Michael Pachter: 'If Sony Were Smart, They'd Make a Move for WB Games' - News
by William D'Angelo , posted on 01 May 2022 / 3,539 Views
Microsoft and Sony have both been acquiring multiple studios in recent years to grow the first-party lineup of games for Xbox and PlayStation.
Key Microsoft acquisitions include Bethesda's parent company ZeniMax, as well as working on acquiring Activision Blizzard right now. Key Sony acquisitions include Destiny developer Bungie and Jade Raymond's Haven Entertainment Studios.
Wedbush Securities analyst Michael Pachter in his latest Pachter Factor video posted on YouTube said that Sony should try to acquire Warner Bros. Games.
"I think if Sony were really smart, they’d make a move for Warner Bros. Interactive," Pachter said. "But Warner Bros. Interactive isn’t worth full price without the rights to exploit the DC Comics franchises.
"So it’s an open question whether Warner Bros. is willing to fix the license that is paid for those properties to, you know, $5 million a year, $50 million a year, some number that’s manageable, and commit that they will have a perpetual renewal.
"If you can’t make Warner Bros. properties like Lord of the Rings and Harry Potter and DC Comics, then it doesn’t really make sense to buy Warner Bros. Interactive. There are brands there that are really good. You know, like Mortal Kombat and Injustice, but Injustice has DC characters. But they’re about the only ones I can think of out there that are sizeable and nominally are for sale."
Thanks, GamingBolt.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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<strange far out thought>
Actually......why not buy all of Warner Brothers Discovery?
I mean thats a better fit than just the game studios minus licenses.
Buying all gets you
-game studios + licences -----Combine with Sony existing structure
-movie studios -----Combine with Sony existing structure
-tv studios -----Combine with Sony existing structure
-tv channels -----Combine with Sony existing structure
-digital distribution
Price though would be around $60billion so would likely have to be a merger/share offer rather than cash as i doubt they have the cash for something that size.
They could try free cash plus debt, but who knows if it would be approved (the credit).
Sony should hire this guy so he can show them how to run a successful business, lol!
He answered his own statement. What is the point of buying the game studios when they don't come with the licences? Just open a bunch of new studios instead, make great games. Wish all companies would do this. Enough carving up the industry and support it by creating jobs.
People also need to remember that hiring is a nightmare right now. Major shortages across the industry. Acquiring these studios would be a huge talent acquisition haul at a time when hiring is very difficult
Buying established teams is far, far easier than building them from scratch. That's one of the primary reasons for most acquisitions. The other big factor being IP.
Sony lacks behind others in other genres like FPS and Fighters. Securing Bungie helps one genre however a 1st party fighter is needed to balance out the brand. Nintendo has Smash Brothers and Xbox has Killer Intinct.
There are more fighting games on PlayStation 4 (over 100) than xbox one and switch combined, over hundred PlayStation 4 fighting games including console exclusive sign as street fighter 5, king of fighters 14, Granblue Fantasy: Versus, sifu, Guilty Gear XRD, Guilty Gear Strive, it's why manufacturer hori makes more models on joysticks for PlayStation 4 than switch, xbox one, xbox 360 and wii u combined
You missed the point entirely. Sony has to continue to moneyhat fighters to fill the void where as their own competitors have in house fighters. Sony owns EVO and would make sense for them to either make a new IP fighter or buy one entirely.
Sure, Sony really need something to stand against Killer Instinct kkkk
Its inhouse and offers a cult following that also is a competitive fighter. Regardless if you like it or not.
Doesn't seem to bring considerable userbase or profit so not something Sony needs to counter, even more when they have all major fighters present on their console.
KI is a 2013 game and considered one of the better fighting games of last gen. The fanbase begging for a sequel.
Smash Brothers made Nintendo a fortune and brought in a big userbase.
Sony are paying to have fighters on their console.
Do you want to bring us the revenue numbers from KI? And while you are at it also bring how much the games Sony paid for brought them?
I have no idea of the revenue for KI but its still a fighter that isnt 3rd party. What about Smash Bros? Surely you understand that make makes Nintendo a small fortune. Also SFV ring a bell?
I would bet with you that Sony profited more from SF V than MS did from KI. And the point of business is making money so there is no need for Sony to respond to MS in fighting games. And besides Smash (which Sony would hardly be able to respond to, they tried and although I liked the game it was a massive failure as competition) there is also nothing for Sony to concern on fighting.
I wouldnt be calling SFV a success. It missed its sales target of 2m in its first year, only reaching 1.4m. The exclusivity also hurt the iP losing fans which are all multiplatform.
The point being made here is that Sony has to rely on others to fill the gaps in their genres.
Having their own 1st party iP Fighter allowes them more freedom and control to satisfy the PS fighter audience. We dont know what future exclusive deals may happen with these fighters.
If MS or Nintendo lose MK or SF, they have their own IPs to fill the void, if Sony lose them.. well what do they do?
Its also more convient for Sony with EV.
Sony have explicitly said numerous times that their 1st party efforts were exactly to fill out and not compete with the major 3rd party offerings. That was the reason PS4 didn't had any relevant 1st party game of genres like FPS, Fighters, MMOs, etc. You may not like it, and sure Sony can change it, but it have been seem to work fine for them so far.
As pointed out to you PS received like hundred of fighting games so losing SF (MS did lose it and KI didn't nearly covered it, but sure pretend it did) or MK wouldn't kill them.
They have the offerings now, sure. Will they have them forever? their is no future guarantee. KI was a solid fighter that had the fighter audience turn their heads and it helped boost XB1 sales. The issue for me is the reliance that can be taken away by opposition. The reason you don't hear KI's success or profits was because the game was a free game. And petitions have been made for a sequel by professional players.
In the end, its better to own the IPs than rely on others. Sony aren't going to fold or lose traction however it does remove relying on others to keep an audience gaming on their platforms.
I replied to your other comment to keep it simpler.
Thats fine, Sony can continue to operate how they see fit, however with stronger competition and the industry changing, its not a bad idea to knuckle down on some IPs missing in their library. Adding a popular fighter to their catalog of games makes a lot of sense for them as well as leading EVO.
If i was one of the 3 console makers, id be jumping on MK and Netherealms.
My point is Xbox have their own fighter to release if they need to satisfy fighter fans. SFV was exclusive to PS4 and it wasn't much of a big deal because Xbox had their own solid fighter. This can be argued with other genres as well, like you brought up FPS.
Sony needs to rely on COD and other 3rd party FPS games to keep that audience coming back. They don't have anything to keep the FPS crowd satisfied on their own merits without paying and outsourcing them. Look what happened to Sony shares when MS announced the buy out of Activision Blizzard? Sony lost billions because they rely on others to fill their catalog of games. The moment there is a risk in losing that IP, shareholders jump ship.
This isn't about winning awards or scores, its about satisfying different audience. Sony doesn't need to buy a fighter IP but they sure as hell went in securing Bungie who make FPS games for $3b after MS brought Bethesda and got hold of a plethora of FPS IPs. Coincidence?
Xbox isnt following Sony anymore, look at the reality, they are staying course with their plans. If anything look at the changes Sony is making to their brand this generation. PC games, Online Games, New Services etc.. These are changes Xbox made last gen. That is not a coincidence.
MS buying studios wasnt a reponse to Sony, it was a response to GamePass and the lack of 1st party games in general. Nothing to do with Sony.
All i am saying is Sony should take the opportunity to buy MK before someone else does. They dont have a fighter and MK has a cult following plus makes sense for EVO.
You even said it would be nice if they had there own fighter.
Okay than will leave it there as an agree to disagree topic.
I also represented facts. Does Sony own a 1st party fighter IP, no. Fact. Would buying MK remove the reliance on outsourcing for a fighting game? Yes, Fact. Would this benefit EVO and give Sony more control in the fighting scene? Of course. Fact.
As a buisness standpoint, it makes more sense to cover all grounds with internal IPs and have 3rd party only boost rather than rely on.
But we can agree to disagree since we are seeing this from two different angles. You see it as unnecessary where i see it as growth.
And you are aware that what is know is that what is being sold is the studios with exactly 0 IPs, so even if Sony bought the studios they wouldn't have the IP and also that they could even get the IPs without the studios?
At most one could say that there could be a benefit to Sony acquiring a studio that have good track record on fighters to create their own IP, but even that is very much disputable at the moment. Unless of course you think MS will buy another 30 studios and remove all fighters available on the market.
If Sony brought Neitherealms, im sure MK will come with it.
Also we dont know the future plans on buuouts, all we know is it isnt just MS.
Again the information available on Warner Bros wanting to sell is just Studios not IPs, so they wouldn't get MK or any other IP or license with it.
Thats where id try to negotiate and bundle the two together, it wont be worth it without the IPs. However money talks.
And as you said most likely limited time licensing and either they have to make it multiplat or they will pay a license that isn't exclusive for gaming and other studio could also make MK games. Truly wouldn't be worth the premium.
If the price for the studios without any IP was right sure Sony should go for them, they are good studios with good talent, but if they are to pay a price that is for top level studios + IPs and not get the IPs that would be a very dumb move.
Thats where id try to negotiate and bundle the two together, it wont be worth it without the IPs. However money talks.
Now tell us how many of the big fighting games are going to Switch and if Smash Bros doesn`t reduce a lot the space for those others to thrive.
Smash Bros dominates all other fighters in terms of popularity and also rakes in a fortune for Nintendo. Nintendo can survive without other fighters because they have their own. That's the point. Sony on the other hand, have to outsource 3rd party games in those genres to offer their fanbase that experience, something they have to continue to rely on doing because they dont own respective IPs in these genres.
If Sony want to grow past their previous success they need to expand and offer gamers more exclusive in other genres. Otherwise it will be the same old story of selling the same as last gen. Not adding any new fanbases to their eco systems. Sony are doing this with VR and are doing a good job keeping a lot of these 3rd party games on their system but in the end, its a reliance on others to continue their success and only takes a mega corporation to take some of that success away.
Yes Sony could buy for the talent of the team without caring for the IPs, but the price should be right for it. From what is being said they basically want to be paid for like the studios with IPs and deliver only the studios.
twintail was worried about potential closures and the impact on the workers I was just pointing out that while it maybe ideal from the outside for the studios to stay intact , Sony or any other interested parties aren't going to buy them just because Warner may close some of those those studios and was pointing out that Sony could just pick through the talent just like we have seen happen with other closed studios .
You are correct though if you have a specific project and need for an entire studio with experience in that particular genre or have a specific speciality that will help fill a gap then acquisition can be better than building from new , but in this case where talking about buying a bunch of studios without any IP or real concrete need for them. the real driver for Sony or anyone else would centre around any licencing deal.
So, yes I actually agree, it is easier to buy than create but it's also a fact that these big companies are taking none of the risk but taking all the rewards. It is hard to create good "infrastructure and developers" yet these companies have the money to do so and already have much of this in place as big companies already, spend money now for long term gains. But I guess just let someone else take the risk and buy for over exaggerated prices is easier.
I'd rather them get studio Liverpool back together for a new wipeout game
From what I remember they kinda got it back with one recent purchase of firesprite.
I had no idea what studios Sony should acquire before, but now I'm certain WB Games is not one of them.
Sony is very likely to buy some group of studios. WB makes a lot of sense, considering that they are actively looking to sell.
WB would also make sense for MS, though it is probably too big of a deal to pull off until the dust settles on Activision. That makes them even more attractive to Sony, as they won't be bidding against MS.
Try merge with Warner Bros, that way they can also strengthen HBO max with their movies.
Lol -
Pachter - Sony must buy WB games.
2mins later
Pachter - If they can't sort out the license it doesn't make sense.
If TT Games still had the lego franchise then id agree....they don't though. Sony would be better served going after other targets.....such as EPIC/2K/SE....hell even ubisoft.
TT games lost the license exclusivity right before the game released. So this new Lego Star Wars game was going to release regardless due to contractual obligations.
So Sony should go the other side of the planet to avoid WB, gotcha.
Sony's best leverage (imo), is to go back to their roots. How did they get here? By putting together a console (PS1) and a strategy that their competitors could not match. This, of course, got developers on board, which made their console the console to own... and so forth. So instead of trying to battle Microsoft with money (something they can't compete with, anyway), they should do the thing they're best at, which is going back to the drawing board and coming up a product that developers want to create for, and consumers feel like they must own.
From what we know devs want to dev for PS5 and Sony haven't been doing money battle against MS.
I wasn't implying that the PS5 wasn't delivering. I was just saying that Sony's strength is in creating a compelling platform where developers want to go, and consumers want to buy into. And that it would be time better spent focusing on that, rather than focusing on something they're not so strong at.
When someone asked Tom Kalinske what the key to success was, his answer was something along the lines of doing something that your competitor either can't do, or won't do.
Sure that have merit, but a company besides having their core and strengths also need to work on improving its weakness and have other areas to grow besides their core. And Sony is making the PSVR2 which MS isn't doing, have more support from Japan, which MS doesn't. HW wise there isn't much Sony can do that MS can't because they are hiring suppliers for the most sophisticated parts and Sony would take decades to try and surpass (if at all) AMD or NVidia. Their Cell was something that well MS couldn't do and it didn't made much difference anyway.
So what exactly would you expect Sony do that MS wouldn't or couldn't even if having dozen times more money?
Sony definitely need their own exclusive fighting franchise. Considering they own EVO, it makes more sense instead of relying on other brands to create the games for them. WB or Capcon would make sense.
Best comment, easily.
Congratulations, you've now won the internet. ?
