Evolution cost Sony GBP 16m

By Games Industry.biz Published 11 October, 2007

Bargain.

Sony's acquisition of MotorStorm developer Evolution Studios and its PSP satellite Bigbig Studios cost the company GBP 16 million (EUR 22.9m / USD 32.6m), GamesIndustry.biz reports.

According to a report in the Liverpool Daily Post, chief executive and co-founder Martin Kenwright held a 75 per cent stake in the company, netting him GBP 12 million from the sale. Ian Hetherington, chairman and co-founder, held most of the rest of the shares.

The MotorStorm developer was snapped up by Sony last month, after the racing studio delivered one of the most critically acclaimed and best-selling titles for the PlayStation 3.

At the time, Michael Denny, vice president of SCE Worldwide Studios told GamesIndustry.biz, "We've enjoyed a highly productive and commercially successful relationship with Evolution and now there's a great opportunity in bringing them into part of the family to share further in terms of technology, production methodology and creative goals to make the experiences that these teams are creating even better."

Evolution was established in 1999, but co-founders Kenwright and Hetherington decided to leave the business following the acquisition.

Evolution is currently working a disc-based sequel to MotorStorm as well as further downloadable content, while Bigbig Studios is putting the finishing touches to Pursuit Force: Extreme Justice for the PSP.

How much fact can you handle? Find out at GamesIndustry.biz.

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Comments (37) Latest comment 4 years ago

Comments threads automatically close after 30 days, but please feel free to continue chatting on the forum!

  • AcidSnake #1 4 years ago

    16M?
    Sounds kind of like a bargain...

    Sounds like...

  • Darkedge #2 4 years ago

    pretty cheap

  • barnard666 #3 4 years ago

    1999 - 2007, 12million in the bank...wow thats one damned lucky man.

  • lambtron #4 4 years ago

    Well, seems cheap as chips if you compare it to what MS paid for Rare.

  • Apologie #5 4 years ago

    i see good games on the horizon....

  • Steroyd #6 4 years ago

    Well, seems cheap as chips if you compare it to what MS paid for Rare.

    Yeah 1/10th cheap.

  • scummyhawker #7 4 years ago

    I hope the staff got some of that, otherwise they'll be jumping ship and the purchase will be worthless. It's not just IP they're buying, it's inhouse talent.

  • spadge #8 4 years ago

    Lucky? You make your own luck, mate.

    I think you'll find that Martin put a good 10yrs+ into games before Evolution, including running D.I.D. during the 90's - same goes for Ian Hetherington who's perhaps had 25yrs in the industry and always strived for high quality.

    Good luck to them both.

    I can't imagine any dev deals going for anything like what Rare went for - there are a few notable exceptions (The likes of Valve, Epic, Blizzard etc) but most companies are generally valued at 10x profit or 3-4x turnover, then an adjustment for IP rights.

  • PearOfAnguish #9 4 years ago

    "one of the most critically acclaimed and best-selling titles for the PlayStation 3."

    Meaning it sold three copies and got 7/10 across the board.

  • lost_soul #10 4 years ago

    I could be wrong, but I'm sure I was interviewed for a job by one of those guys back in the mid 90s.

    /wonders if Freylis is still around

  • Freylis #11 4 years ago

    Fear not, I'm still here. :)

  • Triggerhappytel #12 4 years ago

    lambtron - "Well, seems cheap as chips if you compare it to what MS paid for Rare."

    Although to be fair, Evolution's successes in the past pale into insignificance next to Rare... in the past that is. Rare are long since past their best - I think much of the studio's talent made the jump to Free Radical seven or eight years ago, or whenever it was.

    Didn't Microsoft pay something horrendous for Rare, like £300 million?!

    Either way, this does seem like a good price for Sony.

    PS - PearOfAnguish, MotorStorm has sold over 1 million copies since launch, and Pursuit Force over 800,000. Between them that must be a profit for Sony of tens of millions.

  • Steroyd #13 4 years ago

    I thought Motorstorm was 8/10 across the board.

  • JediMasterMalik #14 4 years ago

    It was.

  • Xerx3s #15 4 years ago

    Well, seems cheap as chips if you compare it to what MS paid for Rare.

    Yeah but these prices are fixed on certain things. The amount of profit forecasted for the next 10-20 years (with Rare doing something like 2 games a year). The amount of IP's they hold. The present staff. And last but not least, the stability of the company & track record.

    EDIT: Forgetting obvious things such as name and solid capital. :)
    Edited by 1 at 11/10/07 @ 10:50

  • FabricatedLunatic #16 4 years ago

    I want a new WRC game.

  • spadge #17 4 years ago

    Xerxs, I'm not sure anyone can really forecast 10-20yrs ahead... not in this industry!

  • Runtime #18 4 years ago

    I thought Sony were against buying Developers!
    Edited by 1 at 11/10/07 @ 11:40

  • dominalien #19 4 years ago

    82 points on metacritic. Sounds like a sound (sic!) 8 to me.

    Why the childish hate, PearOfAnguish?

  • Xerx3s #20 4 years ago

    Xerxs, I'm not sure anyone can really forecast 10-20yrs ahead... not in this industry!

    Well, there are project in pre production with estimates to begin with and you can read a lot from company track record. If you are a company and you cannot predict where you want and are going to be in the next 10 years, you're most likely on very thin ice.

  • Steroyd #21 4 years ago

    I thought Sony were against buying Developers!

    You've got that mixed they're against buying exclusives.

  • miiiguel #22 4 years ago

    "You've got that mixed they're against buying exclusives. "

    Last month at least.

  • Triggerhappytel #23 4 years ago

    ^^ miiiguel - What do you mean? What exclusives have they bought this month?

  • bengray66 #24 4 years ago

    "Lambtron : Well, seems cheap as chips if you compare it to what MS paid for Rare."


    Thats because RARE are a very decent bunch of fellows, with proven track record of original, and superb games.... Where as the one this article is about, whos name i have already forgotten have made one average off-road racer which is not a million miles away from the off road game of yesteryear. I know i certainly would rather have rare making games for me....

  • MENTAL1ST Verified Senior Software Engineer, Picsel UK Ltd. #25 4 years ago

    ... and a load of World rally Championship games. They've been going for a fair while, now.

  • Dark_Stranger #26 4 years ago

    Dam you PearOfAnguish you beat me to the quote

  • Les #27 4 years ago

    "Thats because RARE are a very decent bunch of fellows, with proven track record of original, and superb games.... "

    But unfortunately past results aren't always an accurate prediction of the future... ;)

    Valuating companies is a complicated business: you're dealing with the future. Corporate Finance people do a complex future cash flow analysis, taking into account past performance, market/industry expectations, potential of the company, etc. to calculate a price. As these calculations are hard for most people to understand, in the end they are translated into general statements like "6 times revenue" or "10 times net profit"...

  • PearOfAnguish #28 4 years ago

    *sigh* Will people ever stop taking games so seriously, or realise that expressing a negative opinion about a particular console or game does not necessarily mean that you hate it or are a fan of a competing product? And will they ever realise that using the word fanboy does in fact make them sound like a fanboy?

    Gaming: SERIOUS BUSINESS
    Edited by 1 at 11/10/07 @ 15:19

  • monkie_king #29 4 years ago

    EUROGAMER: BIZNESS IS SRS, AND BIZNESS IS GOOD

  • Bumadan #30 4 years ago

    I really really like fun racing games but after watching people play this several times at my local software dealer I was nowhere near getting enticed to buy a PS3 and this game. It just didnt look that good or interesting or fun.

    So why Sony - when they apparently have enough problems making ends meet - want to splash out even more cash on a middle-of-the-road developer is rather puzzling.

    I am quite sure Motorstorm didnt make a lot more people buy the PS3.

  • reddevil93 #31 4 years ago

    Yeah watching people play, thats how you should judge a game. :\

  • gamerbunny #32 4 years ago

    "I want a new WRC game."

    Agreed.

    Next gen crashing FTW!
    Edited by 1 at 11/10/07 @ 19:47

  • captainrentboy #33 4 years ago

    Like has already been said, I think Rare really need to get something magic done for the 360 or Microsoft are really going to be kicking themselves for paying such a rediculous amount for them. I know, I know Viva Pinata was supposed to be a lovely lil game, but it sold what? Like 10 copies.... They need to get a huuuge seller on the go, and I don't think a new Banjo will cut it :/

  • spadge #34 4 years ago

    Xerxs, really... if you could predict that far, companies wouldn't have the problems they do. We (Team17) work a few years ahead (and are in our 17th year, as it happens, speaking of 'thin ice') as far as you realistically can (I think perhaps 3-4 right now - and that's a NICE position, certainly the most comfortable we've ever had, but then there's 4-5 platforms that are reasonably stable going forward).

    It's ok planning for stuff, but you can't plan a lot of stuff; competing products, success of a platform etc etc - it's a fairly unique industry in terms of that. There's a bunch of best practice stuff you can do - but you only have to look at the development & publisher bloodshed each transition to see how companies can effectively plan.

  • zam786 #35 4 years ago

    actually sony only own 25% as the co founders still hold 75%

  • spud71 #36 4 years ago

    Don't foget that Rare has a new building and surrounding land, that costs alot as well as the ip and staff.

  • spud71 #37 4 years ago

    So now Sony owns 5 Britsh development studios. You would have thought that their other studios would have something ready for launch? There is nothing from Cambridge, Wipeout from Liverpool and The Getaway from London. All on the horizon!!