John Smedley: Sony Online is not getting purchased by Zapak
Filed under: Business models, MMO industry, News items, Rumors
As much fun as it is to seek out news from the intertubes, we always appreciate tips when they're submitted. Tonight we got a unique tip, from CEO of Sony Online Entertainment John Smedley. This tip came along with a small wave of similar tips, all discussing the supposed purchase of SOE by the Zapak Digital group. The article claims that SOE has been 'on the block' for two weeks, and that the group plans to purchase the Sony subsidiary for the sum of $300 million. The article further claims this is an ongoing strategic move by Zapak:
The major expenses in the gaming industry is on content and marketing, and Zapak aims to reduce the cost of publishing a game by buying out those studios and relocating them to India. "This will reduce the cost drastically from $30 mn to $10mn, which will give us the advantage to channelise our funds towards marketing and other activities," the official said.
Says Mr. Smedley, in response to the article:
It's got a bunch of people inside SOE emailing me asking me what's going on. This story is 100% false. We aren't for sale and never have been. Nothing like this has ever been discussed with the Zapak guys. The truth is we were talking to them about distribution rights to one of our games. And we have no idea how this story got started.
Thanks for clarifying things for us, John.
_thumbnail.jpg "Aion Beta: Asmodian Ascension Quest")
Reader Comments (Page 1 of 1)
crispy said on 12:31AM 12-23-2007
Little early for April Fools, I got suckered lol...
Reply
heartless_ said on 12:43AM 12-23-2007
ROFL, any random website has more credibility than Smedley.
Reply
Hollywood Ron said on 2:16AM 12-23-2007
I know Sony's trying to raise money to back the PS3, but that's a bit much.
Reply
Krystalle Voecks said on 8:01AM 12-23-2007
Ouch.
Hollywood Ron said on 12:22PM 12-23-2007
It's harsh, but true. Sony's game division is bleeding money, and they've already sold off the Cell chip business to Toshiba, Columbia TriStar Television/Distribution, and they've been talking about or have sold off their finance business.
Michael Zenke said on 1:24PM 12-23-2007
Darniaq: There is, but I was under the impression it was *brand* new. Seems a bit quick for them to be selling it off already. I guess nothing's impossible, though.
It's confusing how such a sale got blown into 'the whole subsidiary', though.
Reply
Darniaq said on 5:25PM 12-23-2007
Ah, yea, ok. In that context then, $300mil would be pretty steep imho, unless it came with rights to all brands/IP that SOE owned or could extend the rights to.
Reply
Darniaq said on 5:25PM 12-23-2007
Isn't there a division of SOE in India? I ask because $300mil for all of SOE seems way on the cheap side. But that for one India-based studio wouldn't be unrealistic.
Reply
Gorana said on 5:03AM 1-03-2008
There are 3 facts:
1) SOE is not on sale
2) Smed: "CU is here to stay!"
3) Earth is flat disc.
I trust more to some rumor written on some random indian site than smed.
Greetings,
G.
Reply
Keen said on 1:36PM 5-28-2008
I Lol'd. Watch them really sell now.
Reply