How come that Sony is aquiring more 1st party while it's losing money !!

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omho88

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#1 omho88
Member since 2007 • 3967 Posts

Gurilla games, Q. dreams, MM ..etc

i dun get it, Sony is supposed to be on a very tight budget, How can it buy all these great dev. ? Luckily everything paied off, but shouldn't MS run after them and bought them before Sony ?? they have the money afterall !!

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deactivated-63f6895020e66

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#2 deactivated-63f6895020e66
Member since 2004 • 21177 Posts
MS is not very interested in getting 1st party studios.
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mysterj

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#3 mysterj
Member since 2010 • 928 Posts
Sony didn't bought Quantic Dreams.
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SaltyMeatballs

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#4 SaltyMeatballs
Member since 2009 • 25165 Posts
They were making more money from software than the hardware.
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SolidTy

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#5 SolidTy
Member since 2005 • 49991 Posts

Different strategies.

One company pushes more towards re-enforcing talent and recruiting talent to create new games/content, the other company pushes more towards paying for new games or securing timed content.

Both do a little of all, but that's how it seems to pan out, for a long time.

It can get a lot more complex than that, but should suffice for SW, because otherwise we need to sit down and write a term paper on the matter.:P

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Hexagon_777

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#6 Hexagon_777
Member since 2007 • 20348 Posts
Sony wishes to sustain itself as opposed to relying on third party studios.
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mrmusicman247

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#7 mrmusicman247
Member since 2008 • 17601 Posts
I thought it was established that they're making a profit now
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Parasomniac

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#8 Parasomniac
Member since 2007 • 2723 Posts
Microsoft has a wierd philosophy where timed exclusives are somehow more important than having real ones made by a first party.
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shinrabanshou

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#9 shinrabanshou
Member since 2009 • 8458 Posts

Of those you listed they've only acquired Media Molecule recently - which is actually a relatively small studio (their linkedin states 35 employees). GG was half a decade ago. Quantic Dream is independent. They should acquire Hello Games.

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KaoSXFACTOR

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#10 KaoSXFACTOR
Member since 2009 • 1059 Posts

Microsoft has a wierd philosophy where timed exclusives are somehow more important than having real ones made by a first party.Parasomniac

And its even more weird that they are ahead of the PS3.....

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SaltyMeatballs

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#11 SaltyMeatballs
Member since 2009 • 25165 Posts

[QUOTE="Parasomniac"]Microsoft has a wierd philosophy where timed exclusives are somehow more important than having real ones made by a first party.KaoSXFACTOR

And its even more weird that they are ahead of the PS3.....

What timed exclusives have their been recently? I know MW2 has DLC first on 360, but Sony does worse with games like Batman AA Joker exclusive, and now Toy Story having Zerg as exclusive. And at E3 they announced more things like this, but I can't remember what games they were for (they were big games though).
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Nonstop-Madness

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#12 Nonstop-Madness
Member since 2008 • 12873 Posts

Of those you listed they've only acquired Media Molecule recently - which is actually a relatively small studio (their linkedin states 35 employees). GG was half a decade ago. Quantic Dream is independent. They should acquire Hello Games.

shinrabanshou
Hello Games FTW, Joe Danger is so freaking awsome and it was made by 4 dudes.
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Mystic-G

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#14 Mystic-G
Member since 2006 • 6462 Posts

Since the 360 is the PS3's primary competitor, Sony is probably insuring that they have more substance to offer in the long run. This is also usually key to console launches where exclusives are top priority on choosing your system. Sony is also probably looking at Nintendo, seeing how 1st party titles can pay off pretty big, it's an investment.

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mayceV

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#15 mayceV
Member since 2008 • 4633 Posts
MS opened 4 of thier own since 09- XBLP, 343, Firbird, good science and bought BigPark. that makes 5 they also opened one in 07 (wingnut interactive) and bought lionhead in 06. now if they hadn't disbanded a studio or two per year it would seem lie a lot more (ACES-09, Ensemble -08, Hired gun & FASA- 07; Digital Anvil& indie built -06.) in all seriousness if MS had all thos studios it would have an amazing 1st party since those studios were some of the best in the industry. Its good how ever that they gave bungie freedom. had they kept every one thier first party would be almost as big as sony's. well it didn't happen, just disapointed since it would have ment more games. and BTW q dreams isn't 1st party do you have link since last I remember its 2nd. i really hope MS continues to invest in its 1t party studios and opens up/ buys out more.
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Willy105

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#16 Willy105
Member since 2005 • 26211 Posts
They are losing money because those new studios aren't making games that sell as much as they need to.
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Oonga

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#17 Oonga
Member since 2010 • 633 Posts

LBP - money made

Uncharted - money made

Heavenly Sword - money made (although Ninja Theory didnt apparently).

Warhawk - money made

Heavy Rain - money made

Infamous - money made

GOW - money made

Demons Souls - money made

The Show - money made

Killzone - money made

Resistance - money made

Fact is all these games have made Sony money (some more so than others) and the only ones i can think of that didnt are Folkore and Socom, but then i dont know their budgets so its possible there too.

I think this stratgey is working for them despite losing money in other areas so all they need to do is continue it.

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Malta_1980

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#18 Malta_1980
Member since 2008 • 11890 Posts

Different strategies.

One company pushes more towards re-enforcing talent and recruiting talent to create new games/content, the other company pushes more towards paying for new games or securing timed content.

Both do a little of all, but that's how it seems to pan out, for a long time.

It can get a lot more complex than that, but should suffice for SW, because otherwise we need to sit down and write a term paper on the matter.:P

SolidTy

yeah i agree...

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Phaze-Two

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#19 Phaze-Two
Member since 2009 • 3444 Posts

They are losing money because those new studios aren't making games that sell as much as they need to.Willy105

links?

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Warriorboy1990

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#20 Warriorboy1990
Member since 2008 • 3813 Posts

[QUOTE="Parasomniac"]Microsoft has a wierd philosophy where timed exclusives are somehow more important than having real ones made by a first party.KaoSXFACTOR

And its even more weird that they are ahead of the PS3.....

In sales, not exclusives.
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MethodManFTW

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#21 MethodManFTW
Member since 2009 • 26516 Posts
[QUOTE="KaoSXFACTOR"]

[QUOTE="Parasomniac"]Microsoft has a wierd philosophy where timed exclusives are somehow more important than having real ones made by a first party.SaltyMeatballs

And its even more weird that they are ahead of the PS3.....

What timed exclusives have their been recently? I know MW2 has DLC first on 360, but Sony does worse with games like Batman AA Joker exclusive, and now Toy Story having Zerg as exclusive. Atl And at E3 they announced more things like this, but I can't remember what games they were for (they were big games though).

At least Sony's "exclusive" dlc is actually exclusive.
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Twin-Blade

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#22 Twin-Blade
Member since 2005 • 6806 Posts

Microsoft has a wierd philosophy where timed exclusives are somehow more important than having real ones made by a first party.Parasomniac

My guess is they are cheaper & marketing wise the cost for the effect is better then buying an exclusive. For example, (numbers completely made up) it might cost a million for a 30 day timed exclusive. The impatient buy it first for that console if they have the console; most sales would come from here I guess. The really impatient by a console for it. The uninformed will do the same, & would be more inclined to buy a console for it if they didn't know it would be released on another console later. So for a million you would make a better profit then sinking a couple hundred million or so for a top line developer for an exclusive that could bomb.

I could be completely wrong, it's just a guess. With that said, if it wasn't for PC/360 titles (And my true love, Halo), I'd be pretty annoyed at this strategy. As long as I'm not missing out on something too good because of it, I'm not too fussed. I'd prefer Sonys strategy however, but I'm not sure which would be better for me in the long run (More money for MS might mean better games?).

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SolidTy

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#23 SolidTy
Member since 2005 • 49991 Posts

[QUOTE="SolidTy"]

Different strategies.

One company pushes more towards re-enforcing talent and recruiting talent to create new games/content, the other company pushes more towards paying for new games or securing timed content.

Both do a little of all, but that's how it seems to pan out, for a long time.

It can get a lot more complex than that, but should suffice for SW, because otherwise we need to sit down and write a term paper on the matter.:P

Malta_1980

yeah i agree...

I agree too. :P

Is there a mystery afoot?

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Zero_epyon

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#24 Zero_epyon
Member since 2004 • 20510 Posts

Gurilla games, Q. dreams, MM ..etc

i dun get it, Sony is supposed to be on a very tight budget, How can it buy all these great dev. ? Luckily everything paied off, but shouldn't MS run after them and bought them before Sony ?? they have the money afterall !!

omho88
Sony was losing money this gen for sure. However, they are not climbing out of a huge whole like MS is right now. MS have not made up the 6 Billion loss from last gen yet. Sony came in this gen with a surplus. That's why I think it's funny when people think Sony is going broke and can't survive to next gen.
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Chris_Williams

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#25 Chris_Williams
Member since 2009 • 14882 Posts

do you have links that sony is losing money or are you just saying that

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mayceV

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#26 mayceV
Member since 2008 • 4633 Posts
[QUOTE="Zero_epyon"][QUOTE="omho88"]

Gurilla games, Q. dreams, MM ..etc

i dun get it, Sony is supposed to be on a very tight budget, How can it buy all these great dev. ? Luckily everything paied off, but shouldn't MS run after them and bought them before Sony ?? they have the money afterall !!

Sony was losing money this gen for sure. However, they are not climbing out of a huge whole like MS is right now. MS have not made up the 6 Billion loss from last gen yet. Sony came in this gen with a surplus. That's why I think it's funny when people think Sony is going broke and can't survive to next gen.

yeah they have MS has been in the black since 07.
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omho88

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#27 omho88
Member since 2007 • 3967 Posts

do you have links that sony is losing money or are you just saying that

Chris_Williams
They were till recently, but the fact is that Sony bought these studios while they were losing money.
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deactivated-5dd711115e664

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#28 deactivated-5dd711115e664
Member since 2005 • 8956 Posts

Because Sony realizes that as game development continues getting more and more expensive, they can no longer rely on third party exclusives. At least, not without paying a ton of money to buy temporary exclusive rights for games no guaranteed to help sell consoles anyway.

Sony knows that if they are going to do well over the long-term, they need to rely on exclusive software and the ONLY way to do that is too buy developers. Established large developers are way too much to buy, so buying smaller developers is the way to go.

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SapSacPrime

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#29 SapSacPrime
Member since 2004 • 8925 Posts

Probably because they are actually thinking ahead, a decent first party line up will keep you going in this business a lot longer than relying on the extremely fickle and unloyal third party companies.

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ianuilliam

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#30 ianuilliam
Member since 2006 • 4955 Posts

[QUOTE="Zero_epyon"][QUOTE="omho88"]

Gurilla games, Q. dreams, MM ..etc

i dun get it, Sony is supposed to be on a very tight budget, How can it buy all these great dev. ? Luckily everything paied off, but shouldn't MS run after them and bought them before Sony ?? they have the money afterall !!

mayceV

Sony was losing money this gen for sure. However, they are not climbing out of a huge whole like MS is right now. MS have not made up the 6 Billion loss from last gen yet. Sony came in this gen with a surplus. That's why I think it's funny when people think Sony is going broke and can't survive to next gen.

yeah they have MS has been in the black since 07.

That doesn't mean they made that money back. Each years financial report is seperate. If a company spends 2 billion dollars one year, with a billion dollars of income, they have a net loss of 1 billion. The next year, if they have another 2 billion dollars in costs, but make 2 billion and one dollars in revenue, they will have a net profit of 1 dollar. They still haven't made that billion dollars of losses yet, but they are in the black and "profitable". This is the case with MS's xbox division. If you go through their public earnings statements from 2001 to this year and add up the net loss or profit from the Xbox division each year, they are still in the hole by something like 5-6 billion dollars. MS is a big enough company though to absorb that loss due to their profit from other divisions and write it off, but the Xbox brand, overall, has lost more money than it has made. Playstation is in the opposite situation. They have been posting losses this gen (like MS, Sony is a big enough company to absorb these losses by other divisions), but due to the enormous successes of the PS1 and PS2, if you were to add up the net gains/losses over the entire Playstation brand lifetime, it will be a net gain.

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WAIW

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#31 WAIW
Member since 2008 • 5000 Posts

They are losing money because those new studios aren't making games that sell as much as they need to.Willy105

Erroneous... Their software is what is pulling them a profit

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deactivated-5b69bebd1b0b6

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#32 deactivated-5b69bebd1b0b6
Member since 2009 • 6176 Posts

Pretty sure they not long ago announced their making money off PS3's sold now. Who said they where on a tight budget?

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Heil68

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#33 Heil68
Member since 2004 • 60838 Posts
Sony is committed to games.
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Zero_epyon

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#34 Zero_epyon
Member since 2004 • 20510 Posts

[QUOTE="mayceV"][QUOTE="Zero_epyon"] Sony was losing money this gen for sure. However, they are not climbing out of a huge whole like MS is right now. MS have not made up the 6 Billion loss from last gen yet. Sony came in this gen with a surplus. That's why I think it's funny when people think Sony is going broke and can't survive to next gen.ianuilliam

yeah they have MS has been in the black since 07.

That doesn't mean they made that money back. Each years financial report is seperate. If a company spends 2 billion dollars one year, with a billion dollars of income, they have a net loss of 1 billion. The next year, if they have another 2 billion dollars in costs, but make 2 billion and one dollars in revenue, they will have a net profit of 1 dollar. They still haven't made that billion dollars of losses yet, but they are in the black and "profitable". This is the case with MS's xbox division. If you go through their public earnings statements from 2001 to this year and add up the net loss or profit from the Xbox division each year, they are still in the hole by something like 5-6 billion dollars. MS is a big enough company though to absorb that loss due to their profit from other divisions and write it off, but the Xbox brand, overall, has lost more money than it has made. Playstation is in the opposite situation. They have been posting losses this gen (like MS, Sony is a big enough company to absorb these losses by other divisions), but due to the enormous successes of the PS1 and PS2, if you were to add up the net gains/losses over the entire Playstation brand lifetime, it will be a net gain.

Exactly. Some people don't see the whole picture. Xbox just started becoming profitable recently as well. Probably even more so with the slim. However, They may need another Gen to to make up the huge first gen loss. That's why they can't buy studios or keep them open. So they rely on a cheaper source of exclusive games instead. It's more of a short term plan until they get back on their feet.
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ianuilliam

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#35 ianuilliam
Member since 2006 • 4955 Posts

[QUOTE="ianuilliam"]

[QUOTE="mayceV"] yeah they have MS has been in the black since 07.Zero_epyon

That doesn't mean they made that money back. Each years financial report is seperate. If a company spends 2 billion dollars one year, with a billion dollars of income, they have a net loss of 1 billion. The next year, if they have another 2 billion dollars in costs, but make 2 billion and one dollars in revenue, they will have a net profit of 1 dollar. They still haven't made that billion dollars of losses yet, but they are in the black and "profitable". This is the case with MS's xbox division. If you go through their public earnings statements from 2001 to this year and add up the net loss or profit from the Xbox division each year, they are still in the hole by something like 5-6 billion dollars. MS is a big enough company though to absorb that loss due to their profit from other divisions and write it off, but the Xbox brand, overall, has lost more money than it has made. Playstation is in the opposite situation. They have been posting losses this gen (like MS, Sony is a big enough company to absorb these losses by other divisions), but due to the enormous successes of the PS1 and PS2, if you were to add up the net gains/losses over the entire Playstation brand lifetime, it will be a net gain.

Exactly. Some people don't see the whole picture. Xbox just started becoming profitable recently as well. Probably even more so with the slim. However, They may need another Gen to to make up the huge first gen loss. That's why they can't buy studios or keep them open. So they rely on a cheaper source of exclusive games instead. It's more of a short term plan until they get back on their feet.

Sure they could, if they wanted. Even when Xbox wasn't making money, MS has enough money to do anything they want. They just think paying for timed exclusives is a better strategy than securing a strong first party or making deals for actual exclusive content on disc at no extra cost (Batman AA, Dante's Inferno, Dead Space 2, MoH, etc.).