Many investors have been disappointed with Sony’s slow PlayStation 5 rollout due to chip shortages, but they may be missing the big picture.
Ever since the advent of massive movie franchises hitting our cinemas and living rooms 16 times a year (thanks Marvel), movie studio execs have begun to foam at the mouth at the mere mention of these two words:
Cinematic universe!
What’s this got to do with Sony?
“Sony’s PlayStation business is just about shipping games though?” I hear you exclaim!
Well, as you’re probably aware by now, that’s not how capitalism works. Disney has unlocked the secret to taking beloved characters or stories and milking them to the absolute brink of their existence. This is evidenced in Disney’s acquisition of Marvel, which has paid back in spades. The Marvel Cinematic Universe has topped $22.5 billion at the global box office and is providing years of content for Disney+.
And for Sony (NYSE: SONY), aside from its already existing and respectable movie businesses, we know of at least three movies and seven TV series’ based on PlayStation property that are on the way. This includes the ‘Uncharted’ series and ‘The Last of Us’.
The ‘Uncharted’ series has sold more than 40 million copies worldwide, while ‘The Last of Us’ franchise have been some of the best-selling games of all time. Their compelling storylines and engaging characters are primed to captivate audiences on the big (and small) screen.
PlayStation is the gaming equivalent of Disney, and Sony has all the resources at its disposal to make movies from the decades of gaming IP it owns. What’s more, the success of Netflix’s ‘The Witcher’ is evidence that video game adaptations CAN actually work.
With these plans now underway, could Sony have a stockpile of its own $22.5 billion, Marvel-esque franchises?
I think so!
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.