December 22, 2007

Breaking: SOE bought out?

Having done a fair share of research for my Economics courses, via The Economic Times website, I was quite surprised to see news about Sony Online Entertainment pop up (via Virgin Worlds).

Apparantly, Zapak Digital entertainment, an India-based online gaming company, is set to buy out Sony Online Entertainment (SOE) for around $300 million.
This acquisition is in line with the future plans of Zapak Digital, which is planning to enter the gaming space in China by early next year. “This makes perfect sense for us, as around 80% of content in the gaming industry is manufactured internationally. Buying out Sony, will not only give us access but also expand our reach in the global market,” said a senior Zapak Official.
Now, lets all put on our tinfoil hats for this next quote.
The major expenses in the gaming industry is on content and marketing, and Zapak aims to reduce the cost of publishing a game by buying out those studios and relocating them to India
If that reads correctly, SOE may be moved to India? Now wouldn't that be a Christmas gift for all involved!

UPDATE: John Smedley, as always, denies everything.
This story is completely false. We aren't for sale

No idea who made this up. We are in discussions with various companies in India about bringing our games to this growing market but that's it. We aren't for sale.