business news Sony, Vicarious Vision, CD Projekt… The business news of the week
Sales figures, study purchases, financial statements, developer transfer window, investments… if these topics interest you, you’ve come to the right place. We bring you an update on last week’s business news.
- Sony invests again in Epic Games!
- Vicarious Visions: The demise of the studio is effective
- CD Projekt RED provides financial and sales update
- Cloud Gaming: A new “market” that begins to weigh heavily
- Briefly in the business news of the week.
Sony invests again in Epic Games!
In July 2020, Sony announced in the press that it had invested 250 million dollars in Epic Games, in order to support the technological development of the company behind Unreal Engine 5. In April 2021, again, this time with the sum of 200 million dollars. A new agreement concluded by the arrival of Aloy from Horizon: Zero Dawn in id:45791 Fortnite|sponsored=false]. Finally, Sony seems to want to go much further in its idea, since Epic Games has announced this week that the Japanese firm had injected 1,000 million dollars additional. In focus: technological development and implementation of the metaverse.
Today, Epic Games announced $2 billion in funding to advance the company’s vision to build the Metaverse and support its continued growth.
The other billion come from KIRKBI the family holding company and the investment company behind the LEGO Group. These additional investments should not alter the established order since the press release specifies that Epic Games remains under the control of Tim Sweeney. Obviously, the press release leaves the word to Kenichiro YoshidaChairman of the Board of Directors and CEO of Sony Group Corporation :
As a creative entertainment company, we are pleased to invest in Epic to deepen our relationship in the realm of the Metaverse, a space where creators and users share their time. We are also confident that Epic’s expertise, including its powerful game engine, combined with Sony technologies will accelerate our various efforts, such as the development of new digital experiences for sports fans and our virtual production initiatives.
Vicarious Visions: The demise of the studio is effective
On January 22, 2021 we learned that Vicarious Visions, which was part of Activision Publishing, was going to integrate Blizzardwith the mission of to hold the developments of the creators of Diablo, Overwatch, Starcraft or even the Warcraft universe. To this studio we owe the GBA version of Tony Hawk’s Pro Skater 2, various works of the Guitar Hero licenseor the remakes of Tony Hawk’s Pro Skater 1+2 and Crash Bandicoot N. Sane Trilogy.
For more than a year, the study therefore no longer has the possibility to direct the development of a game, working on Diablo II: Resurrected and assisting in the production of Diablo IV. At the time of the announcement, Jen O’Neal, Studio Director Vicarious Visions, had been promoted to executive vice president of development at Blizzard. A post he left three months later.. In November the integration of the Vicarious Vision teams was completed, but the entity still existed. This week, a short tweet from the studio account announces that the merger is now completewhich effectively leads to the demise of Vicarious Visions
We have officially merged with Blizzard Entertainment. Our development team will remain in Albany, New York and will be completely dedicated to Blizzard games. We invite you to follow us @Blizzard_Ent
— Vicarious Visions (@VvisionsStudio) April 12, 2022
We have officially merged with Blizzard Entertainment. Our development team will remain in Albany, New York, and will be fully dedicated to Blizzard games. We invite you to follow us on @Blizzard_Ent.
it is then after 28 years of existence, Vicarious Visions retires to become Blizzard Albany. We just have to wait to find out what the developers of the old studio have in store for us.
CD Projekt RED provides financial and sales update
If the release of Cyberpunk 2077 was dire for the image of CD Projekt, the company is doing very well, and is even starting to regain credit from its public. At the same time, the study formalized the development of a new saga The Witcher under Unreal Engine 5, and a major reorganization of the studio has been underway for many months. Shortly after the end of the fiscal year, CD Projekt announced that it had brought back The Witcher 3 next-gen port projectpostponed indefinitely to evaluate the remaining work, while preparing the presentation of your results for the year 2021. It is already done, and we can say that the company it is going welldespite a very significant drop in results.
Between January and December 2020, CD Projekt had reached a turnover of 478 million euros, for an operating profit of 260 and a net profit of 257 million. For the period from January to December 2021, the figures are less encouraging, but still positive. So we learn that turnover is 194 million euros, operating profit is 50 million and net profit is 45 million. The significant drop in income is due to Cyberpunk 2077 did not carry the companybut also for a 23% overall salary increaseand for him many investments done. Instead, G.O.G.the sales platform without DRM, loses money with a net loss of 6.4 million euros
It is with games that CD Projekt gargles, as we have learned that The Witcher 3 had sold more than 40 million units even before the release of the next generation, and the franchise’s total sales exceeded 65 million copies. On the side of Cyberpunk 2077, we are much further away, but we are anyway to over 18 million copies sold of the exit We are therefore very far from failure, and we can imagine that the studio is preparing a plan to boost sales on the occasion of the arrival (no date) of the extension. In addition, the balance only speaks of a single extension, and Adam Kiciński, the CEO, indicates that the RED Engine multiplayer support project has been abandoned.
We must also remember that CD Projekt recently bought The Molasses Flood, after making Digital Scapes CD Projekt Red Vancouver. Finally, here is an overview of the evolution of the workforce distribution between December 2020 and February 2022. We notice that most developers are now working on new projects (including the new The Witcher), that the Gwent team maintains and works on a new single player mode, that the one dedicated to the Cyberpunk 2077 expansion grows, and that The Molasse Flood gets stronger.
Cloud Gaming: A new “market” that begins to weigh heavily
He appeared in 2003 with OnLive, Cloud gaming will have taken almost 20 years to begin its real democratization. We had to develop technology, infrastructure and wait for the speed of the Internet to increase. Now installed with Nvidia’s GeForce Now, xCloud (Xbox Cloud Gaming), PlayStation Now, Shadow, Amazon Luna, Stadia and many more, cloud games It would already weigh 1,500 million dollars according to the recent Newzoo report. In the documents accompanying the analysis, we learned that cloud gaming would now be of concern 21.7 million users worldwide, and continued growth is expected.
There is even talk of a multiplication of income, which could reach $6 billion by 2024. To give an idea of the progression, know that in the previous report, Newzoo indicated that this market weighed “that” 671 million dollars. But how to explain this sudden progression and these mind-boggling forecasts?
On the one hand, we find the Difficulty obtaining high performance teams due to costs and scarcity. On the other hand, we notice a great simplification of access to cloud gaming, 5G deployment and fiber optic acceleration, and a world advancement of technology bound. But to continue, it will be necessary to improve the capacity of the servers, continue working on the reduction of latency and hope that the improvement of the connection attracts new clients.
Briefly in the business news of the week.
- Bungie has announced that it will become a “digital first” company, allowing residents of several US states to work 100% remotely. More information here.
- A DFEH attorney resigned saying that California Democratic Governor Gavin Newsom allegedly interfered in the case involving the state and Activision-Blizzard. All the details of this new development in our dedicated news.
- nintendo paid €36.6 million to buy land and build a new building across from their current headquarters. The building will be dedicated to R&D and delivery is scheduled for December 2027.
- 41% of digital sales of LEGO Star Wars: The Skywalker Saga were made on Xbox consoles. At this point, Microsoft’s console is ahead of PlayStation (34%), PC (18%) and Switch (7%) consoles.
- Embracer group (THQ, gearbox) intends to purchase other studios. Currently, the company has 62 studios and has paid a total of 8,000 million dollars.
- epic games invests in the Brazilian study Aquiris (Horizon Chase Turbo). The studio has signed a publishing agreement and will receive investment to develop future projects. The amount was not disclosed.
- Capcom has announced that The Great Ace Attorney Chronicles has sold out in 500,000 copies in the world
- Despite appearing on the PlayStation Studios banner, Kojima Productions “is and will remain an independent studio”Hideo Kojima said.
- Pokémon Unite, the light MOBA developed by TiMi Studios now exceeds 70 million downloadsall media combined.