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Update: AT&T no longer seeking sale of Warner Brothers gaming unit

Brian

By Brian
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SoberChef

SoberChef

Posted
Posted
5 hours ago, Dodger said:

MS getting Rocksteady or NetherRelms would be huge, even if the licensing is a problem they are talented studios that will help out their first party portfolio. 

You're not wrong in that statement. While I'm not entirely sure what either an open-world or a fighting game (hypothetically) look like done by those studios without it being the brand that they are known for and associated with, it is quite intriguing as new IP can always invigorate the medium.

 

Then again, isn't Playground Games working on an entirely new IP not revolving around racing?

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Keyser_Soze

Keyser_Soze

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4 hours ago, SoberChef said:

You're not wrong in that statement. While I'm not entirely sure what either an open-world or a fighting game (hypothetically) look like done by those studios without it being the brand that they are known for and associated with, it is quite intriguing as new IP can always invigorate the medium.

 

They can get NetherRealm to work on a new Killer Instinct.

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JPDunks4

JPDunks4

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12 minutes ago, AbsolutSurgen said:

I really can’t see MS picking up WB. 
 

They’re more focused on volume of content, rather than picking up big AAA studios. 

 

I think that's the perception because a lot of their studio's thus far aren't proven in the AAA space.  Ninja Theory and now Obsidian are releasing their smaller passion projects, so people think Microsoft are going to have these new studios just putting out AA Game Pass Filler. 

 

Most everything thus far points to them pouring resources into these smaller studios and having them begin work on AAA projects.  For Game Pass to continue to grow, they will need to feed it regularly with great original content.

 

When Netflix first started, there were no "Netflix Originals".  Now they keep on churning out new quality content all the time.

 

I have no idea if they'd want to acquire Rocksteady and NetherRealm, but I wouldn't doubt that they are focused on putting out a lot of AAA quality this upcoming gen, rather than just a lot of smaller AA projects.

 

 

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Commissar SFLUFAN

Commissar SFLUFAN

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I personally don't think these studios are particularly attractive to anyone in their current configuration.  As I posted on ResetERA:

 

Quote

A consistent theme that I see in this thread regarding how "attractive" these studios are to potential buyers is the claim that the games developed by the WB studios (I'm specifically thinking the Arkham series, the Mordor series, and Mortal Kombat) are a "money makers".

 

What evidence exists to substantiate that:

(a) these games are actually "profitable" to begin with, and
(b) assuming that they do generate a profit, that they are profitable enough to justify continued investment of resources into the studios - in other words, do the games meet the the company's internal required rate of return, or are those resources better allocated to the "next best alternative"?

 

These are pretty important considerations for potential buyers in considering the revenue streams vs operating costs for these studios. It's also important for AT&T for considering what to do with the studios should an acceptable sale deal not be reached

 

I absolutely shudder to think how much money has been dumped into whatever the hell Rocksteady has been developing for at least 5 years with nothing to show for it.  I'm with the anonymous game company executive who said that his firm wasn't interested in the studios because they only "intermittently" make  money and they really don't actually own anything on their own.

 

Honestly, if you're a developer at any of these studios, your best bet is probably to get that resume updated and start working your network for opportunities.

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HGLatinBoy

HGLatinBoy

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47 minutes ago, JPDunks4 said:

 

I think that's the perception because a lot of their studio's thus far aren't proven in the AAA space.  Ninja Theory and now Obsidian are releasing their smaller passion projects, so people think Microsoft are going to have these new studios just putting out AA Game Pass Filler. 

 

Most everything thus far points to them pouring resources into these smaller studios and having them begin work on AAA projects.  For Game Pass to continue to grow, they will need to feed it regularly with great original content.

 

When Netflix first started, there were no "Netflix Originals".  Now they keep on churning out new quality content all the time.

 

I have no idea if they'd want to acquire Rocksteady and NetherRealm, but I wouldn't doubt that they are focused on putting out a lot of AAA quality this upcoming gen, rather than just a lot of smaller AA projects.

 

 

When MS ran out of AAA studios to gobble up they started buy the C-listers. Also I would not want Netherrealm in charge of K.I. they can stick to MK, to me they're just completely different beasts and NR games are hit and miss for me. Even when I like their games there's just something about them is never truly satisfying. I would love for NR to implement characters from Tao Feng and Kakuto Chojin though if they were ever picked up. 

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skillzdadirecta

skillzdadirecta

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On 6/18/2020 at 1:20 AM, SoberChef said:

For fans of JRPG's, a Lost Odyssey sequel has had many salivating for years now.

 

I'm not one of them as I don't play that type of game, but it's always one I hear of that so many pine for more of! Also, I would toss Blue Dragon into the mix as well?!

I always wanted to try this game... I wonder if it holds up.

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number305

number305

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34 minutes ago, Spawn_of_Apathy said:

It would HAVE to be. Mortal Kombat isn’t worth $2 billion. It’s not the gaming equivalent to Star Wars. 

IGN has a story up about this right now.  They say early in the story that the DC properties are not a part of the deal, then later in the story they talk about what a boon for sales it would be for Microsoft to get all the DC properties.  

 

No one knows what any of this means.  I just hope EA doesn't win this bidding war.  

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Commissar SFLUFAN

Commissar SFLUFAN

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8 minutes ago, number305 said:

IGN has a story up about this right now.  They say early in the story that the DC properties are not a part of the deal, then later in the story they talk about what a boon for sales it would be for Microsoft to get all the DC properties.  

 

No one knows what any of this means.  I just hope EA doesn't win this bidding war.  

 

The IGN story really doesn't grasp the nuances of what properties could (must!) be included in the asking price as part of a long-term licensing arrangement and what would need to be renegotiated with the IP owners.

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skillzdadirecta

skillzdadirecta

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1 hour ago, number305 said:

IGN has a story up about this right now.  They say early in the story that the DC properties are not a part of the deal, then later in the story they talk about what a boon for sales it would be for Microsoft to get all the DC properties.  

 

No one knows what any of this means.  I just hope EA doesn't win this bidding war.  

That just sounds like sloppy reporting aka "videogame Journalism". That said, there's some solid studios included in this purchase if it goes through.

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DPCyric

DPCyric

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On 6/17/2020 at 11:45 PM, crispy4000 said:

Microsoft would do better to buy up a Japanese developer company for far less money.

 

Go get Mistwaker and make Lost Odyssey 2.  Or Tri-Ace if their next project doesn't look like crap.

 

Microsoft purchasing Mistwalker is what needs to happen but I don't think they realize yet how important it is to have Japanese exclusives even if they don't make bank. Microsoft made a huge mistake dropping Lost Odyssey after one game among many other mistakes last gen. Anyway without the DC license this looks far less attractive... it really doesn't make sense as a purchase for M$ maybe it's a better fit for EA.

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SoberChef

SoberChef

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I think that M$ moving farther & farther away from Japanese titles was almost a direct retort to how THAT market almost unabashedly abandoned the platform of Xbox as a whole as time went on. It became a viscous circle that only recently has Phil been attempting to rectify & mend those bridges while looking ahead to the next-gen. 

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DPCyric

DPCyric

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26 minutes ago, SoberChef said:

I think that M$ moving farther & farther away from Japanese titles was almost a direct retort to how THAT market almost unabashedly abandoned the platform of Xbox as a whole as time went on. It became a viscous circle that only recently has Phil been attempting to rectify & mend those bridges while looking ahead to the next-gen. 

 

It doesn't matter that the strategy failed in Japan those games were still needed in the American market to diversify their catalog. I'm honestly shocked the Xbox One recovered from it's disastrous launch considering how bad it's exclusive lineup is.

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Commissar SFLUFAN

Commissar SFLUFAN

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17 minutes ago, crispy4000 said:

I wonder if there's a chance some of the properties and studios will be auctioned off piecemeal.  Like with old THQ.

Only as an absolutely final resort if there are no buyers and WB management decides they just want the hell out of the videogame business no matter the cost.

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skillzdadirecta

skillzdadirecta

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4 hours ago, Spawn_of_Apathy said:

Without IPs though all those studios are is talent. Not that talent is worthless, but it would be far cheaper than $2billion to just make a new studio and poach the people. 

Yeah but the only IP's that are asssociated with those studios that aren't guaranteed to automatically come with the sale are the DC characters and Harry Potter, right?

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Spawn_of_Apathy

Spawn_of_Apathy

Posted
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1 hour ago, skillzdadirecta said:

Yeah but the only IP's that are asssociated with those studios that aren't guaranteed to automatically come with the sale are the DC characters and Harry Potter, right?

I know. That’s kind of been my point. The studios and what IPs they have that aren’t owned by DC aren’t worth $2billion. The price doesn’t make sense unless it comes with some kind of temporary licensing deal with DC properties at the least. 

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Commissar SFLUFAN

Commissar SFLUFAN

Posted
Posted

AT&T looks to have changed its mind about selling its gaming studios (Eurogamer)

Quote

Warner Bros. Interactive Entertainment, owner of studios such as Rocksteady, NetherRealm, and TT Games, is seemingly no longer up for sale.

 

Now, however, it seems AT&T has reconsidered the sale and instead of selling off its gaming concern to help mitigate its debts, instead it is restructuring the organisation. In an email to staff, CEO Jason Kilar told staff Warner Bros. Interactive "remains part of the Studios and Networks groups".

 

I guess the roaring laughter from potential buyers when AT&T told them the price they were looking for must've contributed to the decision.

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Commissar SFLUFAN

Commissar SFLUFAN

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Just to expound further, there is little doubt from that message that there will be significant cost-cutting/consolidation within the gaming division (i.e., studio closures and layoffs) as a short-term measure.  In the longer-term, a "leaner" gaming division is a more attractive prospect to a potential buyer.

 

I don't think AT&T has necessarily had a change of heart that it wants the hell out of the game-making business - they're just going about it in a "smarter" way.

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XxEvil AshxX

XxEvil AshxX

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26 minutes ago, Emperor Diocletian II said:

Just to expound further, there is little doubt from that message that there will be significant cost-cutting/consolidation within the gaming division (i.e., studio closures and layoffs) as a short-term measure.  In the longer-term, a "leaner" gaming division is a more attractive prospect to a potential buyer.

 

I don't think AT&T has necessarily had a change of heart that it wants the hell out of the game-making business - they're just going about it in a "smarter" way.

 

Maybe they should focus on selling individual studios for less money instead of.. ya know... putting hundreds of people out of a job.

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Commissar SFLUFAN

Commissar SFLUFAN

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17 minutes ago, XxEvil AshxX said:

 

Maybe they should focus on selling individual studios for less money instead of.. ya know... putting hundreds of people out of a job.

It's not just studios.

 

There's an entire publishing arm of WB Games that inflated the overall price and all of the potential buyers already have robust publishing divisions so that probably acted as a significant discouraging factor for their interest.

 

I'm pretty certain that the WB Games publishing arm will be the first casualty in any consolidation.

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