• Fri. Jun 2nd, 2023

Sony is freeing up $8,000,000,000 to spend on new entertainment acquisitions

May 22, 2023

Sony is relisting shares in its financial business in order to focus on entertainment, as it worries about being ‘left behind’ by Microsoft.

For most big publishers, gaming is not the only thing they do. Even Nintendo has diversified into movies and theme parks, while the reason Konami has been so apathetic about making new games is that they make plenty of money through their gambling and health centre businesses.

Of course, gaming is only a very small part of Microsoft’s overall income but for Sony it’s a more significant portion and recently PlayStation has been much more successful than their movie or TV endeavours.

As well as PlayStation, the other division that’s doing well for them at the moment is their computer chip manufacturing business and apparently they want to expand both.

Sony has said it’s considering relisting the shares of its financial services arm in order to free up to $8 billion and increase investments in its ‘entertainment business’.

‘In order to expand our growth over the medium to longer term, we will need the ability to invest in image sensors and the entertainment business at a completely new level,’ said Sony exec Hiroki Totoki.

‘Consolidation in entertainment has been happening and Sony doesn’t want to be left behind,’ he said, according to the Financial Times.

Although Sony are never more specific about which part of their entertainment business they’re talking about, it’s hard not to connect those comments with Microsoft’s massive recent investments, which has seen it spend $7.5 billion on Bethesda and, if it ever goes through, $69 billion on Activision Blizzard.

Even $9 billion would be a drop in the ocean compared to that, and not all of that money is going on PlayStation, but it does underline comments Sony made back in 2022, that it was not done with acquisitions, after spending $2.7 billion on Bungie.

There’s no indication of who Sony might be looking to buy, or even if they currently have anyone in mind, but it all certainly seems like a reaction to Microsoft’s aggressive purchasing decisions.

The only time Sony specifically mentioned games was in saying that the investment in their chip making business was partially to ensure they could manufacture the PlayStation 5 at full capacity, which alone indicates just how important gaming is to their business as a whole.

Follow Metro Gaming on Twitter and email us at [email protected]

To submit Inbox letters and Reader’s Features more easily, without the need to send an email, just use our Submit Stuff page here.

For more stories like this, check our Gaming page.

Sign up to all the exclusive gaming content, latest releases before they’re seen on the site.

Source: Read Full Article