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Sony Literally Cannot Match Microsoft’s Massive Bethesda Deal, Nor Do They Need To

From Forbes: "Sony, while a huge player in the video game console space, is in no financial position to make a deal anywhere close to as big as this Microsoft purchase of Bethesda."

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Immagaiden33d ago

I’m tired of the mindset that anytime one of the hardware manufacturers makes a big move, people instantly petition for the other manufacturer to quickly find some way to “retaliate”

-Foxtrot32d ago (Edited 32d ago )

I wouldn't say Sony need to do a 7.5 Billion deal...BUT it would be nice if they got a kick up the arse to buy Bluepoint or something.

Even Konami since they don't care about their franchises, don't seem to give a shit about the gaming industry and are letting their franchises rot. Least with Sony you are seeing old PS1 franchises like MGS and Silent Hill come home.

RpgSama32d ago (Edited 32d ago )

Sony needs to continue doing what they're doing of increasing the number of internal teams that every developer under their umbrella has and growing organically by adding developers they have great relationships with, just like they did with Insomniac, so Bluepoint, Housemarque and maybe something out of the left field like Remedy or from the japanese market Level 5.

They don't need to retaliate, I'm sure they will continue with the plans they had the day before the Bethesda News.

Marquinho32d ago

"Bethesda: $7.5 billion
Sony's 2013-2019 operating profit: $8.838 billion"

'Nuff said.

morganfell32d ago

""Bethesda: $7.5 billion
Sony's 2013-2019 operating profit: $8.838 billion"

'Nuff said."

Yet MS has possessed such operating capital for the last several generations. Where are we? Sony's entire operating profit barely more than MS spent on a company whose last several projects while making money have not been stellar from a gaming point of view yet Sony has been untouchable this generation in terms of game quality. There is so much irony in your post.

'Nuff said.

Marquinho32d ago (Edited 32d ago )

@morganfell

Hehe... don't cheat. This is the first time Microsoft actually invest big on the Xbox Division. The last time they gave it a "decent" push to it, Xbox 360 and PS3 ended up tied.

From the article: " They don’t need it, nor can they afford it, and if there’s anything they need to be doing to compete with Xbox, it’s figuring out answers for all its various service offerings, which are starting to leave PlayStation behind."

So they don't need to buy a studio but figure out how to compete with Game Pass, which Jim Ryan already said would be unprofitable for them (hence the price increase).

This article isn't very encouraging for Sony fans tbh.

Zhipp32d ago

I think that Konami actually does care about their IPs. They're still making big money off of them -- just not through videogames.

RpgSama32d ago (Edited 32d ago )

""Bethesda: $7.5 billion
Sony's 2013-2019 operating profit: $8.838 billion"

'Nuff said."

I play games, not income statements, everybody and their mother knows that MS it's a trillion dollar company, they are still being DESTROYED by both Sony AND Nintendo on the console market.

'Nuff Said.

Sunny_D32d ago

@marquin

“In its 2019 financial year, Sony Corporation reported a net income of around 5.4 billion U.S. dollars, increasing from 4.4 billion in the previous financial year. The company's gaming and network services segment has become its highest earner, accounting for a significant portion of Sony's overall revenue.”

https://www.statista.com/st...

Where are you getting those figures from? 🤔

TheScotsman32d ago

@Marquinho.

He wasn't saying they just spent money, he was saying they've had trillions of dollars for years and they still at the bottom of the gaming heap.

For an example how many games has Rare churned out since M$ aqucistion?

I'm not attacking M$ .

I'm just pointing out that even if you have trillions at your disposal and you buy great developers, not a rosey line of great games does it make.

jbull32d ago

They likely will buy Bluepoint or surprise us all and buy Fomsoftware or Platinum games. Thing is Sony invest in more teams at their internal studios and develop so many of the gaming ip's in its inventory such as:
Jak and Daxter
Resistance
Syphon Filter
Socom
The Getaway
Legend of Dragoon

morganfell32d ago (Edited 32d ago )

Xbox 360 and PS3... not tied. The fact this is the first time " This is the first time Microsoft actually invest big on the Xbox Division." is no one's fault except their own.

And it honestly isn't the first time. Microsoft has attempted to own gaming with money from the beginning and that really has been their problem. Their idea has always been throw around some money and buy things while lacking an intimate understanding of the gaming ecosystem. They entered gaming by kicking in the door and stomping around and have spent far more money than Sony every generation yet it is Sony's titles that shine. Redmond may never understand that finance does not guarantee landmark titles. 343 is likely the most expensive and well funded dev house on the planet but there are some things money simply cannot purchase.

As I saw posted on N4G the other day, what is Microsoft's record of studios flourishing under them that are purchased by Redmond?

I say go ahead as Sony has announced they are restructuring to bring more first party titles to gamers and their pedigree in that department is unchallenged.

Gameseeker_Frampt32d ago

@Marquinho

""Bethesda: $7.5 billion
Sony's 2013-2019 operating profit: $8.838 billion"

'Nuff said. "

Yet Microsoft has failed at almost every venture since the launch of Windows and XBox is the closest thing to being successful.

Zune going against IPOD. Microsoft loses.
Surface going against IPAD. Microsoft loses.
Windows Phone going against IPHONE. Microsoft loses.
Microsoft had THE web-browser until Google came along. Now Internet Explorer/Edge/Bing/whatever it will be called next is a distant 5th place in usage.
Same thing with email. Doing great with a big lead until Google came along with gmail

All the money in the world hasn't brought Microsoft success in the past and it is amusing seeing fanboys think that this time it will be different.

neomahi32d ago

Bluepoint probably doesn't wanna sell, but Sony doesn't just buy a studio to buy a studio, they want to make sure it's a solid track record. Quantic Dream pressured Sony to buy them and, while I think their games were great, they didn't sell well, so Sony have learned from that.

I'm personally of the opinion they need to acquire Ember Labs, that's definitely a PlayStation type of Studio, but not everyone wants to sell anyway, and Sony has to be selective, they don't have the money Microsoft does so in a money war, Microsoft will win every time. But, we're also no business professionals, buying up studios may not always be the answer to everything like we as consumers might think.

RememberThe35732d ago

@Marquinho
And what were Xboxs profits I wonder? 🤔

Also I think that number is for SIE not Sony as a whole.

mgszelda132d ago

It would be really nice to see those dead ips get some respect

jznrpg32d ago

Sony could have bought ZeniMax as well . I doubt they would overpay like MS did though . Operating income has nothing to do with purchase price of companies and it doesn’t only need to be cash . It can be a lot more than just here’s money I buy and generally is .

Godmars29032d ago (Edited 32d ago )

It would be nice if AAA wasn't such a thing, which it isn't.

@Gameseeker_Frampt:
"Microsoft had THE web-browser until Google came along."

Not quite.

Netscape was the leading browser of its time till MS crippled them out of the industry, bought up and privatized a free code their competitor heavily relied on, only to sit on their hands till Firefox, then Google, came along.

That's MS: Go to great pains to beat the other guy, only to have less than a plan after "winning".

Unspoken32d ago

Of course they can't match it. Sony does not have deep pockets to be able to make such a move. MS on the other hand has been in the enterprise space making money hand over fist as well as having a huge r&d budget. Sony can't even come close. Gaming...lol.

Marquinho31d ago (Edited 31d ago )

@Gameseeker_Frampt

You will learn in life that being victorious isn't about never losing. Microsoft has tried an succeeded many times, and failed some others. Competing against Apple and Android on a market they already had a Monopoly was a lost battle from the beginning, but they tried. On the other hand, they're doing great in servers, Office, OS, Teams (Skype), LinkedIn, Yammer and Azure. This is why Microsoft is the biggest software company in the world, and keeps growing YOY in both sales and profit.

The Xbox division was the bastard son of the corporation... they never really invested big on it. They had plenty of chances to buy very talented studios in the past (Irrational, Remedy, Bioware) but they just didn't. They wanted to keep the division organically profitable... but that's almost impossible with competition as big a Playstation.

This time around, they're doing everything they did well with the 360... only better. Adding it's own gargantuan effort to change the videogames industry with GamePass + xCloud, and buying talented studios in addition to investing big on the existing ones... and they're already enjoying huge results (50% growth in GP subscriptions in only 6 months) even before those new studios release a single big exclusive. That's the kind of endeavor worth investing in and Microsoft knows it.

Why now and not before? Sony was never a threat for Microsoft as a corporation, Google is... that's where the real fight is, not vs. PlayStation. Microsoft knows Xbox will be big in the battle for the cloud and now they have the upperhard against Google.

porkChop31d ago

Konami is worth $3.5B. Bethesda was worth $2.5B, and MS had to triple that to buy them. For reference, they considered a bid for Leyou Technologies but couldn't afford to outbid anyone, and those bids were around $2B.

Sony *cannot* afford to buy a publisher.

savedsynner31d ago

Agreed, Konami needs to sell their IPs or do something meaningful with them. How hard would it be to farm the IPs out to quality studios? What is it gaining them for the IPs to sit on a shelf collecting dust.

+ Show (17) more repliesLast reply 31d ago
chobit_A5HL3Y32d ago

sony retaliates by still having better games lol

lifeisgamesok32d ago

PS5's library is looking amazing already it's actually surprising that their 1st year is so stacked

RememberThe35732d ago (Edited 32d ago )

That was my thought. I've been airing my grievances but there's no doubting that Sony has been the most consistent publisher next to Nintendo. I look at it as MS had to spend 7.5 billion on what Sony spent hundreds of millions on. This isn't a huge win for Xbox as much as an admonition that they haven't been able to develope IP the way they should have. Daddy MS had to come cut a check to bail out the boy again. That doesn't change the fact that MS got what they got and they got a lot.

Wrex36932d ago (Edited 32d ago )

I agree it's freaking exhausting. The sega shit, from software shit, the konami shit. Like PlayStation does just fine on its own as it is.
Microsoft REALLY NEEDED this acquisition, I can admit that. To even compete

Eonjay32d ago

The fact that they need 23 studios just to compete should tell you something. Sony and Nintendo will still beat Xbox. Eventually Microsoft will have to buy the entire industry just to make the Xbox competitive.

itsmebryan32d ago

All it shows is that they poked the bear one too many times. Now they have 23 studios and after spending $7.5 billion they are not done yet. They are building a Gaming powerhouse. Hate if you want but, now they are going to be capable of put out much more AAA first party games for their console.

Will Sony fans still say "Xbox has no games!" ?

fr0sty32d ago (Edited 32d ago )

Not to mention, the Bethesda deal is Microsoft trying to match Sony.

WelkinCole32d ago

Yeah I know Beth games are huge for many folks but to be honest I never played any of those games and I take ND,GG,IG games anyday over what Beth produces

dietis_h31d ago (Edited 31d ago )

me thinks marquinho here has no clue of what he’s talking about and would rather be a corporate cheerleader of stocks instead of asking for quality games.

+ Show (4) more repliesLast reply 31d ago
zsquaresoff33d ago

Sony exclusives can easily hold their own against all the 23 Xbox studios. If Sony includes new acquisitions, that will only enhance their already incredible portoflio further.

And lets be honest, Sony doesn't need to acquire any more studios but Microsoft surely does.

CaptainHenry91632d ago (Edited 32d ago )

I would like for them to acquire at least one of these developers From Software, CD projekt Red, or Konami. But tbh I still think Sony will be fine even if they don't acquire them. Their exclusives are on a whole another level

-Foxtrot32d ago

CD projekt Red would be decent since they are an RPG company and that's what Sony needs at the minute

gamer780432d ago (Edited 32d ago )

No absolutely not . everyone needs to leave cd project red alone. They make great games with any political pandering or agendas. I think we can all get behind cdpr staying exactly where they are. I would want Microsoft Sony activision anyone buying them.

Sunny_D32d ago

I only worry cause it’s seems MS may not be stopping at Bethesda it seems. I have a bad feeling Sega might be their next target.

RememberThe35732d ago

CDPR is a special company in gaming, if they can't stay independent I wouldn't mind seeing Sony grab them up in stead of the usual suspects. Plus that would give Sony their own PC platform.

UltraNova32d ago

I can't see Sony spending so much money on a niche game developer like From soft, their games are not that popular especially with casuals and this is coming from the biggest From soft fan. I want them to buy From but financially the suits will say no.

Konami is on a planet on their own, no one knows what the hell they are doing over there, including them so the only way I see this moving forward is for Sony to buy their gaming IP while Konami retains the license to produce pachinko machines out of them.

CDPR cannot and will not be bought by anyone. They are so close with their government the latter of which have been helping them financially throughout the years and they are a source of national pride. Not only that but this company seems to thrive on their independence. I wouldn't want them to get bought out by a huge multinational company, no matter how much I trust Sony to do right by them.

Platinum games is to close with Nintendo so I can't see this happening.

Bluepoint is a must buy at this point, no question there and I'm afraid if Sony doesn't hurry up they might lose them.

Square might be to big of a purchase, financially speaking for Sony but they can pay in shares and cash so it's doable and they fit together as a glove.

Capcom might be their best bet out of all, since they've faced financial instability for far too long, but managed to gain some ground in the recent years with a stellar game release stream. Still, this would be the best moment for Sony to cut a deal with them. Then they can be financially stable for ever.

+ Show (2) more repliesLast reply 32d ago
Unknown_Gamer579432d ago

Well, actually, MS needs to make more use of their studios. Quantity isn't going to change that much. They strike me as being kind of like a restaurant where the cooking staff barely ever turn on their ovens/stoves. They can buy more ovens/stoves, but that wouldn't solve the problem unless that's what it takes to make the chefs more inclined to actually use them.

Metaphor aside, MS actually has had some pretty decent studios for some time now. They just have a history of sitting on them and letting them rot. When studios are first acquired by them, there's usually a bit of a show of using them to make an impression, but after an initial wave of games is produced we often end up seeing nothing from them for years at a time, if they even keep working on games.

I think companies like Bethesda are ones that MS will indeed use more than once, but are they going to produce games any more frequently than, say, Rare in the long term? I'm predicting that there either won't be a lot of games or they'll be another Mojang and stay multiplat...or both.

32d ago
Tetsdah32d ago

This is a big industry move, but so many Bethesda ip were underperforming and MS has a great relationship with them. This move made a lot sense.

GP is a buffet of cheap games or old games, that doubles as a graveyard for failed and low quality ideas.

I think Sony should expand and cultivate their studios. Make acquisitions where it fits. Finally seal the deal with House Marque and Blue point. Then give me Level 5, Kojima, From or Platinum

For a big Japanese pull Square, Capcom, Namco

lifeisgamesok32d ago

Imagine if Rare was left alone all of these years to just make colorful platformers and was given a good budget

xTonyMontana32d ago

Exactly, while I hope Sony doesn't get complacent, there is no need for them to react to this yet. They have done a fantastic job with their first party studios who are all creating top notch games and have a great relationship with third party studios.

kayoss32d ago (Edited 32d ago )

Acquiring studios is only a very tiny part. What comes out of those studios is the bigger part of these acquisitions. Xbox have more to prove to their fans and critics vs Sony. You said it best, "Sony exclusives can easily hold their own...". Microsoft at this point have more to lose if they cant come up with high quality games from those new acquired studios. Many of their fans already given up on them at this point. Just imagine if Microsoft screw up some of these studios too? I shudder at the thought.
I'm rooting for them, because i want to be a gamer and the more variety of games available, consumers wins. I dont want to continue these petty console war discussions.

Gunstar7532d ago

Hahaha! No they can't

Sony zealots are insufferable.... this is a seismic shift, one that Sony cannot match.

SyntheticForm32d ago

Agreed, but I also believe that this was a powerful acquisition. But, is it the studios Microsoft needs or is it the direction?

They already had plenty of studios, but much of their work has been uninspired sequels.

savedsynner31d ago

Exactly. Sony already has a huge head start. Plus, if they ever need to add more money, partnerships with the likes of Amazon and Google are always possible...let's be real, there's only so much room in video gaming and google/amazon would be wise to hitch their wagon to a proven winner than try to do it alone.

+ Show (5) more repliesLast reply 31d ago
P_Bomb33d ago (Edited 33d ago )

“Sony would only be buying IP rights, not actual studios ready to make massive AAA Silent Hill or Metal Gear games (Hideo Kojima has moved on to his own studio, you’ll recall, and he’d have to be his own “purchase.”) It’s just not a reasonable or relevant suggestion.”

I disagree. Once you have an IP, studios can be hired. Quantic Dream worked exclusively for Sony for years, same way Bluepoint and Housemarque are now. After years of swimming in the DNA of the Uncharteds, SotC and Demons Souls remakes...who’s to say Bluepoint can’t handle a Castlevania and Housemarque can’t handle some bullethell Contra?

Until Dawn wasn’t made in-house and neither was Sackboy which comes out Nov. Judgment was Sega. Kojima teamed with Sony for Death Stranding, who’s to say he wouldn’t do it again to finish PT?

Questions TC could be asking are, what could Metal Gear look like through the eyes of Naughty Dog? Media Molecule will need a gig after Dreams and I don’t think Japan studio are making another Gravity Rush. There’s spots to fill.

Unknown_Gamer579432d ago

My unpopular opinion is that MGS has had its run and needs to finally be taken out back and shot, but otherwise, I agree wholeheartedly. I'd love to see a new Castlevania for sure! Maybe even a new Silent Hill. If Sony either bought Konami or one or more of their IPs, these games could actually happen.

32d ago Replies(1)
I_am_Batman32d ago (Edited 32d ago )

Sony should continue to invest into the growth of the studios they already own and from time to time make a reasonable acquisition of a studio that they've been working with for many years. That's how they've done it for a long time. There is no reason for a kneejerk reaction and quite frankly it could end up being counterproductive.

Let's not forget that Microsoft is not the only corporation that can make these kinds of deals. If those acquisitions spiral out of control Google, Amazon and Apple might want to get involved and before you know it, a good portion of the major publishers could be in the hands of these mega corporations.

Battlestar2332d ago

Microsoft now have 2 to 3 times the 1st party studios that Sony have. While Sony will be having 1-2 1st part titles a year Microsoft will have like 7-8 games a year.

IRetrouk32d ago

🤔
16+16=32
16+16+16=48

Sony = 16
Ms = 23

potatoseal32d ago

That's a flat out lie. Sony will have 3 -4 1st party massive titles a year. Also, Sony have 15 studios and MS have now 23.

Many studios that Microsoft own are small and don't do massive AAA games. Now though they have the Bethesda collection which games will most likely come to PS5 anyway, let alone PC. They have MULTIPLAT studios. All games will go to PC.

Sony have REAL exclusives and the pedigree of their studios and their games speaks for themselves. THIS is why PS5 is the popular choice and will win next gen. It's because of the quality Sony deliver.

Unknown_Gamer579432d ago (Edited 32d ago )

MS should have had way more games per gen with their previously acquired studios. See my above post. Studios are worthless unless they're actually put to use, and Sony actually uses studios they acquire.

32d ago
dietis_h31d ago

someone needs to learn math101 again.

TheTony31631d ago

They have more now but none of their studios comes even close to Santa Monica or Naughty Dog.

+ Show (4) more repliesLast reply 31d ago