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Sony Buying Remedy Doesn't Make Sense (Page 2)

By Derek Strickland from Jul 5, 2019 @ 10:00 CDT

Third-party is PlayStation's biggest earner

Last but not least, Sony's PlayStation platform isn't viable without third-party games. The PlayStation Store wouldn't be what it is today without games like FIFA, GTA V, NBA 2K, and Call of Duty. Sony makes a 30% cut off of all games sold digitally and physically on its platform.

The company can't afford to go all-in with exclusives and acquisitions. Instead it has to balance first-party, third-party, and optional studio buyouts, but the first two are far more important. There has to be a strong emphasis on third-party relations considering third-party AAA games make by far and large the most money on the platform.

This means Sony will continue pursuing timed-exclusivity and marketing deals with the biggest franchises well into the PS5 era. Case in point: Final Fantasy VII: Remake is a timed-exclusive release on the PlayStation 4.

Since PS5 will likely have its own SKU versions, Sony stands to make even more cash across the two forked platforms, especially since the PS5 will also play PS4 games.

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Sony's next-gen PlayStation 5 isn't finished yet.

From the sound of it, the PS5 will be quite expensive to consumers and Sony is likely spending a pretty penny getting its specs optimized.

The system's SoC, which hasn't yet been finalized, is based on AMD's new Zen 2 CPU and Navi GPU technology. Both Microsoft and Sony are still busily working alongside AMD to get the silicon locked in. Sony says its next-gen PS5 will push 8K graphics with 120Hz output alongside a super-fast SSD (likely built on PCIe 4.0).

Sony is also spending on R&D to ensure the PS5 is backward compatible with all existing PS4 games.

One of the biggest points I haven't seen talked about much is services. Services like PlayStation Plus and games sold on the PlayStation Store are the big money-makers for consoles.

Sony is doubling-down on its PlayStation services to ensure its next-gen PS5 has a strong bedrock of games, subscriptions, and content that can be monetized. Sony is getting handily beaten by Microsoft's Xbox Game Pass subscription model and needs to find a way to make up for lost ground.

Former Sony Interactive Entertainment President John Kodera stepped down to lead PlayStation services development. We should see a dramatic evolution of PlayStation Plus, its retinue of entertainment services like PS Vue and PS Music, and PlayStation Now. As SIE President, Kodera made big changes to PS services like adding offline play and downloads to PlayStation Now and instituting cross-play with competing platforms.

This is just the beginning. But it'll be costly, and Sony is probably spending big on its future service roadmap.

All in all, I'd be very surprised to see Sony buy Remedy Entertainment at this point in time.

Remedy is working on a new project outside of Control (of course it is, that's how indie studios stay afloat) and perhaps negotiations could begin following Control's shipments, but Sony should really spend its money elsewhere like console R&D, game development, and a much-needed overhaul of its PlayStation services.

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