"An impairment loss is essentially a way of saying that Bungie is now considered to be worth less than the $3.6 billion Sony paid for it. When a company buys another, it lists that purchase as an asset on its books. If that asset's value drops - for example, because the studio isn't performing as well as expected - accounting rules require Sony to mark down its value and record that as a loss. In this instance, Sony has recorded a $204 million lost against Bungie."
"Since being bought, Bungie's flagship game Destiny 2 has failed to meet player and sales expectations, it's next upcoming game Marathon has met a mixed reception and been caught up in a plagiarism scandal, and the company has been hit with layoffs. Morale has been described as being in "free fall". Marathon is currently delayed indefinitely, although Sony has declared it will be released by the end of their financial year in March."
Sony's $3.6 billion acquisition of Bungie has underperformed, prompting a $204 million impairment. Destiny 2 sales and engagement fell short amid stronger competition. Bungie's next title Marathon received mixed reception, a plagiarism scandal, delays, and morale decline. The studio has undergone layoffs and Marathon is delayed indefinitely, with skepticism about a March release. Sony's broader live-service ambitions have struggled, with Helldivers 2 as the only notable success. Accounting rules required a write-down of Bungie's asset value after downwardly revising business projections. Market expectations and internal issues contributed to the reassessment of Bungie's valuation.
Read at WGB
Unable to calculate read time
Collection
[
|
...
]