Sony Buys MGM: Interesting Possibilities For PSP Movies and Playstation Conversions
Sony America adds 4,000 movies to its catalogue
It has been confirmed today that Sony of America, as part of a larger group, is pressing ahead with its plans to buy Metro-Goldwyn-Mayer (MGM) film studios. In its entirety, the deal is estimated to be worth around $5 billion: when MGM’s debts of around $2 million are taken into account. Although Sony itself is only thought to be paying $300 million to secure the deal, Texas Pacific, DLJ Merchant Banking and Providence will be providing the rest of the capital to meet the $2.85 billion bid.
On the surface, this deal mainly pertains to the distribution of MGM’s 4,000 strong back-catalogue. Sony will be pumping out the DVDs and special editions, whilst also supplying video-on-demand with US cable TV partners, Comcast.
However, in terms of impacting Sony’s video game strategy, this acquisition could be fairly important. For starters, this could provide an enormous boost to the appeal of the UMD movie playing PSP. Many had been concerned that no film studios were jumping on-board the UMD format, and it was thought that Sony Pictures products would form the bulk of available movies, at least in the early stages. With access to celluloid favourites plucked from the last 80 years of MGM’s history, Sony could now provide a much healthier spread of PSP playable movies with an impressively broad appeal.
There will, of course, be plenty of opportunities for new video-game spin-offs of old MGM films. There are some great characters and big names in the MGM library, so we could see a welcome batch of Chuck Norris-featuring Delta Force games; Mad Max, Silence Of The Lambs and the Stargate series would also make prime contenders for such conversions.
The deal won’t give Sony unlimited choices though, there are plenty of MGM franchises that have already been farmed out to other games publishers. Electronic Arts, for instance, holds the lucrative James Bond 007 license and isn’t about to let that slip through its huge, professionally manicured (and probably bejewelled) fingers. EA has the rights to Bond until 2010, and this is unlikely to change. Similarly, the likes of Rocky and Pink Panther are estranged MGM properties that Sony would have to buy back in order to exploit.
How this purchase informs Sony’s strategy will soon become clear, we’ll update you as and when exciting things begin to happen.
On the surface, this deal mainly pertains to the distribution of MGM’s 4,000 strong back-catalogue. Sony will be pumping out the DVDs and special editions, whilst also supplying video-on-demand with US cable TV partners, Comcast.
However, in terms of impacting Sony’s video game strategy, this acquisition could be fairly important. For starters, this could provide an enormous boost to the appeal of the UMD movie playing PSP. Many had been concerned that no film studios were jumping on-board the UMD format, and it was thought that Sony Pictures products would form the bulk of available movies, at least in the early stages. With access to celluloid favourites plucked from the last 80 years of MGM’s history, Sony could now provide a much healthier spread of PSP playable movies with an impressively broad appeal.
There will, of course, be plenty of opportunities for new video-game spin-offs of old MGM films. There are some great characters and big names in the MGM library, so we could see a welcome batch of Chuck Norris-featuring Delta Force games; Mad Max, Silence Of The Lambs and the Stargate series would also make prime contenders for such conversions.
The deal won’t give Sony unlimited choices though, there are plenty of MGM franchises that have already been farmed out to other games publishers. Electronic Arts, for instance, holds the lucrative James Bond 007 license and isn’t about to let that slip through its huge, professionally manicured (and probably bejewelled) fingers. EA has the rights to Bond until 2010, and this is unlikely to change. Similarly, the likes of Rocky and Pink Panther are estranged MGM properties that Sony would have to buy back in order to exploit.
How this purchase informs Sony’s strategy will soon become clear, we’ll update you as and when exciting things begin to happen.
Companies:
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Comments
ryohazuki-san 15 Sep 2004 11:45
1/7
interesting news,
Movie spin offs look like an obvious start 2 da video game strategy 4 SONY, just hope dey choose da rite type of films. As of da UMD, i'm not so botherd.
Movie spin offs look like an obvious start 2 da video game strategy 4 SONY, just hope dey choose da rite type of films. As of da UMD, i'm not so botherd.
ohms 15 Sep 2004 11:58
2/7
I really don't think films on UMD will take off, with DVDs and soon HD-DVDs, who needs films on another format, not just that, but the battery life of the PSP will barely let you watch a whole movie. TV shows on UMD might work a little better, like the ones they're doing on GBA at the mo, but really to be a success the UMD should have been recordable.
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Kaxxx 15 Sep 2004 12:55
3/7
I totally agree. I cant really see people being interested at all in UMD films. Its basically like the gamegear and its tv adaptor only this time you can watch films. Its not practical at all and i really dont see this being a selling point for gamers TBH.
REDFlELD 15 Sep 2004 13:57
4/7
I remember reading the president of Sony deny buying MGM a few months ago because it was an unprofitable company. But he did mention they interested in MGM's movie libraries. I think it's more likely they're interested in converting those movies to games then PSP movies.
REDFlELD 15 Sep 2004 14:05
5/7
I remember reading the president of Sony deny buying MGM a few months ago because it was an unprofitable company. But he did mention they interested in MGM's movie libraries. I think it's more likely they're interested in converting those movies to games then PSP movies.
Joji 15 Sep 2004 15:16
6/7
I said the same thing ages ago, Sony are trying to spread the net too far with PSP. Games is what this industry is about so they should be content to stick to that.
I suppose the PSP is another victim of Sony's push of the convergence of consoles and the living room etc. Though I like the idea of watching stuff on the go, I'd rather have a hard drive based portable media player to do it with (something that can record and playback), or otherwise just leave the viewing to my entertainment set up at home.
One thing this buy out of MGM means is that Nintendo might have trouble with the DS version of Goldeneye, if it's the N64 version that's gonna be converted to it (could just as well be the the new EA game, but thanks to EA, not creating their own games name who knows).
I suppose the PSP is another victim of Sony's push of the convergence of consoles and the living room etc. Though I like the idea of watching stuff on the go, I'd rather have a hard drive based portable media player to do it with (something that can record and playback), or otherwise just leave the viewing to my entertainment set up at home.
One thing this buy out of MGM means is that Nintendo might have trouble with the DS version of Goldeneye, if it's the N64 version that's gonna be converted to it (could just as well be the the new EA game, but thanks to EA, not creating their own games name who knows).
Pandaman 15 Sep 2004 22:06
7/7
Finally!
"UHF: The Game" will finally be mine!
Or what do you Europeans call it? The Vidiot? Pfft...
"UHF: The Game" will finally be mine!
Or what do you Europeans call it? The Vidiot? Pfft...