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I completely agree. Whenever Sony planned on announcing the new service has just been delayed because of this acquisition. There is probably some actual number crunching going on right now at Sony. My biggest question for them now is whether they are willing to make less money immediately for a service that will pay off in the future.
We'll see. I don't know about next week. Markets are all down right now, but Sony will definitely rebound from this very easily. I don't know if there is a more in demand product in the world than the PS5 right now.
Honestly, that seemed like a better fit and surer thing than I ever would have thought ABK is/was.
If i was looking to sell i wouldnt sell until MS/acti clears anyways. Drive up the price with more buyers competing
they could buy them with their spare change from the activision buy.
They could buy Sega with couch pocket change, but Sega has too much baggage tied to them, IMO.
Out of all the publishers left, I think Konami makes the most sense for Sony to acquire. Obviously not on the same scale, but plenty of beloved IP that could be brought back as big Sony exclusives. Square Enix also makes sense in a way, but I don't think Sony would really get a large benefit out of it so probably wouldn't be worth the money. A lot of their games are already heavily associated with Sony
It's Sega Sammy these days and Sega is essentially just a brand of the combined company. Sega as we knew it no longer exist.
There's very little value to buy a Japan based amusement company as is. Maybe if and when Sega itself is looking to spin off on its own there could be renewed interest.
Financially, though Sony stock might go up, the implication is huge.
Without a doubt Sony was considering acquiring other studios. In order for the to do that they will likely have to raise stock (sell more stock at an assumed stock price). MS could have just made a prospective acquisition much much more expensive and / or even not financially viable.
Also, it's presumptuous and short-sighted to assume Sony stock will just bounce back… truth is it has seen a massive rally and graced all time highs, it may not bounce back as most assume.
Without a doubt Sony was considering acquiring other studios. In order for the to do that they will likely have to raise stock (sell more stock at an assumed stock price). MS could have just made a prospective acquisition much much more expensive and / or even not financially viable.
Also, it's presumptuous and short-sighted to assume Sony stock will just bounce back… truth is it has seen a massive rally and graced all time highs, it may not bounce back as most assume.
If you look at MW2019, that game made over a billion dollars according to Activision. If PS was 30% of sales, their 30% store cut would be almost $100M. That's a lot of annual money to lose suddenly, and it was almost all profit
Maybe. That's a gamble too though. All the prices are up now. Some unforeseen hurdles and they mightn't get as good an opportunity for ages
The market is not doing well post-xmas.
Last 5 days:
MS lost 100 billion, they dropped 4%.
Sony lost 20 billion, they dropped 11%.
Last 6 months:
Sony is still up 14%
Msft is still up 11%
I don't think there will be a bounce back in a week, could take months, but anything is possible in this fluctuating mess with supply chain issues changing daily.
They could prevent Microsoft from acquiring them and making Final Fantasy Xbox-exclusive (imagine that).
Buy the dip, Sony stock will recover.
Lmao at the people here downplaying the impact COD has on console sales.
COD is a Trojan horse, without it PS4 wouldn't have sold what it did. Because Microsoft sure noticed it with the people that didn't migrate from 360 to XBO that had COD games in their profiles. Not like Sony didn't pay a ton for a marketing deal, amirite?
But sure, keep telling yourself that and downplaying it. You guys sure know the mainstream market that COD appeals to. Here is some clown make up too.
Lmao at the people here downplaying the impact COD has on console sales.
COD is a Trojan horse, without it PS4 wouldn't have sold what it did. Because Microsoft sure noticed it with the people that didn't migrate from 360 to XBO that had COD games in their profiles. Not like Sony didn't pay a ton for a marketing deal, amirite?
But sure, keep telling yourself that and downplaying it. You guys sure know the mainstream market that COD appeals to. Here is some clown make up too.
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Perhaps, but I am only concerned about this in the context of what it means for the rest of the PS platform. I don't play CoD so I don't care, honestly, if it's no longer available on PS someday. If Sony can still have a large enough userbase and do the things they want to do and they aren't turning into the next Sega or something, I think we'll be ok. But we don't know what the future holds 100%.
I won't downplay anything though, I am worried about what this could do to the PS userbase over the next several years. This has a domino effect because it's just not about CoD but where people go to play games with their friends etc.
Honestly there is no other way to look at this; Sony losing CoD huge. I'm not saying doom and gloom, but it's a significant.
You understand the real implications, unlike some pulling numbers and downplaying them.
I do think the immediate reaction to this news is overly cynical of Sony's future prospects. They'll definitely suffer some impact from the loss of Activision games but it's no where close to ending them. Unless I guess you were to take this move as a sign of future strategy from MS to shut off Sony from even more publisher's games. Maybe so but I don't think MS has any intentions to do that, nor do they need to dominate the console market so aggressively with their Cloud strategy. Though I do grow more skeptical about cloud gaming as time passes.
I think PlayStation IPs are now genuinely strong enough to retain market share without strong 3rd party support, somewhat like Nintendo. They will not be as dominant as they were with PS4 but that's a far cry from some of the alarmist takes from the past day. I think Sony has tried hard to differentiate themselves from Xbox over the PS4 generation using their brand of first party cinematic games precisely because they know the risk of competing with MS on other grounds.
As for a 15% market drop, that's high for a single day but it will be interesting to see where it trends over the next few months. Probably will go down again as the deal comes to a close.
I think PlayStation IPs are now genuinely strong enough to retain market share without strong 3rd party support, somewhat like Nintendo. They will not be as dominant as they were with PS4 but that's a far cry from some of the alarmist takes from the past day. I think Sony has tried hard to differentiate themselves from Xbox over the PS4 generation using their brand of first party cinematic games precisely because they know the risk of competing with MS on other grounds.
As for a 15% market drop, that's high for a single day but it will be interesting to see where it trends over the next few months. Probably will go down again as the deal comes to a close.
Yeah its gonna take time, lots of tech stocks taking hits right now but the acquisition definitely hit Sony pretty hard.
Some people really don't understand the magnitude of this. COD dwarfs most 3rd party games outside of R* and It's a staple for both MSFT and Sony; it's a system seller.
Yep. This is big. Sony isn't doomed in any way but this is a blow. They'll have to change to make up the lost revenue.
That said, Sony will be fine, their mindshare is absurd
It'd be interesting behind closed doors to see how much Sony relied on COD finances to fund other things and how that was factored into their overall budget. You could only hope that they'd set provisions in place if this day came.
COD "underperformed" this year and IS the best selling game of 2021. Guess what 2nd place was COD Cold War the game from the year before. COD is nuts still.
Clearly the theorical loss of 0.4% of their yearly PS revenues put Sony on the edge of bankruptcy.
But it still doesn't say how much it weights compared to a Genshin Impact or a FF14 that Sony hadn't had to buy and maintain to get a cut on - that's what I said about the weight of CoD in these revenues : you can roughly estimate one but not others.
Meanwhile in 2019 Fortnite has been mentionned thre times in a row during MS earning calls to explain flucutation over a year, like if V-buck was the new baril of oil.
Literally thinking about opening an account and buying Sony. For fun.
I think it depends on what they're referring to. The Sony stock dropping 13% in a day isnt normal, indeed. As you mention, the last time it happened was in 2008, so its not something that usually happen, for sure. But its not that uncommon that a stock in general can drop quite noticeably after big news.
Another recent example is Take Two's stock price, which also dropped quite a bit from one trading day to the next. Funnily enough, that drop was also about 13% :) The stock has since then gone up, and its now at about the same level that it was before the big drop happened. We will see how things turn out with the Sony stock, if it will go back to the same level that it was on a few days ago or if it will keep declining over time.
