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[oldergamer]

I wasn't gonna listen to you, at first, but then I noticed you switched to bold text and, thus, should be taken seriously.

LOL WHAT ABOUT CAPS?

 

[Shmunter]

The synergies here are more about motion pictures than epic game store etc

 

[Bo_Hazem]

My universes, I mean eco-systems, are merging....

Is that some weird ass?

These are two blackholes merging into one massive blackhole, not the one you might wanna tickle.

 

[ethomaz]

These are two blackholes merging into one massive blackhole, not the one you might wanna tickle.

Two weird asses merging each other... these universe asses are really not simple

 

[Zeroing]

I wasn't gonna listen to you, at first, but then I noticed you switched to bold text and, thus, should be taken seriously.

finally someone that understands the rules lol

 

[DeepEnigma]

I would not be at all surprised if Sony was looking to migrate some of their internal studios to Unreal Engine.

Bend used UE4 for Day's Gone. Returnal uses UE4 as well.

 

[JaksGhost]

So Epic is to help make new televisions and headphones? Gotcha.

Sony Music Entertainment and Sony Pictures have both already leveraged tools provided by Epic. Oh and yeah they do help them with some of their displays:

Sony and Epic Games Are Changing Virtual Production, and This Matters to All Filmmakers

The incredible resolution, dynamic range, and color accuracy of Sony’s Crystal LED displays come together with Unreal Engine to create realistic images that empower the filmmaking community.

nofilmschool.com

 

[Bo_Hazem]

Bend used UE4 for Day's Gone. Returnal uses UE4 as well.

Also Sackboy A Big Adventure. I think Destruction Allstars as well. There are many if we gonna dig.

But I think this has nothing much about gaming.

 

[SLB1904]

It's not that, buddy. The thing has been explained countless times already...

people are praying for sony to run out of money, i love how some are subtracting from the supposed budget from 2 years ago lol

 

[Oddvintagechap]

Sony is about to put 1 billion in Epic a year. They had a little taste, now they are addicts.

At this point, why look to buy Bungie and possibly Capcom. Just put 10 billion more into Epic. Sony would be betting on Epic becoming a 100 billion $ company.

 

[John Wick]

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.


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.

It's probably a bit of both. Obviously Sony make movies and TV shows as well as games. This helps bring Sony closer to Epic. It's a win win for Sony both ways. Their investment will increase in value and they will have access to Unreal engine for whatever needs etc etc.

 

[AllBizness]

Make EGS the hub for Sony's first party output on PC, what else.

This is such a ridiculous take. Steam has the largest userbase and if not for Steam no PlayStation games would even be on PC. This is an investment for Sony corp, the gaming division had nothing to do with this purchase.

 

[Hendrick's]

Bend used UE4 for Day's Gone. Returnal uses UE4 as well.

Also Sackboy A Big Adventure. I think Destruction Allstars as well. There are many if we gonna dig.

But I think this has nothing much about gaming.

I was talking the bigger studios.

 

[Craig of War]

This just means more money for Tencent
Waste of money for Sony
Should used that 1 billion to buy more game studio

 

[Shining Star]

One billion dollars! They must own the whole company at this point.

 

[Oddvintagechap]

One billion dollars! They must own the whole company at this point.

10 years ago.

 

[Bo_Hazem]

I was talking the bigger studios.

Bigger studios use their own to squeeze as much as possible out of PS platforms. UE4 is a sloppy engine and Housemarque bashed it due to constant troubles they had with it and forced them to 1080p and still had plenty of trouble. The dev called it "typical Unreal" as to be known for such things. Bend dropped unreal and moving to Decima going forward.

If you got the talent to make solid engines then you don't really need UE. UE5 could be much better, but time will tell if it's not too unnecessarily taxing.

 

[ReBurn]

Cementing that "Unreal Engine games are better on PS5" position

 

[Kokoloko85]

What's your endgame here Sony?

Probably compete with Steam?
Maybe they feel Gabe is more cozy with MS and might sell lol

 

[8BiTw0LF]

This just means more money for Tencent
Waste of money for Sony
Should used that 1 billion to buy more game studio

Sony owns 5% of Epic now - let's do the "math"..

~$5 billion in revenue each year - will undoubtedly rise because:

Multiple game studios switching to UE5
~50% increase in EGS user accounts every year

I'll say that's a pretty good investment.

 

[Shining Star]

10 years ago.

Oh, I didn't think they owned them before now. Explains why they are doing so well.

 

[lh032]

.

 

[lh032]

They wouldn't, it would/could be a byproduct of the investment.

 

[DeepEnigma]

I was talking the bigger studios.

I don’t think they will, with Decima and Insomniac as well as ND having their own that gets lowest level of the API.

 

[MasterCornholio]

Two weird asses merging each other... these universe asses are really not simple

 

[Yoboman]

What's your endgame here Sony?

Probably technology exchange and a seat at the table of the guys who will largely dictate the direction of gaming engines

 

[Iced Arcade]

A nickel a day keeps Tencent away.

Tencent owns 40% of Epic lol

 

[GamingandFootball]

better for us that its "invested" and not denied

 

[Clintizzle]

Sony benefits from Epic/Unreal engine in many ways that are not to do with gaming or Playstation I think.

 

[zedinen]

I'm seriously concerned about how Jimbo and Hermen are spending the well earned Sony money in the past Playstation generations into a bunch of random bullshits.

Sony invests in Epic Games through Sony Corporation of America.

You should be concerned about how Yoshida and Totoki are investing in Pictures, Music and Financial segments the well earned PlayStation money during the Jim Ryan era.

Remember how they assassinated Japan Studio aka one of the most innovative game dev of all time, but there seem no problem to them into throwning Millions and Billions into Epic games.

Ken Kutaragi, a genius beaten by his own ego, burned down the house and left Japan studio in shambles.

Hirai, House and Ryan saved whatever could be saved.

Jim Ryan gets the job done on tight budget, while Yoshida splashes out billions.

From its inception, PlayStation has been treated like a side business, a piggy bank for Sony Pictures, Music, Financial and Electronics, and a trojan horse for their IPs and tech.

 

[In Cold Blood]

The amount of cash people are throwing at Epic is crazy. The meme of shut up and take my money couldn't be more ept.

 

[Hendrick's]

I don’t think they will, with Decima and Insomniac as well as ND having their own that gets lowest level of the API.

Maybe short term. But it will continue to become more difficult and expensive to keep updating their own internal engines as time goes on. Of course, it will depend on how well they can get UE5 working on their boxes.

 

[Amiga]

What's your endgame here Sony?

more outsourcing of engine use? if they will depend more on a 3rd party they may want more leverage.

 

[K2D]

Tencent owns 40% of Epic lol

Well, that better than 50%, ain't it...?

 

[Beechos]

Nice unreal engine 6 ps6 showcase confirmed

 

[Shmunter]

Nice to see MS pushing unreal so hard on Xbox. Will fund many PS exclusives.

 

[Captain Toad]

Nice to see MS pushing unreal so hard on Xbox. Will fund many PS exclusives.

It is strange how Sony is investing so much in Epic. Meanwhile, Microsoft is using it for basically all of their first-party games, while Sony studios are almost all using their own engines.

 

[Shmunter]

It is strange how Sony is investing so much in Epic. Meanwhile, Microsoft is using it for basically all of their first-party games, while Sony studios are almost all using their own engines.

Wonder if it will become more prominent at Sony at some point. Days Gone was the first AAA I think?

 

[Varteras]

Wonder if it will become more prominent at Sony at some point. Days Gone was the first AAA I think?

I believe Firesprite, PixelOpus, and Haven were confirmed to be using UE5. I'm guessing Bend will also use it for their next game since their last one ran UE4 and they're not likely far along on their current project.

 

[S0ULZB0URNE]

More? What Sony games have been exclusive to Epic previously?

Exactly! but he knows this.

 

[Ass of Can Whooping]

Maybe short term. But it will continue to become more difficult and expensive to keep updating their own internal engines as time goes on. Of course, it will depend on how well they can get UE5 working on their boxes.

Unreal Engine is a one size fits all and that comes with its own issues. They'll continue to use their own in-house engines

 

[S0ULZB0URNE]

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

And some type of dibs with Fortnite

 

[Craig of War]

Sony owns 5% of Epic now - let's do the "math"..

~$5 billion in revenue each year - will undoubtedly rise because:

Multiple game studios switching to UE5
~50% increase in EGS user accounts every year

I'll say that's a pretty good investment.

It not i rather they used that 1 billion to buy like 4 plus Insomniac size game studio
considering Sony bought Insomniac for 229 million

 

[Insane Metal]

Why not invest that money in some new studios...

 

[Ass of Can Whooping]

It not i rather they used that 1 billion to buy like 4 plus Insomniac size game studio
considering Sony bought Insomniac for 229 million

They have the capital to do both. It's not a one or the other

 

[S0ULZB0URNE]

Why not invest that money in some new studios...

This

 

[Craig of War]

They have the capital to do both. It's not a one or the other

Do they? why invest more in Epic when Tencent own 40% of Epic already and Epic is 3rd party so what is there to be gain much from it at all

 

[Varteras]

It not i rather they used that 1 billion to buy like 4 plus Insomniac size game studio
considering Sony bought Insomniac for 229 million

The problem with that is a studio like Insomniac would cost more than that now. Way more. Even then, Sony got them for a steal. Today? Between inflation (one of the reasons these companies are dumping reserve cash) and the market climate for acquisitions, you're not getting a studio like Insomniac for anywhere near that. I wouldn't even be surprised if the average cost of the studios Sony has bought since last year is $250 million. Not including Bungie.

We have to remember that Sony isn't Nintendo. Gaming is not their sole focus. They have other ambitions, too. Not only does Epic offer them other uses like for movies and music, but as others have pointed out, their valuation is increasing quite a bit. Buying stock in a company whose value is rapidly growing and expected to continue is a very smart move for the future. The investments like that which they make now could very well lead to bigger things down the road. Imagine investing a billion now and having that be worth five billion in a few years.

And yes, Sony has plenty of money to work with. This $1 billion isn't going to prevent them from making a lot of other moves. As of December 2021, they had $19 billion in cash reserves (actual cash and marketable securities) and have shown the ability to add as much as $13 billion into those reserves in a year. As they did in 2020. Their current assets (cash, marketable securities, and assets they could sell within one year) are valued at $47 billion right now. They also have a very low long-term debt to net asset ratio of 3%. Meaning they have plenty of room to even take out a big loan if they wanted.

 

[Ass of Can Whooping]

Do they? why invest more in Epic when Tencent own 40% of Epic already and Epic is 3rd party so what is there to be gain much from it at all

Of course they do. They've been doing exactly that for the past year.

Why do you think any company acquires minority stakes? It doesn't all revolve around M&As. When they use the word partnerships with these investments it's not just PR talk. Minority stakes facilitate cooperation.

 

[Craig of War]

The problem with that is a studio like Insomniac would cost more than that now. Way more. Even then, Sony got them for a steal. Today? Between inflation (one of the reasons these companies are dumping reserve cash) and the market climate for acquisitions, you're not getting a studio like Insomniac for anywhere near that. I wouldn't even be surprised if the average cost of the studios Sony has bought since last year is $250 million. Not including Bungie.

We have to remember that Sony isn't Nintendo. Gaming is not their sole focus. They have other ambitions, too. Not only does Epic offer them other uses like for movies and music, but as others have pointed out, their valuation is increasing quite a bit. Buying stock in a company whose value is rapidly growing and expected to continue is a very smart move for the future. The investments like that which they make now could very well lead to bigger things down the road. Imagine investing a billion now and having that be worth five billion in a few years.

And yes, Sony has plenty of money to work with. This $1 billion isn't going to prevent them from making a lot of other moves. As of December 2021, they had $19 billion in cash reserves (actual cash and marketable securities) and have shown the ability to add as much as $13 billion into those reserves in a year. As they did in 2020. Their current assets (cash, marketable securities, and assets they could sell within one year) are valued at $47 billion right now. They also have a very low long-term debt to net asset ratio of 3%. Meaning they have plenty of room to even take out a big loan if they wanted.

I believe Insomniac priced for 229 million only is because they do not own any valuable IP since all of the IP they worked on were own by Sony so that why they were priced like that
even if bought today would be priced similar cause they own no IP
Bungie on the other hand is priced like that cause they owned 1 of the biggest FPS IP ever
Destiny IP alone is probably worth more than 1 billion plus