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Media Molecule spent 4.1m on R&D in 2010

By Dan Pearson

Mon 09 Jan 2012 9:05am GMT / 4:05am EST / 1:05am PST

Financial documents identify "heavy reliance" on LBP as main business risk

Media Molecule

Media Molecule was founded by a small troupe of Lionhead veterans who, bolstered by their work together...

Sony Computer Entertainment

Sony Computer Entertainment is a Japanese videogame company specialising in a variety of areas in the...

Financial reports filed at Companies House by Media Molecule reveal that the Sony-owned studio made 3.44 million in profit in the financial year ended March 2011, but spent 4.1 million of research and development costs in that same period.

Despite the success of the LittleBigPlanet series and its status as a Sony flagship product, the report repeats previous statements that the company needs to maintain cutting edge innovation at the studio instead of relying too heavily on established franchises.

Major risks at the studio are seen "largely as a result of the company's heavy reliance on the one LittleBigPlanet brand name," reports Develop.

"It is vital for Media Molecule to focus a high proportion of its resources on R&D to allow it to maintain its world leading position as a developer of innovative games," the report continues, before stressing that Media Molecule "remain at the forefront of technological advances, and must bring new and often risky innovations to market in products of the highest quality."

Being a first-party studio obviously means that Media Molecule can expect early access to new technologies such as the PlayStation Vita and whichever platform eventually replaces the PlayStation 3, so preparation for the new developmental and technological opportunities which they present will be paramount.

Areas highlighted in the report as being key parts of the research were: "leading edge physics and dynamics, rapid world creation from laser data, innovative routes to market via web based interfaces, 3D stereo-optics for advanced simulation, and use of 'hi-def' data capture and processing techniques."

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"made 3.44 million in profit in the financial year ended March 2011, but spent 4.1 million of research and development costs in that same period"

So.. what does this mean? Does the 3m in profits include the 4m in R&D costs, or did they really lose 700k?

Rather than focusing on all that cutting edge tech, which must cost a packet ... how about they create a *new* IP? New meaning, *not* related to LBP in anyway?

Posted:4 years ago


Lewis Brown Snr Sourcer/Recruiter, Electronic Arts

217 88 0.4
I noticed this too, if they are reporting 3.44 million in profit this should mean the 4.1 million should have already been accounted for unless the are running a very odd balance sheet.

Posted:4 years ago

The question one should ask is - what the world are they spending money and time on that cost 4.1 million

Throwing around physical Meat sacs into a particle accelerator to exit into a Higgs boson?

Posted:4 years ago


Bruce Everiss Marketing Consultant

1,692 595 0.4
Nice to see.
There is a long way we can go with games if we try. It just costs time and money.
4.1M isn't a great deal to spend and the UK tax regime eases the burden.

Posted:4 years ago

Spoken as written, it means they're budget for the year whilst including many things not mentioned included 4.1 million spend on R&D, and their overall profit for the year after all costs is 3.44 million once tailed vs. expenditures, ie the 4.1 is accounted for, profit means profit after-all, (but not necessarily before tax as before or after tax is not mentioned), so taken out of the real world, without the 4.1 million of R&D investment they could have made 7.54 million in profit, but of course this doesn't bear in mind the fact that without that 4.1 million of R&D development they may not have released anything or made any profit at-all, so articles tone reflects that it's discussing that costs on R&D at that company are quite high, possibly due the nature of their product's, and logically if they can bring those costs down but achieve similar results they'll make more profit.

Posted:4 years ago


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