Sony ‘vastly overpaid’ for Destiny 2 developer Bungie: It’s not a secret that January in 2022 has been a busy month for games, and the year is just beginning.
After Microsoft acquired Activision Blizzard, the gamers were granted the space to breathe when Sony announced that it would be purchasing Destiny 2 developer Bungie for a staggering $3.6 billion.
This isn’t as impressive as Microsoft’s acquisition of Activision Blizzard, but it’s nonetheless a very impressive move from Sony’s side.
There’s no connection between the two deals.
Many think they believe that Bungie’s acquisition Bungie acquisition made in reaction in response to the ABK agreement.
However, as transactions like these can require several months (if they’re not years) to put into place. It’s not even close to being true.
However, that isn’t to say that Sony does not react to industry changes; However, gaming industry analyst Michael Pachter thinks it overpaid “out of desperation.”
Pachter works as an analyst at Wedbush Securities, often commenting on various aspects of the gaming industry. Of course, Pachter had also made several wrong decisions, like when he said that The Elder Scrolls 6 would be released at the end of 2019.
In a debate with Yahoo! Finance, Pachter states that it was a “me too statement” from Sony and that they would not forgot.
Sony ‘vastly overpaid’ for Destiny 2 developer Bungie
Pachter analyzes this Sony purchase of Bungie to EA of Respawn some time ago.
He explains that EA purchased Respawn for $700 million, which employed about 400 developers. Respawn, in the deal, was also generating an annual revenue of around $700 million in revenues.
Contrary to that, Bungie does crudely $200 million. “So, I think Sony vastly overpaid,” claims Pachter.
The analysis of Pachter in this regard might be logical, but Sony would probably not have invested this much if it didn’t believe that Bungie was worth the investment.
Beyond the revenue generated today, Bungie also has a ton of things in the pipeline, which is what this purchase by Sony accelerates, according to the announcements about the acquisition.
Sony plans to offer more live-service games, and it’s possible to rely on the experience of Bungie in the field. Bungie’s games will multiplatform, but if it’s enough to justify the price of buying Sony in the future remains to see.
In the end, Pachter concludes that this particular acquisition is “not a deal that makes a whole lot of sense to me.” However, like all acquisitions of video game developers. It’s difficult to discern the long-term consequences of such decisions.
What will happen to Bungie or Activision Blizzard, and their plans for the coming 5-10 years remains to see.
But, it’s also likely that more deals will make, given that Geoff Keighley has heard that several sales are in final negotiations. Sony has also admitted that it plans to buy more companies shortly.
It currently appears to a matter of when, and perhaps more importantly, which companies will acquire.