Sony's future and possible studio/publisher acquisitions

[Dabaus]

Since this activsion deal was announced ive always been in the camp that this gives sony the oppurtunity to lock in or invest in key partners. They sort of began to do this initially but into the summer or fall of last year, they decided to go dark. So heres my question, was fighting this deal this hard worth it? Sony is still contractually obliged 3 years of cod, if it were to even get pulled, when it was annonced.

Heres what they gained:
-Bungie
-14 percent of from soft ware
-haven studios
-a 10 person cell phone team

Heres what theyve lost/ are in the process of losing:
-Activsion blizzard
-A new, arbitrary redefinition of the market where theyre the clear winner 70:30
-Investigations of the concept of exclusivity deals
-Japan potentially being cracked open by US regulators, who have no understanding of the market
-The ability to retaliate with their own acquisition's/ investments, particularly in Japan because of this new definition of the market
-Regulator oversight/intrigue for the games industry as a whole that will favor western companies

So my question is was all that worth it for what they gained? Was all of this worth less than spending a few billion, billions they already had earmarked for acquisitions to begin with, when it was a well known fact that the industry was consolidating instead of investesting in key partners? Was being cheap and saving a few billion, even if its more than a few, its to protect your place in the market worth all of that?

My conclusion is no, not at all. Whoever the person at sony or their legal council was that told them this was a good strategy should be fired. Everyone from the ceo, the treasurer, jim ryan, herman hulst, their lawyers etc.

 

[VillaiN]

You need to relax. If sony lose partners, ips, market share while being pasive, they deserve it. No one else to blame.

They treated ps division as stepchield. Their pillar. Maybe they still do. Sony ceo few years back said console gaming s niche segment, something along those lines. They only started buying devs and talent after ms went on buying spree. Look at their purchases. Music, finance, mobile....whatever. Only small part s gaming.

360 forced them to invest in 1p. Maybe this ll force them to get big ips.

 

[Dabaus]

You need to relax. If sony lose partners, ips, market share while being pasive, they deserve it. No one else to blame.

They treated ps division as stepchield. Their pillar. Maybe they still do. Sony ceo few years back said console gaming s niche segment, something along those lines. They only started buying devs and talent after ms went on buying spree. Look at their purchases. Music, finance, mobile....whatever. Only small part s gaming.

360 forced them to invest in 1p. Maybe this ll force them to get big ips.

Thats my point, ALL of this is self inflicted but its getting to the point where they may not be able to get big IP's is my point.

 

[KnittedKnight]

Cracked open by U.S regulators? How do you posit such a "thing" is actually going to happen with Japanese pubs? Japanese publishers have very low foot prints outside Japan. That works immensely in their favor and in Sony's favor no matter how much scrutiny or bark comes by way of corrupt, bought and paid for Western regulators and politicians. The only way they could do something is to escalate it to a "national security", "trade war" realm, thereby threatening market fragmentation. If that were to happen I fully expect the Japanese to bow down, specially with the lapdogs currently in charge but I don't think it would get to that point.

Bungie was also a great acquisition.

I also don't agree that challenging the ABK deal was the wrong legal advice. Sony gave peace a chance. As much as I thought it was naive to think a block is possible considering how corrupt these institutions are you have to go through the motions and escalate the fight. I would have adviced escalation even if Sony were to be coming off buying Capcom and looking like a massive hypocrite by challenging the ABK deal. It's war, you fight hypocritically if you have to...which is what MS, as you correctly point out is signaling/doing.

The idea that by posing no challenge Sony would be somehow exempt from regulatory scrutiny on future moves is a false promise resting on nothing but illusion. Sony would have gotten the scrutiny regardless cause MS ain't stupid and neither are the corrupt regulators and politicians in the West. They'll protect their own regardless of justification. What serves as more evidence to this than the manufactured justification that is currently being built as you suggest? You see this in geopolitics all the time. Appeasement is a losers game which is what that suggests.

Besides that point I do believe you have solid working arguments for the rest....

It would be naive to think regulators don't have ulterior motives when accepting Microsoft's argumentation and defining of the market at face value in current market share splits. It's disingenuous and malicious in nature because it takes away the fact that consumer choice, and company management is greatly responsible for that outcome. These individuals understand this perfectly but it's big business politics being played here - war being waged in short. Of course MS will try to intimidate and play a good poker face (bluffing) so Sony doesn't react to the moves with; if not equally damaging, damaging moves all the same....

But that comes with the territory. It's the old "Do as I say, not as I do". It also comes with the territory that the homegrown giant will get a pass, while the foreigner will face more scrutiny if it attempts anything of a similar nature, even if not to the same degree and scope.

But again, as far as Japan pubs is concerned, absolutely no issue, no matter how much intimidation and screaming occurs. Moreover If Sony shops in Europe, a lot of development talent is still independent and not part of a big publisher arm. CDPR being sort of like Bungie in this regard as far as WRPG is concerned but there are others as well like Bohemia, Larian etc. There is nothing regulators can do about those.

It's the big boys like Take Two/EA/Ubisoft/Embracers that are probably off-limit to Sony where your fears will certainly flourish to the top and be an issue.

 

[Dabaus]

Cracked open by U.S regulators? How do you posit such a "thing" is actually going to happen with Japanese pubs? Japanese publishers have very low foot prints outside Japan. That works immensely in their favor and in Sony's favor no matter how much scrutiny or bark comes by way of corrupt, bought and paid for Western regulators and politicians. The only way they could do something is to escalate it to a "national security", "trade war" realm, thereby threatening market fragmentation. If that were to happen I fully expect the Japanese to bow down, specially with the lapdogs currently in charge but I don't think it would get to that point.

I also don't agree that challenging the ABK deal was the wrong legal advice. Sony gave peace a chance. As much as I thought it was naive to think a block is possible considering how corrupt these institutions are you have to go through the motions and escalate the fight.

The idea that by posing no challenge Sony would be someone exempt from regulatory scrutinity on future moves is a false promise resting on nothing but illusion. Sony would have gotten the scrutiny anyway cause MS ain't stupid and neither are the corrupt regulators.

Besides that point I do believe you have solid working arguments for the rest....

It would be naive to think regulators accepting Microsoft's argumentation and defining the market at face value in market share terms don't have ulterior motives. It's disingenuous and malicious in nature because it takes away the fact that consumer choice is greatly responsible for that outcome. These individuals understand this perfectly but it's big business politics being played here - war being waged in short. Of course MS will try to intimidate and play a good poker face as a bluff so Sony doesn't react to the moves.... it comes with the territory. It's the old "Do as I say, not as I do". It also comes with the territory that the homegrown will get a pass, while the foreigner will face more scrutiny if it attempts anything of similar nature, even if not to the same degree and scope.

But again, as far as Japan is concerned, absolutely no issue, no matter how much intimidation and screaming occurs. Moreover If Sony shops in Europe, a lot of development talent is still independent and not part of a big publisher arm. CDPR being sort of like Bungie in this regard but there are others as well like Bohemia, Larian etc. There is nothing this regulators can do about those.

It's the big boys like Take Two/EA/Ubisoft/Embracers that are probably off-limit to Sony where your fears will certainly flourish to the top and be an issue.

Axios: 11 members of Congress argue Sony is unfairly hurting Xbox in Japan

If it wasn't obvious enough Microsoft is attacking Sony on all front. They are now lobbying in Japan, preparing for their next purchase. Send an email to the CMA and make them change their minds about the console market. MS real target is Sony, not about the cloud only...

icon-era.com

Allow me to direct you to this thread friend.

 

[KnittedKnight]

Axios: 11 members of Congress argue Sony is unfairly hurting Xbox in Japan

If it wasn't obvious enough Microsoft is attacking Sony on all front. They are now lobbying in Japan, preparing for their next purchase. Send an email to the CMA and make them change their minds about the console market. MS real target is Sony, not about the cloud only...

icon-era.com

Allow me to direct you to this thread friend.

I've already commented on that threat. That is not a rebuttal to anything that I just said. It may be a rebuttal to the earlier suggestion that the U.S government was against this deal but not to anything that I've said. It's a lot of bark, and you need to understand how to read these things beyond face value, hopefully with a base of understanding of geopolitics (the great teacher). Tik Tok has a bigger chance of getting a ban than the U.S somehow escalating a tech war with Japan and all that would entail in these turbulent times. This is still in the managed rivalry realm amongst "allies" and will stay that way for the foreseeable future (decade at least).

 

[Zzero]

Sont haven't purchased an IP they haven't co-created since Wipeout but the indusry is changing…..

Destiny (and Marathon, etc.) in 2021.

 

[Dabaus]

I guess one small silver lining in all of this mess is the CMA doesnt differentiate consoles. Only the ftc uses the different markets "low end" or high end" so i guess thats a win for sony?

 

[Johnic]

Destiny (and Marathon, etc.) in 2021.

Destiny will remain multiplatform, unlike the entirety of Zenimax and most of Activision IPs.

 

[Zzero]

Destiny will remain multiplatform, unlike the entirety of Zenimax and most of Activision IPs.

Thats what they said and it looks like anyway, but thats not what the question/statement was about.

 

[Dabaus]

If sony were to make any moves at all its going to have to be guaranteed to remain multiplatform.

 

[Nhomnhom]

If sony were to make any moves at all its going to have to be guaranteed to remain multiplatform.

Nope. That would just be the case for massive purchases. They can still get away with a lot after MS spent $80B in such a short time. The bar for regulators to do anything is now higher than ever.

It's better for Sony to go for it and get blocked than to allow MS to go for another big one and end up getting it approved.

 

[Dabaus]

In Japans approval of the activsion deal they have all consoles in one group not high end, low end. CMA i beleive also doesnt differentiate, not sure about EU though.

 

[Kokoloko]

Destiny (and Marathon, etc.) in 2021.

I meant before the Bethesda Purchase.
But comparing a few IP’s to all the IP’s MS has done inbetween 1996-2021 for Sony… Minecraft, COD, ElderSCrolls, Fallout, Quake, Doom, Crash, Hell Blade, Outworlds, Diablo, CandyCrush.
Its kinda pathetic,Xbox just bought there survival in the video game industry by spending the money they have never made in 2 decades of gaming

 

[Yobo]

I guess one small silver lining in all of this mess is the CMA doesnt differentiate consoles. Only the ftc uses the different markets "low end" or high end" so i guess thats a win for sony?

You maybe need to stop believing everything you read from Twitter warriors

All those senators are trying to do is put pressure on the FTC. They don't care about the Japanese market, and no publisher purchase in Japan has the market weight of Activision except Nintendo

 

[Dabaus]

You maybe need to stop believing everything you read from Twitter warriors

All those senators are trying to do is put pressure on the FTC. They don't care about the Japanese market, and no publisher purchase in Japan has the market weight of Activision except Nintendo

They just put enough pressure to make japan accept the deal TODAY and want to put into writing in the US japan trade agreement that Japanese government has to allow Microsoft to compete. Read the letter, it literally says that.

 

[Eternal_Wings]

They just put enough pressure to make japan accept the deal TODAY and want to put into writing in the US japan trade agreement that Japanese government has to allow Microsoft to compete. Read the letter, it literally says that.

Bro this nothing which is being prepared within a day. This takes a long time to prepare. Same applies btw for acquisitions of companies.

 

[FatKaz]

They just put enough pressure to make japan accept the deal TODAY and want to put into writing in the US japan trade agreement that Japanese government has to allow Microsoft to compete. Read the letter, it literally says that.

There was never gonna be any competition concerns in japan for the abk deal. Pressure was never needed for japan to approve.

I'd be shocked if the japanese regulators opposed the deal.

 

[Dabaus]

I don’t know if you guys have been paying attention the past two years but I hate to inform you that most extreme Xbox fanatics wildest fantasies are coming true. Yeah Xbox the brand is dead but this market consolidation is real. At this point I feel like senjetsu sages insane ramblings are more likely to happen than Sony do anything meaningful at this point, because that’s what’s happening.

 

[Eternal_Wings]

I don’t know if you guys have been paying attention the past two years but I hate to inform you that most extreme Xbox fanatics wildest fantasies are coming true. Yeah Xbox the brand is dead but this market consolidation is real. At this point I feel like senjetsu sages insane ramblings are more likely to happen than Sony do anything meaningful at this point, because that’s what’s happening.

Bro how about you avoid this toxic Xbox clout chasers on Twitter? I muted this clowns a long time ago. It’s better than getting all worked up because of their blatant nonsense. Maybe a break could help you to relax a bit. Don’t believe what this corporate slaves do mumble.