Sony President Hiroki Totoki : Acquisition related costs will be increasing by 20% YoY in this next fiscal year.

[Unchained]

 

[anonpuffs]

How about you acquire me a showcase

 

[Nhomnhom]

Secure FromSoftware and let's call it a day with all this acquisitions shit. If MS ain't buying anymore publishers I rather if Sony doesn't either, let them keep the focus on their own games, at most buy some shares in some of the Japanese publishers to have some control over them just in case.

I doubt SE/SEGA/Capcom/Bandai Namco are an option for MS. EA and Take Two definitely would be blocked. If MS want to go after Ubisoft or CDProject, let them.

 

[Kokoloko]

Secure FromSoftware and let's call it a day with all this acquisitions shit. If MS ain't buying anymore publisher I rather if Sony doesn't either, let them keep the focus on their own games, at most buy some share in some of the Japanese publishers to have some control over them.

I doubt SE/SEGA/Capcom/Bandai Namco are an option for MS. EA and Take Two definitely would be blocked. If MS wan't to go after Ubisoft or CDProject, let them.

Agreed.
If MS isnt buying anymore, then Id be happy with an answer to Bethesda and then call it a day. FromSoft, Kojima, Square, CDPR etc?

Spend more money on expanding the current studios so we can get more games, faster from each of the studios. Build some new studios for WRPG’s, shooters and those classic smaller PS titles like we use to get. Make some Japanese studios, buy Indies, buy Deviation and do what they done before…buy studios that made games for them exclusively for awhile.

If MS attempt to buy more studios and IPs/Publishers, then Sony should go ham and buy a bunch too.

 

[Dabaus]

I think he’s talking about what they’ve already acquired IE bungie, is the reason cost have gone up 20 percent.

 

[Swift_Star]

They’re not acquiring big studio, I think.

 

[Yurinka]

20% increase over what, over the acquisitions announced this fiscall year? Or the ones closed? Which acquisitions did they announce this past fiscal year: Firewalk, Savage and (not in SIE) Lasengle maybe? Should count Bungie and Haven? Not sure which acquisitions are counted for each fiscal year.

In any case, the important is that they'll continue acquiring and more than before.

 

[KnittedKnight]

Agree with the sentiment expressed by some posters. A couple grabs to address Bethesda on the WRPG front are welcomed but further than that there is no need nor should there be for further escalation now that the ABK deal is dead. It's better that way for consumers and hopefully we can move on from this crazy phase of acquisition talks and more into what were the old narratives of rumors and leaks of games and their showcases. Gamers need a peace dividend to talk more about games.

 

[AshHunter216]

Does anyone have what their acquisition cost was last fiscal year?

 

[kyliethicc]

this is referring to costs of buying Bungie mainly, and the other studios

 

[CloudStrife]

According to Wikipedia these were closed this FY:

15 July 2022	Bungie	Video game	USA	$3,700,000,000	Sony Interactive Entertainment	[110][111]
18 July 2022	Repeat.gg	Esports	USA		Sony Interactive Entertainment	[112]
4 August 2022	Right Stuf	Film, television, e-commerce	USA		Sony Pictures Entertainment/Aniplex	[113]
29 August 2022	Savage Game Studios	Video game	GER FIN		Sony Interactive Entertainment	[114]
25 October 2022	Pixomondo	Visual effects	USA		Sony Pictures Entertainment	[115]
7 November 2022	Beyond Sports	Software visualization	NED		Sony Corporation	[116]
9 March 2023	Above Board	Music	UK		Sony Music Group	[117]
20 April 2023	Firewalk Studios	Video game	USA		Sony Interactive Entertainment	[118]

If they are talking after closing vs announced, then we could see a pretty big purchase (many small purchases) between now and March 2024. They should have ~5B left from their budget to spend on acquisitions.

 

[daniel5043]

According to Wikipedia these were closed this FY:

15 July 2022	Bungie	Video game	USA	$3,700,000,000	Sony Interactive Entertainment	[110][111]
18 July 2022	Repeat.gg	Esports	USA		Sony Interactive Entertainment	[112]
4 August 2022	Right Stuf	Film, television, e-commerce	USA		Sony Pictures Entertainment/Aniplex	[113]
29 August 2022	Savage Game Studios	Video game	GER FIN		Sony Interactive Entertainment	[114]
25 October 2022	Pixomondo	Visual effects	USA		Sony Pictures Entertainment	[115]
7 November 2022	Beyond Sports	Software visualization	NED		Sony Corporation	[116]
9 March 2023	Above Board	Music	UK		Sony Music Group	[117]
20 April 2023	Firewalk Studios	Video game	USA		Sony Interactive Entertainment	[118]

If they are talking after closing vs announced, then we could see a pretty big purchase (many small purchases) between now and March 2024. They should have ~5B left from their budget to spend on acquisitions.

I don't think they spent all 3.7 billion on bungie just yet

 

[AshHunter216]

According to Wikipedia these were closed this FY:

15 July 2022	Bungie	Video game	USA	$3,700,000,000	Sony Interactive Entertainment	[110][111]
18 July 2022	Repeat.gg	Esports	USA		Sony Interactive Entertainment	[112]
4 August 2022	Right Stuf	Film, television, e-commerce	USA		Sony Pictures Entertainment/Aniplex	[113]
29 August 2022	Savage Game Studios	Video game	GER FIN		Sony Interactive Entertainment	[114]
25 October 2022	Pixomondo	Visual effects	USA		Sony Pictures Entertainment	[115]
7 November 2022	Beyond Sports	Software visualization	NED		Sony Corporation	[116]
9 March 2023	Above Board	Music	UK		Sony Music Group	[117]
20 April 2023	Firewalk Studios	Video game	USA		Sony Interactive Entertainment	[118]

If they are talking after closing vs announced, then we could see a pretty big purchase (many small purchases) between now and March 2024. They should have ~5B left from their budget to spend on acquisitions.

Shift Up (Makers of Stellar Blade) are around 800 million based on some light Googling. There's also Deviation and maybe Ember Labs that would leave them with a billion or 2 for whatever other divisions need acquisitions.
The CMA move to block the deal has, at the very least, bought Sony enough time where they could afford to wait for their next acquisition budget to be approved if they still want something larger like Square.

 

[nongkris]

Something tells me Playstation will not see those acquisitions but maybe their other divisions. I can't see any studios worth acquiring that would account for that increase.

 

[Vertigo]

I don't think they spent all 3.7 billion on bungie just yet

I remember hearing that 1.2 billion is split over 3 years for employee retention.

 

[Dabaus]

Copy Pasting what Modiz from resetera said:

"This is the full part on their cash flow and the reduced M&A target, as far as I can tell, they are saying they increased the "working capital" for SIE as well as "server investment" for the gaming business, does the first term basically mean how much money does the company get the work with effectively? When I listened to the webcast it sounded like that money was basically to have no issues affording all the orders and shipment of PS5 console manufacturing, but im trying to make sure I got it right.
And like I said they clarify that they will be more careful on strategic investments in the meanwhile due to the market environment.

• Regarding capital allocation, we have lowered our forecast for operating cash flow for the cumulative three years, the primary source of capital, to 2.5 trillion yen from the original plan of 3.1 trillion yen mainly to reflect an increase in working capital in the G&NS and I&SS segments.
• Capital expenditure is expected to increase from the initial plan to 1.9 trillion yen with 0.4 trillion yen mainly allocated to image sensor capital expenditure and server investments in Corporate R&D and G&NS.
• In terms of strategic investment, since we decided to increase working capital and capital expenditures, and in consideration of the current M&A market environment, we decided to reduce the amount from the initial plan of 2 trillion yen to 1.8 trillion yen.
• To grow over the mid to long term, we will continue to invest. However, in the short term, we aim to carefully assess even more than before the valuations and timing of investments given the recent changes in the market environment.
• We plan to compensate for the decrease in operating cash flow due to the increase in working capital mainly through short-term borrowing and to maintain a total allocation of 4 trillion yen

So yea, as far as I can tell, effectively Sony are giving SIE a higher internal budget (PS5 production among any other things they'd persumably want to do with that outside of acquisitions), but they have in turn decreased the whole company's strategic investment target for the mid range ending in March.
Overall I'd consider that a good thing, I know some here want Sony to acquire, but as long as Sony gives SIE plenty of budget to expand internally and market that seems preferable to me."

See the Bolded. Idk if his/her assessment is correct but food for thought. Also, some details can get lost in translation from Japanese to English.

 

[AshHunter216]

Something tells me Playstation will not see those acquisitions but maybe their other divisions. I can't see any studios worth acquiring that would account for that increase.

IMO, at least some of that money is going towards Playstation. There's at least a couple of indie studios that are heavily implied to be joining them.

 

[Eternal_Wings]

Guys remember Sony announced in 2021 they will spend ¥4 trillion = $44B. They spend approximately the first half of it $20B. Sony corporation wide, the biggest acquisition was when they bought Bungie. We don’t know what Sony has spent this missing Billions for. It’s approximately $13B we don’t know what happened to them.

Sony Pictures and Music are done with acquisitions. Tony Vinciquerra himself said, they don’t expect any growth but in gaming-industry a lot.

Sony Pictures CEO Says We Can Expect More Video Game Growth

As an overall company, it looks like Sony may be turning to focus more on videogame studio acquisitions and growth,

www.gamerbraves.com

 

[daniel5043]

I remember hearing that 1.2 billion is split over 3 years for employee retention.

Which doesn't mean they will end up paying it all.

 

[Yurinka]

Guys remember Sony announced in 2021 they will spend ¥4 trillion = $44B. They spend approximately the first half of it $20B. Sony corporation wide, the biggest acquisition was when they bought Bungie. We don’t know what Sony has spent this missing Billions for. It’s approximately $13B we don’t know what happened to them.

Sony Pictures and Music are done with acquisitions. Tony Vinciquerra himself said, they don’t expect any growth but in gaming-industry a lot.

Sony Pictures CEO Says We Can Expect More Video Game Growth

As an overall company, it looks like Sony may be turning to focus more on videogame studio acquisitions and growth,

www.gamerbraves.com

Not long ago they had aroundd under $5B left to spend. Not sure if in addition to Firewalk they acquired something else in other divisions, made inversions or repurchased Sony shares recently. But I think they may have under $4B available for acquisitions+investments+shares repurchase for the whole Sony during the rest of the FY.