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Sony has invested another $1b in Epic Games
- Thread starter HeisenbergFX4
- Start date
adamsapple
Or is it just one of Phil's balls in my throat?
More "EGS exclusive" Sony games coming soon to PC.
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oldergamer
Member
Interesting. I don't think this is specifically a "game exclusivity deal" but since they both mention the "metaverse" this kinda becomes a "who cares?" moment for gamers imo.
Captain Toad
Banned
What's your endgame here Sony?
adamsapple
Or is it just one of Phil's balls in my throat?
Make EGS the hub for Sony's first party output on PC, what else.
Tiago Rodrigues
Member
That's 4 Insomniacs btw
rickybooby87
Member
So, about a year ago, Sony invested 200M, then they turned around and sank another 1B, all total, if you base it off Market Cap, Sony has a 3.5% stake. If, they actually received shares in a linear fashion to dollars.
still making good money off it. not everything needs to turn into an acquisition
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This is the Sony Group investing not just PlayStation. As they say they’re interested in the virtual production things (tv, movies, sports) too. That’s a big part of Sony’s business besides Game creation. But of course games, too, and brand partnerships for things like Fortnite and UE marketing.
skit_data
Member
Nah, not necessarily. It could just be an investment. From the looks of it, Epic shares will only become more and more expensive.
Topher
Gold Member
More? What Sony games have been exclusive to Epic previously?
BennyBlanco
aka IMurRIVAL69
probably a good investment just financially and likely has nothing to do with playstation
kanjobazooie
Mouse Ball Fetishist
skit_data
Member
Yeah, that’s true. They’ll still make good money from it but I mean they could’ve gotten a lot more for these billions of dollars a few years ago.
oldergamer
Member
i suppose, that investment likely takes 1 billion of the money sony set aside for acquisitions and investment
Varteras
Member
Sweeney still has controlling stake in the company. This is Sony getting leverage on a company with probably the most popular third-party engine, one of the most popular live-service games, a PC storefront, and is expanding into a larger media presence than just games. Which Sony as a whole is very interested in.
Terrible business decision then.
Varteras
Member
Eh. That was a 3-year budget laid out a year ago. Not a lump sum they set aside. Things have likely changed. Sony's language regarding investments and acquisitions has become increasingly aggressive. I fully expect them to alter that initial budget plan.
adamsapple
Or is it just one of Phil's balls in my throat?
ReadySet Heroes and Predator: Hunting Grounds by a quick google search.
But I imagine they're investing for a reason afterall.
iHaunter
Member
Not anymore. Insomniacs evaluation is far higher than that now. They bought them when they were tiny.
Ass of Can Whooping
Gold Member
Should be just above 6% now
Interfectum
Member
You have it flip flopped. Epic would pay Sony for exclusive first party games.
Sony is buying direct access to Epic. Unreal Engine 5 and Fortnite.
Ass of Can Whooping
Gold Member
It's not for EGS exclusives I can tell you that
skit_data
Member
Another thing is UEs growth of being used in film production. It will probably see even more wide spread use outside of just gaming in the coming years. In that sense it seems to be a very safe investment.
There could also be some interests from Sonys side to see their technologies being used since they have a lot of tech that will be used by Epic in UE.
8BiTw0LF
Banned
Shouldn't Epic be paying Sony then?
ethomaz
Banned
And RAD tools.
It is more like free licenses to these that want to develop PlayStation games use.
The fact even with Sony putting money on Epic they created a publisher entry in Steam tells a lot where their games will be.
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adamsapple
Or is it just one of Phil's balls in my throat?
Makes sense.
But I still expect Uncharted Legacy Thieves collection to launch on EGS exclusively for a bit
Sony has $10 billion left to spend on acquisitions through 2023
Sony's latest financials confirm it has roughly $10 billion left of its total $18 billion budget to spend on strategic buyouts.
www.tweaktown.com
~10 billion left
- 1 billion for Zee Entertainment I think
- 1 billion for Epic
- 200 million for another round of stock buy backs
around 7.8bn currently budgeted left.
Hopefully they give an updated in a months time.
yurinka
Member
Yes, the budget they have for acquisitions (which now there should be maybe around 7 Billions left) is for investments. Includes investments like this one, or for acquisitions, or for repurchase of Sony stocks.
We also should substract the unknown amount of money they paid for Haven.Sony has $10 billion left to spend on acquisitions through 2023
Sony's latest financials confirm it has roughly $10 billion left of its total $18 billion budget to spend on strategic buyouts.
~10 billion left
- 1 billion for Zee Entertainment I think
- 1 billion for Epic
- 200 million for another round of stock buy backs
around 7.8bn currently budgeted left.
Investors earn money by investing on profitable companies, I assume Sony knows or expects Epic to continue being protitable and grow in the following years due to UE5 (not only in gaming, but also for movies, tv shows, ads, architecture...). Pretty likely this investment isn't to get exclusives for PS, or anytning related to the EGS. Only a strategical investment to make money and improve their relationship with a strategical partner.
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RoboFu
One of the green rats
its more than likely just a smart investment seeing URE5 is going to be used by everyone and their momma. some sort of deal involving EGS is simply a byproduct.
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Varteras
Member
For sure. Looking at the press release, the language there kinda says it all. This is an investment with much wider implications than just games.
Topher
Gold Member
Oh....ok. Thought you were talking about games more well-known. Would certainly need to Google to find those.
Makes sense.
But I still expect Uncharted Legacy Thieves collection to launch on EGS exclusively for a bit
Sony is paying Epic to make Uncharted Legacy Thieves collection EGS exclusive?
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link if you can find it?
Sony adds $200M to its investment in Epic Games
Epic Games, makers of Fortnite, Rocket League, and Fall Guys, on April 13, 2021 announced another $1 billion round of funding from more than a dozen sources, including another $200 million from Sony Group Corporation. Sony already invested $250 million in Epic Games in the summer of 2020. CEO...
www.polygon.com
450m in previous 2 rounds but yeah, we don't know what the valuation was at the time. 2.8% does sound reasonable though.
ethomaz
Banned
Sony has $10 billion left to spend on acquisitions through 2023
Sony's latest financials confirm it has roughly $10 billion left of its total $18 billion budget to spend on strategic buyouts.
~10 billion left
- 1 billion for Zee Entertainment I think
- 1 billion for Epic
- 200 million for another round of stock buy backs
around 7.8bn currently budgeted left.
Hopefully they give an updated in a months time.
Just to be clear that budget is not fixed and can be changed anytime.
It is just more than that outside that already approved budget you need another approve from the board but that can happen anytime.
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adamsapple
Or is it just one of Phil's balls in my throat?
Y'all are taking apart posts way too much lol.
No, like another person said above, it would/could be a byproduct.
ethomaz
Banned
I just checked... it was actually 1.4%... 2.8% was the From Software owner company.link if you can find it?
Sony adds $200M to its investment in Epic Games
Epic Games, makers of Fortnite, Rocket League, and Fall Guys, on April 13, 2021 announced another $1 billion round of funding from more than a dozen sources, including another $200 million from Sony Group Corporation. Sony already invested $250 million in Epic Games in the summer of 2020. CEO...
450m in previous 2 rounds but yeah, we don't know what the valuation was at the time. 2.8% does sound reasonable though.
/cdn.vox-cdn.com/uploads/chorus_asset/file/10437351/fortniteiphonex.JPG)
Sony buys $250 million stake in Fortnite creator Epic Games
Sony and Epic have worked closely together for years.
www.theverge.com
"The investment gives Sony a 1.4 percent stake in Epic"
Not taking in account the variation of the shares values... $1b should give Sony around +5% of the shares.
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Topher
Gold Member
No I'm not. That was your initial point.
If you want to say you meant it would be a "byproduct" then fine. But frankly, I don't see any exclusivity deal in this at all. Just doesn't make any sense.
That makes no sense, all ps pc releases have even been announced on steam.
This has more likely to do with the prevalence of unreal engine in the movie industry
For sure, the next earnings call shall be interesting. I have to believe we are getting revised shipment targets for PS5 and a budget change.
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Saber
Member
Why the heck Sony would pay to give them exclusivity?
DenchDeckard
Moderated wildly
theres only been returnal so far thats used UE right, from sony first party?
Maybe, more games will use UE5 in the future from Sony?
Also, from how much money Fortnite makes it just makes sense to be invested. It actually surprises me that MS hasnt purchased in any shares for how many games use UE.
Maybe, more games will use UE5 in the future from Sony?
Also, from how much money Fortnite makes it just makes sense to be invested. It actually surprises me that MS hasnt purchased in any shares for how many games use UE.
adamsapple
Or is it just one of Phil's balls in my throat?
They wouldn't, it would/could be a byproduct of the investment.
ethomaz
Banned
I believe the Forecast this time will be very conservative after all they will miss the last one around 4 million.
The silicon production issues didn't end yet.
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