Sony CEO Kenichiro Yoshida has said the company’s planned acquisition of Bungie “represents a major step forward in becoming more multiplatform”

Started by the-pi-guy, May 18, 2022, 03:02 PM

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the-pi-guy

Sony: Acquisition of Bungie Represents a Major Step Forward in Becoming More Multiplatform - Push Square

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Sony has hinted a number of times in recent years that it feels restricted by PlayStation hardware. In an interview late last year, group president Jim Ryan said that he's "frustrated" that the company's first-party games reach a relatively small audience. "I think some of the art our studios are making is some of the finest entertainment in the world, and to gate the audience frustrates me," he admitted. "I'd love to see a world where hundreds of millions of people can enjoy those games."
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Kenichiro Yoshida has hinted that the company's acquisition of Bungie represents a "major step forward in becoming more multiplatform". As previously announced, the Destiny developer will retain its independence adjacent to PlayStation Studios, meaning that its games will continue to launch on all viable platforms - including Xbox, PC, and mobile.

the-pi-guy

It could just be mobile/pc, they're already growing in that direction.

Would be curious if they published more games on Xbox/Switch.

Legend

I still think it's a really stupid strategy unless they believe platform royalties are going to be made illegal. Their pr always presents this as money left on the table, but it ignores the billions of dollars they make every year from 3rd party games being bought on playstation.

Microsoft is clearly gambling on gamepass. If they can grow it enough to partially suffocate the industry, big games will have to release on it. It can function as an xbox replacement that makes money off third party games.



the-pi-guy

I still think it's a really stupid strategy unless they believe platform royalties are going to be made illegal. Their pr always presents this as money left on the table, but it ignores the billions of dollars they make every year from 3rd party games being bought on playstation.
I'm going to play devil's advocate here:

As it stands, something like 15-20% of games sold on PlayStation are first party. They make higher margins on those games. Further market consolidation is going to increase that, either through more games becoming first party or potentially skipping the platform entirely.
In a world where your games make up the vast majority of the money you're making, I think it starts to make more sense to start making that money in as many as places as you can.

And it might be a case where they see lower revenue, but higher profits.

It's also possible that they can pull off third party revenue and first party games every where. In a lot of countries, PlayStation is pretty much the de facto console.

I think there are a lot of unknowns overall. We're in uncharted territory for the gaming industry. First parties are growing at a rate we've never seen before. Companies are throwing billions of dollars at each other. We're seeing first party cross lines (Sony on Xbox/Switch, Xbox on PS/Switch).


Legend

I'm going to play devil's advocate here:

As it stands, something like 15-20% of games sold on PlayStation are first party. They make higher margins on those games. Further market consolidation is going to increase that, either through more games becoming first party or potentially skipping the platform entirely.
In a world where your games make up the vast majority of the money you're making, I think it starts to make more sense to start making that money in as many as places as you can.

And it might be a case where they see lower revenue, but higher profits.

It's also possible that they can pull off third party revenue and first party games every where. In a lot of countries, PlayStation is pretty much the de facto console.

I think there are a lot of unknowns overall. We're in uncharted territory for the gaming industry. First parties are growing at a rate we've never seen before. Companies are throwing billions of dollars at each other. We're seeing first party cross lines (Sony on Xbox/Switch, Xbox on PS/Switch).


Using your numbers in a best case scenario, that'd be an equal 50 50 split in revenue between first party games and 3rd party games. Profit wise they'd make way more on 3rd party since they don't have any dev costs.

Add in microtransactions+dlc and it gets even more lopsided towards most of the money being on the 3rd party side.




the-pi-guy

Add in microtransactions+dlc and it gets even more lopsided towards most of the money being on the 3rd party side.
Until all those live service games come in.   8)

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