The CEO of Sony recently said that movies and television platforms have peaked and that the scope for great growth is going to be in the gaming industry. He has stated that there will be more buyouts of game companies as consolidation happens.
When asked if the movie industry will be witnessing any more consolidation at the Bank of America Merrill Lynch Media, Communications & Entertainment Conference, Tony Vinciquerra, the CEO and Chairman of Sony Pictures said that there are “probably too many film studios and you might see one or two less over the next five-to-ten years” and that he thinks “the next area of consolidation will be the games business”, adding that Sony is in the best position for this.
Partnering with External Studios
The boost in the gaming industry during the COVID pandemic lead to a lot of mergers and acquisitions. A recent study by InvestGame showed that the value of mergers and acquisitions in 2020 had exceeded $ 22 billion; the highest since 2016. With such numbers and the resilience of the gaming industry during such dire times, it has attracted more investors.
Sony had reported in April that it had its best-ever year in profit and revenue and that it expected even more revenue from sales. Sony had mentioned plans of aggressive investment with external game developers to strengthen the PS platform.
“To enhance our software offering, we intend to continue investing in partnering with external studios, in addition to aggressively investing in our in-house studios.. aim to strengthen the PlayStation platform through actions such as the recently announced partnership with Haven Entertainment, which was established by Jade Raymond, creator of the famous game Assassin’s Creed.”
– Sony Executive
- So far, Sony has made announcements of partnerships with Jade Raymond’s new studio, acquired PC port house Noxxies, and Firesprite. They have invested in a game from Bungie veterans and a $200 million investment in Epic Games.
- The Epic Games investment was built on a minority stake Sony had taken in 2020 with a $250 million investment in Epic.
- Since PlayStation Productions has come into existence, Sony has also been working closely with the movie business in order to adapt its games to TV and film.
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