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The Snitch: PlayStation has acquired a publisher with 'S' in the name

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I highly doubt this is legitimate. I don’t see Sony buying SquareEnix or any major third party anytime soon, if ever especially since their relationship with SquareEnix is so close. In fact, the most I see Sony acquiring would be a small indie studio that makes live service games that happens to have a name that begins with “S”.
 

SJRB

Gold Member
SeeDee Projekt Red


tumblr_oynyiz5VdN1u1ljrzo1_540.gif
 

Zheph

Member
I highly doubt this is legitimate. I don’t see Sony buying SquareEnix or any major third party anytime soon, if ever especially since their relationship with SquareEnix is so close. In fact, the most I see Sony acquiring would be a small indie studio that makes live service games that happens to have a name that begins with “S”.
They had a very close relationship with ABK too

Title was a massive bait anyway, there is nothing going on with SE
 
Please fucking no. They will westernize their games even more than before.
I definitely feel your pain, but it could be a double edged sword. If Sony procures SE, then they will probably Westernize or alter their games even more like you said or Microsoft might scoop in and eventually buy them and who knows what will happen to SE at that point.
 
From what little I've gathered, Square is one of the few major Japanese gaming companies to which there are no issues with Japan's foreign investment rules. The other being Capcom. As I understand it, that is because they are the only two who did not have ventures that fell into protected categories when Japan got really defensive of their economy during COVID. So while there are other potential issues in trying to buy them, there does not appear to be a government issue.



Square has now done two successful MMORPGs. Some would argue those are what helped spread the concept of GaaS.

Square also has a pretty strong mobile presence. Something Sony wants too. Also, Sony, not too long ago, said they were going to make strategic investments, with an emphasis on IP.

They want those transmedia opportunities and Square has a fair few to pull from.

In addition to it almost certainly being a defensive move if they do it, there are other good reasons why Sony would want to own them.
Yeah, but they also come with a lot of redundancies and expenses… if Sony acquired them it would be to basically shutdown the company and just keep the mmo studio. I don’t know, they already get the games for free, not sure what they would win by purchasing them. I also have the feeling that a significant chunk of SE sales come from the Switch. I guess that for Sony it is better to keep the company as it is since they are already shareholders.
 
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Zheph

Member
Yeah, but they also come with a lot of redundancies and expenses… if Sony acquired them it would be to basically shutdown the company and just keep the mmo studio. I don’t know, they already get the games for free, not sure what they would win by purchasing them. I also have the feeling that a significant chunk of SE sales come from the Switch. I guess that for Sony it is better to keep the company as it is since they are already shareholders.
They are not shareholders anymore

https://venturebeat.com/games/sony-...hares-in-final-fantasy-publisher-square-enix/

Also they will likely keep the Nintendo business if they acquire IMO
 

Ecotic

Member
If we're assuming Sony wants to make Square-Enix's games excIusive, then I don't think Square-Enix would be a viable acquisition for Sony. They'd have to pay a market premium, and Square-Enix sells a lot on Nintendo and PC. So, Sony would essentially be paying a market premium to acquire substantially less than 100% of their business. The value of having exclusivity would have to make up all the difference in lost sales plus make up for the premium over market value offered. And talent could leave after the acquisition, which often happens in these situations, making the acquisition less attractive. I just don't see it happening unless Sony has made a panicky, impulsive decision.
 

Metnut

Member
M&A Agreements among publicly traded companies are subject to tight confidentiality procedures. There’s a reason no one knew about Bethesda and Activison until it happened. This type of information would materially affect share price. The “leaker” here is very likely full of shit.

BTW there’s been no recent significant movement of square Enix stock price which would’ve surely jumped if anything had leaked regarding an acquisition.
 

Unknown?

Member
If we're assuming Sony wants to make Square-Enix's games excIusive, then I don't think Square-Enix would be a viable acquisition for Sony. They'd have to pay a market premium, and Square-Enix sells a lot on Nintendo and PC. So, Sony would essentially be paying a market premium to acquire substantially less than 100% of their business. The value of having exclusivity would have to make up all the difference in lost sales plus make up for the premium over market value offered. And talent could leave after the acquisition, which often happens in these situations, making the acquisition less attractive. I just don't see it happening unless Sony has made a panicky, impulsive decision.
Microsoft did it with Zenimax, it shows that that model works.
 

mdkirby

Member
The only reason this shouldn’t be instantly ignored is the past tense. Knowing after the fact (by which time insiders will actually start to become aware) is feasible. Knowing before the fact is almost always complete bullshit, as so few people would actually know and there’d be much more significant legal consequences, particularly if they are publicly traded.

Personally I hope it’s not an S and it’s Annapurna 🤷‍♂️…as for devs I’d love them to buy frogwares so they can have security and be able to make big budget detective games.
 

Fabieter

Member
If we're assuming Sony wants to make Square-Enix's games excIusive, then I don't think Square-Enix would be a viable acquisition for Sony. They'd have to pay a market premium, and Square-Enix sells a lot on Nintendo and PC. So, Sony would essentially be paying a market premium to acquire substantially less than 100% of their business. The value of having exclusivity would have to make up all the difference in lost sales plus make up for the premium over market value offered. And talent could leave after the acquisition, which often happens in these situations, making the acquisition less attractive. I just don't see it happening unless Sony has made a panicky, impulsive decision.

Sony will release everything on pc going forward so that point doesn't hold a candle. I think sony would still support those aa games on switch but ofc they wouldnt be timed exclusives to nintendo anymore.
 

Fabieter

Member
M&A Agreements among publicly traded companies are subject to tight confidentiality procedures. There’s a reason no one knew about Bethesda and Activison until it happened. This type of information would materially affect share price. The “leaker” here is very likely full of shit.

BTW there’s been no recent significant movement of square Enix stock price which would’ve surely jumped if anything had leaked regarding an acquisition.

Actually Bethesda was private. It would have been close to t2 in pricing if it wasn't.
 

Varteras

Gold Member
Yeah, but they also come with a lot of redundancies and expenses… if Sony acquired them it would be to basically shutdown the company and just keep the mmo studio. I don’t know, they already get the games for free, not sure what they would win by purchasing them. I also have the feeling that a significant chunk of SE sales come from the Switch. I guess that for Sony it is better to keep the company as it is since they are already shareholders.

I don't know how you could come to that conclusion. Every major company is going to come with a lot of redundancies and expenses. As I already explained, SE has a strong mobile presence and various IP that Sony could use for their transmedia. They aren't getting games for free, either. They're paying for exclusivity and already helping develop games like FF16. That's not exactly free.

SE's multiple internal teams are nothing to sneeze at. Unit 1 is doing the FF7 remakes and Kingdom Hearts. Unit 2 is working on Dragon Quest, which is big in Japan, and the Octopath games. Unit 3 does FF14 and just released FF16. Then a smaller team that works on more obscure games. It would make zero sense to shut those teams down. There isn't a conceivable reason for it.

I find it highly unlikely that a significant enough chunk of SE's sales are happening on Switch that it would terribly bother Sony to stop SE from releasing games on it. Seeing as how many of the bigger games don't release on it anyways. We also don't even know how Sony would handle games that release on Switch going forward. For all we know, they could continue. We already learned that a huge portion of PlayStation owners also own a Switch. PlayStation's success is not significantly impeded by Nintendo's, if at all.

As someone already pointed out. Sony hasn't been a shareholder of SE for almost 10 years.
 

Little Mac

Member
Couldn’t “P x S” have something to do with the name or logo of the rumored disc drive-less slim model expected to be announced soon?
 
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SmokedMeat

Gamer™
Not sure how that tweet translates into Sony buying a publisher, or that people seem okay with the market leader taking Square - a major Nintendo/PC supporter- off the table.
 

SlimySnake

Flashless at the Golden Globes
Anything other than GTA is a gigantic waste of money. It wont move the needle and give them the leverage they need against CoD. FF games are practically exclusive so no point in buying SE anyway. Hell, MS can live without even Capcom at this point. I think SF and RE had like a 20% market share on the xbox consoles.

SE will likely cost them $5 billion. they have already wasted $3.5 billion on Bungie. Right now is the time to go buy MS, every year they wait, Take2 becomes more expensive and MS gets one year away from a big purchase. Which means MS will become one of the bidders. Right now, Sony will have no competition.
 

Gaiff

SBI’s Resident Gaslighter
We're literally witnessing the five stages of grief from fanboys.

1. Denial over Microsoft buying out Activision Blizzard and claims that the acquisition would get blocked

2. Anger over Microsoft acquiring them, citing problems such as Microsoft potentially mismanaging the IPs and ruining the studios

3. Bargaining. This is where we're at and surely, Sony must respond in kind to this. They can't just let this go unanswered.

Then we have Depression and finally, Acceptance.
 

Fbh

Member
That's a definate double standard, either its bad for the industry or its not. It's just going to be very convenient that all of the sudden all those who condemned the Activision deal will be A-ok with Sony buying square.

No doubt they will just try and hide behind them being smaller, regardless of the talent and key IP's they have.

Except it's not. You can't just ignore the context.

Yes, consolidation is bad for the industry. Ideally you'd want all major third party publishers to remain independent and release their games on all platforms.
But that's no longer the reality of the market and it was MS who changed the paradigm when they made the biggest acquisition in gaming history by buying Bethesda, and now they've doubled down by getting Activision Blizzard.

What is Sony supposed to do? Just go "consolidation is bad" and do nothing as MS keeps buying publishers?
In a vacuum, Sony buying Square is bad.
Sony buying Square in the context that Square might otherwise be acquired by MS is something I can support.
 

yurinka

Member
The “leaker” here is very likely full of shit.
This leaker always has been right. But he never said that Sony will buy Square, he only tweeted 'P x S'.

It's the OP ( Draugoth Draugoth ) who made the guess that it had something to do with Sony acquiring someone.

Actually Bethesda was private. It would have been close to t2 in pricing if it wasn't.
No way, GTA, RDR and NBA2K alone are worth more that anything Zenimax did in like the last 10 years combined.

Bethesda has to prove that when they won't repeat the failures they had when they moved Elder Scrolls and Fallout to GaaS and that still are able to release super successful games again as they did a few times a couple generations ago.

What is Sony supposed to do? Just go "consolidation is bad" and do nothing as MS keeps buying publishers?
With their current strategy Sony is dominating MS and growing in all areas, increasing their lead over MS.

So I'd continue with the same strategy:
  • Increasing the manpower in all their teams to allow every studio work in more games at the same time
  • Grow in top key areas were their 1st party traditionally hasn't been top or where they have a lot of potential to grow: MP, GaaS, PC, mobile, eSports, VR, cinema/tv adaptations, top genres they don't dominate like shooters
  • Acquire support teams or hire new staff needed to approach these new areas and to keep their existing staff on releasing new PS games
  • Grow investment in 1st, 2nd, 3rd party (both AAA and indie) exclusives, both GaaS and non GaaS, both new IPs and sequels
  • Focus acquisitions on talent needed to grow in these strategic areas, people who is experienced in releasing top performing or top quality games, specially creating new IP (Sony approach) instead of focusing on acquiring big IPs and related studios who lost most of the key talent that made them big (MS approach)
  • Tweak and improve game subs but doing it with a healthy business model (not putting all theire games day one games there)
Sony's strategy may be less flashy for PR news in the short term, but it's smarter for the long term. Also makes more sense in terms of finantials.
 
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