In fall of 2019, Sony acquired Insomniac Games, developer of Marvel’s Spider-Man, the Ratchet & Clank series, the Spyro series, and more. What was interesting about the purchase is that we never really knew what the price tag of that sale was. And thanks to Sony’s latest financial report, we know Insomniac’s price: $229 million.
That is a helluva lot of video games. Imagine if you had that kind of money for a humble bundle sale? According to the report, Sony paid for Insomniac with mostly cash. It’s possible the purchase amount could fluctuate before March 31, the end of the fiscal year. But with the acquisition, Insomniac is Sony Interactive Entertainment’s 14th internal studio.
Think about that for a moment: Sony paid for Insomniac “with mostly cash”. Many times in these types of deal, they use very little cash but then use stock options and other perks to cap out the offer. That means, and by all means, Sony knew their acquisition was more than profitable for them and will pay itself back in no time.
CEO Ted Price founded Insomniac in 1994. Back then it was Xtreme Software, and the studio has since created some beloved franchises — many of which are PlayStation exclusives like Ratchet & Clank. Sony owns the IP for Ratchet & Clank, but with the purchase of Insomniac, Sony also owns the Sunset Overdrive IP — although the original game is still a console exclusive for Xbox One.
Around the acquisition last year, Price commented on the deal.
Joining the WWS (Worldwide Studios) family gives Insomniac even greater opportunities to achieve our studio vision of making positive and lasting impressions on people’s lives. We’ve enjoyed a special relationship with PlayStation practically since our inception. Our partnership amplifies our potential, and Marvel’s Spider-Man was a testament to this. We’re excited to take the next step in our growth alongside our longtime WWS partners. Most of all, we look forward to delivering fresh, new experiences for our fans.
Insomniac’s next project is currently unknown, although the studio could make an appearance at the PlayStation 5 reveal event later this year.