Analyzing the strategy of Sony's acquisitions and partnerships

[Shoot]

This thread is to discuss and analyze Sony's new acquisition strategy.

Sony acquired a record five studios in 2021 bringing the total to 17. This is the first time they have acquired more than one studio in a year. Past gaps between acquisitions ranged from 1 to 5 years driven by a "first, best, must" philosophy but as we all know it's buying season in the games industry. The old rules no longer apply and more acquisitions are expected.

Here is a summary of 2021's acquisitions:

1. Housemarque (June 29, 2021): Arcade games, platformers, twin stick shooters, third person action
2. Nixxes (July 1, 2021): Support studio, PC porting (confirmed to be focusing on PC ports)
3. Firesprite (September 8, 2021): Casual augmented reality, virtual reality, horror FPS
4. Bluepoint Games (September 30, 2021): Remakes, remasters and ports (confirmed to be making an original game)
5. Valkyrie Entertainment (December 10, 2021): Support studio

Prior to that in 2020 Sony was seeking to acquire Leyou Technologies (Warframe, Splash Damage) who specializes in online GaaS and support studios but Tencent acquired them instead.

Also in 2021, Sony announced major third party partnerships with new studios. These ones are notable because unlike previous partnerships they were announced on the blog with no game.

1. Haven Entertainment Studios (March 16, 2021): New IP, rumored GaaS
2. Firewalk Studios (April 22, 2021): New IP, AAA GaaS Destiny-like
3. Deviation Games (June 10, 2021): New IP, AAA, narrative focus likely dropped/cancelled (May 13, 2023)

Other recent third party partnerships have included Ember Labs (story driven action adventure) and Lucid Games (multiplayer car combat).

What do you think of Sony's recent acquisitions and partnerships? What do you expect to see?

Updates:
2022 acquisitions:

1. Bungie ($3.6 billion)(January 31, 2022): Halo, Destiny, continuing to self publish and stay multiplatform, announced Marathon for PS5, XBS and PC on May 24, 2023 (sci-fi PvP extraction GaaS)
2. Haven Entertainment Studios (March 21, 2022): Announced Fairgame$ for PS5 and PC on May 24, 2023 (competitive heist GaaS)
3. Savage Game Studios (August 29, 2022): AAA mobile GaaS action game, new and existing IPs

2023 acquisitions:

1. Firewalk Studios (April 20, 2023): Announced Concord for PS5 and PC on May 24, 2023 (sci-fi PvP FPS GaaS)
2. Audeze (August 24, 2023): High-end gaming headphones, continuing to operate independently with products remaining multiplatform
3. iSIZE (November 2, 2023): Deep Learning for video delivery, will benefit video and streaming services

There were credible rumors in March 2022 that Sony was about to make a major acquisition (later said to be Square Enix).

Here is another related thread on Sony's spending plans.

Sony Group has $5.1 billion to spend on investments until 2024 (update: reduced to $3.7 billion) Sony

Watch Sony Group's Morgan Stanley conference from 30:45 to hear it directly. In 2021: In 2022: Now in 2023, Sony has ¥700 billion remaining for investments. This translates to around $5 billion USD. Sony's investments since the $18.4 billion announcement include the following...

www.resetera.com

 

[Deleted member 93062]

Please no. I want Sony to make acquisitions but all the threads, pain.

 

[IDontBeatGames]

Please no. I want Sony to make acquisitions but all the threads, pain.

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This lol.

 

[Fat4all]

Please no. I want Sony to make acquisitions but all the threads, pain.

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ill make a thread analyzing all the acquisition analyzation threads

 

[TooBusyLookinGud]

Please no. I want Sony to make acquisitions but all the threads, pain.

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I'm with you. It's getting old really fast.

They don't need to buy anyone. They will be fine and they shouldn't react to MSFT buying AB. They should stay their course and build talent like they have been doing.

 

[Shoot]

If you don't like a thread you don't have to click on it.

 

[Crayon]

The quality of analysis on this board is second to none. You've definitely come to the right place.

 

[Pein]

You never know, one those strategic partnerships could be respawn level studio. Easily becoming the leader of the genre they develop for. Or they could have partnership like claphanz and get dropped with the quickness.

I think they're too safe with the studios they bought, instead I wish studios like evolution and Sony Japan were still around and they invested more into Japan and not just buy exclusives.

 

[GamerEDM]

Sony need to partner with Respawn to make their unanounced shooter a platform exclusive. Also Ember lab the developer that made Kena.

 

[Deleted member 93062]

Sony need to partner with Respawn to make their unanounced shooter a platform exclusive. Also Ember lab the developer that made Kena.

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If Respawn make a hero shooter using Apex Legend's Arena mode as a base, that is a must-have to compete with CoD.

 

[Bessy67]

I'd guess they'll make a run at Capcom. They already de-facto own Square Enix anyways so there's not much point in shelling out billions of dollars when they already develop exclusively for you, but getting the Monster Hunter, Resident Evil and Street Fighter IPs would be huge. I expect them to continue to lock down more Disney IPs too, maybe timed or full exclusivity on Jedi Fallen Order 2.

 

[a Master Ninja]

I don't anticipate Sony will make any major publisher acquisitions.

I do expect Sony to pay for timed or even full exclusivity on even more AAA Japanese developed games.

 

[TaterTots]

I want Sony to make acquisitions

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Why though

 

[Shoot]

Sony need to partner with Respawn to make their unanounced shooter a platform exclusive. Also Ember lab the developer that made Kena.

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Yeah that's the story driven action adventure I mentioned. I thought it would be easier to understand things if I reduced every game/project to a genre.

 

[Deleted member 93062]

Why though

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Because a lot of AAA third party studios are bland and shitting out the same garbage every few years in hopes that it'll sell thanks to their name. I find that Microsoft or Sony taking some of these studios under their wings could really improve them and also help the developers at these studios be more creative.

 

[Captain Wreckus]

Sony is like Nintendo, focusing on their first party IP's, which sells consoles.

Last time I checked, that strategy is working.

 

[Frieza]

Sony is like Nintendo, focusing on their first party IP's, which sells consoles.

Last time I checked, that strategy is working.

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Sony isn't like Nintendo unlike Nintendo they rely heavily on third party IP, third party timed deals and service fees they charge third parties on their platform.

 

[SolidSnakeUS]

I expect Sony to get exclusives, timed or otherwise, for the system and I expect Sony to pick up more smaller devs that have a close relationship to Sony already. And also help create smaller studios, like the one with Jade Raymond.

Sony will keep doing what it's doing now.

 

[tgrfawcett]

I don't imagine Sony changes much about what they are already doing. They have positioned themselves to be a kind of Apple for gaming. Wherein the titles they offer are "premium" and justify the big box you bought to play them. You buy a PlayStation because of the quality associated with the brand. It is why Jim Ryan has repeatedly made assertions about the demand for high-quality titles and why games like Days Gone disappointed not because of sales but in critical reception. They will likely continue to form strong ties to up-and-coming studios, expanding into areas they are weaker (as seen recently multiplayer) and then buying out these studios if they perform well as seen in Housemarque and even Bluepoint. To support this strategy expect to continue to see multi-media integration with movies and shows as a way of making each IP its own cash cow. I would be surprised if they bought out a publisher, but if they did expect it to be a smaller one that they have existing relationships with probably based in Japan. Square with Final Fantasy or Sega with Atlus seems obvious but unlikely at the moment.

Personally, the continued fervor on acquisitions is likely driven by the capitalistic urge for growth, we all want more. Regardless, don't expect the status quo to remain for long, but in this industry, it is hard to tell where things are heading.

 

[Pein]

The fact that Sony missed out on Altus and a company like vanillaware isn't one of your marquee devs is crazy, it's nuts that Sony drops the ball in Japan continuously over the years.

the fact that gravity rush and hot shots golf is done for as a series is so crazy, PlayStation makes money they can afford to keep those around and because they're not doing 10 million like TLOU those games don't exist anymore. First party's need to be able to find those risky games.

I don't like the game of buying out publishers but respawn and BioWare are the types of studios they need. It's probably easier to build up your own studio or organically though, takes a lot longer though.

If WB are selling rocksteady and neatherrealm and even TT would be cool gets.

 

[RisingStar]

They will make partnerships with brand new studios, straight out of Jim Ryan's local pub in London.

 

[Captain Wreckus]

Sony isn't like Nintendo unlike Nintendo they rely heavily on third party IP, third party timed deals and service fees they charge third parties on their platform.

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All 3 consoles rely on that stuff. Less so for Nintendo. But, right now, in my opinion, I find Sony's 1st party games much better than Microsoft's but below Nintendo.

 

[AhiKuma]

Why though

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They frankly have the best quality control and critical reception of any other publisher in the industry. It's why they're pretty much on the top pedestal, deservingly so.

All 3 consoles rely on that stuff. Less so for Nintendo. But, right now, in my opinion, I find Sony's 1st party games much better than Microsoft's but below Nintendo.

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I find that Nintendo's games are carried more by brand name than anything else I don't think they're very much quality at less in the Switch era.

 

[Ricelord]

Sony most likely will go after small studios that they have close ties , but they could also go after publishers such as capcom or square.

 

[KillLaCam]

They arent getting anyone big. But they'll probably ramp up more of the annoying timed exclusivity stuff.

 

[LilScooby77]

Maybe this shift will cause Sony to release day one gsmes in Spartacus. We just have to wait and see since they found out about the news around the same time we did.

 

[BobLoblaw]

Activision was one of their key moneymakers in terms of microtransactions (billions over the years). The other two are Genshin and Fortnite. Besides potential acquisitions, I'm going to assume that they're also going to find ways to work microtransactions into some of their 1st party offerings, "fees" (like for upgrades), or a price increase for PS+/Spartacus to make up for them.

 

[Lishi]

Please no. I want Sony to make acquisitions but all the threads, pain.

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I rather they start new studios so we will have more output and choice instead of less.

 

[Host Samurai]

Sony needs to do what they're doing along with buying at least 1 or 2 publishers that have proven IP's and have a good release schedule. They need lots of legacy 3rd party content that's synonymous with the brand to fill Spartacus with a plethora of content that goes back decades. They're timed exclusive strategy won't cut it when Microsoft has some of the biggest IP's in gaming history with 30+ studios that will eventually get on a release schedule of one massive hit bimonthly and Sony will never be able to compete with that with their current release schedule, no matter how good they are. I don't think people really grasp how many third party studios Microsoft has acquired these past 2 years.

If Sony doesn't go big, than there will be major droughts of AAA content between their releases and I don't see SSM, or ND releasing more than one game per gen.

 

[Praedyth]

I think Sony partnership plans are pretty much perfect. You take seasoned developers, help them set up their new studio and in turn you receive a new AAA IP that could be the next big thing. Sequels are definitely okay, but it's the new IPs that will strike gold and Sony knows that.

I also think that owning a successful IP developed at a 3rd party studio strenghtens the relationship between SIE and studio and further facilitates acquisitions.

All in all, I think Sony is more focused on incubating the next generation of 1st and 3rd party on PS and yesteryear's acquisitons are just the fruit from trees planted long ago.

 

[Kopite]

I'm happy if they quit spending on expensive timed exclusives and put that money towards new projects, even if that includes acquisitions. Being a PC gamer I'm slightly concerned if they start buying publishers who release D1 on PC but I'm hopeful Sony is going to eventually move in that direction as well.

 

[Tagyhag]

Like others have said, I think they'll continue to do what they do.

IF they go for a big purchase, it'll more than likely be Square, but other than that, I don't know.

Sure Capcom sounds good on paper but think about how many IP's they have and how much they would jack up the price.

 

[JaseC64]

I'm with you. It's getting old really fast.

They don't need to buy anyone. They will be fine and they shouldn't react to MSFT buying AB. They should stay their course and build talent like they have been doing.

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I think them sticking their head in the sand and ignoring the current trends would be stupid and they likely know that.

I think we can ALL (both Sony and MS fans) wish things went "back to normal" but we know that isn't happening. Especially due to the elephant in the room.

Sony needs to do it whether anyone likes it or not. Else someone with a big wallet will just keep doing it.

 

[BrickArts295]

After this latest acquisition which they may or may not have known about, they must have realized that they can't fully rely on third party if they are going to be gobbled up by a tech giant. From now on their goal should be to push their first party as the main reason to buy a PlayStation. A tall order but it definitely seems like that's what they are working towards to.

Given the fact that they barely partner with anyone in Japan, it would technically make sense to at the very least buy one of those publishers to secure some favorable JP IPs and developers for their first party lineup. Of course there's the implication that buying one JP publisher could lead to another one getting acquired by someone else, so its not something I wish to happen but who the hell knows at this rate.

 

[Plinkerton]

I can't see Sony making a major shift in their strategy and starting to buy up publishers like everyone seems to want them to. Mainly because I doubt they could afford it. And also their running out of studios who they've worked closely with in the past.

Off the top of my head, some possibilities:

- Remedy - worked with them on the marketing for Control, but they currently have like a million games in development with a million different partners, so seems unlikely.
- Kojima Productions - probably Sony management's white whale and they worked with them on Death Stranding, but rumour is that they're working on an Xbox exclusive now so again seems unlikely. Also the whole point of the studio was that Kojima would have his independence.
- Drinkbox - have developed several PlayStation exclusives going back to Mutant Blobs Attack.
- Supergiant - worked with them on Transistor and Pyre but after the success they've had with Hades the price probably skyrocketed.
- Any of the studios they've announced deals with in the last year. I imagine they'll want them to get at least one game out first, but if they do well they could buy them.

Please no. I want Sony to make acquisitions but all the threads, pain.

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At least this thread has some effort put into it, unlike most of the others which are just like "How should Sony response to MS!? Sound off!"

 

[Deleted member 13798]

Sony clearly likes to build partnerships with strategic plans to fill out their IP roster; they then acquire some of those companies.

Sony ain't buying Capcom, Square, or any of that shit anytime soon- probably never. It's not how they approach things. Sony, Microsoft and Nintendo have always approached the gaming space with different strategies- they haven't really changed that much except with MS just making big power plays lately- after sitting out on almost an entire generation of developing really solid first party IPs.

 

[Gyro Zeppeli]

Sony should be increasing the size of Team Asobi - we've seen what they could do with Astrobot. We could see creative platformers from that team and other creative first party games. In fact, I would create a second team making games in the same vein of Ico and Shadow of the Colossus. That's what people want more of from Sony. Sony should play to their strengths and focus on Japanese games again.

 

[Eyad]

Sony should be increasing the size of Team Asobi - we've seen what they could do with Astrobot. We could see creative platformers from that team and other creative first party games. In fact, I would create a second team making games in the same vein of Ico and Shadow of the Colossus. That's what people want more of from Sony. Sony should play to their strengths and focus on Japanese games again.

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I want to believe that what people want. This is what I want most definitely. I was sad about Japan studio. But I'm pretty sure the numbers don't support this. I don't think Sony are wrong to focus elsewhere purely as a business decision.
A standalone Astrobot game with a price tag wouldn't generate much for them.

 

[nekkid]

Maybe this shift will cause Sony to release day one gsmes in Spartacus. We just have to wait and see since they found out about the news around the same time we did.

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Seems to me like it'll make that even less likely. They'll need their first party IPs to be perceived as "premium" even moreso.

 

[Pein]

Sony should be increasing the size of Team Asobi - we've seen what they could do with Astrobot. We could see creative platformers from that team and other creative first party games. In fact, I would create a second team making games in the same vein of Ico and Shadow of the Colossus. That's what people want more of from Sony. Sony should play to their strengths and focus on Japanese games again.

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I'd love if Sony was doing that, but why didn't they just have team asobi leading Japan studio instead of canning them? I wish Sony just let Japan studios rock and do some great games again. I know the need for AAA blockbuster games is high but ape escape is dope too. A high budget Sony JRPG would also be cool as hell.

 

[vivftp]

I'd love if Sony was doing that, but why didn't they just have team asobi leading Japan studio instead of canning them? I wish Sony just let Japan studios rock and do some great games again. I know the need for AAA blockbuster games is high but ape escape is dope too. A high budget Sony JRPG would also be cool as hell.

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From the comments of others, I've gathered that Japan Studios was poorly managed and in bad shape. Sony tried restructuring it multiple times and it didn't help so in the end the best solution was to just shut it down and keep Asobi as they did have their shit together and we're doing well.

 

[2Blackcats]

If they can keep that pace of 5 studios a year I don't think they'd need much more. I guess the argument is how important is IP and back catalogue compared to development man power.

I'm sure they've no interest in acquiring a publisher but may feel their hand is forced

 

[Betty]

Sony shouldn't acquire anyone, and I question if the big players would even want to knowing that MS will pay more and have a stronger looking future.

 

[Seijuro]

They're probably continuing their strategy to acquire smaller studios they have worked close with in the past, like Haven, Firewalk etc in the OP will sooner or later find themselves under the Sony umbrella (if they want).

Also, and that ties directly into their decision to acquire the likes of Capcom and Square Enix, I've read (lol, probably on here somewhere after the Bethesda Acquisition by MS) that large japanese companies can't be bought by foreign companies because of some antitrust laws? Is that true? If true, Sony won't be in a rush to buy any major japanese studio but rather pursure good, existing relationships with their partners.

 

[craven68]

Funny they still didn't bought ember lab, this studio with way more money can do crazy ( maybe because of some issues in the studio ? )
i can really see capcom one day (if they want to be bought) and square enix. Funny thing , if one day square enix is going to be bought, i really see a plit….eidos ( deus ex, tomb raider )to microsft and the rest to sony. ( ff, kingdom heart, dragon quest etc..).
Level 5, they must be in discount with all theirs issues …strange that no one tried to bought them , they have great ip and sony can benefit with this.
But i m sure, the next studio will be a new studio that no one know with a lot of veteran, there are so many new studios.
( i m kinda sad that google never sold theirs studios …)

 

[Jakisthe]

Also, and that ties directly into their decision to acquire the likes of Capcom and Square Enix, I've read (lol, probably on here somewhere after the Bethesda Acquisition by MS) that large japanese companies can't be bought by foreign companies because of some antitrust laws? Is that true? If true, Sony won't be in a rush to buy any major japanese studio but rather pursure good, existing relationships with their partners.

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No.
This is explicitly not true. The Japanese government has pushed for more direct investing, outside of a 2019 reporting change which would have limited impact on M&A.

You can read more here:

Mergers & Acquisitions For Gaming: A Primer Into The Joys of Corporate Combinations We All Love

So, I’ve seen a few topics pop up in my time here which cover the subject of acquisitions in the game space. Who is doing them, how much they’d pay, why they’d pay, who or what is doing the worst of it, and what are some various things in place around the world which help or hinder such...

www.resetera.com

 

[vivftp]

Sony shouldn't acquire anyone, and I question if the big players would even want to knowing that MS will pay more and have a stronger looking future.

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"Stronger looking future"?
🤨

And this thread is more than just chit chat about big acquisitions. There are tons of partner studios and smaller devs that are likely on Sony's radar like:

Arrowhead
Wushu
Lucid
Ember Lab
Arc System Works
Camouflaj
Illfonic
Haven
Deviation
ProbablyMonster (Firewalk and their other 2 teams)
KojiPro

Maybe also Kadokawa (From Soft and Spike Chunsoft) along with their anime/manga IP.


IMO Sony will continue their spree of picking up partner studios and support studios. A publisher like Square is the most likely candidate should Sony decide to go bigger due to their current and past relationship. Whatever big companies Sony may go for will be ones that their entire company can benefit from, not just SIE. So companies with IP that can be utilized by their film, tv, anime and music divisions.

 

[Combichristoffersen]

Sony bought a remake studio, a PC port studio, and three small studios of debatable importance. Wow, such impressive. Sony must do bigger and better to be competitive with MS.

Also, and that ties directly into their decision to acquire the likes of Capcom and Square Enix, I've read (lol, probably on here somewhere after the Bethesda Acquisition by MS) that large japanese companies can't be bought by foreign companies because of some antitrust laws? Is that true? If true, Sony won't be in a rush to buy any major japanese studio but rather pursure good, existing relationships with their partners.

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Japanese companies can be bought by foreign companies just fine, but it's a bit more paperwork etc. to go through. Also Sony is a Japanese company :p

 

[Roronoa_Zoro]

I think we may be overly dooming Sony. Cod sells what 13m every year? Its probably mostly the same people every year so fine subtract 20m from their install base to be generous about it. That still puts them at a pretty damn good number

 

[Seijuro]

No.
This is explicitly not true. The Japanese government has pushed for more direct investing, outside of a 2019 reporting change which would have limited impact on M&A.
You can read more here:

Mergers & Acquisitions For Gaming: A Primer Into The Joys of Corporate Combinations We All Love

So, I’ve seen a few topics pop up in my time here which cover the subject of acquisitions in the game space. Who is doing them, how much they’d pay, why they’d pay, who or what is doing the worst of it, and what are some various things in place around the world which help or hinder such...

www.resetera.com

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I see, thanks for clearing that up and thanks for the link!

Japanese companies can be bought by foreign companies just fine, but it's a bit more paperwork etc. to go through. Also Sony is a Japanese company :p

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I know I know, just meant that they wouldn't be in a rush if MS couldn't buy these companies - which apparently is not true anyway.