Sony “paid in excess” for Bungie, Claims Analyst

Last month, Sony surprised the videogame industry when he announced his intention to buy Bungie for 3600 million dollars. The movement supposedly had nothing to do with the purchase of Activision Blizzard by Microsoft, but an analyst does not believe it at all. Speaking with Yahoo Finance, Michael Pachter, managing director of research on Wedbush Securities, said the deal seemed to have been made by despair. Pachter compared the cost of the agreement with other movements in the industry and affirmed that it was too expensive for what Sony would get from him.

“Bungie was for $ 4 million per developer. And most of the offers are between $ 250,000 and one million. I have seen such near offers, you know, as high as $ 2 million per developer. This is crazy, “said Pachter to Yahoo Finance.

“And only to compare and contrast, EA bought Respawn about three or four years ago for $ 700 million with 400 developers. And those boys generate $ 700 million a year in income. Bungie has around $ 200 million in revenue. So I think Sony paid much more. “I think this was a statement that we are not going to let Microsoft go ahead, so we’ll just buy something for despair. It really is not a deal that makes a lot of sense for me. The others yes ». »

It would have been impossible for Sony to make such a large purchase so close to the Activision Blizzard Agreement. However, given that the Bungie agreement apparently was in process for five or six months, it could have been a response to the purchase of Bethesda by Microsoft last year. Taking into account the income generated by Bungie, it is easy to understand the Pachter’s argument that Sony was desperate to equalize Microsoft’s aggressive approach and ended up paying more.

Of course, it is important to bear in mind that Sony’s intention with the Bungie agreement was not simply bringing exclusive development teams; Sony wanted the Bungie experience in creating live service games. That is an area in which Sony clearly lacks experience, and the company wants to launch 10 live service games by March 2026. Given the billions of dollars in revenues that generate live service games every year, definitely It is possible that the Bungie agreement could be worth it for Sony in the long term!

SONY BUYS BUNGIE! The Internet Reacts, Destiny Exclusive? US Govt. Critical of Xbox Activision Deal!
Do you think Sony paid for more for Bungie? How do you feel about Sony’s interest in creating more live service games? Let us know in the comments or share your thoughts directly on Twitter in @marcdachamp to talk about everything related to games!