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gundamkyoukai

Member
Oct 25, 2017
21,136
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.

I could have told how gaming was going to go years ago thanks Netflix \streaming .
Only that we also have F2P that will be on everything .
Was not looking forward to it but here were are.
 

PlanetSmasher

The Abominable Showman
Member
Oct 25, 2017
115,740
The good thing is that kids nowadays prefer Fortnite over Call of Duty.

Sony probably talking to Tim Sweeney right now.

Sony is never going to get Fortnite as an exclusive. They'd have to literally shut the Xbox version off to do so, which they won't. There's zero value in pursuing Epic.
 

VanWinkle

Member
Oct 25, 2017
16,095
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?
"What's in it for Sony?" You missed one thing Game Pass won't be on: Playstation. That's Sony's gaming division. The more popular IPs that MS takes, the fewer popular IPs Playstation has. Sony's gamers are losing access to huge IPs, and risk losing even more in the future if they don't do their own acquisitions.
 

Coop

Member
Jan 9, 2020
561
This, this, this and this.

My childhood was PlayStation through and through. Because it's all my parents could afford. It went down in price well enough, there was always something within budget.

As an adult I have far too many things to pay for. I'm not made of money and I've had to work for every damn thing I own. Nobody has helped me. Not because they didn't want too but because they couldn't.

I have a mortgage to pay for. All the bills that come with it. Pet insurance. A child that grows and eats me out of house and home. A family car on finance because of course, we don't have £10,000+ spare for a car. The costs of running said car.

I don't have the luxury of affording several consoles and if it wasn't for incredible friends and family for my 30th in 2020, I would never have been able to afford a PS5. Not till it come down another hundred to a hundred and fifty pounds.

Honestly it's just a dick move from Microsoft. This industry is heading towards consolidation and it's sad, depressing and unfavorable all round. Very anti consumer. And yeah Sony have bought some developers, but they haven't bought two publishers, a large amount of studios and IP and they certainly aren't looking to take IP that's been multiplatform for years, in some cases, decades and remove it from competing platforms. Honestly, dick move.
At the same time, there's a lot of people that can't even buy a PS4, that's the really in my country, Brazil, but then comes the gamepass with a cheap subscription with games playable in a smartphone, that's much more accessible than a PS5, a luxury item with luxury price games, Gamepass is a turning point for people in the third world
 

Josh5890

I'm Your Favorite Poster's Favorite Poster
The Fallen
Oct 25, 2017
23,229
So this means MS wants Game Pass on Nintendo and PS?

www.techradar.com

Game Pass won't come to PS5 or Switch because Sony and Nintendo 'don’t want’ it

‘Closed platforms don’t want something like Game Pass’

"I can see why the disruption of Game Pass is not something that they want right now," said Spencer. "In the end, when we say we want everybody to be able to play on Xbox, we really mean if we can bring that full experience to a device that players want, we are totally open to those discussions."

Phil has made no secret that he wants Gamepass everywhere, even Switch
 

EagleClaw

Member
Dec 31, 2018
10,697
It doesn't make sense to talk about the past, but...

Sony should have bought some higher shares of 3rd party publishers to prevent such an outcome.
Maybe they will start doing that, now.
 

Josh5890

I'm Your Favorite Poster's Favorite Poster
The Fallen
Oct 25, 2017
23,229
I know.
Just messing with you lol

Plus by now I actually know who the trolls are, and you are not one of them

hi-five-hands-theme-hi-five-hands-isolated-win-teamwork-concept-150531494.jpg
 
Jul 2, 2021
15,709
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?
Sony's endgame will be the same thing. PlayStation games on consoles, PC and mobile.
Streaming, sub services (Spartacus) and "normal" gaming.

For that you need content. A lot of content. Famous IPs.
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.
It is. Which could be the reason why Sony will go big now. "Losing" a market again like Sony Pictures or Sony Music once with the CD/MP3 debacle?
Or grow with a huge acquisition. PlayStation is important. Industry consolidation is happening NOW. So NOW is the time to react. Wait 5 years and it could already be too late.
 

anexanhume

Member
Oct 25, 2017
12,913
Maryland
Sony is never going to get Fortnite as an exclusive. They'd have to literally shut the Xbox version off to do so, which they won't. There's zero value in pursuing Epic.
Sony acquiring Epic would mean then controlling UE. That alone would have a huge ripple effect in the industry.

UE makes sense for its film aspirations and Sony's film business. EGS would give them a storefront for their PC games.

There are several ways it makes business sense for Sony. I doubt Epic is looking to sell, so it's a non-starter.

If I had my pick, they'd buy EA so they could give BioWare games that first party Sony polish.
 

poklane

Member
Oct 25, 2017
27,932
the Netherlands
This is definitely a big "go big or go home" moment for Sony as a whole, not just SIE. In FY2020 (April 1st 2020 through March 31st 2021) the Games & Network Services was Sony's most profitable division at an operating income ¥342.2B (today's exchange rate: $2.99B), with Music coming in second at ¥188.1B ($1.64B) and accounting for a total of 35.2% of Sony's operating income. Sony's stock being down 7% also shows what a huge hit this is and that Sony has to respond. The big question, and this has already been mentioned by me and others, can Sony even acquire a big western publisher without Microsoft swooping in and just outbidding them?
Sony's financials are also in 2 weeks, it'll be interesting to see if they'll get any questions about this.
 

Markratos

Hermen Hulst's Secret Account
Member
Feb 15, 2020
2,925

Yes. I would also be frightened, what Microsoft is doing is creating a new business model (similar to the impact of Netflix on the audiovisual industry), the problem is that games are worth $ 70 and not less than $ 10 like movie tickets. And it is very likely that players will stop buying games if they have several triple A on their subscription service every month. Maybe some very established IPs are going to survive, but the vast majority are going to have a really hard time surviving.
 
Oct 25, 2017
29,503
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?
Playstation is my main system and has been since like day 1 and I haven't cared for xbox since like the first few 360 years.

Now If MS went and bought Capcom and got Resident Evil.
Xbox becomes my main console,
I'd keep my PS5 for Sony titles but going to next gen NextBox would be my first purchase then maybe PS6 down the line.

Also if I go to Xbox I have way less reason to keep my Plus subscription.
 
Jul 25, 2020
749
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?

Fuck it, let them have Ubisoft. Seems fair.

No one is underplaying it. But a lot of you are absolutely going into ridiculous territory with your predictions for what the future holds.

Do you remember the last time a major publisher was bought by a console manufacturer before Microsoft acquired Bethesda? I remember Sony buying Psygnosis in 1993. Which really was only relevant in Europe.

This is big stuff. And I think a lot of people are inner egging what it means.

Microsoft, if they so choose to do so, can take Doom, Wolfenstein, Fallout, The Elder Scrolls, Minecraft, Call of Duty, Diablo, Crash Bandicoot, Spyro and other IP like Tony Hawk, Blur, Evil Within etc from PlayStation and they don't have to answer to anyone.

You want to buy or play those games? Get an XBOX or a PC.

Just because they won't do it now, doesn't mean they won't when they move into pole place as market leader.

Remember, it was Sony who reached out to Microsoft about cross platform play. Microsoft at the time, as console leaders, turned them down. Didn't want to know.

That's one of the many reasons Sony turned down cross platform play with Microsoft when the shoe was on the other foot. Not just to stop them gaining market traction, but also because the strings Microsoft attached to the deal meant turning PlayStation into an advertising tool for XBOX.

Always a catch....
 
Oct 31, 2017
12,084
I think with all this talk about Sony being slow to react, I think we're missing some of the bigger picture strategy:

Sony's created many IPs that became super successful in the past decade, decade and a half. The reason we're getting an Uncharted movie is because Uncharted 4 sold more than many third party games sell on multiple consoles. The reason we're getting a Last of Us series is because that IP is big enough to create that kind of interest in fans of the game and people who think the series' story looks interesting. You look at Uncharted, or The Last of Us, or Ghost of Tsushima, or God of War, or Horizon, you have games that have blossomed into gaming giants in their own right.

So Sony buying smaller devs or working with new devs also means a lower cost way of possibly creating new, big franchises. That doesn't mean it's the best strategy, but it's certainly been a good one. A bigger strategy may be necessary, however, moving forward. I dunno; I don't have access to their insides.

The Activision purchase is the first time in a while that I've really worried about the industry as a whole and where it's headed. I can't blame anyone for feeling apprehensive.

The good thing is that kids nowadays prefer Fortnite over Call of Duty.

Sony probably talking to Tim Sweeney right now.

I'm surprised Epic hasn't popped up more in these conversations.
 

asd202

Enlightened
Member
Oct 27, 2017
9,559
This is definitely a big "go big or go home" moment for Sony as a whole, not just SIE. In FY2020 (April 1st 2020 through March 31st 2021) the Games & Network Services was Sony's most profitable division at an operating income ¥342.2B (today's exchange rate: $2.99B), with Music coming in second at ¥188.1B ($1.64B) and accounting for a total of 35.2% of Sony's operating income.
Yeah people can say watever they want but there will be big conversation at Sony's top not just PS. We shall see what decisions will they make...
 

RedHeat

Member
Oct 25, 2017
12,690
User banned (1 day): Inflammatory comment
It would be infinitely more entertaining seeing people having mental breakdowns if Sony ends up doing nothing in the near-future. I'm praying for the health of PS OT's, though.
 

CowboyAloy

Banned
Dec 28, 2019
255
United States
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?
I would. I wouldn't pay a single cent for the service, because at that point it isn't about the games themselves or my convenience but the principle. It would be raising the white flag, but just as a PlayStation gamer but as a conscious consumer who understands that consolidation equals the death of innovation and killing of progressive gaming culture.
 

J-Skee

The Wise Ones
Member
Oct 25, 2017
11,109
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.

"What's in it for Sony?" You missed one thing Game Pass won't be on: Playstation. That's Sony's gaming division. The more popular IPs that MS takes, the fewer popular IPs Playstation has. Sony's gamers are losing access to huge IPs, and risk losing even more in the future if they don't do their own acquisitions.

Sony's endgame will be the same thing. PlayStation games on consoles, PC and mobile.
Streaming, sub services (Spartacus) and "normal" gaming.

For that you need content. A lot of content. Famous IPs.
I get what you are all saying. It's just crazy to me that we could get an announcement of a major publisher being acquired & it wouldn't be a surprise because "we had to buy them". It's a completely new game being played now.
 

ianpm31

Member
Oct 27, 2017
6,529
I can definitely see Sony going for Capcom or SE. I wouldn't vouch for them to do it yesterday but the way MS is buying major publishers they kind of need to do something of that scale. This is what MS does given their history.
 

XB1NH0

Member
Dec 7, 2017
738
Yes. I would also be frightened, what Microsoft is doing is creating a new business model (similar to the impact of Netflix on the audiovisual industry), the problem is that games are worth $ 70 and not less than $ 10 like movie tickets. And it is very likely that players will stop buying games if they have several triple A on their subscription service every month. Maybe some very established IPs are going to survive, but the vast majority are going to have a really hard time surviving.
Im still figuring out how GP could be profitable and suitanable in long term.
 

No_Face

Member
Dec 18, 2017
1,080
Brigerbad, Switzerland
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?
Sony's biggest acquisition as of today is 2.3B $ for EMI. Take Two post Zynga deal will be a monumental 30+B $ acquisition. Easy is definitely the wrong word here. I think the price tag is almost prohibitive actually. While technically possible, people have to realize Sony is more than just PlayStation. Even Capcom would be roughly 3 times the amount they spend on their biggest deal yet.
 
Jul 2, 2021
15,709
If I had my pick, they'd buy EA so they could give BioWare games that first party Sony polish.
Dude. BioWare is a joke these days. A shell of its former self. It's not even worth talking about them. Lol.
This is definitely a big "go big or go home" moment for Sony as a whole, not just SIE. In FY2020 (April 1st 2020 through March 31st 2021) the Games & Network Services was Sony's most profitable division at an operating income ¥342.2B (today's exchange rate: $2.99B), with Music coming in second at ¥188.1B ($1.64B) and accounting for a total of 35.2% of Sony's operating income. Sony's stock being down 7% also shows what a huge hit this is and that Sony has to respond. The big question, and this has already been mentioned by me and others, can Sony even acquire a big western publisher without Microsoft swooping in and just outbidding them?
Sony's financials are also in 2 weeks, it'll be interesting to see if they'll get any questions about this.
I remember how you have mentioned this for years already while I was lurking here without an Era account. Lol. And people were angry at you.
And now look what happened. Microsoft bought another publisher just as you have predicted. Not even a "small" one like Sega, Square-Enix or Capcom. Activision fucking Blizzard!!! CALL OF DUTY!
You were right.
 

19thCenturyFox

Prophet of Regret
Member
Oct 29, 2017
4,309
www.techradar.com

Game Pass won't come to PS5 or Switch because Sony and Nintendo 'don’t want’ it

‘Closed platforms don’t want something like Game Pass’



Phil has made no secret that he wants Gamepass everywhere, even Switch

The tricky thing is:

Gamepass doesn't just include Microsoft first party games, it also includes games that you would otherwise have to purchase on your Nintendo/Sony console and at least when purchased through their official storefront that would mean they would get 30% of that purchase. At most Nintendo/Microsoft could take 30% of the Gamepass subscription fee if you subscribed to Gamepass through their storefronts but Microsoft could just charge a premium on those platforms and entice you to subscribe via their website. That would mean users would be able to sign into Gamepass and completely circumvent the built in storefronts and their revenue streams. There is no upside from a business standpoint. Not a single one.

When someone presents you with that deal, why the fuck would you want it to take it? Would Microsoft EVER take that deal if they were in a similar position?

Of course you can argue "why would you worry about a megacorporation's revenue stream and storefront, I just want more games who cares if its bad business" but honestly I cannot shut that part of my brain down and pretend to be disappointed that Nintendo and Sony are "turning down" Microsoft's gracious Gamepass offer.
 

gundamkyoukai

Member
Oct 25, 2017
21,136
Yes. I would also be frightened, what Microsoft is doing is creating a new business model (similar to the impact of Netflix on the audiovisual industry), the problem is that games are worth $ 70 and not less than $ 10 like movie tickets. And it is very likely that players will stop buying games if they have several triple A on their subscription service every month. Maybe some very established IPs are going to survive, but the vast majority are going to have a really hard time surviving.

I mean that is the long game by MS and they will raise there sub price . ( just look at Netflix )
They way how games will made and certain aspect will change for this new model .
Like for eg SP games can broken down into chapters for ever month to keep you sub.
 

asd202

Enlightened
Member
Oct 27, 2017
9,559
Sony's biggest acquisition as of today is 2.3B $ for EMI. Take Two post Zynga deal will be a monumental 30+B $ acquisition. Easy is definitely the wrong word here. I think the price tag is almost prohibitive actually. While technically possible, people have to realize Sony is more than just PlayStation. Even Capcom would be roughly 3 times the amount they spend on their biggest deal yet.

I mean you have to start somewhere. MS bought Minecraft for $3 billion, last year MS spent $9 billion for Bethesda, people called it huge, largest buyout by far. Now year later MS spends over 7 times over and bought Activision for $70 Billion. It's obvious if you want to stay competetive you got to spend money right now.
 

Josh5890

I'm Your Favorite Poster's Favorite Poster
The Fallen
Oct 25, 2017
23,229
It would be infinitely more entertaining seeing people having mental breakdowns if Sony ends up doing nothing in the near-future. I'm praying for the health of PS OT's, though.

The problem is that any actual response by Sony will takes months at least to grow into existence. Planning, negotiating, and finalizing a billion dollar acquisition is extremely complicated. Sony isn't going to pick a random Tuesday next month to announced "We have bought Take Two and Square!"

Unfortunately some people will blame "Silent Sony" every chance they get until something comes to fruitation.
 

Dekim

Member
Oct 28, 2017
4,301
Sony's biggest acquisition as of today is 2.3B $ for EMI. Take Two post Zynga deal will be a monumental 30+B $ acquisition. Easy is definitely the wrong word here. I think the price tag is almost prohibitive actually. While technically possible, people have to realize Sony is more than just PlayStation. Even Capcom would be roughly 3 times the amount they spend on their biggest deal yet.
This move affects Sony as a whole, not just SIE. The PS business represent too significant of a portion of Sony's profits for them to sit back and allow it to shrink b being muscled out by MS. Shareholders will demand some response.
 

Josh5890

I'm Your Favorite Poster's Favorite Poster
The Fallen
Oct 25, 2017
23,229
The tricky thing is:

Gamepass doesn't just include Microsoft first party games, it also includes games that you would otherwise have to purchase on your Nintendo/Sony console and at least when purchased through their official storefront that would mean they would get 30% of that purchase. At most Nintendo/Microsoft could take 30% of the Gamepass subscription fee if you subscribed to Gamepass through their storefronts but Microsoft could just charge a premium on those platforms and entice you to subscribe via their website. That would mean users would be able to sign into Gamepass and completely circumvent the built in storefronts and their revenue streams. There is no upside from a business standpoint. Not a single one.

When someone presents you with that deal, why the fuck would you want it to take it? Would Microsoft EVER take that deal if they were in a similar position?

Of course you can argue "why would you worry about a megacorporation's revenue stream and storefront, I just want more games who cares if its bad business" but honestly I cannot shut that part of my brain down and pretend to be disappointed that Nintendo and Sony are "turning down" Microsoft's gracious Gamepass offer.

I totally agree with your post. I think that part of "Gamepass everywhere" is the long game for Phil Spencer. Now whether or not GamePass on other video game systems becomes a thing remains to be seen.
 
Oct 29, 2017
13,470
Im still figuring out how GP could be profitable and suitanable in long term.

Today, Microsoft announced that there are 25 million gamepass subscribers.

If all of those subs pay $15 per month, that's $375million per month.

I know there is the trick to get gamepass for $1, but how many of those 25million subs used that trick? Most people probably pay the full amount on a recurring monthly payment and probably have no idea that the $1 trick exist/s/ed.

If buying Activision puts Call of Duty on Gamepass day 1, their bet is those 25million subs may grow to 30 or maybe 40 million subs. So hypothetically that's an increase of $225million per month in new gamepass subscriptions on top of the existing ones.

Their goal is to increase the number of Gamepass subs as much as possible. Grow the service as much as possible and they will make that money back.

I totally agree with your post. I think that part of "Gamepass everywhere" is the long game for Phil Spencer. Now whether or not GamePass on other video game systems becomes a thing remains to be seen.

I know I would love to have Gamepass available on Switch. Someday. Maybe...
 

UltraInstinct

Member
Nov 19, 2017
1,095
Honestly, I still can't stop thinking about it. Microsoft now own Activision. PS will no longer see COD games on their systems. To make it even weirder, the two franchises that propped up PS during the early days of the PS1 (Crash Bandicoot and Spyro) are now owned by Microsoft.

The mood feels sour and I hate this direction the industry is moving in. Kind of worried where PS goes from here.
 
Oct 31, 2017
12,084
I mean you have to start somewhere. MS bought Minecraft for $3 billion, last year MS spent $9 billion for Bethesda, people called it huge, largest buyout by far. Now year later MS spends over 7 times over and bought Activision for $70 Billion. It's obvious if you want to stay competetive you got to spend money right now.

People are forgetting this. We could have made the same argument with MS, that their biggest acquisition was $9 billion, be realistic, but $9 billion is the biggest... until it's not.

After today, no acquisition announcement is shocking to me.

Problem is GTA now is once every +10 years while CoD is every year.

Here's where I disagree:

GTA is that many years because it's that much of a monster. You don't need a yearly release.
 
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