Sony should try to acquire Hello Games as part of PlayStation’s growing live-service strategy… if the developer wants to sell, of course.
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No Man’s Sky went from a controversial 2016 release to one of the best live video games ever made. Hello Games has radically transformed No Man’s Sky with a hodgepodge of free expansions, bringing tons of new features, content and significant quality of life improvements. No Man’s Sky has been upgraded and modified with 29 expansions and updates, including a PS5/Xbox Series X/S re-release and a VR version.
On a lark, I launched the original No Man’s Sky on PS4 with no updates… and it’s absolutely unbelievable how much the game has changed. Sony needs to look closely and take notes.
Right now, Sony is gearing up for a major paradigm shift to live service games. PlayStation moves to PC. A lot is happening and Sony is chasing online live games; Sony plans to release 12 live service games by 2025and recently bought Bungie for $3.7 billion to kickstart this strategy.
Coincidentally, Hello Games, Sony’s long-standing partner, has created one of the most successful, enduring and innovative live games on the PlayStation platform.
Why would Sony want to buy? In a word, where the. Hello Games and No Man’s Sky represent tremendous value for Sony.
Hello Games released 20 major No Man’s Sky expansions and updates from 2016 – 2022.
Based on community trends, which are much beneficial to games like No Man’s Sky, Sony could benefit from folding Hello Games into their first-party PlayStation Worldwide Studios. If Hello Games wants to sell, of course.
There are indications of a possible takeover… but it’s not something Hello Games necessarily needs, at least not based on what we currently know.
Hello Games’ Sean Murray has said No Man’s Sky updates won’t slow down, and the studio is working on their next game which will be more ambitious than No Man’s Sky.
“Like No Man’s Sky, this is the kind of project that even if a thousand people were working on it, it would still seem impossible. We’ve been working on something pretty ambitious in the background for a while. It’s a small team, but there we love”, said Murray in April.
We don’t know how Hello Games is raising capital outside of traditional game sales, but No Man’s Sky has now been re-released a few times on store shelves. First there was the launch version of 2016, the No Man’s Sky Beyond in 2018 (coinciding with an Xbox version), and then a re-release of the PS5/Xbox Series X/S distributed by Bandai Namco. It’s also coming to Nintendo Switch in October.
No Man’s Sky will soon have a deep multi-platform presence on all main platforms, from PC to consoles and the Nintendo Switch. It is also playable in VR.
No Man’s Sky is available through global gaming networks and storefronts, including Tencent’s multi-billion dollar WeChat platform in China.
There are also strong retention opportunities that can be weighed against Sony’s PlayStation network, mainly in MAUs and other notable KPIs passed on to investors. Gamers have been reported to have spent half a billion hours in No Man’s Sky so far, making it a strong live game with a long tail. Gamers will continue to play No Man’s Sky because of its community, content richness and investment, and will also return to the game when it gets new content.
No Man’s Sky fully realizes all parts of the Engagement Cycle that I formulated in 2020…except one: Monetization.
Hello Games does not monetize No Man’s Sky through microtransactions. All updates are free and the studio has only earned revenue from full game purchases.
Sony may not agree with this monetization approach, but it can absolutely withstand the loss of mTX. Hello Games and No Man’s Sky continue to represent significant value to Sony’s PlayStation live service efforts based on content roadmaps, existing player base and the studio’s emphasis on innovative, creative and iterative updates.
In short, No Man’s Sky would not impact Sony’s Add-on Content segment results (revenue recognized by microtransactions), but it could potentially boost network services if specific content for subscribers were added.
If acquired, No Man’s Sky may offer platform-specific opportunities or bonuses to PlayStation Plus subscribers or users who log in with a PlayStation account (small cosmetics, small resource boosts, etc.). Sony would also be No Man’s Sky in . can fold new PlayStation Stars initiative for bonus rewards.
There’s a lot of potential for a Hello Games acquisition, and Sony could benefit from having one of the most dedicated independent developers under its belt.
Sony needs content to support its new service plans. No Man’s Sky is one of the most powerful independent non-publisher-owned drivers for content engagement on the PlayStation Network, and I think the studio would be an excellent addition to the PlayStation brand (if, of course, Hello Games ever decides to sell or takeover).
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