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Convasse

Member
Oct 26, 2017
3,811
Atlanta, GA, USA
I think you can see some competitive inertia in Sony's operations with PlayStation 5 in this 9th generation. #JustMarketLeaderThings

How many companies have done "what's worked up until now" while their industry was changing around them? How many of those companies suffered because of such decisions? Sony has been seemingly slow to react to some of the changes in the industry. The Spartacus rumors had people wondering why a response to GamePass was necessary and now there's almost a desperation to imagine a way Sony could overcome the challenges presented by today's news.

The reason why people are so worked up about this news is because of the fear of change. So many people have tied their identities to PlayStation that the future of consolidation and digital/cloud/metaverse gaming is horrifying. But change is inevitable.

Go back to content consumption (i.e., watching TV) at the turn of the century, Y2K. Could you have seen our current entertainment landscape from back then? If you did, you have a lot to answer for. If not, why would you assume that gaming as it was in the 00s and 10s would remain the same in the 20s or 30s?

What could you have done to stop this? Since everyone is ultimately pursuing profit and growth, how were you going to convince them that the way you prefer things is best? That their AAA process, which requires thousands of man-hours and tens/hundreds of millions of dollars, could be sustained indefinitely the way they are?

The old ways aren't bringing constant quarter-over-quarter growth/earnings, so they will pursue new ways to fulfill those goals. Even at the detriment of what you love. Even if it destroys it. And if Sony doesn't join "them," well. You can already sense that conclusion.

That's what capitalism does. It wrings every ounce of life from its assets to extract every drop of value and profit from it.
 
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XB1NH0

Member
Dec 7, 2017
737
They 100% will not cease to exist in the immediate or near future, but a LOT of things are going to change if they can't find a way to keep players from hemorrhaging off of their hardware.

Like people really need to understand HOW BAD OF A TIME IT IS for a buyout like this to happen, when most people haven't been able to get their hands on the console yet due to stock shortages. These people are now going to think long and hard on if it's even worth it to wait for a PS5 at all if the key third party games are disappearing.
But theres shortages on the other side as well. The effects should be felt on the console's sales curve only in the medium term and assuming that SONY does nothing.
 

Zep

Member
Jul 12, 2021
1,456
They will because being #1 is most certainly not set in stone YoY. I expect it to change if Sony doesn't act. I'm not saying go out and buy Take 2, but they will need to push into the PC space more aggressively because I fully expect MSFT to take that #1 spot if they lock up CoD. Day and date release on Steam will help too.
Pushing more aggressively into the PC space is probably one of the last things Playstation gamers wanna hear as a counter to this move.
 

Doctor Avatar

Member
Jan 10, 2019
2,591
These moves by MS makes it clear the limitations of that strategy. When your competitor can, at any time, swoop in and buy the supplier of your third party content, relying on timed deals and exclusive DLC becomes risky and leaves you open to being shut out completely. This happened twice now to Sony. They will be fools to think it can't happen a third or fourth time.

Exactly. Sony started this gen with an exclusive Bethesda game… saying Sony gets a lot of exclusives from SE therefore there is no point buying them is assuming MS don't.
 

Chronos

Member
Oct 27, 2017
1,204
I think the more curious question is: If you are Sony do you let Gamepass onto your system? It solves some problems but obviously is letting the fox into the henhouse.

I mean, Sony really needs to figure out what they want their identity to be. Microsoft just bought a company half the size of Sony. There really isn't a "throw money around" solution for Sony. Buying Squeenix or Sega is possible but I don't think either of those acquisitions really changes the landscape much.

I think the "right move" for Sony is to continue to invest in first party and go for pure quality over quantity.

Either that or they are going to need to get really creative with financing and try and swallow Take Two or EA + a Sega/Ubi/Capcom/Squeenix which gets them in the neighborhood of the size of deals MS has pulled off. The problem being you are taking about Sony pulling in 50% additional market cap which likely means heavy debt financing which is extremely risky - and something that nearly took Sony down a decade ago.

I agree they should continue to focus on quality over quantity, but it doesn't change the fact that third party support is a huge component of their success. They can't sit idly by as third party's are systematically eliminated from their platform. While losing Activision titles will sting, it would become devastating if MS acquired one or two more of the remaining large publishers Sony gets boxed in and the loss of subcribers would far outweigh any organic first party growth.

I suspect Sony wasn't planning any big moves until today. I expect them to make a big move now.
 
Oct 25, 2017
9,088
So even with Activision, Xbox total revenue still just makes them the third largest publisher, with PlayStation still number one.

Are we sure Sony needs to do anything dramatic to respond to this even?
Not immediately, but these MS acquisitions certainly change the landscape a few years down the road. Sony needs to be planning for that at the very least.

People are also correct that these acquisitions have created an environment where any big publisher could suddenly cease to be third party. It's an arms race, and Sony has to have a plan for that. Either by acquiring longstanding third party publishers themselves, or some other equivalently potent option (and I have no idea what that option might look like).
 

gundamkyoukai

Member
Oct 25, 2017
21,087
Yes. These options would also be possible, especially the T2 route. Still, if they buy the latter they should keep releasing their games on PC to recover the investment. GTA only on PS would be a good way to keep users on the platform. In addition, Sony, fortunately, has many multiplayer projects right now that can satiate COD players.

Why would they keep GTA on console only .
This move that MS made goes beyond hardware .
They spend 70 billion for there service \GP .
Hardware is short term thinking this goes beyond that if you looking at what move Sony should do .
 

EagleClaw

Member
Dec 31, 2018
10,679
So even with Activision, Xbox total revenue still just makes them the third largest publisher, with PlayStation still number one.

Are we sure Sony needs to do anything dramatic to respond to this even?

Yes...
... but it is "doom time" for now.

Tbf, it is also true that a lot of Activision and Bethesda games have helped to reach that spot.
 

poklane

Member
Oct 25, 2017
27,889
the Netherlands
So even with Activision, Xbox total revenue still just makes them the third largest publisher, with PlayStation still number one.

Are we sure Sony needs to do anything dramatic to respond to this even?
That's not taking into account the loss of revenue from Sony from lost console sales, software sales and PS+ subs. And it also doesn't take into account the increase in revenue for Microsoft with increased console sales, software sales and both Gold and Game Pass subscriptions.
 
Jul 2, 2021
15,593
So even with Activision, Xbox total revenue still just makes them the third largest publisher, with PlayStation still number one.

Are we sure Sony needs to do anything dramatic to respond to this even?
Change doesn't happen overnight.
This console gen barely even started, Bethesda barely even started (even had timed exclusive deals with PlayStation) releasing their heavy hitters, the Activision-Blizzard acquisition isn't even done yet and Game Pass is still young.
Look at MS at the end of this generation. A lot will be different.
 

TheRealTalker

Member
Oct 25, 2017
21,450
Some of us speculated that GG's secret MP team was making some Overwatch like game.

But now I hope they really are for those that want that itch on PS.
 

modiz

Member
Oct 8, 2018
17,830
This…is dire. Like none of those options are good. And Take2 could arguably cost more than Acti or close to it because of GTA alone. Their stock is at like $152 a share currently. Sony legit cannot afford that. Not for PlayStation. Square is more realistic or Capcom. But currently the best strategy is to buy marketing and timed exclusives. That's all they can do. Buying a successful publisher that makes probably 40% of their revenue from Xbox platforms isn't the play.
And yet that is the market condition that MS are forcing on the industry.
And I agree that its a very risky move, albeit it wont be as expensive or activsion as their market cap is only 18 billion dollars, they wont be sold on a 300% premium.
 
Oct 28, 2017
3,074
A potential TakeTwo acquisition by Sony would lead to Microsoft taking a Square/Capcom, or Ubisoft, and further sinking that sharp point into Jim Ryan's anxiety levels. Sure, you get GTA every decade, but for doing that, you lose Assassins Creed/Final Fantasy, on top of Call of Duty. Sony are then left scratching their heads.

In other words, this is no longer about single acquisitions, but rather a rush to scoop up as many large publishers to firewall your brand, whether that be Game Pass or Playstation as a whole. Unless Sony are willing to do just that, they need to face the new reality that allowing Game Pass on the PlayStation is the only sensible, long-term model to retain these third-party titles, and regain Call of Duty.

And to be honest with you, who here would say no to playing CoD, Starfield, Halo, Forza et al for $14.99 on your PS5?
 
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PlanetSmasher

The Abominable Showman
Member
Oct 25, 2017
115,489
Their endgame is Game Pass everywhere. They want Game Pass to be main way you consume games. But what's in it for Sony to acquire companies other than reacting to the competition doing the same?

Preventing massive amounts of player and revenue loss. They have to keep people from abandoning their hardware to spend all their time and money on other platforms.
 

Markratos

Hermen Hulst's Secret Account
Member
Feb 15, 2020
2,913
Why would they keep GTA on console only .
This move that MS made goes beyond hardware .
They spend 70 billion for there service \GP .
Hardware is short term thinking this goes beyond that if you looking at what move Sony should do .
That's why a said that if T2 is bought Sony should release their games on PC. And of course have a competent subscription service that it has releases a few years after its original release.
 

Midnight

Member
Jan 5, 2018
787
They 100% will not cease to exist in the immediate or near future, but a LOT of things are going to change if they can't find a way to keep players from hemorrhaging off of their hardware.

Like people really need to understand HOW BAD OF A TIME IT IS for a buyout like this to happen, when most people haven't been able to get their hands on the console yet due to stock shortages. These people are now going to think long and hard on if it's even worth it to wait for a PS5 at all if the key third party games are disappearing.
That's a good point and I don't disagree with you there. It was always going to be a big blow to Sony, but the timing is specially bad.

Things will change, that's for sure. I just think PlayStation has the potential to thrive without big 3rd party hitters, but they would obviously lose a big amount of market-share/profits, and no company in hell wants that. Sony has shown they can be both conservative and aggressive, so right now I'm more curious than anything to see how they will respond to this, how they'll try to compete.
 

Genesius

Member
Nov 2, 2018
15,478
Of course.

No. Less.
Agreed.
A potential TakeTwo acquisition by Sony would lead to Microsoft taking a Square/Capcom, or Ubisoft, and further sinking that sharp point into Jim Ryan's anxiety levels. Sure, you get GTA every decade, but for doing that, you lose Assassins Creed/Final Fantasy, on top of Call of Duty. Sony are then left scratching their heads.

In other words, this is no longer about single acquisitions, but rather a rush to scoop up as many large publishers to firewall your brand whether that be Game Pass or Playstation as a whole.

Take-Two is the obvious next target. GTAO has been making billions of dollars for coming up on a decade.

Sony should be on the phone with Take-Two, Capcom, and Square right now.
 

Dragoon

Banned
Oct 31, 2017
11,231
Yup people are really underplaying how massive this is
People are seriously deluding themselves. In our group chat, every person has a PS5 and only has series x (the small one, whatever it's called). Every single person after today is thinking of buying an Xbox, 2 of them thinking of selling the PS5 as well while the others use both platforms.
 

Shairi

Member
Aug 27, 2018
8,540
A potential TakeTwo acquisition by Sony would lead to Microsoft taking a Square/Capcom, or Ubisoft, and further sinking that sharp point into Jim Ryan's anxiety levels. Sure, you get GTA every decade, but for doing that, you lose Assassins Creed/Final Fantasy, on top of Call of Duty. Sony are then left scratching their heads.

In other words, this is no longer about single acquisitions, but rather a rush to scoop up as many large publishers to firewall your brand whether that be Game Pass or Playstation as a whole.

Microsoft ain't getting these japanese companies that easily. Japan's goverment would know that these deals are aimed at and would damage a huge and important japanese conglomerate (Sony). I don't see that passing, at least not for companies as big as Capcom and Square.
 
Oct 31, 2017
12,069
I think you can see some competitive inertia in Sony's operations with PlayStation 5 in this 9th generation. #JustMarketLeaderThings

How many companies have done "what's worked up until now" while their industry was changing around them? How many of those companies suffered because of such decisions? Sony has been seemingly slow to react to some of the changes in the industry. The Spartacus rumors had people wondering why a response to GamePass was necessary and now there's almost a desperation to imagine a way Sony could overcome the challenges presented by today's news.

The reason why people are so worked up about this news is because of the fear of change. So many people have tied their identities to PlayStation that the future of consolidation and digital/cloud/metaverse gaming is horrifying. But change is inevitable.

Go back to content consumption (i.e., watching TV) at the turn of the century, Y2K. Could you have seen our current entertainment landscape from back then? If you did, you have a lot to answer for. If not, why would you assume that gaming as it was in the 00s and 10s would remain the same in the 20s or 30s?

What could you have done to stop this? Since everyone is ultimately pursuing profit and growth, how were you going to convince them that the way you prefer things is best? That their AAA process, which requires thousands of man-hours and tens/hundreds of millions of dollars, could be sustained indefinitely the way they are?

The old ways aren't bringing constant quarter-over-quarter growth/earnings, so they will pursue new ways to fulfill those goals. Even at the detriment of what you love. Even if it destroys it. And if Sony doesn't join "them," well. You can already sense that conclusion.

That's what capitalism does. It wrings every ounce of life from its assets to extract every drop of value and profit from it.

This makes some good points, hits a very big point at the end, but I think misses one big point:

Yes, people fear change, and we've seen fears before in this industry, from online gaming to motion controls. But I can't recall the last time a console manufacturer straight up bought all these IPs that already existed. 1990 was different than 2000 and 2000 was different than 2010. At no point in any of this did I see Nintendo, Sega, or Sony buy out EA, Capcom, Squaresoft, etc. For the most part, it was timed exclusives, or companies simply didn't need to make games for each platform to be profitable.

When you have a situation of this massive consolidation, it's more than simply change: it's a tsunami.
 

Dekim

Member
Oct 28, 2017
4,300
Sony can do this without Amazon, Google, or Apple.
Sony has the money to easily get Square-Enix and Capcom. Or Take Two.
They question is: Do they want to buy them?
The PlayStation business represents too significant a slice of all of Sony Corps' revenue and profit for them to not consider spending big, even if they don't want to. The PS business is too important for them not to react.
 

Shairi

Member
Aug 27, 2018
8,540
The good thing is that kids nowadays prefer Fortnite over Call of Duty.

Sony probably talking to Tim Sweeney right now.
 

Deleted member 14089

Oct 27, 2017
6,264
Nobody is buying that for 50 outside of pc. They're not gonna spend ad on a 10 dollar upgrade

120fps tho 👀

Playstation Studios |OT25| Where is your COD now?

15250-m.webp

you..
 

Elandyll

Avenger
Oct 25, 2017
8,806
Got to wonder how EA feels about their "unprecedented partner" now that, as one of 3 major platform holder and a main marketplace owner, they are also their most direct competitor software wise outside of spirt titles?
 
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