This week marks the video game industry earnings report week, enabling us to gain an understanding of the performance of each major platform. For instance, we witness the Nintendo Switch outselling the Wii, and the situation where Sony struggles to produce a sufficient number of PlayStation 5 consoles.
Among the various news, a small yet significant detail emerged in Sony’s earnings report regarding how the company intends to allocate the $3.6 billion it spent on acquiring Bungie.
In the report, Sony estimates that approximately one-third of the funds will be utilized for “deferred payments to employee shareholders, contingent upon their continued employment, and other retention incentives” (thanks to TweakTown).
In other words, Sony will be allocating $1.2 billion on incentives to retain the Bungie staff after the buyout is completed, and it indicates that this will be carried out for “several years”.
The remaining portion of the money will be employed to directly acquire the private shares of the studio.
The Washington Post reported that the deal implies that some staff will receive “approximately a year’s worth of income” as compensation, though not all at once. “Employees will receive 50 percent of their equity payouts when the Sony deal is finalized, and the remaining 50 percent over the next few years,” the report stated.
Under the terms of the agreement, Bungie will become a part of Sony Worldwide Studios, allowing it to “self-publish and reach players wherever they prefer to play”.
In yesterday’s investor presentation, Sony also mentioned that the acquisition will assist the company in its broader aspirations to develop more live-service titles.
