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[Draugoth]

Bungie misrepresented its finances and had significantly overextended itself when Sony acquired the studio for $3.6 billion in 2022, former workers claimed in a new Game File report published in the wake of Wednesday's layoffs.

It was apparently bad enough that at least one source described as a "well-connected former worker" went so far as to claim that Bungie faced dire consequences if the acquisition hadn't happened, saying that the "alternate history is insolvency."

Their comments paint the picture of a studio that was struggling despite the success of Destiny and Destiny 2 due to supporting too many projects and other problems. Following the Sony acquisition, Game File's sources claim Bungie repeatedly missed its financial targets, leading to roughly 100 employees being laid off in November 2023.

Source

 

[FeralEcho]

All that gaas and still left constipated lol

 

[LectureMaster]

Bungie CEO:

Sony:

 

[feynoob]

What did you expect? You went overboard with your IP and tanked your company, because you thought you could make the bucks. Bungie owners are really bunch of *****.

 

[lh032]

too many people focus on 1 IP.

 

[nial]

The takeover can't come soon enough.

 

[Sushi_Combo]

Sony saved Bungie.

 

[James Sawyer Ford]

Misrepresentation of finances would mean a lawsuit

 

[Men_in_Boxes]

Reminder: Sony has one of the most expensive M&A teams in the world. They did their homework on Bungie before spending 3.6B on them.

Reminder pt II: How do you get clicks?

 

[StreetsofBeige]

Wow.

For all you struggling game companies big and small needing some money to keep afloat, forget about bank loans or venture capitalists wanting a piece of the action. Just go to Sony.

While a bank will charge you 10% for a business loan and a venture cap company will want to be paid back in full + 50% of profits, forget it. Chump change. Sony will give you $3.6 billion.

 

[Loomy]

Misrepresentation of finances would mean a lawsuit

Reminder: Sony has one of the most expensive M&A teams in the world. They did their homework on Bungie before spending 3.6B on them.

Reminder pt II: How do you get clicks?

Yeah, I highly doubt Sony did not know exactly what they were buying.

 

[diffusionx]

Remember how people spent years blaming every problem with this shitty franchise on Activision

 

[clarky]

too many people focus on 1 IP.

Problem was the exact opposite. They thought D2 could support itself, the development of Marathon and a 3rd new AAA IP, probably "Payback" that got canned.

Management fucked it, then sold it to Sony.

 

[diffusionx]

Reminder: Sony has one of the most expensive M&A teams in the world. They did their homework on Bungie before spending 3.6B on them.

Reminder pt II: How do you get clicks?

“Misrepresentation” is another word for fraud. Not much Sony can do before the fact if Bungie lied to them.

 

[Mr.Phoenix]

Right on cue.... xyz would have been closed if xyz didn't acquire it.

This is either true every time it has been said, or is a lie every time it has been said.

 

[Dacvak]

It’s kind of nice to see Sony and Microsoft regretting these outrageous acquisitions.

 

[Rentahamster]

It's hard to believe that Bungie could have seriously bamboozled Sony for 3 and a half Bs.

 

[clarky]

“Misrepresentation” is another word for fraud. Not much Sony can do before the fact if Bungie lied to them.

Think it was more that their projections just haven't played out. With light fall being a turd, then a lengthy delay for the Final Shape AND both not not hitting sales targets, the piggy bank got emptied with all the projects on the go.
I think Sony should have seen that coming.

 

[Loomy]

Right on cue.... xyz would have been closed if xyz didn't acquire it.

This is either true every time it has been said, or is a lie every time it has been said.

Well that's a very black and white way of looking at something with inherent nuance.

 

[clarky]

It’s kind of nice to see Sony and Microsoft regretting these outrageous acquisitions.

How you figure that? I can see Bungie being a bad buy but Sony will turn it around I'm sure.

What are MS regretting? Ninja theory for sure but I'd hardly call that a outrageous buy.

 

[Mr.Phoenix]

Well that's a very black and white way of looking at something with inherent nuance.

I thought it was obvious that I wasn't serious... I mean... nothing is ever that black and white.

The point though, is that it pops up every time something has been acquired... hell... even when something gets a timed exclusive these days.

 

[Loomy]

How you figure that? I can see Bungie being a bad buy but Sony will turn it around I'm sure.

What are MS regretting? Ninja theory for sure but I'd hardly call that a outrageous buy.

Yeah, if Marathon completely flops, then I can see Sony shaking their hands at this, and Activision is single handedly propping up Microsoft's gaming division.

 

[Loomy]

I thought it was obvious that I wasn't serious... I mean... nothing is ever that black and white.

The point though, is that it pops up every time something has been acquired... hell... even when something gets a timed exclusive these days.

My bad I missed the sarcasm.

 

[clarky]

Yeah, if Marathon completely flops, then I can see Sony shaking their hands at this, and Activision is single handedly propping up Microsoft's gaming division.

Maybe on the first one, on Activision why would they be regretting that? (not that i agree with your statement either)

 

[nick776]

There was a good article on Kotaku yesterday about CEO Pete Parsons spending lots of money on his collection of cars despite mass layoffs. https://kotaku.com/bungie-pete-parsons-layoffs-classic-cars-sony-buyout-de-1851610196

 

[Dacvak]

How you figure that? I can see Bungie being a bad buy but Sony will turn it around I'm sure.

What are MS regretting? Ninja theory for sure but I'd hardly call that an outrageous buy.

I dunno, I’ve been drinking a bit.

 

[clarky]

There was a good article on Kotaku yesterday about CEO Pete Parsons spending lots of money on his collection of cars despite mass layoffs. https://kotaku.com/bungie-pete-parsons-layoffs-classic-cars-sony-buyout-de-1851610196

You said good article and Kotaku in the same sentence.

Rest easy you win at GAF today.

 

[Loomy]

Maybe on the first one, on Activision why would they be regretting that? (not that i agree with your statement either)

Sorry, I meant that I agree with you. Sony and Microsoft have no reason to regret either acquisition yet.

Sony gets a mismanaged studio with a good IP and a potentially good new game coming out in a year or 2, and Microsoft gets a publisher that is good at actually releasing games and making money from them - something Xbox Studios has struggled with.

 

[Magic Carpet]

Sony should invest in expensive classic cars.

 

[Raven117]

Yeah, I highly doubt Sony did not know exactly what they were buying.

They had armies of lawyers and financial advisors doing due diligence for months. They knew what they were buying.

 

[ZehDon]

Given how Bungie mismanaged Destiny from before launch, I'm surprised they limped on with the series as long as they did. Sony bought a lot of baggage with Bungie - hopefully they can right that ship and get them back to making great games instead of milking players.

 

[Loomy]

They had armies of lawyers and financial advisors doing due diligence for months. They knew what they were buying.

Yup. And likely knew they'd end up here sooner or later.

 

[semiconscious]

Former Bungie Worker Claims Studio Faced Obscene Wealth With Sony Acquisition...​

 

[Men_in_Boxes]

“Misrepresentation” is another word for fraud. Not much Sony can do before the fact if Bungie lied to them.

File under: Clickbait

 

[Raven117]

Yup. And likely knew they'd end up here sooner or later.

One way or another. They still had to do forecasting about what their current IP (and projects) are worth. Could have missed that number.

 

[Z O N E]

due to supporting too many projects and other problems.​

Sounds like they should've hired a new financial advisor at the company. If it wasn't financially feasible to support that many projects, then that's on them.

The downhill of Bungie needs to be studied.

 

[StreetsofBeige]

Sounds like they should've hired a new financial advisor at the company. If it wasn't financially feasible to support that many projects, then that's on them.

The downhill of Bungie needs to be studied.

On the plus side for Bungie execs who sold the company to Sony for $3.6 billion, any kind of mismanagement of forecasts and overhyping product pipeline projects played nicely into the giant price. Doesnt matter if it was done on purpose or by pure luck things just so happen to go sour past 2 years after the deal was signed.

At the time of the deal, I'm sure Bungie showcased fantastic sales, profits and tons of projects on a roadmap. And Sony's eyes bulged in excitement. Turns out, the real projects are more Destiny 2 and Marathon. And whatever napkin math project Sony is doing in that new studio with a game that'll come out in probably 2030.

It doesn't make sense Sony would pay $3.6B for a company in early 2022 that only had Destiny 2, Marathon, and a spiraling down financial outlook. Whatever Bungie showed them back then to get $3.6B out of Sony must had been one awesome powerpoint presentation.

You never know. Maybe Bungie execs fully knew all those extra projects werent feasible. But if Sony is knocking on the door to buy, you 50 programmers keep on making demos and storyboards. Got to pad the portfolio with more projects. The more the better and the higher the price.

 

[PharaoTutAnchAmun]

It’s kind of nice to see Sony and Microsoft regretting these outrageous acquisitions.

Only one party did outrageous acquisitions, i mean almost 70 billion. The take over from Bungie was 3,6 billion...thats peanuts when you compare it what MS payed.

 

[Killjoy-NL]

Remember how people spent years blaming every problem with this shitty franchise on Activision

People on the Destiny forums knew the deal though.
But as usual, the majority behaves irrational.

 

[kruis]

Think it was more that their projections just haven't played out. With light fall being a turd, then a lengthy delay for the Final Shape AND both not not hitting sales targets, the piggy bank got emptied with all the projects on the go.
I think Sony should have seen that coming.

Sony believed Bungie Stu.

 

[Moochi]

I still haven't seen proof Marathon isn't vaporware.

 

[Hudo]

Bungie misrepresented its finances and had significantly overextended itself when Sony acquired the studio for $3.6 billion in 2022

I am no expert but this sounds illegal.

 

[Xtib81]

I'm still scratching my head as to why they spent 3.6 fucking billion dollars on one studio. They could have spent that money elsewhere and acquired several smaller studios.

 

[midnightAI]

I still haven't seen proof Marathon isn't vaporware.

Huh? Well, unless you consider every game in development as vapourware

 

[Mr Hyde]

The more I read about Bungie and Sony the more I want to facepalm. Absolute disaster no matter how you spin it.

 

[Punished Miku]

I honestly did think they lied to Sony with how badly this has gone.

 

[BlackTron]

Microsoft gets a publisher that is good at actually releasing games and making money from them - something Xbox Studios has struggled with.

This will no longer apply if Microsoft's company culture encroaches on said publisher. Top management always has the power to ruin everything.

 

[Angry_Megalodon]

This can't be possible, some people told me yesterday in the other thread that "that's the market, folks" and that Sony has plenty of lawyers and finance geniuses so they couldn't be scammed. Oopsie!

Once confirmed that the CEO is a borderline criminal, the only question is whether or not someone at Sony got rich with this.

 

[Fake]

What a fucking mess.

 

[gothmog]

And now everyone is an M&A expert. Lol.