Sony Buys Exclusives!
PR labels it “Incentives”…
By TWODOGSz
©2009 Aaron Bertinetti:- NE (News Editor)
When is an apple not an apple? Well apparently when Sony PR calls it an orange!
Every once and a while I have the pleasure of imagining a world where PR speak isn’t taken as gospel by the pathetic “I got a hard on for hardware” types and used in their incoherent, blindingly illogical diatribes about why their “hard on for hardware” is bigger than the other guys.
And just when I think it’s safe to duck my head into the horribly inappropriately named News 4 Gamers. THIS happens. Followed like a fly to shit by THIS.
You can work out what’s the shit and who the flies are, but like their counterparts that align with Microsoft or Nintendo, they have one thing in common… Blind faith.
If Sony said jump. They’d fight to be first. If Sony said fight. They’d jump in to be first. And if Sony said:
“[PS3 is] for consumers to think to themselves ‘I will work more hours to buy one’. We want people to feel that they want it, irrespective of anything else.”
Well yeah… you get the idea. And apparently so did Ken Kutaragi!
The last part is worth repeating: “We want people to feel that they want it, irrespective of anything else.”
I’d say mission accomplished Ken! You’ve earned your place alongside Microsoft’s Greenberg and Nintendo’s Yamauchi. And whilst each console’s respective fanboys are not representative of their larger user bases, the problem is they make so much god-damn noise they tend to drown rational gamers who enjoy one or more consoles out of the conversation.
And so here we are today…
Sony decides to match the development budget of self-published games in return for PlayStation exclusivity. You know just like Microsoft paid for exclusive DLC for GTAIV, Fallout 3 and Tomb Raider: Underworld. Or as Sony has also done with Mirror’s Edge. The only difference being that they’re locking up original titles in development for PSN by guaranteeing royalties that’ll turn the development budget into an annuity for developers that pays back over time.
Of course Sony will still take some cream off the top with their much reported bandwidth charges, but it’s nonetheless a clever idea that reduces the financial risk and costs to developers.
But the devils will be in the detail.
Will the guaranteed royalty rate be lower for those who opt in, to those who opt out? How low is the guaranteed royalty rate? Is the guaranteed royalty rate less than the average of publishing on multiple platforms? What are the normal royalty rates of publishing on Xbox Live, Wii Ware or Steam?
The short business answer is that Sony’s guaranteed royalty rate has to be lower than that of the normal rate, because otherwise all developers will apply for the scheme upfront which Sony will have to find deep pockets for or will be forced to reject applications of “promising” titles because it can’t afford it and hence will drive developers away from PSN and towards the next highest royalty rate on Xbox Live, Wii Ware or Steam.
Further Sony has to have a lower guaranteed rate, because otherwise Sony will be stuck with the full risk of knowing how to pick the MGS4 or LBP over the Haze or Lair whilst the titles are still in development. Given past experience, I’d suggest Sony, Microsoft and Nintendo are no more capable of that than yesterday.
And yet even with such risk mitigation, Sony will still risk guaranteeing royalties for future commercial flops. This will be almost immediately tested by the first funding recipient “Burn Zombie Burn!” And you can bet Sony will be watching its success as much as its competitors.
Most importantly, however, will Sony use the lower rate to exploit underfunded developers to increase their own royalty rates? What am I talking about? Well Sony could target financially strained developers who have no option but to opt in but who produce content that will generate high sales. Given the lower guaranteed royalty rate the developer receives a lower bite of the pie than normal, whilst Sony goes running off with a larger than normal rate piece.
It’s great business and a common practice with financial products. But it might not be so great for fledgling developers. No matter how Sony may spin it.
This also illustrates another conundrum. At what point does the risk and reward of exposure on multiple platforms outweigh the lower risk and reward of exposure on one platform? For well funded developers that’s likely to ensure the Pub Fund offers no incentive with a lower royalty rate and smaller audience than that of multiple platforms. Much like Capcom, Square Enix and EA with full retail games, the rewards of a much larger audience on multiple platforms far outweighs such a guarantee for mainstream developers who can afford their own development.
The scheme, euphemistically called the Pub Fund (as opposed to a “Slush Fund”), follows comments made to GamesIndustry.biz last year by Sony’s David Reeves, who said that whilst exclusive deals with publishers are probably a thing of the past, there’s scope for exclusive deals with developers.
And that’s a remarkable double backflip from Sony’s Jack Tretton when he stated in 2007:
[W]e don’t buy exclusivity. We don’t fund development. We don’t, for lack of a better term, bribe somebody to only do a game on our platform.
Err Jack… Did you get the memo?
Given Microsoft has made deals with developers Rockstar, Bethesda and Crystal Dynamics I’d say Sony and Microsoft wholeheartedly agree. But of course that ignores the fact that Microsoft “buys exclusives” as opposed to Sony’s “incentives” which Sony’s Chris Eden was quick to jump on to fuel the flames stating:
a really important thing to point out is that this is not first-party publishing, this is not Sony buying your product.
Of course Microsoft hasn’t bought the IP rights to GTAIV, Fallout 3 or Tomb Raider either, but that’s the deliberate and snide inference.
OXCGN has previously analysed the increasing move to exclusive DLC arrangements and the bigoted hatred bred by gaming executives. So feel free to read them.
But I think all rational gamers would agree that much like those who distort religion and strap bombs to their bodies, these idiots who strap PR spin to their backs and dive in like martyrs on an aeroplane deserve exactly the same fate…
Six feet under and preferably without dragging the rest of us into it!
Please share us around
Filed under: Console gaming, Editorial, Game Dev Con 09, Xbox 360, Xbox 360 News Tagged: | Capcom, EA, Greenberg, Ken kutaragi, n4g, News 4 Gamers, Nintendo's Yamauchi., Playstation Nework, PSN, Sony buys exclusives, Sony exclusives, Square Enix
@ xboxoz360
-good article by the way and yes sony is just as bad as microsoft. its just sony is like a little pregnant girl scared to tell her parents and microsoft is like a dude easy to say i hit that…twice lol.
Thanks mate, glad someone ‘reads’ the whole thing rather than the headline. Which is meant to attract attention naturally, but it is also aimed at stimulating discussion and reading of the article in question.
Unfortunately, as pointed out so clearly in the article, then demonstrated in the vengful replies, not many ppl DO READ an article at all, and have trouble reading past the first few lines of text.
So thanks for taking the time to read it, most appreciated.
Good article, Sony has always been hypocrites, they trashed MS for having multiple SKUs, they said rumble was outdated technology, Sony is just like its fanboys, full of shit, no one should take anything they say serious.
Why does the industry continue to give them credibility after so many lies? I just don’t get it. Face it, its a washed up has been console that is trying to get back what they had last gen. Joke of the industry frankly.
” but it’s nonetheless a clever idea that reduces the financial risk and costs to developers. ”
So you basically just said SONY made a great move. But they did it in much less of a dick way then MS did.
Why are you taking note of things wrong that SONY PR is doind when others are more guilty of the same crime?
I think you, and many are issing the ‘entire point’ . .it’s the hypocrisy of the thing, an dthe way fanbois behave around it. BOTH companies are as bad as each other, find anywhere in the article where it says MS are better . . you’ won’t find it.
What it is pointing out is that when one company does it, the other calls it selfish, ripping developers off etc etc, yet when they turn around and do that same thing, all for valid reasons, there’s no argument around that, as anything that helps younger developers the better, their fans go ape and say how darte anyone say their trusted company is doing anything contrary to what they originally stated they do not or would not do . .
Try reading it, and several other articles on the net about the very same thing, all saying basically the very same thing . .but the Sony Droids will have nothing of it.
The Sony fans that are mature enough to understand that both MS, Sony and even Niffty do these things are those that do NOT sprout out vengeful comments, and actually know that no company is exempt from such tactics . . . They also know how to read all the lines of text, not the ones that seem to make them unhappy.
Fanbois on BOTH sides of the fence are the WORST thing that has happened to the gaming following, and while they have been around for some time, they gain popularity in 2005 when the world exploded for them and gave them a voice.
why did i read this?
there is nothing new in buying exclusives?
Sony Buys Exclusives!
PR labels it “Incentives”…lol
yeah well i think sony does pay for exclusives if they’re funding exclusives so at the end sony as a company does sound like a bunch hypocrites most of the time and the only ones that see or hear different are fanboys sorry if thats you in the sony community.
Thanks, Twodogs, I totally agree. Hey, you know, i wasn’t here to spread any more hate around. And for the record, everything Oz said about preferences and individual likes/dislikes, I also happen to agree with.
I guess I just didn’t understand why it was directed at me, since in all fairness, I didn’t say anything to suggest I was biased in either direction.
But I can understand how Oz could have been frustrated about the previous comments, and needed to get it off his chest, and if that was the case, It’s all good.
Also, for the record, I’m pretty much against all corporations, and I’m certainly not trying to defend any of these money-hungry bums.
Cheers
Are you serious? The reason of this is article is because Sony and sony fanboys swore up and down that sony doesnt buy exclusives when the truth is they do… They “fund” development in exchange for exclusivity they not only do this with PSN titles but with games as well as dlc just like microsoft.
Wow, you mean to tell me that Sony lied when they said “they don’t buy exclusivity.” This is really surprising since I’m used to large corporations being totally honest. Y’know like when MS launched a console leading people to believe it would work properly and Nintendo… well I can’t think of anything right now, but I’m sure they’ve done something. Look, I’m not trying to bash you, but what do you want? Large corporations go back on their word all the time and to expect anything more is just setting yourself up for dissapointment. As for companies buying exclusives, what do I care? Exclusive games are almost always better than multiplatform games so the more the better. It was a good read though, keep up the good work.
I agree Oni.
But then branding and PR works both ways, and I guess the Sony fanboys didn’t do the brand any favours by scaring off a gamer like SellingmyPS3 with negative PR/branding to the point that he doesn’t want to be associated with the product.
As for Oz’ comments, I think he was just at the end of his tether after all the comments we received that weren’t published due to exceptionally offensive language or posted on sites such as N4G.
The hate and venom out there is ridiculous and part of the thrust of this article. I’m enjoy my PS3 and 360 (Wii not so much) but PR and their quote brandishing fanboy minions are destroying the enjoyment and discussion of games for the rest of us.
On another note, cool tag… You brought back memories of a Bungie that didn’t just make Halo!
You’re an idiot TWODOGSz. Sony is not buying exclusives, they are matching development cost = PSN exclusives (and only PSN titles for now).
Those game developers still have full rights, input, and say-so in how THEY make their games.
How is this the same as MS!?
This was an excellent and brilliant move by Sony. This article just proves that… look at all this hatin’!!!
Oh, by the way. As for your diatribe about preferences, if you re-read my first comment, I said *nothing* about what system I own, which I prefer, or why.
I just commented on how strange it was for someone to sell a system based on company practices (even if it was only *half* the reason, as if that makes it any less suspect).
Xboxz360 said: “no, he said that is HALF the reason he is selling it, not the ONLY reason he is.”
And that makes it better? Seriously, you should *not* defend a silly argument like that. Especially if you’re trying to pass yourself, and this site, off as unbiased.
I have absolutely no problem with your 360 preference. I have absolutely no problem with a gaming site dedicated to the 360. But that dude, SellingmyPS3, selling his PS3 based on the wording of two corporations business practices makes *no sense*. At all.
I made no comment about the article because, well, if you think it’s news worthy, it’s your right. It don’t bother me none.
But please. Don’t defend stupidity. It does nothing to help your cause.
Another flame bait article by xbots. But wait, look at the URL ‘oxcgn’, what am I doing here in their hell, out a here!
no problem about this.
microsoft buy and theft a lot of games from sony.
to me this article is a complete bullshit.
SellingmyPS3 said: “On the other subject, you hit it on the head. When MS does it it is completely different and wrong compared to when Sony does the exact same thing. Seriously, that is half the reason why I am selling my PS3.”
So…you’re selling your PS3 over the semantics of two corporations? That’s…interesting…
no, he said that is HALF the reason he is selling it, not the ONLY reason he is. Most of the OXCGN team have a PS3 and a PC, many simply find they have more variety on the 360 and on XboxLIVE, There’s more social activity on XboxLIVE with such things as their Playdates and all nighters, plus playing against the various sites and publishers.
We love the games we chose to play on the PS3, and some simply are brilliant, but to say one is better tha the other outright is foolish, or that one supplies all the best games, again, foolish. Each has its own merits, and it;s up to the INDIVIDUAL to make the choice as to which one they ‘prefer’ rather than the one they may feel they have to own or support.
I dislike MS Corp as much as anyone, but that doesn’t stop me enjoying the 360 for my gaming.
360 site is scared of the big bad downloadable games.
Good God, what a fantastic and well written article. First of all, you hit it on the head with N4g.com. Never have I seen so many idiotic people in one place.
Seriously, go and read some of the stuff that is published on that site. 95% of stuff on that site is some of the worst written stuff I have ever read. Usually its about one paragraph long, containing nothing but speculation and/or lies topped with a headline that the majority of their readers lap up as fact, because the majority of them can’t read more than a couple of sentences, let alone an entire paragraph.
On the other subject, you hit it on the head. When MS does it it is completely different and wrong compared to when Sony does the exact same thing. Seriously, that is half the reason why I am selling my PS3. The PS3 fanboys have been so butt hurt by Sony’s failures this generation they have decided to completely forgo anything even resembling common sense. I guess you can’t really blame them, though. Their beloved Sony has done away with it as well.
All I can say is this completely PWNed N4g.com, the n4g.com community, and each and every Sony fanboy alive. There is going to be a lot of depressed, confused and butthurt fanboys on the shortbus tomorrow. Sucks to be them.
Mate, thanks for taking the TIME to actually read it, as well as other items on OXCGN: One of our Affiliates just posted an article on how he though GT5 should look at the “possibility” of going on the PC as well as the PS3 . .oh my god . . has he copped a lashing . . and when you get gems like this
“7 – GT5: Prologue looks freaking awesome
You guys should definitely check out this comparison. GT5: Prologue vs Real life.
http://a.imagehost.org/0182…
7.1 -
Ah gt5 has better texture, shadow definitely gt5 but real life has a bit more polygons and a bit better lighting, my pick is gt5 but real life is really close behind.”
You know that the writer of said item must never get outside the house, or be old enough to even consider going out on their own . . Really . .+GT5 looking MORE real and better looking than real life – seriously, is he (they) for real.
Besides, the Affiliate wasn’t bagging the PS3, just offering something that could help the game see a greater audience.
When you get ppl making such stupid comments, and ruling a particular site, you know something is definitely wrong in the world . . . dear oh dear, a game being better than real life, I almost fainted with laughter . . . you just have to . . .
The developers who Sony is “bribing” are the small companies who can’t afford to take risks, no matter how confident they are in their game. It’s not like Sony’s saying, “Here Rockstar: we know you don’t need it because you’re about to pull in $600 Million with GTAIV, but here’s $50M to get the ball rolling on our DLC episodes.” The PS3 dev kit was just price dropped to $2,000. Sony’s got a cap on what kind of budget you have to make the game within. It’s more about making it possible for small devs to publish their games on a next gen console period, than it is about buying games away from your competition like MS constantly has to do because their internal development studios are so lacking compared to Sony’s.
@Ramiro
Last time I read the article I put Kutagari in the same boat as Greenberg and Yamauchi.
As for an article about the tools at all companies, look at the articles I suggested you read that we’ve written on the subject previously.
@Parapraxis (cool name!)
I identified the practice as smart business on Sony’s behalf.
I wasn’t havin a go at Sony per se, more the PR idiots and hyprocrisy of all companies and in particular the bigoted fanboys that take the PR stuff as gospel without questioning it.
@ Bob Saget
Agreed. Uncharted 2 looks awesome. Can’t wait.
fire the editor or change writers i dont know how this dribble baby cry made it past my ac and functioning ps3.
It just seems that your trying to defend xbox more than reporting any kind of worthy news.
umm.. it IS called incentives.. they are not making deals with any devs about certain games, they are giving incentives to sway devs, nothign like microsofts blunt “i have an offer you cant refuse”
Why not just say its a great idea for small developers to get some extra cash flow instead of releasing shit with little to no budget? Make no mistake,every company wants money,some just want it more than others. I think this is a great idea and if xbla followed suit we would truly see some great games coming out.
Did you seriously quote one of your own articles to back up what you said?
You seem to be comparing PSN titles to DLC that Microsoft has bought… not the same thing. Sony are wanting to buy whole downloadable games, like Burn Zombie Burn! that you mentioned, not DLC. BTW I purchased BZB and it’s a great game, even got an 8.something from IGN. This isn’t anything new that Sony is doing, Microsoft has been doing this for a while now. Outrun ring a bell? Microsoft bought exclusive rights so that it can’t be released on PSN in the US, which makes no sense because most PS3 users know they can just purchase it off the EU store.
No, it sounds to me that you’re fanboys, because if you were objective gamers then you wouldn’t single out any company and, your article would say something like: “All companies are hypocrites and here’s why…”.
Then again, that wouldn’t be any news anyway.
Plus, if you were gamers, 100% of your staff would own all consoles, or at least share them you bunch of greedy bastards hahaha (all in good fun).
Business is business. Both do whatever they can to make money. Fair enough for Sony to do this.
The point that is being made is that Sony has criticised MS for buying (or you might call it ‘giving incentives’) to groups for exclusive content. Sony fans have done the same.
Now we see Sony doing something ‘similar’. That’s it. There’s no sour grapes or anything, just amusement at how things can change. I think it’s a good idea for them.
dude shut up what has ms be doing for the last year get over it so they my call it different it my be the same thing so what if that the case why post this dumb ass article you knew it would happen sooner or later face it the market is feed up with ms bs with the 360 sooner than later the playstaion will take it place on top live with it
And?
Whats the point of this article?
Microsoft buys ALL their exclusives. And your calling sony pr hypocrites?
The point of the article is to – well – point out the way that one comapny can do things the same way as another, and yet call it something different. Both are as bad as each others, let’s not all forget that. They all want your money in the end, and will do whatever they can to gain that.
Stop being so blinded by your loyalty and see them for what they are . . .We are a community site, NOT a MS owned and run Xbox site. So we get news out to the community which just so happens to also own PS3′s . .
Do you have a Xbox 360 – Hmmm?
You should stop flame baiting and instead of bitching about something that won’t affect us the gamers, you should buy a PS3 and buy the games that you won’t be able to play in the 360 or Wii.
That’s what I did and works wonders, as long as I have great games to play I can’t complain.
80% of OXCGN staff OWN PS3′s, as well as PC’s, they simply chose to use the 360 more than the PS3 . .We do review and look at PS3 games and PC games from time to time, as they are great games, and we are gamers, NOT Fanbois . .
LOL! I can smell the butthurt in your article!
wow!
Mean ol’ Sony gonna get more exclusives! how dare they use similar tactics as the competition.
So…anyone see that Uncharted 2 leaked footage? Freakin amazing.