Sony Should Buy Ubisoft and Here is Why

Sony’s been putting a lot of effort (read: money) into the PlayStation 3 product line with very little impact in the market. They’ve got this “10 year plan” but haven’t really executed a strong plan for their first two years of said plan. Sony’s plan seems to be “outlive the competition’s technology” while all of its competition stomps on their sales and market share with older and a bit “outdated” products.

Thus far there have been five spins of the PlayStation 3 hardware with price cuts only coming as a result of a “fire sale” of old hardware revisions. Sony, like many, believes the Nintendo Wii isn’t a direct competitor in their space; the outstanding sales of the Wii probably haven’t impacted the PlayStation 3 sales too much. The Xbox 360, however, has definitely cut them deep in all regions of sales.

Microsoft has built some unexpected momentum in Japan with Square-Enix making them a few console seller titles and the price cuts in Europe boosted sales over 200% all while the US continues to buy into the 360 hardware despite its most obvious red-ringing flaws. Microsoft has great partnerships with some fabulous companies, Bungie and Epic for instance, to build them exclusives that move even more 360 units.

Motorstorm is one of the PlayStation 3’s best games, selling over 3-million copies. While, as of January 2008, Halo 3 sold 8.1 million units for the Xbox 360. Now, Metal Gear Solid 4 has sold roughly 3.94 million copies since August of 2008 yet unsubstantiated rumors exist stating MGS4 could make its way to the 360. Combined awesome titles for the PlayStation 3 may not even exceed one of the competitors best selling products; where is the PS3 excitement?

Little Big Planet, Rachet and Clank, Resistance 2 and, someday, Massive Action Game (MAG) could produce some buzz around the PS3. By far, Little Big Planet has been the gold nugget Sony has been looking for and was published by Sony so they’re able to take full glory of this might-be console mover. What else do they have up their sleeve?

One or two blockbuster titles would compete well in a smaller market like last generation, but with Microsoft dragging in huge sales in all regions, Sony is going to need a real momentum killer. They’re already stating we’ll have no price cuts in 2008 leaving us asking, “why am I going to invest in a PlayStation 3?” Sony needs to figure out a long term battle plan and that involves blockbuster game titles which cannot be played on another console.

If Sony is willing to throw money out the window to keep the PlayStation 3 alive in this competitive market, why not spend it on their future? With a 10-year plan in place, that plan should involve picking up a company like Ubisoft. Ubisoft is a well respected public developer and publisher founded in 1986 and now consists of many well established smaller studios whom they’ve picked up along the way.

Ubisoft has some huge titles, Assassins Creed, Brothers in Arms, Ghost Recon, Splinter Cell, Rayman, Rainbow Six, Driver and has published many great titles for smaller studios. Imagine a Heroes of Might and Magic exclusive on the PlayStation 3 or a graphically intense exclusive Prince of Persia. Sony could steal titles away from the Wii such as Rayman and all his raving rabbids. Even 30% of these popular titles, being produced as exclusives for the PlayStation 3, could turn around this console.

Sure, Sony could pay for console exclusives on a handful of these great titles but, at this point, they’re going to pay out the nose to try to hold even a timed exclusive considering how many of these titles would arrive on the 360 in order for Ubisoft to recoup development costs for such a small PS3 audience.

Could Sony drive Ubisoft into the ground by limiting their exposure in the game industry to a single console? Indeed. There is always room for fatal errors when acquiring talent and executing them against your own 10-year plan. It would have to be a very aggressive attack with a very strong plan of execution in order to turn titles around on the PlayStation 3 in fast succession and with large PR hype.

Sony has shown they are willing to spend endless amounts of money all while turning their cheek to the obvious 360 domination. Why not take some of that money and re-invest it in the future of your 10-year plan by buying a company like Ubisoft before someone like EA does it first. With the huge market decline and the US bringing down the global economy, times may be ripe to grab a company and grow them to your own.

The real question would be, could Sony hold the talent at Ubisoft if they were to be purchased by such a large company with a sub-par sale standard console? Throw more money at the problem and bribe the talent to stick around for a few years and perhaps you’ve got a plan.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 411: We Are Experiencing Technical DifficultiesEpisode 411: We Are Experiencing Technical Difficulties

This podcast is delayed due to unforeseen circumstances, but there’s plenty of banter between Jonah and Scott, and 30 minutes of the podcast were removed to be aired as an outtakes at some point. Oh, and there’s plenty of cursing and NSFW content in this particular podcast, so be warned.

The news includes:

  • Starbreeze announces it’ll build a VR arcade venue in Los Angeles
  • Mighty No. 9 unexpectedly delayed by Comcept
  • Nintendo NX set to be new face of Nintendo with busy 2016 planned
  • Five Nights at Freddy’s World pulled from Steam

Let us know what you think.

Episode 722: Off the RailsEpisode 722: Off the Rails

No Gravatar

[This file was corrupted and re-uploaded.]

Podcast notes:

  • Sony backs down on demand that Helldivers 2 players log into a PSN account
  • Microsoft announces Xbox Games Showcase and mystery Direct for June 2024
  • EU rules iPadOS must comply with Digital Markets Act, opening door for Fortnite
  • Hades 2’s surprise early access release already has more stuff in it than the first game
  • Square Enix announces it’s tanked $140 million in losses due to “content abandonment”

Feel free to leave feedback.

The post Episode 722: Off the Rails first appeared on Gaming Podcast.

Smart Business Choices During Economic DownturnsSmart Business Choices During Economic Downturns

Many game studios are being dropped following a bit of an economic downturn in the United States and globally. Activision has to deal with being agile enough to survive the economic times like anyone else and has dropped a few games that had great potential.

Gamers continue to ask the question, “why?” when some of their highest potential games were dropped to the floor. Ghostbusters and Brütal Legend are a couple examples of games with eager fans already salivating prior to its launch. Some of these fans are a bit ticked off that Activision named them as dropped franchise opportunities.

People ask why a company holds one “mediocre” title while getting rid of other potentially awesome ones. Don’t forget, this is a business and a good studio/publisher is going to make good business decisions without emotional attachments – those that bring emotions into play may end up with a highly valued product (to them) with no additional potential and lower revenue. This isn’t to say developers cannot be passionate about their games and their industry, they just have to build games gamers will buy and continue to fall in love with release after release.

Activision CEO Bobby Kotick is one of these business savvy individuals who knows where investors will find profits for the future, and he also know how to manage employees, with the use of software like this sample pay stub for payments and more.

“[Those games] don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises. … I think, generally, our strategy has been to focus… on the products that have those attributes and characteristics, the products that we know [that] if we release them today, we’ll be working on them 10 years from now.” (1up)

Ghostbusters is a great example of a title which could be well received and fun to play but probably wouldn’t be an exploitable franchise. The game, based on a popular movie, has limited potential for yearly releases and huge franchise success. Ghostbusters fans would probably disagree, but that’s when emotion comes into play. Think dollars and cents, not awesome fun gaming.

Oddly enough many of these business decisions from Activision, Electronic Arts and other big publishers arrive when the economy is in free fall and investors are eying your revenue potential. People make their most important and, usually, unfriendly business decisions when their company is at risk.

It’s sad to think money comes first and entertainment value comes second but we’re not the ones trying to make a profitable living in the industry. Put yourself in Kotick’s shoes as he walks into a board meeting to discuss future plans, road maps and profitability – you’d do what you have to do to keep your job, right?