I don't have a problem with Sony purchasing square Enix in particular, it's the fact that they feel like this is what they have to do since Microsoft started buying huge 3rd party publishers just to keep them from releasing games on Playstation.
Sony really doesn't have the kind of money to wage this kind of war against Microsoft and Microsoft shouldn't be allowed to monopolize the gaming industry. These consolidations aren't good for the industry, and I can see Sony changing their business model from offering a better product to maximizing profits to make up for the extra spending trying to keep up with Microsoft.
I see what you’re saying but I don’t think that they ‘feel’ like this is what they have to do. They ‘know’ that this is what they have to do.
Microsoft and other big tech companies already changed the landscape. Sony didnt start buying things until they had to. Look at how long they were working with Insomniac before buying them. They were fine with those types of ‘2nd party’ relationships until bigger corps started buying, or threatening to buy, everything.
From my perspective, without going too deep into it, big companies with a lot of cash on hand would rather invest it by purchasing other companies (along with their IP) and place the new purchase as an asset on the balance sheet as opposed to just holding onto devaluating cash. In addition big companies want to buy their way into relevance.
Microsoft has a ton of cash, Amazon has a ton, Tencent is funded by China so they have a ton, so acquisitions are always a threat in this landscape.
You are 100% right. Sony doesn’t have the money to go toe-to-toe with MS. So they have to be smart. It’s no different than sports. Team executives manage payroll, salary caps and budgets to stay competitive and produce more with less. You’ve got to add the right pieces.
As much as I dislike the acquisition of Bungie…in retrospect, it was a smart move. If we are to believe Jim Ryan, they bought Bungie for their knowledge, toolset, tech and experience in running a successful live-service game. They can now assign high level Bungie people to oversee launches and maintenance of projects from other 1st party SIE devs to strengthen their portfolio all around as they have 0 experience in this live service area. They also get the benefit of owning a premier FPS studio and ensuring that Bungie games go wherever they allow them to go moving forward.
That’s a smart purchase.
You are also right in thinking that the business models will change in the future to further maximize profits. I don’t think there is anything we can do to stop that.