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News Sony had paid $229 Million to acquire Insomniac Games

sixamp

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How much Revenue did insomniac generator for PlayStation? If it's more than the 229 million then the deal is well worth it. Alot of people said the 2.5 billion buyout of Minecraft was a terrible idea for MS but it generators $100 million from mobile alone, has over 100 million active users. As long as these companies see revenue then who are we to say what is a bad deal
 

ethomaz

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How much Revenue did insomniac generator for PlayStation? If it's more than the 229 million then the deal is well worth it. Alot of people said the 2.5 billion buyout of Minecraft was a terrible idea for MS but it generators $100 million from mobile alone, has over 100 million active users. As long as these companies see revenue then who are we to say what is a bad deal
Thar was before Niche-man obvious.
Take in mind most of revenue from games sold goes to Sony they publish it and owns the IPs.

Estimated Annual Revenue
$120M
 
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X-Fighter

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Thar was before Niche-man abvious.
Take in mind most of revenue from games sold goes to Sony they publish it and owns the IPs.

Estimated Annual Revenue
$120M
If that's the case, then purely based on that figure without knowing anything more the price is a bit high, but still fair.
 

ethomaz

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jakinov

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Truth be told, SM is a much, MUCH more popular IP for the wider, or shoud I say global audience than any video game out there, the only comparable titles fame-wise I can think of is GTA and Witcher, even an old-time popular classics like Mario, Tetris, Packman, Tomb Raider etc. are slowly vanishing from the broad consumer awarness, especially from the younger audience who doesn't see a world outside Minecraft/Fortnite/LoL etc. SM was also released when both A) SM was a super hot topic thanks to The Avengers movies and B) the PS4 userbase was already huge at the time, it simply couldn't not succeed, even despite being big QTE fest that is widely hated by the vast majority of gamers.

But if you put SM aside, IG is arguably one of the best studios out there, the one of very few left that do know how to make an actually fun and enjoyable gameplay, hell, they put gameplay in the first place to begin with. You could say they were lacking on the technical side compared to other studios back in the PS360 era, but from Res3 onwards they are fantastic in that department as well - SO, R&C, SM, all absolutely gorgeous, and I can only imagine what they will achieve with the PS5 and Sony's backup. They already had a very strong relationship with Sony, they were oftenly reffered to as a 2nd party studio, so from all the possible companies out there IG was the most fitting one if you ask me.

That being said, I wish they weren't doing any more SM games at least for some time, or R&C for the matter, and put their talent elsewhere, especially with Sony's lacking library outside "3rd person/over the shoulder cinematic experiences" ™, making something like Resistance 4 or rebooting the franchise would be a really good move IMO, or even better - if IG made the next KZ game. Nevertheless, those 229M$ are a well spent money.
But remember Insomniac doesn't own Spiderman and AFAIK they don't have any deal in perpetuity to keep making spider-man games. So you can't really count for that in the price. I think IG is a great company I just disagree with all these people who think that $229 million for the company is too little. They cite things like revenue (not profit) and sales of games from over a decade ago and reference revenue (again not profit) of specific games without accounting that the games don't come out yearly either.

Also, I don't think they are going to make a new resistance game anytime soon unless they do a reboot.

R&C only sold well because of the movie?

🤣
The new one wasn't following the decline of the franchise, probably because of the movie tie-in helped popularize it more. I mean that's partly probably why they even made the movie and release the game around the same time tieing the two together. Ratchet and Clank games weren't selling that well during the PS3 days but started selling as well (maybe better) than were selling during PS2 days.
 
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X-Fighter

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Shares are up after the reveal.
When was the reveal? A couple of hours ago? If I look at Yahoo finance this was 9 hours ago that it really came to light. SNE is up 0.84% at the moment, I wouldn't say the market really cares...
 

diffusionx

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The financials were last week...
Today is only the acquisition value reveal.

So nope but nice try.
The 6-K filing has a lot of stuff in it. All new info in that report would go into the stock price movement, in theory. Unless the Insomniac information was the *only* new bit of news in there.
 

ethomaz

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The 6-K filing has a lot of stuff in it. All new info in that report would go into the stock price movement, in theory. Unless the Insomniac information was the *only* new bit of news in there.
The filling is mostly what the financials last week showed with exception that they added the value of the Insomniac deal...

If it was not that little detail this common doc should not become news in the market sites.

The fact Sony shares were in a down trend after the financials (-3% in the last five days) and now are in a up trend (closing +1%) after the disclosure of the deal tells you a lot.
 
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Anyone know what kind of cut a dev gets from a partnership game?

If Spider-Man sold something like 12M copies, surely Insomniac made killer profits.

$229 seems low and Price got ripped off.
 
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ethomaz

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Anyone know what kind of cut a dev gets from a partnership game?

If Spider-Man sold something like 12M copies, surely Insomniac made killer profits.

$229 seems low and Price got ripped off.
If I’m not wrong devs get about 5% of the revenue.... from a $60 game they got about $2.5.
 
Oct 26, 2018
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If I’m not wrong devs get about 5% of the revenue.... from a $60 game they got about $2.5.
That’s it? So if Spidey sold 12M copies that’s only $30M sales. Take away costs to make the game over many years and maybe profit is $5-10M?

if that’s the case, Price hit the lottery.

I thought devs made way more than 5%
 

ethomaz

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That’s it? So if Spidey sold 12M copies that’s only $30M sales. Take away costs to make the game over many years and maybe profit is $5-10M?

if that’s the case, Price hit the lottery.

I thought devs made way more than 5%
Actually doing more research in 2006 it was 13%.




Of course each contract is different from each other... Sony and Insomniac is not a normal 3rd-parry dev, publisher, platform holder contract because Sony is both publisher and platform holder.
 
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SuperLupeRap

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It is a terrible deal guys.

I don't even know why analyst thought it was good and the shares rise with the reveal.
Makes no sense.


Sony bought them so they will do what Sony wants... you don't need a deal for that anymore.
That's what I'm saying. X amount of Spiderman games for the next X years.
 

ethomaz

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I read in another forum but seems like Sony now own all the legacy studios that used to make exclusive games... legacy I think it means the PS1 and PS2 studios.

Bend (2000)
Studio Liverpool (2000) RIP 2012
Naughty Dog (2001)
Guerilla Games (2005)
Sucker Punch (2011)
Insomniac (2019)

Maybe only Quantic Dream? But that one started to do exclusives for Sony in 2010.

 
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synchronicity

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I think that's a great deal for Sony. Insomniac are such talented devs, and their value for Sony goes beyond a direct profitability on their developed titles vs cost of acquisition comparison anyway.

And as much as I loved Spider-Man, pump out some more R&C!
 

mckmas8808

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Actually doing more research in 2006 it was 13%.




Of course each contract is different from each other... Sony and Insomniac is not a normal 3rd-parry dev, publisher, platform holder contract because Sony is both publisher and platform holder.
I always thought the Devs get 30%. But all these years I had it backward. The PUBLISHER gets that 30%. WOW! Okay good to know.
 
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