Daybreak at SOE

Talk about an unexpectedly busy couple of days in MMO news.

Multiple struggling age-old companies shedding otherwise profitable enterprises for… reasons. First you have AOL unceremoniously dumping Joystiq and every blog under that umbrella, including WoW Insider and Massively. And now you have Sony selling SOE to an investment firm in what sounds like a shady back-alley deal. I mean, you’d think if it were a positive, on-the-level thing, there would be talk leading up to the deal, you know? Not just coming to work and seeing this out front:

I expect to see those letters on eBay tomorrow.

I expect to see those letters on eBay tomorrow.

There has been a lot of schadenfreude in terms of SOE/Massively bashing, but I’m not entirely sure that is the actual lede here. Sony hemorrhaged $1.29 billion last year, while restructuring itself out of the PC and low-range TV markets. While most articles mention that SOE specifically lost ~$60 million, that seems to be largely based on shuttering Free Realms, Star Wars: Clone Adventures, Vanguard, and Wizardly Online, not necessarily the profitability (or lack thereof) of SOE’s other titles. The other thing to keep in mind is that SOE’s losses are less than 5% of Sony’s total losses. So this deal seems a lot less like Sony dropping an under-performing asset and more like Sony pawning its laptop to make the rent payment.

As far as AOL goes, their primary aim these days is to sell ads, apparently.

We can suggest that the sale of SOE indicates that SOE is in trouble, but thus far the (optimistic?) indications are that its business as usual. PlanetSide 2 just started becoming profitable. No studios are being shut down (yet?). H1Z1 is… selling betas? EverQuest Next is still in the pipeline. Is there actually a better time to sell SOE to investors than right now, at the bottom of a potential growth curve? It is still entirely possible that “SOE being SOE” will ruin everything, but my point is that the sale itself is not indicative of anything in particular. Sony is about a half hour away from turning tricks on the street corner; can’t really blame SOE for that.

Well, other than the four failed MMOs closed last year, but that could happen to anyone.

One final note on the SOE thing: one of the senior managers of the no-name investment firm that bought SOE is Jason Epstein, who personally brokered the deal to buy Harmonix (Rock Band, etc) back from Viacom. While rhythm games have gone out of vogue in the US, Harmonix was still releasing games in 2014. So at least one guy knows his way around videogames.

I’m sure the true fallout has yet to start raining down, but as someone not at all invested in the outcome, I suggest keeping the wailing/high-fives to a minimum just yet. This could in fact be good news for Bitcoin SOE.

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Posted on February 3, 2015, in Commentary and tagged , , , , . Bookmark the permalink. Comments Off on Daybreak at SOE.

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