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darthpaxton

Member
Jun 20, 2018
1,697
Well said. Nadella also seems to prefer outright acquisitions over building new studios. lol. MS definitely has an eye on more devs and probably a couple pubs.
I actually think it's probably cheaper in the long run to acquire studios and build them up, like Xbox is doing with someone like inXile or Playground. It gets you content faster and you're not paying salaries while studios build up basic processes and go through the initial hiring and workflow processes.
 

Marano

Member
Mar 30, 2018
4,893
Rio de Janeiro
Well said. Nadella also seems to prefer outright acquisitions over building new studios. lol. MS definitely has an eye on more devs and probably a couple pubs.
I am not gonna pat nadella on the back for that, it is a good thing he has Phil and Booty to help him with this stuff, they should be doing both really, ''we cant wake up one day and decide Im gonna build a new studio'' is such an unfortunate thing to say, especially considering the initiative, 343 industries, turn 10, the coalition, worlds edge, playgrounds second team and all the hirings in their other studios, he would never outright say: "Yeah, building new studios takes too long, we are looking to accelerate our growth by acquiring established teams, we need content faster." It would have been more honest, but alas it wasnt to be. He did say they are looking to grow inorganically in the future, so I guess fewer new studios from the ground up, unfortunately, what we will likely see on top of further acquisitions is studios growing and expanding into multiple teams, like rare, inxile, playground, obsidian, ninja theory, double fine, arkane, bethesda games studio, ID software, machine games, zenimax online and potentialy some others.
 

Marano

Member
Mar 30, 2018
4,893
Rio de Janeiro
I actually think it's probably cheaper in the long run to acquire studios and build them up, like Xbox is doing with someone like inXile or Playground. It gets you content faster and you're not paying salaries while studios build up basic processes and go through the initial hiring and workflow processes.
Beat me to it, I hadnt seen your comment, but I said the same in response to christocolus .
 

SoSchwifty

Member
Jan 3, 2020
84
It's not about letting Sony, but about Sony's financial capabilities to do it. And they can. Sony can easily afford a 25-30 bn dollar merger.

What ppl are missing though is you also need to pay the staff for all the acquired companies as well which can be very expensive.

Also, Sony needs to be careful how they respond to MS. Say Sony buys Take-Two like you say. They have very little cash on hand and it would prompt MS to be more aggressive.

MS has bled money for years on services they feel are worth it. See Bing... Clearly MS is serious about winning Gaming as a Service. Does Sony really want to start a spending war with MS? MS can bleed money a lot longer than Sony and they know that.

Going the same route and challenging MS to a spending spree or race to the bottom is not something Sony will win. It would endanger their whole company imo...

Sony isn't in a terrible position. I don't think they really need to worry or follow MS in their subscription-gaming direction. Tbh I doubt Sony will follow suit. I think Sony will get into cloud gaming eventually but you will need to pay full price for games. You will just have the option to play games you own on the cloud.

Also just for an idea Netflix is spending over $17 billion this year on original content and it goes up every year. 7 years ago it was $2 billion. MS is just getting started with the spending. They will need to spend much more to keep up with content for users. Sony doesn't have the money to enter that type of market.

By the end of next-gen the amount of studios MS has will be much larger and their spending will be massive compared to today imo...
 
Jun 23, 2019
6,446
What ppl are missing though is you also need to pay the staff for all the acquired companies as well which can be very expensive.

Also, Sony needs to be careful how they respond to MS. Say Sony buys Take-Two like you say. They have very little cash on hand and it would prompt MS to be more aggressive.

MS has bled money for years on services they feel are worth it. See Bing... Clearly MS is serious about winning Gaming as a Service. Does Sony really want to start a spending war with MS? MS can bleed money a lot longer than Sony and they know that.

Going the same route and challenging MS to a spending spree or race to the bottom is not something Sony will win. It would endanger their whole company imo...

Sony isn't in a terrible position. I don't think they really need to worry or follow MS in their subscription-gaming direction. Tbh I doubt Sony will follow suit. I think Sony will get into cloud gaming eventually but you will need to pay full price for games. You will just have the option to play games you own on the cloud.

Also just for an idea Netflix is spending over $17 billion this year on original content and it goes up every year. 7 years ago it was $2 billion. MS is just getting started with the spending. They will need to spend much more to keep up with content for users. Sony doesn't have the money to enter that type of market.

By the end of next-gen the amount of studios MS has will be much larger and their spending will be massive compared to today imo...

Last quarterly report, Sony had $33+ Billion cash on hand and it's only going to increase, not to mention debt and other assets. This idea that Sony doesn't have money or pull to make these kinds of deals is quite silly. Obviously Sony isn't going to try to match acquisition for acquisition with MS and they don't need to. If MS's money was the only barrier between them and buying publishers, MS would have done it years ago, but they haven't and can't. There's a lot more in play than just money when these acquisitions pop up.
 

WetWaffle

Member
Oct 25, 2017
4,604
Said it before, I'll say it again. Y'all are delusional if you think MS is just gonna stalk Sony and swoop in on everybody Sony is interested in and outbid them
 

Arctic Chris

Member
Dec 5, 2017
2,175
Ottawa Canada
MS does not need to stalk anyone.

Every boardroom has a fiduciary responsibility to make the most money for their shareholders. All offers are going to be shopped for potentially higher competing bids. And that pool is now far greater than simply Microsoft as there are now a few more trillion dollar companies showing an interest in gaming.
 

christocolus

Member
Oct 27, 2017
14,932
MS does not need to stalk anyone.

Every boardroom has a fiduciary responsibility to make the most money for their shareholders. All offers are going to be shopped for potentially higher competing bids. And that pool is now far greater than simply Microsoft as there are now a few more trillion dollar companies showing an interest in gaming.
this.
 

SoSchwifty

Member
Jan 3, 2020
84
Last quarterly report, Sony had $33+ Billion cash on hand and it's only going to increase, not to mention debt and other assets. This idea that Sony doesn't have money or pull to make these kinds of deals is quite silly. Obviously Sony isn't going to try to match acquisition for acquisition with MS and they don't need to. If MS's money was the only barrier between them and buying publishers, MS would have done it years ago, but they haven't and can't. There's a lot more in play than just money when these acquisitions pop up.

I am not saying Sony couldn't do it but what purpose would it serve Sony other than fanboy wars? It will take more than buying one publisher to keep up with MS because MS is just getting started. Sony is fine doing their own thing. Chasing MS with acquisitions will likely just land them in a bad spot. They are not in any kind of danger. Why would they need to spend that kind of money? MS has a direct reason to be spending that type of money... What is Sony's reason?

PlayStation will still outsell Xbox it will just be closer than last gen.
 

Septy

Prophet of Truth
Member
Nov 29, 2017
4,083
United States
Last quarterly report, Sony had $33+ Billion cash on hand and it's only going to increase, not to mention debt and other assets. This idea that Sony doesn't have money or pull to make these kinds of deals is quite silly. Obviously Sony isn't going to try to match acquisition for acquisition with MS and they don't need to. If MS's money was the only barrier between them and buying publishers, MS would have done it years ago, but they haven't and can't. There's a lot more in play than just money when these acquisitions pop up.
Sony has 33 billion. Not sony's game division has 33 billion. Do you think that the board would let the gaming division use up most of their cash? Compared to microsoft it is probably easier for their gaming division to tap into their money because they have so much it wouldn't make a difference. That's what people mean when they say Sony doesn't have the money. They don't have the money to take the risk.
 

Jroc

Banned
Jun 9, 2018
6,145
Sony has 33 billion. Not sony's game division has 33 billion. Do you think that the board would let the gaming division use up most of their cash? Compared to microsoft it is probably easier for their gaming division to tap into their money because they have so much it wouldn't make a difference. That's what people mean when they say Sony doesn't have the money. They don't have the money to take the risk.

Yeah Sony would have to pay a much higher percentage of their money to compete with Microsoft's spending.

It's like a country with 30 million people trying to raise an 8 million man Army versus a country with 120 million people. Sure they can technically do it, but it's a much larger risk and commitment.