Sony to spend $18 billion on investments, more acquisitions possible

Sony has set aside 2 trillion yen (~$18.3 billion) for strategic investments across next 3 years, more studio buyouts possible.

@DeekeTweak
Published Wed, May 26 2021 6:29 PM CDT   |   Updated Wed, Jun 23 2021 7:15 PM CDT

Sony plans to spend 2 trillion yen ($18.3 billion) on strategic investments in the next three years, and gaming should be a major focus.

Sony to spend  billion on investments, more acquisitions possible 4 | TweakTown.com
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In a recent annual corporate strategy meeting, Sony confirms it has allocated 2 trillion yen for major investments across its key segments including gaming, music, streaming, and film. It's likely Sony is eyeing more major gaming acquisitions, but the company will diversify its investments and is careful with studio buyouts.

Sony to spend $18 billion on investments, more acquisitions possible 45 | TweakTown.com

For example, Sony only made two gaming-related purchases during its third Mid-Year Plan when it had allocated 1.4 trillion yen for investments: Audiokinetic (Wwise) in 2019 and Insomniac Games later in the same year.

Sony currently makes three kinds of strategic investments with its allocated cash.

Sony to spend $18 billion on investments, more acquisitions possible 22 | TweakTown.com

IP/Direct-To-Consumer

  • $450 million Epic Games investment
  • Insomniac Games acquisition
  • Funimation buyout
  • $400 million investment in Chinese Billibilli platform

Technology

  • Gaikai, the streaming service that powers PlayStation Now
  • AudioKinetic (Wwise sound tech)
  • eSaturnus healthcare solutions

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Insomniac, for example, has proven to be an accretive investment for Sony. The developers have shipped three major heavy-hitting games with Spider-Man (2018), Ghost of Tsushima (2020), and Spider-Man Miles Morales (2020) that pushed the PS5 to new levels. Their fourth game, Ratchet and Clank A Rift Apart, is set to release on the PS5 next month.

It's possible Sony will spend more on gaming than it has before. The company says it will invest an extra $184 million into video games development throughout FY2022, and Sony Interactive Entertainment is currently gearing up new games for the PlayStation 5's maturation.

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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