need, by the way things are looking.  It is clear that MS is planning to have a lot of it.  So, Sony will likely want to make some big moves to get more big, established IP into their control.  Everyone seems to be thinking that at least one of the other tech giants is going to get into the AAA streaming business.  Sony doesn't have nearly as deep of pockets as the Googles, Tencents, and Amazons of the world.  But, they do have a lot of their own content that gives them a leg up on some of those names.  They'd certainly like to get more content wrapped up though, before even more money flows into the sector driving up the price of pubs and devs further.  



Sony mentioned in May that they planned over the next 3 years to allocate 2 trillion yen ($18 billion) for investments.

"In order to realize this goal, in the three years from FY2021 through the fiscal year ending March 31, 2024 (FY2023), Sony plans to allocate 2 trillion yen for strategic investment, and to continue to proactively engage in investment towards growth, in the areas of (i) IP/DTC, (ii) technology, and (iii) share repurchases, in order of priority"

https://www.sony.com/en/SonyInfo/IR/library/presen/strategy/pdf/2021/press_E.pdf

On the one hand:

- some of this is going towards share repurchases.

- this gets shared with all of Sony.

On the other hand:

- Sony Pictures CEO says that Gaming is the next market for consolidation.

- Gaming makes a large chunk of Sony's success, so it will likely be prioritized.

- This amount has also gone up in the previous year, with Sony continuing to be profitable.  

The studios they've picked up are a drop in the bucket, relatively speaking.



src said:
Manlytears said:

I ask dear colleagues, how much is Capcom worth today? And kadokawa (since buying only Fromsoftware would be nearly impossible), how much would the entire Kadokawa conglomerate be worth?

If you ask me... Capcom > Zenimax / From Software > Bethesda Softworks.

SE = 6.31B, Capcom = 5.8B , Bethesda was bough for 7.5B

Kadokawa  = 4B iirc

Thanks.
Capcom: A "hypothetical" 6B on capcom... not sure it's a good deal. Resident Evil and Monster Hunter are big, Street Fighter, DMC are very solid, and Cacom in house talen is great, they can create some amazing games, but 6B!? damn, that's alot of money!

Kadokawa+From : About Kadokawa... the thing is more complex here. In my view From Software is an icing on the cake, the real gold would be all of kadokawa's anime/movie/entertainment productions. With that, I think Sony is the only one among the "Big 3" that would be interested in buying Kadokawa and buying "only From Software" is unlikely.

Square Enix : SE is a trap for Sony, it would be very expensive and not much would change.... Their games Sell best on Playstation, no one would buy SE and put away the place where 70% of sales come from.



Prediction: In 5 years Nintendo will Lauch a "Core Mario game"  very similar to Astro Bot. That said, many will Ignore Astro Bot existence and say Nintendo created this concept.

That is very obvious, they will always be open to purchase as long as it meets their goals.
But I wouldn`t expect no studio that isn`t mainly 2nd party to them. And well saying Sony should be passive so MS not be even more agressive on their 3rd party purchase makes 0 sense.



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vonny said:
gtotheunit91 said:

Microsoft could buy Sony and SE the next day, what's your point? lol

They couldn't, it would never be approved. The sell of a Japanese company would never be approved for a foreign takeover

Foreign?  Sony is Japanese 



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