With Billions Still Left To Spend, What’s Next For Sony?

Everybody’s watching Sony and Microsoft, who are locked in a fierce and expensive matchup, in an era when money appears to dictate the future even more than innovation. It’s a content battle that will go on and on, with no indication when or how it will end.

Due to these challenges plus an unimaginable bank account, Sony will surely have a tough time competing. Under enormous pressure from its longstanding opponent and with its dominant position and unequaled experience in game creation, the Japanese corporation has valid grounds to expect struggle, the exercise is nevertheless worth attempting.

More than $17 Billion Budget

In May 2021, Sony presented a financial document showing that it has approved an investment budget of more than $17 billion for company acquisitions and activities through March 2024. On February 2, the Japanese giant released its latest economic report, which revealed about $7.4 billion of this budget had already been spent, including Bungie’s $3.6 billion acquisition.

Rather than focusing just on PlayStation, Sony as a whole has $10 billion in the bank to use strategically in the next 2 years. It’s a wonderful sum of money, but it pales in comparison to the expenditures of Microsoft, which aren’t even in the same field, and it raises some fascinating questions about the future.

Image Courtesy of Sony
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One strategy is to buy “simple” game studios while another is to think of the manufacturer stepping up a notch by focusing their efforts on actual publishers directly. It is widely accepted that comparing EA to Activision Blizzard would be an ideal manner to counteract Microsoft’s acquisitions. However, it is evident that this option would seem impossible. After all, EA holds the insane value of $38 billion.

Image Courtesy of Sony

Possible Acquisitions?

A few alternatives arise if we keep to the basic market worth of big publishers within Sony’s capabilities.

Ubisoft $7.3 Billion
Square Enix $5.9 Billion
Capcom $4.9 Billion
SEGA $3.6 Billion
Konami $3.2 Billion

Think about owning some of the best-known franchises like Sonic, Resident Evil, Final Fantasy, and Silent Hill all at once. This is a notion that might pique the interest of Sony executives.

Taking a step back and remembering that the $10 billion in remaining projected expenditures are not just focused on video games. There are further transactions planned for the Japanese corporation because it is also active in the film, music, and new technology industries.

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