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[Kotaku]: Sony’s PS5-Era Studio Acquisition Spree Has Been A Disaster

It's 100% a bigger than Sony 'big business' issue, but you would expect a company (like Sony) that's been in the industry for over 30 years to know that you never ever mess with what works for your business.

Sony chose to not play it safe and started throwing around cash. They spent $3.6B to purchase what is increasingly looking like a dud of a studio. Not a single 'journalist' can accurately explain how a company that can invest billions in M&A will struggle to invest millions into their already up-and-running successful studios. They can't explain it because their entire premise is built on a foundation of business illiteracy.

The truth is simple: PlayStation wanted their own Fortnite/recurring revenue monster, but rather than take a step back and understand why Fortnite worked (i.e., ripoff of PUBG, Unreal Engine makers thus able to update and tweak the game at a lightspeed pace, cartoony/family-friendly artstyle, free to play, celebrity endorsements etc.), they just dumped billions of dollars into anyone and everyone that they thought would get them a Fortnite. So far? No Fortnite, only studio closures and expensive cancellations. Maybe Hunter's Gathering will be it, but it's not looking probable based on the sentiment around it.

Microsoft's problem with Xbox is completely different than Sony's problem with PlayStation. Microsoft were putting out flop after flop after flop and as a result, their console became less and less and less desirable in the market. Their acquisition spree was to remedy their problem and or give them an out (i.e., multi-platform publishing) should the problem fail to be fixed. They failed to fix the problem and they're now bringing Halo to PlayStation.

Sony were putting out hit after hit after hit, and they were selling more and more and more consoles than their competitors. Then they decided to abandon what was working and chase after Fortnite bucks.

You can't fault Sony for trying to maximize their profits. But you can and should fault them for doing it in a measurably poor, predictably short-sighted, irreversibly bad manner. I've said this before, but if Xbox wasn't an unstoppable dumpster fire, the conversation around the PS5 would be radically different.

Superb post
 
I've worked in management and business for over 20 years, and this is basic stuff.

The problem wasn't buying the studios. The problem was handing them all over to a clueless, incompetent central leadership with zero strategic backbone to control projects, filter bad ideas, and demand real results.

This soft European babysitting culture mixed with Hermen Hulst's low-energy cuckhold leadership is actively rotting the legacy Sony spent decades building under the Japanese model.

Sony needs to fire the entire top first-party leadership and rebuild something like Shuhei Yoshida's SIE Worldwide Studios. It's so painfully obvious that the fact they haven't done it yet is beyond pathetic.
 
This is what happens when you have a CEO who doesnt play games making these decisions. And then replace him with a total dipshit retard. We should have all seen them falling for Jade Raymond's latest scam as a flashing warning sign.
 
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You can say the same about Microsoft. Nearly 100 billion in acquisitions and they are pretty much exiting the market as a result.

I agree hasn't gone well but they aren't exiting the market. Not yet. Maybe someday soon. Next gen may be their last gen depending on how things go.
 
Haven studios employees over 200 full time people creating Fairgame$. Tomorrow is Friday, they'll be wrapping up a week of mirror polishing no doubt and I bet Sony is footing the lunch bill.
Yep, which makes the shuttering of Bluepoint even more ridiculous. Sony has a half a dozen bloated ass development teams that could have lost a few people, or this, dead in the water, development team, or even waited a couple of months until they need to restructure the massively failed acquisition called Bungie. But, no, they closed a 70 developer studio that's responsible for, easily, one of the best first party games they've released in years.

Its all part of Sonys famed organic growth
- work with developer on projects
- purchase developer
- put them to work on GaaS
- cancel GaaS
- close studio
OMG, don't remind me of the "organic growth" vomit that used to get tossed around all the time.
 
Is this really a disaster though?
Almost every tech company has been laying off people the last 4 years.

Let me give it a try:
Insomniac Games – Acquired in 2019 – Hit with layoffs in February 2024. New game shipping this year, Wolverine.
Housemarque – Acquired in 2021 – New game, Saros, shipping this year on PS5.
Nixxes Software – Acquired in 2021 – Has been a very active support studio for Sony, working on Horizon, Helldivers 2, and more.
Not sure why these ones are on the list

FirespriteAcquired in 2021 – Layoffs in February 2024. Its last shipped game was Horizon Call of the Mountain for PSVR2 in 2023
Fabrik Games Acquired in 2021 – Part of Firesprite. Hasn't shipped a game since 2017.
Firesprite I'm legit surprised are still open, but they're probably also the only first party studio with VR experience.

Bluepoint Games – Acquired in 2021Closed in February 2026. Its last shipped game was Demon's Souls in 2020.
This is still somewhat unclear. I'm expecting a Schreier article in a few months detailing what happened

Valkyrie EntertainmentAcquired in 2021– Hasn't shipped a game since 2015. Helped on Concord in 2024.
Always been a support studio. I doubt anyone is expecting them to ship anything

Haven Studios Acquired in 2022 – Hasn't shipped a game yet. Founded in 2021. Working on delayed live-service shooter Fairgames.
Here's some perspective: They likely didn't start development on Fairgames at least 2 years after Bungie started development on Marathon.

Bungie Acquired in 2022 – Faced layoffs in 2024. After delay, has a new game out this year, Marathon.
Bungie was a mess before the acquisition. Let's see what happens after the integration.

Neon Koi Acquired in 2022 – Founded in 2020. Never shipped a planned live-service mobile project. Closed in 2024.
Firewalk Studios
Acquired in 2023 – Launched Concord in 2024. The game flopped after two weeks. Studio closed in 2024.
These are the only 2 duds on this entire list.
 
The acquisitions aren't the problem the GAAS garbage is the problem.

If Sony doesn't get out of that mistake by ps6 launch there is going to be ZERO reason to buy a ps6
 
Insomniac has been the best by a country mile. That investment paid off massively.
Made my favorite of the Sony games to be ported to PC - Ratchet and Clank. But they seem to be stuck now pumping out very similar branded superhero games. Hopefully Wolverine lets them stretch their legs and isn't just a reskin of spiderman.
 
Jim Ryan's legacy is one of melancholic failure. Sure, PlayStation is making money hand over fist, but it's success stems not from its own brilliance, but from the failures of its competitors. Sony owns the market now because Xbox tried, and failed, to become the Netflix of gaming and forgot to actually make video games. Nintendo abandoned the home console market in favour of its handheld market and left Sony alone. With Sony needing to step up its profit margins, it'll continue to burn billions on GAAS games people don't want, hoping for another Helldivers 2. And when their studios fail at their impossible tasks, they'll close them without a second thought.

Sony did also make alot of smart moves during the PS5 Gen too. There success isn't due to MS failures. It's not like people had to buy a PS5. They could have just bought a PC or purchased nothing.
 
Whos hasn't been?? Embracer Microsoft Sony all of them, fucking disaster
MS acquisitions haven't been a disaster, nothing compared to Sony.

Their acquisitions were smart and strategic, even if some releases may not have been as good as they wanted. They now own some of the biggest IPs in gaming.

Call of Duty, Diablo, OverWatch, Fallout, Warcraft, Doom, Elder Scrolls, Crash Bandicoot, Spyro, Wolfenstein, Candy Crush.

Only IP Sony ended up getting was Destiny, Sunset Overdrive, and Marathon.
 
Sony did also make alot of smart moves during the PS5 Gen too. There success isn't due to MS failures. It's not like people had to buy a PS5. They could have just bought a PC or purchased nothing.
Sony's smart moves are basically making another PlayStation and launching with games for it. Man, what a revolutionary vision. That sits in stark contrast to Microsoft who launched an Xbox and basically forgot to make any games for it whilst telling people to stop buying games on their platform altogether. Sony's success in the PS5 generation comes down to a decent piece of kit - Cerny doesn't miss - and competitors who didn't bother to show up, handing Sony the market.
 
Sony did also make alot of smart moves during the PS5 Gen too. There success isn't due to MS failures. It's not like people had to buy a PS5. They could have just bought a PC or purchased nothing.

It's kind of a weird take anyway. Sony's been successful since their original console and even with their biggest missteps still outsold Microsoft's most successful console who has always had their ceiling limited because they can't make any hay in Asian regions. Nintendo's home consoles have struggled since Sony decided to come on the scene with the exception of the Wii which captured an audience who was never likely and do not stick around beyond that system and even then was a zig to Sony's and Microsoft's zag. However you want to define the Switch (hybrid, console, portable), I'd still consider it a zag.
 
Source: Kotaku

KOTAKU

KO-TA-FUCKING-TU

Angry Triple H GIF by WWE
 
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Sony's smart moves are basically making another PlayStation and launching with games for it. Man, what a revolutionary vision. That sits in stark contrast to Microsoft who launched an Xbox and basically forgot to make any games for it whilst telling people to stop buying games on their platform altogether. Sony's success in the PS5 generation comes down to a decent piece of kit - Cerny doesn't miss - and competitors who didn't bother to show up, handing Sony the market.

I play this at work a few times a week

fLi4D9upXVWzTYuv.png



So yeah, I'm not going to act like they've done nothing. Some of yall miss the details.
 


It all started going bad after Sony acquired Bungie, I wonder why???


How is that a bad post? Whatever happened to authenticity mattering in games? Devs fly 5,000 miles to a remote island to get 10,000 photos of the landscape, animals, and insects so that it looks and feels real in the game. Yet, do something similar to black people's hair is a problem?

Dave Chapelle GIF by MOODMAN
 
The acquisitions were not a problem (outside of Bungie whose leads literally lied to get a payout).

Neither is their GaaS ambition on its own a problem. The problem has been the alienation of their core playerbase with their big GaaS investments.

Sony is a company known for making great SP games. So quite why they thought exclusively PvP GaaS games were the correct thing to gamble almost all of their new GaaS studio acquisitions on, is beyond me.

Their biggest GaaS game, HellDivers 2 is an exclusively PvE game. That pretty much tells you all you need to know about where Sony shot themselves in the foot and what they should have been investing in.
 
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I don't see Sony and Xbox's acquisition wars in a post-covid retraction would end anything but badly. What is even sustainable in an industry where casual players only buy a few games a year, big studios need massive margins to cover their bloated production, indies are popping out faster than wet gremlins, and live service games just keep retaining players for years or even decades.
 
The failure of Concord was a catalyst for Sony to react and cancel any GaaS projects that were currently being worked on that deemed "financial risk", including the one that Bluepoint Games was told to develop by Sony. Who decides these? Some management in SIE that has no business in dealing with game development.
Oh, yeh, Sony is definitely responsible for the GaaS push, in a way I cant blame them though, all you need is one huge GaaS game and you have a real money maker, the problem is most fail, but to have that many on the go was a little weird but at least they appear to be course correcting (at the expense of studios unfortunately)

Sony are in a bit of a rock and a hard place with several 'gamers' though, on one hand they don't want them making the thing they are good at; single player third person action adventure movie like games, but at the same time berate them when they at least try to do something different. Me, I love single player movie like games so I can't wait for the likes of Intergalactic and whatever Corey is working on, but if you go on YouTube or even on here and they get slaughtered as soon as a teaser is released (when the games are eventually released luckily sense usually prevails as was seen with Yotei but even then you have stragglers/grifters telling people the game is woke or whatever)
 
All of the sudden Phil Spencer doesn't seem like the worst. Spencers crime was not reigning in the studios and getting them on track, but AT LEAST he allowed them to do what they want even if they failed miserably. What Sony did was the equivalent of hiring a dentist to perform open-heart surgery. Or an electrician to fix a broken pipe.
You're nuts if you think Phil's legacy even compares to anything going on at Sony.

I mean, how many studios did they close without them even being able to make a single game? Right after they bought them... not only that, but games being released unfinished, etc.

There is nothing like Xbox since 2013.
 
Current Sony leadership is completely clueless. You could have 10 studios pitch games to Hermen Hulst and my grandma and they'd probably have about the same chance of actually picking something good.

They are just raking in the profits because their predecessors did a good job while their main competitor was completely fucking up, so they inherited a products that's basically the default device in its category.
They can afford to constantly fuck up because they have the default home console platform to play COD, Fortnite, Genshin Impact, Roblox, EA sports games, etc. And soon GTA too.

This could be a blessing going forward. We don't want Sony turning everything in GAAS.

Is it though? If their newly acquired studios can't give them the GAAS hits they so desperately want they aren't just going to give up. They'll put even more of their traditional single player studios working on GAAS.
 
You're nuts if you think Phil's legacy even compares to anything going on at Sony.

I mean, how many studios did they close without them even being able to make a single game? Right after they bought them... not only that, but games being released unfinished, etc.

There is nothing like Xbox since 2013.
Dont get me wrong, but this is being a graded on a curve. Doing what they did with Bluepoint was so festively stupid that they deserve a failing grade.
 
Bluepoint is the only stupid studio closure here. Stupid cunts at Sony chasing the GaaSlop is the reason they closed.
I agree hasn't gone well but they aren't exiting the market. Not yet. Maybe someday soon. Next gen may be their last gen depending on how things go.
Has your opinion changed since Phil and Sarah have gone?
 
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One one side i gotta agree with kotaku, on the other i feel like once again they trying to create false narrative naming it as era-studio-aquisition- spree.
In reality it was modern audience(woke) GAAS games era, ND wasnt aquired recently yet them making GAAS resulted in same thing- wasted years of devtime and hundreds of milions of usd budget, other studios too.

Only solid GAAS if u can call it was helldivers2, and devstudio was smart enough to target 95% of the audience that plays this genre- males.

Same with GT7 which was xgen and being cars game, almost all of its audience are/were guys, if those 2 succesful games targeted modern audience(women) like all other sony failed gaas games- they would fail too.

Hell another succesful GAAS game, this time sports genre aka MLB again targetted male audience- since we- males actually buy games full price at launch, and guess what it didnt flop :P

in 3 weeks we will know if marathon can be salvadged which would mean not only attract but even more importantly retain some sizeable chunk of playerbase(since helldivers 2 with its playerbase was massive success maybe it only needs half or third of that to break even/be moderately succesfull? Total guess here since no clue about game's budget and how many ppl will keep working on it after launch).
If that fails too u know its modern audience target+ gaas combo being culprit, aka publisher/devteams flying to close to the sun/going full retard.
never-go-full-retard-tropic-thunder.gif
 
Its failed leadership on Sonys part. Jim Ryan wanted in on the GAAS game. Ok, fair enough. Not a bad idea, but....

He assigned studios with no experience doing such a thing to do it. Pulling valuable resources away from these studios strength.

Studios like Naughty Dog haven't released a game in nearly 6 years since they were forced to work on a multiplayer game.

Bluepoint...a studio known for porting and remaking....assigned to work on a GAAS game.

I mean fucking seriously. A great studio is being shut down because of BAD decisions made at the corporate level. Decisions that would NEVER have been made by Hirai, Jack Tretton, Shawn Layden, or Kutagari.

All of the sudden Phil Spencer doesn't seem like the worst. Spencers crime was not reigning in the studios and getting them on track, but AT LEAST he allowed them to do what they want even if they failed miserably. What Sony did was the equivalent of hiring a dentist to perform open-heart surgery. Or an electrician to fix a broken pipe.

Playground is so far the only studio being forced to step outside their comfort zone with Fable.

Its a very bad look for Sony, Jim Ryan and Herman Hulst...we get a Horizon Fortnite game that literally NOBODY asked for.

I've been saying it for a long time, Sony would have benefitted from a Phil Spencer. I wonder how his career would have went if he was working at an organization like Sony or Nintendo, and not Nadella's Microsoft.
 
Bluepoint is the only stupid studio closure here. Stupid cunts at Sony chasing the GaaSlop is the reason they closed.Has your opinion changed since Phil and Sarah have gone?

Not sure... I dont think they are exiting the market intentionally but I think they are on an Ai obsessed path to destruction.

If they do end up closing down or selling off the Xbox division to be able to allocate more resources to ai development I wouldn't be surprised at this point.
 
Not sure... I dont think they are exiting the market intentionally but I think they are on an Ai obsessed path to destruction.

If they do end up closing down or selling off the Xbox division to be able to allocate more resources to ai development I wouldn't be surprised at this point.
I fucking hate this AI nonsense.
I think they are heading for the MicroSoft Gaming route without Xbox and I am not sure how I feel about that. On one hand, fuck Xbox and MicroSoft, but on the other hand, that's a lot of good IPs that could be ruined.
 
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