Remember back in March when PlayStation was rumoured to have a huge week of news? And then nothing much happened, aside from the official reveal of the new PS Plus tiers? Well, one of the most prominent rumours was that Sony was preparing an industry-shaking buyout. But once the dust had settled, we never actually found out who the rumoured acquisition was about.
It's a good job, then, that talkative games journalist Jeff Grubb has answers. According to Grubb, the rumours referred to Sony snapping up Square Enix, which, as mentioned, would have been a real megaton. This fresh perspective arrives following the official news that Square Enix has sold off a number of its Western studios and properties to Embracer Group for $300 million.
As Grubb points out, however, there was no way of knowing whether the rumour was legit. High level business dealings — like mergers or acquisitions — almost never leak because of the potential repercussions, both personal and company-wide. Indeed, mega buyouts like Microsoft's acquisition of Bethesda, or more recently, Sony's buyout of Bungie, happened out of nowhere — no leaks, no "insiders", no nothing until they were suddenly confirmed by the companies themselves.
Of course, with Square Enix selling off a bulk of its Western operations to Embracer Group, there have been mumblings that the Japanese publisher is "streamlining" itself for a potential acquisition. Such a thing would make some sense from a business point of view, but again, it's impossible to know for sure.
Having said all that, nothing changes the fact that Sony has stated that more acquisitions are planned.
[source twitter.com]
Comments 80
Sony are going to acquire Ant and Dec. They’ll stuff them taxidermy-style and display them in the office.
That literally means nothing... Grubb saying that was the big acquisition rumor is just some annoying way to get followers and clicks. Acquisitions very rarely leaks, so this statement means jack****.
Grubb has a good track record when it comes to leaks, but this just seems like an irritating way to get attention instead of being actually informative.
To be fair there are better studios and IPs to buy. Only thing I would love to have was Tomb Raider
So this was the reason Greg delayed PS I LOVE YOU a few weeks ago?
I still say Level-5 is the one to buy for Sony to get a foothold in the JRPG market.
Sony buying square enix just make sense Sony need more RPG’s and Japanese games of they’re own.
@NateGoesLive Supposedly, yes.
@nessisonett Jim Ryan's from the North East of England as well, so it's an acquisition that makes sense.
If this confirmed to be true, Sony should have telling them to keep the Tomb Raider IP, its an incredible brand and a legacy one for Playstation, would be an excelent adittion to the Sony movies and the new PS Plus. Imagine that banner with all the studios that Sony always do, but with Lara in one of them. Really strange if Sony buys Square.
Here's hoping I think they'd be a great fit they've been immeasurably tight since the PS1 days Sony really needs more 1st party Japanese games plus PS Studios could potentially keep some of Square's bad habits in check. Seriously I really hope this happens these two need to tie the knot already
@Gbarsotini Tomb Raider sure is all that but the biggest thing SE has is still definitely Final Fantasy - and that has history with PS as well.
If Sony were to buy Square Enix, it would have been better if they bought all of Square Enix, not just the Japanese side, but the Japanese side is really what Sony needs. They don't need Tomb Raider or poorly received Marvel games. They have amazingly well-received Marvel games and their own (arguably better) treasure hunter games. They have, however, closely tied their identity around Final Fantasy, which they don't own and they have no in-house RPGs.
I've said it before, but if the Activision-Blizzard buyout wasn't enough to set off the alarm bells that nothing is off the table, Square Enix selling parts of itself off (admittedly the parts that lose them money or don't make much) really raises the stakes. If anyone else buys Square Enix, it'll be devastating to Sony.
@NateGoesLive Tim Getty's was also discussing it last night on KFGD saying that SquareEnix selling the less profitable elements of it's business was likely because they want to make selling their main business more enticing to someone like Sony. (Again just speculation, but it is interesting)
Personally would have though that Tomb Raider, Deus Ex etc. + Sony are a good match, but what do I know.
Phew, dodged a bullet on that one. I have zero interest in JRPG’s. Although they could have done amazing things with tomb raider. But even then I’d rather they invest in making new Ip’s
I remember the days when rumours weren't the actual news ,I miss them days
@Voltan Yeah, I get that, but let Tomb Raider slip for that amount of money seens like a missed oportunity for marketing (look, Tomb Raider is exclusive now, back to Playstation!) to increase the value of the new PS Plus e for the movie side of things.
As is pointed out in the article, when these acquisitions actually happen, they come out of nowhere.
I certainly believe Jeff Grubb heard these rumours, but I doubt there's too much truth to them.
@AFCC
If Tomb Raider went the direction of actual jumps and climbing being scary again like they used to, it would be pretty cool.
As it is, it doesn't make sense as it's the same as Uncharted. Or at least it wants to
Eh???
Sony should've bought all of SE.
If SE themselves isn't capable of turning some IPs profitable, Sony has plenty of in-house talent that can. Those IPs were golden.
That said, if SE is up for grabs I truly hope Sony brings them in, regardles if FF14 stays multiplat.
Obviously, I take all with a chunk of salt until things like these are set in stone.
I´m in no way a corporate big suit person, to have the ability to make this big decisions, so it´s only my opinion in here, based on my personal preferences, but Eidos and CD, for less than 1/10 of the value of Bungie, would have had a bigger impact on gamers. I still remember the backlash Square received after the 100 million dollars for 1 year exclusivity for Rise of The Tomb Raider on Xbox, it was crazy.
I don't like when companies go out and buy up big multiplat publishers...but since Square Enix seems keen to shift their company to Blockchain and NFTs, I'd be completely fine with someone buying them up just to stop that nonsense.
I heard Jim Ryan is having a cup of tea with David Zaslav.
There's no reason for Square-Enix to sell itself to Sony, or for Sony to want to buy them. Sony locks down the third-party releases it's interested in via exclusivity deals. S-E likely also makes decent money via deals with Nintendo and Microsoft (timed exclusivity for Octopath and Triangle Strategy; Square-Enix games on GP).
Given what we know about Square-Enix selling off its Western division, that would explain where the rumblings about an acquisition were coming from.
I wanted Sony to buy Square Enix just because of Deus ex developer but now i hope they won't buy it. I would be much more satisfied with Sony buying said Embracer Group. But it won't happen i guess
Sony acquiring Square Enix still makes too much sense to me, despite Square Enix selling off Tomb Raider, Deus Ex, Legacy of Kain & Thief, Sony has often relied heavily on Square Enix to fill that JRPG space that Sony sorely lacks.
The question in Sony's mind is likely, do we try buy Square Enix to fill that JRPG gap? Or do we buy Capcom who consistently puts out highly-rated high-selling games, while possessing more talent? Also I feel that Sony putting in a bid for WB Games, this tells me they're specifically after a Fighting Game Developer i.e NetherRealm, though personally if I was Sony I'd be targetting Capcom & Arc System Works if they truly want a foot in the Fighting Game space, plus both Capcom & Arc System Works already has the best working relationship with Sony anyway.
And if Sony truly needs any type of game, it's a fighting game to call their own, and not just by solely relying on Third-Party Developers to deliver it for them, they need an in-house studio to make their own Fighting Game, just as Polyphony Digital is their in-house Racing game studio.
@Ralizah Sony can buy square and still let them put smaller games on switch.
i thought that too when i saw square sold off a bunch of ip's the other day. that selling off some of their brand would make them more attractive to be purchased.
They already get all the big titles from SE and tons of jRPGs anyway... unless it is a defensive move to fend off Microsoft.
As long as they keep putting some of the "exclusives" on PC like now I am ok with it.
I wonder if SE are selling off the western businesses before Sony steps in and buys the core Japanese business of SE. :/
what JRPGs? What was the last one? FFVII remake, a 3rd of a remake of a 20 year old game? The Japanese division of SE doesn’t do much of anything with JRPGs these days, other than taking 10 years to develop sub par half finished games. Unless I’m missing something, they released one (half finished) Final Fantasy game, a couple middling remakes of SNES games, and 1/3 of a FFVII remake during the entire PS4 generation and that sums up their JRPG contribution. And FFXV was a massively delayed PS3 game. Thankfully they partner with other developers from time to time so we actually get good games like Nier Automata.
I would love it if Sony bought SE, maybe we’d get sequels to some of the seminal PS1 and PS2 games that they’ve been ignoring all these years. Maybe we wouldn’t go 10 years between Kingdom Hearts games and maybe we’d be able to make sense of the stories. Maybe we wouldn’t get all these weird FF games that try every gimmick in the book other than delivering an amazing story and deep turn based gameplay that the series used to be known for.
Would make sense, I think maybe, not that I have a clue....
1) Sony sack off some of their Japanese studios and talent.
2) Square sack off a lot of their Western studios
3) And... merge.
I just want a sequel to sleeping dogs
I'm just glad that Tomb Raider will highly likely remain multiplatform with Embrace. We get to play it either way.
Although I still think it all seems like a strange situation. Acquisition rumours and now a sale of a branch? I do think Sony are buying the Japanese side of Square Enix for better or worse.
Tomb Raider was/is a massive IP for me. The only other franchise from SE I have a little interest in is Dragon Quest.
@alixx - Unfortunately a Sleeping Dogs 2 would be a licensing nightmare, I don't know the specifics but the reason Sleeping Dogs 2 has not happened is due to a complicated licensing issue.
There are videos on YT that explain the issue far better than I ever could, but yeah Sleeping Dogs 2 is likely never gonna happen sadly, because Sleeping Dogs is criminally underrated.
@Milktastrophe I'd be so happy if they did.
I hate all of their new titles, their PS2 era games:
Dark Cloud, Rogue Galaxy etc was God tier imho.
I think the fact that Discovery is looking to sell off its Gaming division at Warner Bros, should be more important on Sony's Radar right now.
Sony is going all in with the Fighting community by acquiring EVO, but don't have their own internal fighting game/studio. NetherRealm would be an amazing get.
Rocksteady would do well along side Insomniac making licensed Superhero games.
I'd imagine if any of this was true, Sony would have made it abundantly clear what their main focus would be with the buy out. And those extra devisions would have made the total by out, much more costly. So, probably in agreement - SE decided to sell the excess off (gain captial) and sell the rest to Sony for a lower cost. Let's face it, we all know what franchises Sony want from Square. And while we are at it, if Sony do the buyout.. let's go back to Squaresoft.
Where does it say Sony is buying Square Enix then? No news to find for me. Or am I overlooking something? and nothing has yet been announced about a mega acquisition by Sony. So Square Enix won't be the candidate I'm guessing.
@EquiinoxGII
Why would you cut off Enix and it’s franchises? That’s how they ended up with Dragon Quest.
Still listening to Scrubb, huh?
I can see it because Sony and Square have always been close, but can't see it because most people buy Square games on PS platforms already so there's not much to gain for Sony in the long run. I just hope trash MS doesn't swoop in and buy them. That would be a major death blow for AAA Japanese games.
@OrtadragoonX I don't mean cut Enix off quite like that, I mean in more of a sense that most people associate Squares best years when they were Squaresoft. Nostalgic. Even though Enix did have a very large franchise. Which is still successful, in the west Squaresoft was always more known.
I think Sony is going for WB.
@Gbarsotini It would have been a bigger deal to core gamers but Destiny 2 makes far more money then Tomb Raider. Plus Sony are more interested in making some successful live service games that can keep its player base. That's why Bungie were bought because despite their setbacks have been able to do that.
Perhaps Triangle strategy is the last exclusive nintendo will get from them and the dragon quest final fantasy franchises will be tied to sony?
I could see Sony making a dumba@# move like this now that the best devs and IPs they have are gone. Now Sony could probably afford Square as before they we're probably asking to much. Since Sony cant make purchases like MS does.
if it takes sony buying s-e to make them great again, so be it. modern day s-e is a travesty. they lack direction or a clear sense of priorities.
if i were sony, i would jump at the opportunity to purchase s-e for the IP alone. i would shut down luminous productions immediately following forspoken's release (which is clearly going to bomb). i would ensure that out of the four business deivision studios, at least one is working exclusively on a reboot/remake of a beloved IP from the squaresoft golden era (vagrant story, parasite eve, ff tactics, front mission, chrono cross/trigger, etc).
i would reign in tetusya nomura and stop giving him endless money and 10 years of development time to put out a single game (kingdom hearts was ultimately very disappointing despite this). if he doesn't like it he can leave. it was a good run but he is just as much to blame as anyone at the company for being in its rut.
s-e needs a proper roadmap for the ff series going forward. they should stagger a mainline release every 3-4 years between two studios and focus most of their resources on that. there needs to be a better sense of a release schedule because as it stands, everyone is left guessing when ff7r episode 2 will even release. this is a sign of a poorly managed company.
the hope is sony could help mitigate some of these problems within the company and get s-e back on track. capcom and s-e should be at the top of the list for sony. do it before microsoft or some chinese conglomerate does. now or never.
I buy most of SE’s classic re-releases and their less graphically intensive games on the Switch so if this was in the works, glad it didn’t go through. Besides SE always tends to concentrate on Sony’s mainline platform for its higher-end games.
It’s REALLY big !
👀👀👀
@AdamNovice I can see that.. of course it makes sense.. but still, a franchise with core players in your system, a system know for awesome SP experiences, with legacy, with a brand almost as recognazible as Mario or Sonic (my father knows Lara Croft), that has sell 88 million games in it´s entire existence, and before launching a PS plus with some features similar to Netflix or Gamepass (acess to a library of games).. for 300 million, I think it was a steal for Embracer..
I know I´m using only my preferences for my "little rant".. haha.. but I love Tomb Raider, forgive me..
On the other hand, I know nothing of the situation of the companies, plus more than 300 employees, it was strugling in the past few years.. maybe it was a good decision, maybe not.. I just hope in the future Microsoft doesnt buy from Embracer, or buy Embracer.. because in the end, as long as this games continues to play in our system, doenst matter..
@Porco
I agree with this.
Someone needs to put Nomura on a leash. His development and management style does not work with modern AAA games.
I adored FFVII Remake. It was my 2020 game of the year, beating out TLOU2 and Ghost of Tsushima. But there’s no reason it should have taken them 5 years of active development to finish that game. And that was just the release version. It’s roots go back four years before that. So 9 years overall.
There’s just no excuse for it.
@ShogunRok I thought Jim Ryan was from just North of Whoville, near Mt. Crumpet?
@NEStalgia Terrible, but I have to give you a like.
@Ken_Kaniff while I agree because I like tomb raider & remember playing soul Reaver on ps1 & have no interest in final fantasy or any other of those JRPG most people on here probably care more about final fantasy than tomb raider
@NomNom I agree, Sony acquiring WB's gaming studios would be beneficial for them.
@Would_you_kindly and I could see Sony paying another outrageous price just to have FF. After being ripped off for Bungie their is no telling what this Jim Ryan led Sony will overpay for.
@JustPlainLoco @Aexurion @TheCollector316 @Niktaw @Porco @OrtadragoonX @Keyblade-Dan 100% agreed with all of you, Sony buying Square-Enix would be beneficial in the long run for their quality control.
Not to mention we could get more games sooner and less bugs/glitches maybe?
@Ken_Kaniff
oh wow you are apparently also someone who understands it. They are still looking for an acquisition manager at Sony. i would apply if i were you.
@mucc I don't think Sony would allow MS to buy SE, also I doubt SE would sell to MS since xbox doesn't sell that well in Japan.
Got a huge feeling Sony will buy SE it just makes alot of sense. Especially since SE have a close relationship with Sony and they even used to own a share in SE stock.
Anyway Nearly every Final Fantasy game beside the ones that came out on Nintendo's console have ether been exclusive or limited time exclusivity beside FF 11 and 14 SE tried putting 11 on the xbox 360 and it didn't sell that well which is why they never brought 14 out on the 360.
What people are forgetting is that they have been losing money on FF games after the release of Final Fantasy 10 or 12 if I remember correctly. It's one of the reason why they did the FF7 anniversary/remake in the first place since that franchise for them made the most money.
Sony buying SE would not only be great for Sony when it comes to RPG games but also it will be an easy buyout since their both Japanese companies. After that the next company they would buy is ether Capcom, Bandai Namco, I was gonna say Level 5 but they only seem to focused on the professor Lupin games and Nino Kuni.
Would be nice to Finally get a Dark Cloud 3 game and a brand new White Knight Chronicles game. That would look amazing on a PS5.
@Porco Fully agree don't forget Sinay also have a close relationship with capcom as well ever since Street Fighter 4. Japanese companies really do like to work closely together. I could see Sony slowly putting all there Japan studios team devs into ether SE or Capcom
Now if they end up getting Capcom and Neverealm studios we could finally get an amazing PlayStation All Stars Battle Royal game which there was rumours back in the day that was gonna be made by Capcom and Sony.
@FX102A They could still do a deal where some of there games still come out on Nintendo platform. Am I only that would like to see Nintendo and Sony merge together and become Nin Sony lol 😆
@Justjuzy @mucc
Sony have a tendency to buy studios they've worked almost exclusively with most of the time. It's a pattern to their acquisitions.
In addition they seem to have jumped on the 'live service' bandwagon and FF has already dipped it's toes in that, and being a hugely recognisable IP would solidify their plans even more.
Plus, since Microsoft have been on a spending spree and Sony paid for timed exclusivity for FFVII Remake I doubt they'd want to lose the franchise to MS forever.
It all just makes sense and I think it's going to happen. Cutting out Crystal Dynamics and Tomb Raider shows something is stiring up over there. Along with the news of losing 2bn over Marvel's Avengers means they're in financial trouble.
Don’t think anyone would buy Xbox in Japan to play JRPGs. I would like square to remain multi platform though. I mean crisis core on psp was a great spin off. Why not switch owners got some FF or dragon quest too
@GADG3Tx87 I fully agree with you with everything you said. Now only question is when is Sony going to do it. That's if they are going to do it at all.
To be honest they would be stupid not to cause if they don't you know MS will try but I don't think SE would sell to MS anyway. Just because Xbox doesn't sell well in Japan.
I agree with so many here. Sony has Square Enix games battened down already, since their relationship runs very close, it would be of far more benefit for Sony to acquire Capcom. There are so many games that they have lying languishing that would work so well nowadays, and would definitely have a far greater appeal to a mass market than the games that Square make. I haven’t bought a game from Square Enix in years, but I have bought every Capcom title since Devil May Cry 1!
RBMango wrote:
My experience is the larger the company the more likely things like this become whispered knowledge. While the average staff member may not know directly of any possible deal as they weren't privy to that information, they may still be aware that something is going on as SOMEONE had to collate additional financial data or other metrics for all the checks and paperwork involved in a buyout/merger etc. It changes the usual job cycle for some staff and savvy ones may put two and two together correctly (many won't).
The larger the company the more people that have to be involved, often unknowingly, in collating all that data making it more likely something leaks... even in close hushed tones.
Plus the walls have ears!
Certainly hope it doesn't happen. I don't wanna have to buy a PS5 just for Dragon Quest lol
@Ken_Kaniff i guess you missed the part where they sold the LEAST profitable aspects of their core business. “Best” indeed.
Sony should have bought their western branch. The eastern branch is already majorly PS exclusive for it's bigger titles.
@BoldAndBrash but Sony could reboot it again with a new direction! Lara is a Playstation icon!
@MarcG420 Yea thats my bad. Im guessing you consider the JRPGs with barely dressed under age girls the "best" because the group of weirdos that buy those makes them more profitable.
@Ken_Kaniff swing and a miss. About as much of a miss as your assessment of their previous studios’ values. A selling company will always get the most money they can reasonably get when selling portions of their business. Common sense really.
Square would be a fantastic buy for Sony even with the franchises that were just sold. Square has a gigantic catalog that Sony would drool at. It still wouldn’t surprise me if Sony went for them. But ultimately, I just want Sony to buy Atlus from Sega and then Vanillaware in general so Atlus can get its stuff together and do worldwide releases (with different trophy lists for each region still like EU & NA). I’d love Sony to help expand Atlus because they’re a talented company and more games from there, the better. Both VW and ATL have fantastic game catalogs (with ATL being much bigger) and unique creative talents heading both companies. They’d be huge additions for Sony’s Japanese studios as long as both still have their creative liberties when making games. It’d give ATL & VW more money to create bigger projects. I don’t care about console exclusivity so I’d prefer it not to be only PS but yah.
@GADG3Tx87 Losing 2bn? You mean $200 million which definitely won't even bring them close to financial troubles...
@AFCC
Yeah surprised and disappointed Sony didn't buy these IP's...
They'd rather spend billions on Bungie for live service help, but buying classic PS icons for dirt cheap? Nah...
Rumor or not, wouldn't surprise me one bit if Sony still plan to go after SE for real sooner or later.
I think the next acquisitions would be Deviation Games, Ember Lab, and maybe Dreamhaven (the group of studios from Michael Morhaime) given their recent partnerships with Sony PlayStation. Other than that, I don't see Sony going that big on acquisitions now. But we'll wait and see.
If Sony is buying Square Enix, why not throw an extra $300 million to buy the studios and franchises sold to Embracer?
If there is any chance Sony would acquire Square Enix, I would have liked Sony to have bought Tomb Raider. But I can't help but think maybe Tomb Raider could only be sold if someone bought the other games and none of them match Sonys quality
Deus Ex looks poor compared to Cyberpunk. Really enjoyed Human Revolution but Mankind Divided felt dull. Sleeping Dog is no match to GTA and if Sony wanted another game like that of their own, why not just bring back The Getaway. They have Uncharted so is it worth taking on developers and IPs they don't need/want just to get Tomb Raider? Not at all so selling them off to Embracer Group does seem to open the doors to acquire SE a bit easier.
I think Deviation Games will be next though.
@Ultrasmiles
Makes way more sense to keep raking in the Nintendo dollars.
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