Continuing the site’s prestigious Year-in-Review series, I’m back with an enhanced category this year that expands on my history of shouting out the developers and publishers that defined the industry the past year.
These are five of the most impressive companies that operated in the gaming space during 2023, leading the charge on what was an extremely strong year of titles. These can be developers, publishers, hardware makers and more.
Plus, fitting the theme of celebrating those that worked hard on putting out great games or related products this year. I’ve added a portion to shout out at least a couple folks at each firm integral to the projects these companies have produced. Companies aren’t monolithic. They aren’t the building, logo or executives. They are people.
Note this is usually reserved for larger, often publicly-traded, firms. I have a separate post incoming soon running down the incredible indie studios that launched amazing games in 2023 as well.
Here’s the full list, in alphabetical order!
Capcom (Japan)
Long-time Japanese publisher Capcom continued its resurgence this past year, launching two of the industry’s most recognizable, outstanding experiences. First in May, teams teams put out a remake to the classic Resident Evil 4, an enhanced version of the already classic survival horror game, becoming one of the fastest-selling Resident Evil titles and scooping up various accolades.
Then there was Street Fighter 6 in June, a return-to-form for the fighting franchise that captivated fighting games and a more casual audience. Plus, September’s Monster Hunter Now was one of my favorite mobile titles of 2023, an exceptional adaptation of the formula to a new set of devices.
Special kudos to Street Fighter 6 director Takayuki Nakayama and art director Kaname Fujioka. These two guided the general design and art of one of Capcom’s fastest-selling fighting games, and a competitive platform that will be heavily featured in official tournaments and off-book battles for years to come.
Insomniac Games (United States)
The team at Insomniac Games single-handedly carried PlayStation’s first party output in 2023, launching a major sequel in its beloved modern Spider-Man series in collaboration with one of last year’s winners in Marvel Entertainment. Plus, it showed resilience earlier this month when hackers breached its data in a cruel criminal act that rocked the industry.
Marvel’s Spider-Man 2, which had the single biggest 24 hours of sales in PlayStation history when it released in October, felt like the pinnacle of the studio’s ethos. It’s a free-flowing take on the comics with its own spin on the hero’s journey that features both Peter Parker and Miles Morales, plus the villainous Venom which is the star of the title’s most exhilarating sequence. It’s a, hm, marvel of technical prowess and smart accessibility, with the snappiest loading and finest traversal of any game this year.
Creative lead Bryan Intihar was wonderfully sharp and candid in interviews, clearly exhibiting his deep love for the series and studio’s legacy. I’d also like to call out Senior Community Manager Aaron Jason Espinoza who runs the developer’s social accounts and is a solid follow himself.
Larian Studios (Belgium)
It was a Larian Studios world in 2023, everyone else was just living in it. The 400-person Belgian team’s appearance here comes on the strength of Baldur’s Gate 3, a decade plus effort that started in early access back in 2020 then fully launched this year in August to widespread critical acclaim and highly-deserved commercial success.
The instant classic has already won multiple Game of the Year awards, and will contend on my list when I finish it up, redefining the computer role-playing space with its scope, breadth and utter audacity of ways to play, reacting to player choices like no other game in recent memory.
One of my shout outs has to be Swen Vincke, photoed above, Larian fixture and star of The Game Awards in his shiny armor. Vincke’s talent is outmatched only by his team dedication, posting an endearing set of thank yous on social to those that made Baldur’s Gate possible. Plus, there’s Adam Smith, who led the title’s writing. The sheer amount of dialogue, story beats and permutations is enough to make one’s head spin, and Smith’s team coordinated it brilliantly.
Nintendo (Japan)
In the potential final year of Nintendo’s now illustrious Switch, it brought the heat in a portfolio of games that rival only the hybrid console’s 2017 launch window. May’s The Legend of Zelda: Tears of the Kingdom and October’s Super Mario Bros. Wonder are easy Game of the Year contenders, with the former reaching nearly 20 million units sold already and the latter being the fastest-selling mainline Super Mario.
The company rounded out its 2023 lineup with Pikmin 4, already the franchise’s lifetime top seller, Metroid Prime Remastered, Detective Pikachu Returns, WarioWare: Move It! and Super Mario RPG remake. Then, back in April, it collaborated with Illumination Entertainment on box office blast The Super Mario Bros. Movie, an awesome adaptation that exceeded most expectations both in quality and cash generated.
Usually it’s Shigeru Miyamoto that’s associated with the Italian plumber, and rightfully so. I want to point out the more unsung, tenured heroes on the team in Super Mario Bros. Wonder producer Takashi Tezuka and director Shiro Mouri. Tezuka-san is a living legend, starting at Nintendo a staggering 40 years ago. Dude was assistant director on 1985’s Super Mario Bros. for crying out loud. Mouri-san is a relative “newcomer” who worked on F-Zero during the Nintendo 64 era then certain 2D Mario and Zelda titles. These two have a magnificent track record and helped craft what I think is the greatest side-scrolling Mario since 1990’s Super Mario World (a game that Tezuka-san also led).
Remedy Entertainment (Finland)
If 2019’s Control was Remedy going for mind-bending action, October’s Alan Wake 2 was its foray into classic survival horror, and a monumental one at that. There’s nothing quite like a Remedy game as the Finnish studio’s approach is unlike any other, pushing boundaries of both technical aspects and genre-mashing to form titles that are wholly different and often groundbreaking.
This year’s masterful sequel to 2010’s Alan Wake was the culmination of a 13 year journey for the team, showing a level of sticktoitiveness that plenty of studios would abandon. Alan Wake 2 is an experience that blends suspenseful story, full motion video and over-the-shoulder mechanics in what’s the most uniquely bizarre triple-A joint of 2023.
From the above image are lead writer Sam Lake and Alan Wake 2 director Kyle Rowley, clearly enjoying themselves while winning at The Game Awards. Industry visionary Sam Lake has become the face of the studio and is prominently featured in their games, thus carving carved out a lane for Remedy’s weird, magical approach to design. As for Rowley, if there’s anything that the new Alan Wake installment should be known for in the annals of history, it’s game direction. The definition of an impressive effort by him and his team.
Sources: Company Media & Investor Websites, Kotaku (Image Credit).
“It feels sane. Or, just the right kind of insane.”
These are the words of Jesse Faden, main protagonist of Control, musing during a particularly trippy stretch of Remedy Entertainment’s latest video game.
It’s an apt encapsulation of the mind-bending science fiction adventure. It’s way out there, and there’s a lot Remedy gets right. Even if it’s certainly not all right.
Out last week, Control is the latest title from Remedy, the Finnish developer best known for early Max Payne installments, Alan Wake and most recently Quantum Break. (Main writer Sam Lake is one of gaming’s most recognized narrators.) All third person action games, the latter two being plenty wacky in story and presentation. Control keeps in the tradition as an over-the-shoulder single-player adventure where shooting is a key element, plus expands to include abilities of the telekinetic and traversal variety. It’s much more an exploration into the metaphysical and paranormal realms than even Quantum Break, and its mechanics reflect this.
The player takes (I won’t say it, I won’t say it..) hold of the aforementioned Jesse, a woman with a mysterious past, a precious secret and a singular goal: To find her brother Dylan. After an otherworldly event in their hometown, her younger sibling was taken 17 years earlier by a secretive government agency called the Federal Bureau of Control (“FBC”) which investigates paranormal activities and unexplained occurrences using a near unlimited budget. It’s a setup reminiscent of the Men in Black or The X-Files, less common in games than in other media which allows an ideal backdrop for Remedy’s unique brand of storytelling.
Jesse arrives at FBC headquarters, dubbed The Oldest House, a nondescript and unrealistically massive structure in New York City to search for Dylan. Upon entering, she meets a wise, friendly janitor then enters the Director’s Office only to discover the former Bureau leader has been murdered. She picks up his old Service Weapon, which of course means that she’s now the Director. (Naturally. Talk about fast-tracking a career.) This begins a wandering tale of searching for answers in a game world that seems to offer only unending questions.
World items and collectibles in Control are among the best in gaming. Legitimately. Hundreds of pick-ups are strewn about the world. It seems excessive, I know, but it isn’t! In an impossible accomplishment, Remedy crafts each of them to offer bits of lore or tidbits of information that supplement the main campaign.
Unfortunately, The Oldest House’s variety of areas like Research divisions and Executive suites are overrun by a transdimensional virus Jesse names the Hiss. It infects human bodies to transform them into either floating, blabbering shells or creepy, hostile entities. There’s also a kind of mold spreading, which transforms folks into stumbling “hosts,” apparently unrelated to the Hiss though equally as troubling. These groups are the main opposition, the implication being there are deeper forces behind them unbeknownst to even the smartest in the Bureau.
It’s a great foundation, which allows the team to flex its incredible art directing, atmosphere setting and world-building talents. The unsettling vibe results from blending a cookie-cutter corporate aesthetic with spooky lighting and empty spaces, transforming areas that should be bustling with activity into Hiss-infested territory. Because of its alignment with paranormal experiments, the building takes on a life of its own. Shape-shifting and changing form. Almost a character in itself. While unfortunate for employees, this benefits gameplay in application since it allows Jesse to traverse across more varied and vertical areas.
To put it plainly, Control is out there. And that weirdness is obviously intentional, in true Remedy fashion. Its eerie atmosphere grabs attention immediately, then permeates throughout its near 12-15 hour playtime. The team’s focused, absolutely amazing art direction somehow transcends plain corporate spaces into uneasy environments, giving a spectral feel to what should be comfortable. Abandoned laboratories are riddled with scrawled post-it notes and scattered paperwork, where idle research instruments sit unused as researchers float above, chanting in tongues due to the Hiss virus taking hold of their being. It’s unnerving, and beyond effective.
And my, how exquisite is the sound design. It’s impossible to oversell how much it contributes to the experience. When the player enters a new area, an audio cue blares to announce one’s arrival. Sound accentuates action, namely as Jesse deftly wields her abilities. Flinging pieces of the environment here and there while dodging income fire, bullets blazing past with a terrifying “WHIZZ.” Remedy even uses a lack of sound to its advantage, then sprinkles delicate notes or haunting strings in the background depending on the theme of each area. Everyone from the team involved with audio design deserves a raise for this grand achievement.
Turning to story and pacing, describing the main path as a slow burn is an understatement. Once Jesse gets her bearings and encounters the Hiss, she begins seeking out survivors. This begins with Emily Pope, a perky research assistant that’s amassing the few sane people left within a sort of hub space in the Executive sector. Pope advises to track down the remainder of the former Director’s management team, not understanding the urgency of her new Director’s visit because Jesse has not revealed her true intention.
The cast of characters Jesse chases is a laundry list of archetypes. The “mad scientist” Head of Research Dr. Casper Darling, “foreboding former Director” Zachariah Trench and “tough-as-nails” Head of Operations Helen Marshall to name a few. There is one stand-out individual in the oddly prescient janitor Ahti, who makes his premonitions in a sort of endearing garbled English. He seems to know the building, and its secrets, better than anyone else. While many of these are stereotypical, I did find it intriguing to track down their whereabouts and learn about each through context clues and environmental pieces (more on this later!).
Overall, it’s a cryptic, borderline incoherent narrative until the third act when Remedy at least attempts to bring everything together. It’s a lot of “go here, do this and I’ll tell you something later” framework. I know this is a common tactic, I just felt Remedy could devise more intermittent story payoffs rather than saving everything for the end. Or perhaps a radio system that gradually fills in the blanks during missions. Control uses a more of a self-reflective approach, Jesse constantly converses with herself, which adds to the suspense though hurts its structure. Then when Remedy attempts to reconcile the narrative, it remains abstract. Even if by design, it’s still dissatisfying after investing so much time.
Pacing is extremely difficult in non-linear and exploratory experiences. Control blocks off certain areas for endgame using either locked doors or entrances out-of-reach without certain abilities. Plus, Remedy delves into side quests not featured in its earlier endeavors. These are erratic in quality, plus make the game feel bloated. Especially a sort of randomized fetch quest type. Constantly distracting and mostly unnecessary.
A couple of these mini-quests do offer memorable experiences in super cool areas of The Oldest House (maybe even outside of it). One in particular has Jesse cleansing “Altered Items,”everyday objects possessed by unknown forces, for the contact that runs a Containment wing. It seems like busywork at first, then surprises when certain items transport to a multidimensional “Astral Plane” with its own terrors awaiting. If Remedy focused only on these quests, skipped the others,the experience would feel much tighter.
World items and collectibles in Control are among the best in gaming. Legitimately. Hundreds of pick-ups are strewn about the world. It seems excessive, I know, but it isn’t! In an impossible accomplishment, Remedy crafts each of them to offer bits of lore or tidbits of information that supplement the main campaign. These can be corporate forms filled out by sarcastic researchers or personal journals describing a company book club. Or live action video of Dr. Darling’s instructional videos, then his slow descent into madness as he learns more about the risks of paranormal research. Then there’s the disturbing educational puppet show made by employees, for children to learn more about the FBC. This word-building approach through in-game lore is a staple of Remedy games, and is the most consistent part of Control.
Control is solid. Shoot, it’s good. But I still can’t shake the fact that, despite its positives, it doesn’t meet its potential. Like a masterful piece of music degraded by poor recording quality or a fine wine served alongside moldy cheese.
I’ll also compliment the heck out of the studio’s creativity in going beyond abstract concepts to illustrate them using concrete examples. “Objects of Power” are collected by Bureau, basically everyday things like a phone or refrigerator that exhibit special powers due to exposure to parallel realities. Then there’s “Altered World Events,” supernatural occurrences. Jesse even occasionally traverses the Astral Plane when learning new powers, showing her special connection to the supernatural and offering a welcome divergence from the corporate backdrop.
Now I’m likely in the minority, however I think combat is one of Control’s weaker aspects. It’s severely underwhelming in the first half, namely due to average shooting mechanics, a feeble melee attack and a noticeable lack of powers. Abilities are then doled out too slowly. There’s just Launch in the early game, which allows Jesse to control objects and throw them at enemies. Finally the game introduces powers like Evade, Shield and my personal favorite Seize, where Jesse can recruit Hiss allies. These spice up combat later, and destroying parts of the environment under its flexible physics engine feels great. I was hoping to get a base level of each power from jump, then expand from there to learn combinations and synergies. There are at least upgrade paths that offer enhancements, because it’s a video game in 2019.
The Service Weapon is both a novel concept and pretty cool in application. It’s a singular firearm that switches forms, each offering a different mechanism like automatic fire or shotgun blasts. Jesse can have two forms equipped at once, and Remedy uses animation cues to distinguish between them. A nice touch. Still, Service Weapon upgrades don’t make much of a difference until the most rare drops start appearing. Offering additional damage against enemy shields or increasing zoom for the precision weapon type are hyper-specific, though admittedly helped against certain enemy archetypes.
Beyond combat, navigating through the many halls of The Oldest House proves frustratingly difficult. Mainly because of how vertical the level design is combined with how poor the map is at displaying direction. There’s no mini-map or compass available. Limited visual indicators, other than in-world signage. The map screen itself often doesn’t even function properly, only halfway loading the names of sections without showing any details or outlines. This is less annoying early, though increasingly insufferable as Jesse visits new areas. Luckily, there’s fast travel. Though again its effectiveness depends on how many “Control Points” one has unlocked.
One much-discussed topic surrounding Control is its inconsistent performance, namely on base consoles released earlier this generation. Digital Foundry goes into much more detail in its great piece, with the verdict being that the game is tuned for PC play though Xbox One X is the best console option. I played on this platform and still experienced issues with frame-rate, texture pop-in and sound drops. Especially during hectic fights, which combine frame-rate dips with a low health effect where the screen turns red. I’m one of the more forgiving you’ll find when it comes to performance, so you know it’s an issue when I point it out.
I also experienced random difficulty spikes, even later game when I was supposed to be at my most powerful. Moving around during combat is integral, the Evade ability crucial. Which eats up chunks of Jesse’s energy bar. Unexpectedly, there’s a couple intensely frustrating boss fights as much due to mechanics as performance. Dying multiple times when you have the mechanics down is agonizing. Had to take a break then return when I wasn’t as ticked off. An instant derailment to general flow, which is much more important in action games than other genres.
Before wrapping, a quick minor spoiler warning for the more sensitive to general plot developments. It’d be a mistake to ignore story progression and the abruptness with with its resolution occurs. Without going too much into detail, Jesse does (eventually) get around to investigating what happened to Dylan. The payoff of her investigation and the ultimate conclusion were underwhelming, not to mention much of the exposition is conveyed via dialogue sequences rather than fluid storytelling. I get this is a byproduct of a lonesome protagonist, though even the content of the narrative was convoluted separate of its delivery.
All in all, whew. This is a long piece. Because there truly is a lot to like in Control. Its chilling sci-fi vibe. Art design of its environments. Incredible, genius world-building through collectibles and in-game videos. Perfect implementation of sound and audio cues. A physics engine that allows for destruction of environments. Select meaningful side quests that go in unexpected directions. Those late game instances where shooting and abilities coalesce into a dazzling display of combat proficiency proves there are plenty of special moments to experience. Ifyou make it that far. Not to mention I dig any game with thought-provoking subject matter, namely what happens when humans experiment with things not of this world and how it impacts those involved.
Control is solid. Shoot, it’s good. But I still can’t shake the fact that, despite its positives, it doesn’t meet its potential. Like a masterful piece of music degraded by poor recording quality or a fine wine served alongside moldy cheese. Average shooting that isn’t up to par with rivals. Awkward navigation resulting from a disconnect between level, map and in-game indicator design. An intentionally opaque story with limited twists and turns or intermittent payoffs. Too many performance issues across platforms. Superfluous side missions and randomized fetch quests that pop up even during tense story moments or monumental boss fights.
Remedy is certainly the type of larger independent studio that I love in theory. Unafraid to take chances amidst competitors intent on churning out annualized franchises or attempting to mimic the success of other games within a given genre. Control is the byproduct of this ingenuity, though for reasons of budget, timing or personnel decisions, doesn’t quite levitate above the realm of perfectly good games with untapped potential.
I’ll certainly remember it when all is said and done this year. For its ambition as much as its failures.
Title: Control
Release Date: August 27, 2019
Developer: Remedy Entertainment
Publisher: 505 Games
Platforms: PlayStation 4, Xbox One, PC.
Recommendation:Control is unique within the third-person action-adventure genre in its unconventional subject matter and strange storytelling approach, so it’s worth experiencing if you enjoy Remedy’s earlier efforts. Just keep in mind frustrations are still present, and I believe they will impact your enjoyment. Oh, and it sounds like you shouldn’t play it on the original PlayStation 4 or Xbox One at least until a patch hits (if ever) due to performance hiccups.
Sources: 505 Games, GamesPress, Remedy Entertainment, Digital Foundry, Screenshots from Xbox One X.
I believe Sony should focus mostly on this philosophy going into the next generation of consoles, rather than seeking growth through external acquisitions. There’s only so much funding to go around, and I’m betting those precious dollars are used for a combination of internal investment and partnerships with outside teams rather than outright buyouts of major studios.
I’ll now get into why this is such a hot topic, then outline each of my reasons.
Within a mostly innocuous report from the Wall Street Journal on the Japanese gaming giant’s decision to focus on gamers for its next PlayStation gaming console which means building out its portfolio of games (surprise!), the stand-out quote is how its main strategy is bolstering its lineup of games only available on Sony devices.
Then, local site Gematsu got in on the action as it translated a Nikkei report containing somewhat vague comments from Sony Interactive Entertainment President and CEO Jim Ryan about gaming content being of utmost importance and the company considering studio acquisitions as one of its strategies for this reason.
(I’ll note here that every major publisher, shoot every public company, has teams dedicated to merger and acquisition [M&A] research. There have been recent job postings from Sony seeking talent for its M&A team, though I’m not reading into this as much as others.)
Finally, PushSquare published a piece among other media sites on likely targets of Sony’s acquisition bucks. These and more sparked rampant speculation online as to which would be the best fits based on history and existing relationships. I’m here to say the ideal foundation going forward is not built on acquisitions, but rather more investment in what it does best. And that’s its current world class studios, upcoming hardware offerings and productive 3rd party partnerships.
The safer route is absolutely to spend its precious resources in its myriad of internal studios, which have produced modern classics such as The Last of Us by Naughty Dog and God of War from Santa Monica Studio, plus align itself with external companies through partnerships rather than outright acquisitions. The most notable recent example of such a fruitful team-up being Marvel’s Spider-Man from Insomniac Games, which passed a staggering 10 million copies mere months after release last September.
Similarly, I’ll go as far to say I’m not hoping for or betting on acquisitions of any major developers or self-publishers in the near term. This list includes Bungie, Insomniac Games, Kojima Productions and Remedy Entertainment. Rather, there’s a much higher likelihood of one *maybe* two smaller teams that aren’t as cost prohibitive. If forced to pick, my bet is Housemarque. Known for arcade type shoot-em-ups such as Resogun and Alienation, I think it’s really the only smaller team suited for purchase now based on its proclamation that its style of games purely aren’t selling well, plus its affinity for working with the PlayStation team in the past.
Why? Here we go.
1. Major acquisitions are costly, time-consuming and risky.
I get it. It’s fun to speculate. To dream up scenarios where a favorite game developer gets purchased by a platform of choice. It’s just, in reality, acquisitions are usually not ideal compared to partnerships and are a truly massive undertaking presenting a variety of risks.
Acquisitions aren’t just about a big company throwing money at a smaller one. Both parties must consent, really except in the case of ugly hostile takeovers which should absolutely not be a part of Sony’s strategy. It often happens when a company is in need of a financial injection, its growth prospects have depleted or, in extreme cases, bankruptcy is looming. It’s especially trickier the more closely held a company gets, which is the case with many of the private game studios. Even those with hundreds of employees. The decision lies in the hands of a select few, normally with both financial and emotional investment from years of independent operation.
Then there’s the topics of what kind of premium the target will squeeze out of the acquirer, how well do company cultures mesh plus the whole regulatory side, all of which make this process time-consuming and expensive. M&A activity is inherently risky, blending folks that haven’t worked directly together so there’s no guaranteeing the company works as well as a subsidiary. Or there might be layoffs that happen due to redundancies. What I’m getting at is these involve many other factors than merely dollars and cents.
Let’s take a couple examples. One public, one private.
A team like Remedy Entertainment is publicly-traded. The Finnish developer is valued around $115 million in market capitalization. Not a huge figure in the context of Sony’s war chest, though certainly not pocket change compared to other names in this conversation. Not to mention that comes before any sort of projects even starting. And it has investors already. Lots of them. It doesn’t need to be injected with cash, especially with a new game Control next month and a collaboration with South Korea’s Smilegate on its CrossFire franchise. Every indication is Remedy wants to be independent. Even when Microsoft was publishing games like Alan Wake and Quantum Break, it was on its own. Why would execs and investors change their mind now, unless Sony throws some exorbitant amount of dough at it?
Then, our private example is Insomniac Games. Run by industry vet Ted Price, it’s a natural name thrown around due to its history of producing games for PlayStation like the aforementioned Marvel’s Spider-Man. Insomniac is a heck of a studio, it’s been around for decades plus boasts a portfolio of Spyro the Dragon, Ratchet & Clank, Resistance and a personal favorite, 2014’s Sunset Overdrive. It’s also dabbling in virtual reality for the Oculus Rift. So, if it’s operated this long alongside PlayStation, why isn’t it a part of Sony? Exactly. As exhibited by its releases on Microsoft and Facebook (Oculus) platforms, Insomniac seems to value its creative independence above all else. And while we don’t know its valuation, to me this clearly shows its decision-makers haven’t seen a reason to become part of Sony Interactive Entertainment yet.
World class first party games are impossible without investing in internal teams before anything else. Instead of dropping $100 million or more on a Remedy or Insomniac, those funds can be funneled internally towards high quality projects for existing teams.
2. Investment in internal teams is a better use of cash.
At present, Sony Interactive Entertainment Worldwide Studios features a suite of more than a dozen teams. Guerilla Games. Naughty Dog. San Diego. Santa Monica. Media Molecule. Sucker Punch. And more, with a legit laundry list of projects under their belts that define what PlayStation is more than anything else. These will also be the main contributors to Sony’s launch lineup next generation when the (probably named) PlayStation 5 (likely) releases in late 2020.
This is a dazzling entourage of the most talented, prolific teams in all of gaming. They make games specifically for a single company’s platforms, PlayStation 4 and PlayStation VR presently. Which means they are experts. If the big focus is appealing to the hardcore audience, that means investing in the personnel that make up these excellent studios is of much more importance than trying to attract external talent. Not to mention, it’s more cost effective to retain individual team members at existing studios than to integrate entire teams.
Sony is known for its first party content. It’s why there are 96 million PlayStation 4 consoles shipped to date, not to mention the absurd numbers for prior generations where Sony has 5 of the top 10 best-selling pieces of hardware ever made. World class first party games are impossible without investing in internal teams before anything else. Instead of dropping $100 million or more on a Remedy or Insomniac, those funds can be funneled internally towards high quality projects for existing teams.
A preexisting agreement or relationship between a larger company and smaller development studio or self-publisher doesn’t necessarily precipitate a buyout, or even open the door to discussions on the possibility of one.
3. External partnerships are attractive for both parties.
When we talk partnerships in gaming, this includes stuff like marketing deals, exclusive content, pre-order bonuses and similar incentives to attract players towards one platform above another. As much as exclusives are not ideal, especially for those without multiple systems, it’s a reality.
The reason I think Sony should opt for partnerships over purchases is that from a corporate standpoint, these deals allow for the best of both worlds. Development teams benefit from the backing of a major console manufacturer, especially for advertising spend, while they also remain independent to pursue experimental projects or titles for multiple platforms.
Need a concrete example? Well, I already mentioned one in Insomniac Games. This time, I’d like to bring up Square Enix. I don’t hear anyone calling for Sony to scoop it up just because games like NieR: Automata or Final Fantasy VII Remake have an alignment with PlayStation as timed exclusives. A preexisting agreement or relationship between a larger company and a smaller development studio or self-publisher doesn’t necessarily precipitate a buyout, or even open the door to discussions on the possibility of one.
While a team like Remedy certainly has less output and lower valuation than Square, I view it similarly because of its standing as publicly-traded plus a history with manufacturers other than Sony. Then there’s the case of Kojima Productions. Game design legend Hideo Kojima had an infamous falling out with Konami a few years back, which led to him founding a private studio. When a company is used to being independent, or recently has become so, and it’s not facing financial instability, its asking price goes up plus the attractiveness of being owned by a parent company plummets.
4. Finally, hardware R&D will be the focus of Sony’s gaming budget.
While Sony’s gaming division now leads the overall firm in both sales and operating income, it’s just one of many considerations when budgets are drawn up. All signs point to it being the final year of the PlayStation 4’s life cycle. In the lead-up to a new generation, research and development costs naturally ramp up especially for a console targeting the “core” demographic of gamers, as illustrated above from executive comments. Design and construction aren’t cheap. Not to mention the massive marketing push that will take the better part of next year.
If Sony intends to put out a powerful console in late 2020 with a quality launch lineup, we’re talking a sizeable chunk of its budget dedicated to this endeavor. How much is leftover to use on merger activity? What’s the most effective way for it to balance hardware and software demands? My thought is that most of its budget must be allocated to its next PlayStation and a core offering of exclusive games, which leaves less for M&A prospects at the risk of being spread thin.
To wrap up this admittedly lengthy post, while I’d never entirely rule out the possibility of acquisitions, I think the contingent calling for Sony to dole out cash on multiple studios has unrealistic expectations. Namely because of where the firm is at in the console cycle. It already has so many talented studios in which it should invest to spur growth, then continue to reinforce its relationships with third parties. This is the ideal route to meet its goal of strengthening its software portfolio, plus has added benefits for external companies that have fought hard for self-sufficiency over the years.
It’s flashy to talk about studio acquisitions, almost casually tossing around names. And it’s certainly more boring to hope that a company stays consistent with its current strategy even when it’s doing quite well. In this case, I’m both hoping and betting that Sony keeps it boring like Proposition Joe said (The Wire hear me). Because its business ain’t broke, literally and figuratively, so it doesn’t need fixing.
Sources: Bloomberg, GamesPress, Gematsu, Kazuhiro Nog/AFP/Getty Images, NVIDIA, PushSquare, Road to VR, Sony Corp, Wall Street Journal.
Prediction: Which gaming console exclusive will sell more copies across its lifetime: Uncharted 4: A Thief’s End, releasing May 10th on Sony Corp’s (6758) PlayStation 4 or Quantum Break which is out tomorrow Apr 5th on Microsoft Corporation’s Xbox One? Note that the latter will also be available on PC.
*FAIR WARNING* This will be a lengthy post, and more analytical than my usual ones. This is to dive deep into what is driving my predictions, rather than simply stating them blindly.
My personal guesstimates are below. In my opinion, Uncharted 4 has the better upside since it is the latest and likely last installment in a long-standing series. Additionally, PS4 user base is larger at around 36 million currently and I expect it to be as much as 50 million by end of 2016 based on growth since launch (and even more by the end of the generation, as we’ll see below). Moreover, Quantum Break is a brand new intellectual property (IP) for the lagging Xbox One this generation so its sales potential is lower despite its overall favorable critical reception now that review embargo has lifted as of last week.
When it comes to these two exclusives, quick predictions for sales this year and then rationale to follow:
Uncharted 4: A Thief’s End (Naughty Dog, Sony Computer Entertainment)
Predicted Lifetime Sales: 8 million
Quantum Break (Remedy Entertainment, Microsoft Studios)
Predicted Lifetime Sales: 5.9 million
The basis for these predictions comes down to a handful of factors: Current and predicted install base of each current generation console, historical attach rates of similar titles (comparison of software units sold per units of its console), actual company estimates and finally pre-order figures.
For Uncharted 4, the historical sales of each installment in the series is as follows over each game’s lifetime compared with the install base of PlayStation 3 on which all were originally released. Note these are lifetime sales:
Subsequently, current lifetime sales of select PS4 exclusives to date and corresponding attach rates based on 36 million units sold of the console itself. Caveats, obviously, these are newer than the older Uncharted games and some are available on PC. But these represent only console sales.
Pushing this one step further, let’s assume based on early sales trends that the PS4 will outsell the PS3 to upwards of 100 million (almost what the PS2 sold). Using this assumption, these are “potential” lifetime figures of the same select PS4 exclusives we just plotted at current attach rates:
Which ultimately leads to my estimate of 8 million lifetime sales for Uncharted 4, assuming it achieves an attach rate of 7.50% which is comparable to earlier titles in the Uncharted series and a bit more than select titles currently available for the PS4 console. This is my built-in upside, as the title has already achieved gold status which is pre-order sales of 250,000 before it has even released.
As for new Xbox One title Quantum Break, we’ll first look at historical sales of new exclusive titles available on “Original” Xbox and Xbox 360 platforms over the past few years again compared with corresponding console sales:
Now sales of Xbox One exclusives to date and attach rates based on 20 million consoles in the wild:
Similar to what we had above, the following is “potential” lifetime figures assuming that the Xbox One sells exactly the same as its predecessor which is around 84 million. I am estimating less lifetime sales here than PS4 based on the Xbox One lagging for the foreseeable future.
Almost done. While Quantum Break isn’t a part of an existing series, I’ve charted how earlier games by Remedy Entertainment have sold on their individual consoles. Note these are not console exclusives except for Alan Wake.
And finally, this brings me to my Quantum Break estimate of 5.9 million lifetime unit sales. I have to assume the game has an attach rate similar to existing Xbox One exclusives like Halo 5 or earlier Remedy title Alan Wake rather than classic titles such as Halo: Combat Evolved or original Fable. And also, this assumes Xbox One again sells as much as the Xbox 360 which I think is realistic depending on how this generation plays out.
Two MAJOR edits at this juncture: The Alan Wake sales figures above initially were high, as this is the figure was for the series overall. I have edited this to reflect Xbox 360 sales only which are around 1.5 million. Also, the big caveat that I didn’t properly convey is that at present Quantum Break is a console exclusive and it is available on PC but only via the Windows Store. Limiting distribution to one platform on PC rather than opening it up to others, namely Steam, will have huge negative implications for sales of the title overall. If MSFT doesn’t offer Quantum Break on the most popular PC distribution platforms at some point in its lifetime, and Xbox One doesn’t sell as well as Xbox 360, then my estimates would need to be revised downward.
Keep in mind, there are a ton of assumptions and estimates here. The bottom line is that I think Uncharted 4 has the greater potential when all is said and done, in that it’s the final installment in an established series going up against a brand new game in Quantum Break. This is despite higher historical attach rates for Xbox exclusives, as I think the Xbox One console could sell less than its competitor PS4 plus Quantum Break is an unproven brand. How do you feel about these assumptions and estimates? Do you think Quantum Break will actually sell more?
Sources: Sony Corp, Microsoft Corporation, Remedy Entertainment, NPD Group, Forbes, GameSpot, Amazon
