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

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.

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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.

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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.

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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

Share Repurchases

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.