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Sony earnings: takes additional 500 million write down for Bungie

Posted on 5/8/26 at 6:55 am
Posted by td01241
Savannah
Member since Nov 2012
30392 posts
Posted on 5/8/26 at 6:55 am
This is on top of the 250 million they wrote down back in November.

Plainly speaking they believe Bungie is worth nearly 800 million less than what they paid for them.

Woof. Not good news for anything related to Bungie.
This post was edited on 5/8/26 at 8:14 am
Posted by Roaad
White Privilege Broker
Member since Aug 2006
84927 posts
Posted on 5/8/26 at 7:33 am to
Consumer: Make good games

Sony: So what I am hearing is you want more live service monetization?

Consumer: Make good games!

Sony: Add more gays?

Consumer: *sigh* frick off

This post was edited on 5/8/26 at 7:34 am
Posted by td01241
Savannah
Member since Nov 2012
30392 posts
Posted on 5/8/26 at 7:54 am to
Yeah they fricking suck at live service and most live service games are horrible anyway, completely ditching their brand to go in this direction fully was stupid as hell.
Posted by td01241
Savannah
Member since Nov 2012
30392 posts
Posted on 5/8/26 at 9:59 am to
Honestly the issue with Bungie is their insane burn rate meaning cash burn

Outside of acta vision probably (who makes more than call of duty and big profits) Bungine likely burns the most cash rate than any other studio. They are a team of 1100 people in a suburb of Seattle. Minimum sallary of 100k then mid level guys at 150k director roles 200k

just guessing 750 are the low end 100k thats 75 million a tear
250 at the 150k thats 37.5
100 at 200k thats 20 million

So bungie burns like roughly lets say around 120 million yearly on staff and their benefits and stuff alone. Thats fricking insane. When you bring in things like servers cost, office space costs, and all that other shite the amount of cash they burn is so unoptimized and makes it nearly impossible to make profits. Even Destiny 2 eventually struggled to make profits eventually because bungies burn rate is so high the cost to make the content typically made even with some outliers that did well.

Marathon is dead. Sony based on this report likely gives them 90 days and thats it.

All of these companies are far too big and insisnt on operating in the most expensive places in the world. Western AAA needs to be gutted by like 50% of its staffs. Too many people eventually becomes a problem creatively as well. Currently its said they have 600 on marathon and 500 on destiny 2. both aare lucky to crack 10k concurrents

Expedition 33 was made for less than 10 million and last we knew sold 9 million copies thats like a 9x-10x return
Posted by imjustafatkid
Alabama
Member since Dec 2011
66439 posts
Posted on 5/8/26 at 10:39 am to
I remember when people acted like Sony buying Bungie was some huge win over Microsoft.
Posted by Devious
Elitist
Member since Dec 2010
29447 posts
Posted on 5/8/26 at 10:43 am to
Every time Bungie had an ownership change, people thought it was good. More cash, more developer resources, etc. Then when Bungie went to self-publishing, people thought Bungie could finally do what they wanted to do. And then Sony was supposed to save Bungie.

Turns out, Bungie just wanted to hemorrhage cash on ideas that never saw daylight while neglecting the IP that actually made money. It will be an interesting case study on mismanagement.
Posted by td01241
Savannah
Member since Nov 2012
30392 posts
Posted on 5/8/26 at 10:44 am to
Naw microsoft totally played sony on that one they were very aware of their insane burn rate I went into detail about above. Sonly likely was too but felt pressured to keep up with xbox acquisitions. I am a ps5 guy and rarely steam so I want to see them succeed but totally object to this insane live service push and want them to feel immense pain from it to learn a lesson
Posted by SonicAndBareKnuckles
Member since Jun 2018
1984 posts
Posted on 5/8/26 at 11:14 am to
Bungie has been dead for over 15 years.



Posted by StansberryRules
Member since Aug 2024
5400 posts
Posted on 5/8/26 at 1:38 pm to
There's pretty much nothing I can say that hasn't been said 1,000x before about how badly Sony completely botched the PS5 generation.

The all-in gamble to live service games was a multi-billion dollar disaster and it's not even over, more 100% surefire mega-flpos are inbound.

The opportunity cost is what kills me the most. We probably could have had 10-15 insanely high quality single player games this generation that never existed because Sony decided chasing the live service dragon was their strategy.

Sony is lucky that Microsoft and Nintendo have been equally retarded the past decade as well. The state of the console landscape is bleak.

Posted by td01241
Savannah
Member since Nov 2012
30392 posts
Posted on 5/8/26 at 1:56 pm to
Agreed and they need to feel massive pain because of it. And they will.

Marathon will be dead within 90 days

That gay ugly herizon spinoff will flop horribly unless they kept the budget extremely low which they didn’t because it’s guerilla games we are talking about.

And the final nail in the coffin is that fair games lame as hell eat the rich extraction shooter or whatever. IMO it’s cancelled at some point and never even comes to market.

Sony needs to feel maximum pain and the stick from these decisions
This post was edited on 5/8/26 at 1:57 pm
Posted by Hmerly
Member since May 2008
1459 posts
Posted on 5/8/26 at 4:33 pm to
It's amazing how badly Sony has managed this generation, but even more so, how badly Microsoft has failed at a time when Sony so royally screwed up. For Microsoft to do even worse is unimaginable, yet here we are. It's crazy how much money these executives are paid and how badly they miscalculate and misinterpret their consumers.
Posted by td01241
Savannah
Member since Nov 2012
30392 posts
Posted on 5/8/26 at 5:35 pm to
Bungie was the biggest loss of revenue (sort of this is a write down not a year over year revenue drop) in all of Sonys entire businesses and related products by over 300 million dollars

Holy fricking shite that studio has got to be shut down or gutted.

Somehow Sony still reporting higher total revenue than any quarter since 2022
Posted by Blitzed
Member since Oct 2009
22166 posts
Posted on 5/8/26 at 7:13 pm to
Should we bump the Marathon Thread?

Stupid arse purchase by Sony.
Posted by td01241
Savannah
Member since Nov 2012
30392 posts
Posted on 5/8/26 at 7:16 pm to
If I was them I would dump marathon asap and move to make work of a remake of destiny 1 or go to destiny 3.

Bungie are idiots for making an extraction shooter running a budget between 250-300 million dollars before marketing, but Sony are stupid for letting them. Arc raiders cost 75 million.
This post was edited on 5/8/26 at 7:17 pm
Posted by Blitzed
Member since Oct 2009
22166 posts
Posted on 5/8/26 at 8:33 pm to
quote:

extraction shooter running a budget between 250-300 million dollars before


Wonder how much of that was spent on the HUD?
Posted by athenslife101
Member since Feb 2013
20558 posts
Posted on 5/10/26 at 5:57 pm to
To be fair, they did fire the guy who made them start developing all the live service stuff
Posted by TigerFanatic99
South Bend, Indiana
Member since Jan 2007
36297 posts
Posted on 5/10/26 at 6:29 pm to
The Master Chief isn't walking through that door anytime soon.
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