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SONY Acquires Bluepoint Games to Rev Up Acquisition Spree
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In a classic example of vertical integration strategy, Sony Group Corporation (SONY - Free Report) has acquired game developer Bluepoint Games that has long been associated with various blockbuster remakes and remasters for PlayStation Studios system. The buyout for an undisclosed amount is the fourth of its kind this year – the acquisition spree being largely aimed to better compete with rivals like Microsoft Corporation (MSFT - Free Report) , which has strengthened its arsenal with more than a dozen video game studio purchases over the past few years.
Since its inception in 2006, Texas-based Bluepoint Games has had close ties with Sony and developed the PS3 downloadable game Blast Factor. Thereafter, it was entrusted with remakes and remasters of PlayStation games like God of War, Gravity Rush, Uncharted: The Nathan Drake Collection, Shadow of the Colossus, and Demon's Souls. With each of these projects, Bluepoint Games managed to excel expectations by raising the bar with console-defining visuals and gameplay and received critical acclaim for the PS4 remake of Shadow of the Colossus and PS5 remake of Demon's Souls that recorded 1.4 million sales at launch.
Although Bluepoint Games has largely gained widespread industry recognition on revisiting other developer’s work, it is reportedly focusing on original content at present, which has been kept under wraps. Probably this could have been the most deciding factor behind its acquisition by Sony as demand for gaming consoles continues to witness healthy growth. Moreover, the fact that Bluepoint Games knows PlayStation better than any other entity made it logical to capitalize on the developer’s insight by combining it within the PlayStation Studio banner for a mutually beneficial relationship in the long run.
Earlier this year, Sony acquired Housemarque, PC-port specialists Nixxes, and the U.K.-based developer Firesprite to extend its leading market share in gaming software. The acquisition binge also strengthens its long-standing business relationships with the game developers, as it intends to create more ambitious projects in the future by leveraging their rich talent pool and zest for gameplay-centric approaches. At the same time, it aims to experiment with newer methods of narrative delivery to push the boundaries of the gaming arena.
Sony launched PS5 in November last year to capitalize on the uptick in pandemic-induced nesting activities — games, streaming video, and home fitness. The gaming console was an instant hit with customers and was immediately sold out worldwide, reportedly more than 10 million units to date. Sony has loaded the product with updated graphics, a newly-redesigned controller, and a collection of exclusive games. With a powerful 8-core AMD Zen 2 processor, 10.3 teraflops of graphics power, gorgeous 4K visuals and an immersive end-user experience, the PS5 promises one of the best performances witnessed in a gaming console. Moreover, PS5 loads games about 10 to 20 seconds faster than the PS4 Pro and can even read physical discs a few minutes faster, making it an ideal choice for tech-savvy gamers.
The stock has gained 49.4% over the past year compared with the industry’s rise of 47%, driven by healthy revenues on the back of a flexible business model and solid market response for the PS5 gaming console.
Image Source: Zacks Investment Research
We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. A couple of better-ranked stocks in the industry are Sonos, Inc. (SONO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Panasonic Corp. , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sonos has a long-term earnings growth expectation of 41.9%. It delivered an earnings surprise of 297.3%, on average, in the trailing four quarters.
Panasonic has a long-term earnings growth expectation of 25.2%. It delivered an earnings surprise of 80.1%, on average, in the trailing four quarters.
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SONY Acquires Bluepoint Games to Rev Up Acquisition Spree
In a classic example of vertical integration strategy, Sony Group Corporation (SONY - Free Report) has acquired game developer Bluepoint Games that has long been associated with various blockbuster remakes and remasters for PlayStation Studios system. The buyout for an undisclosed amount is the fourth of its kind this year – the acquisition spree being largely aimed to better compete with rivals like Microsoft Corporation (MSFT - Free Report) , which has strengthened its arsenal with more than a dozen video game studio purchases over the past few years.
Since its inception in 2006, Texas-based Bluepoint Games has had close ties with Sony and developed the PS3 downloadable game Blast Factor. Thereafter, it was entrusted with remakes and remasters of PlayStation games like God of War, Gravity Rush, Uncharted: The Nathan Drake Collection, Shadow of the Colossus, and Demon's Souls. With each of these projects, Bluepoint Games managed to excel expectations by raising the bar with console-defining visuals and gameplay and received critical acclaim for the PS4 remake of Shadow of the Colossus and PS5 remake of Demon's Souls that recorded 1.4 million sales at launch.
Although Bluepoint Games has largely gained widespread industry recognition on revisiting other developer’s work, it is reportedly focusing on original content at present, which has been kept under wraps. Probably this could have been the most deciding factor behind its acquisition by Sony as demand for gaming consoles continues to witness healthy growth. Moreover, the fact that Bluepoint Games knows PlayStation better than any other entity made it logical to capitalize on the developer’s insight by combining it within the PlayStation Studio banner for a mutually beneficial relationship in the long run.
Earlier this year, Sony acquired Housemarque, PC-port specialists Nixxes, and the U.K.-based developer Firesprite to extend its leading market share in gaming software. The acquisition binge also strengthens its long-standing business relationships with the game developers, as it intends to create more ambitious projects in the future by leveraging their rich talent pool and zest for gameplay-centric approaches. At the same time, it aims to experiment with newer methods of narrative delivery to push the boundaries of the gaming arena.
Sony launched PS5 in November last year to capitalize on the uptick in pandemic-induced nesting activities — games, streaming video, and home fitness. The gaming console was an instant hit with customers and was immediately sold out worldwide, reportedly more than 10 million units to date. Sony has loaded the product with updated graphics, a newly-redesigned controller, and a collection of exclusive games. With a powerful 8-core AMD Zen 2 processor, 10.3 teraflops of graphics power, gorgeous 4K visuals and an immersive end-user experience, the PS5 promises one of the best performances witnessed in a gaming console. Moreover, PS5 loads games about 10 to 20 seconds faster than the PS4 Pro and can even read physical discs a few minutes faster, making it an ideal choice for tech-savvy gamers.
The stock has gained 49.4% over the past year compared with the industry’s rise of 47%, driven by healthy revenues on the back of a flexible business model and solid market response for the PS5 gaming console.
We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. A couple of better-ranked stocks in the industry are Sonos, Inc. (SONO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Panasonic Corp. , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sonos has a long-term earnings growth expectation of 41.9%. It delivered an earnings surprise of 297.3%, on average, in the trailing four quarters.
Panasonic has a long-term earnings growth expectation of 25.2%. It delivered an earnings surprise of 80.1%, on average, in the trailing four quarters.