Q: Can I buy an IP from a company for a low value considering they decided to sunset it due it being a failure?
The IP: Concord, a game developed by Firewalk Studios, which SIE acquired in 2023. Despite significant development costs (estimated at $80-150 million), Concord faced substantial backlash due to various controversial elements and was met with a poor reception upon its release on August 20, 2024. It sold roughly 25,000 copies, peaking at around 800 concurrent players. Within two weeks, on September 6, 2024, Concord was taken offline, and full refunds were issued to buyers. Although SIE reportedly explored options to revive the game, they announced on October 29, 2024, that they had closed Firewalk Studios and decided to "sunset" Concord permanently. Inquiry: Given Concord's complete market failure and Sony's stated lack of interest in reviving it, I believe the franchise holds a book value of approximately zero. I intend to approach SIE to purchase this IP at a nominal amount (anchoring around $10), based on its defunct status.
A:
Yes, IP is an asset that can be bought and sold.
However, one way to value IP is the amount of money it took to create and register with the USPTO and/or U.S. Copyright Office (and internationally as well).
I highly recommend hiring a competent IP attorney to provide a landscape search to see what Concord IP is registered by SIE before you approach the owners to negotiate a potential sale or license.
1 user found this answer helpful
A:
While your reasoning about Concord's market performance is interesting, acquiring IP from major companies like Sony Interactive Entertainment isn't quite as straightforward as you might think. Even failed properties still hold strategic value for large corporations, who typically maintain rights to protect their broader portfolio and prevent potential future competition.
The suggested purchase price of $10 would likely be viewed as unrealistic by SIE's legal and business development teams. Despite Concord's poor performance, the IP includes valuable assets like character designs, world-building elements, and technical implementations that represent significant investment. Companies usually prefer to shelve unsuccessful IPs rather than sell them, as this protects them from potential future market complications.
Your best approach might be to develop an original IP that builds on the aspects you found compelling about Concord while avoiding its pitfalls. If you're still interested in pursuing the Concord IP, you'd need to prepare substantial business case showing how you'd add value to the property, along with offering price that acknowledges the underlying development costs - even for failed properties, companies typically won't consider offers below six figures to cover legal and administrative costs of the transfer.
1 user found this answer helpful
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