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PlayStation Is Putting $300 Million More Into First-Party Games, and Aiming for 'Multiple Platforms'

S0ULZB0URNE

Member

Sony is investing a further $300 million into its first-party PlayStation studios as a two-pronged strategy to grow its gaming business – alongside releasing games on "multiple platforms".



Revealed in its latest earnings call, Sony made clear this investment is for developing software at existing studios - such as God of War's Santa Monica Studio or Horizon: Forbidden West's Guerrilla Games - and is separate to its acquisition plans.

"We plan to increase software development expenses aimed at strengthening first-party software at our existing studios by approximately ¥40 billion [$308 million]," it said.

"Going forward we aim to grow the game business by strengthening our first-party software and deploying that software on multiple platforms."






Sony didn't go into what platforms it means, but it likely refers to the joint PlayStation 4 and 5 release of games such as Spider-Man: Miles Morales and the incoming God of War: Ragnorok, in addition to its recent venture into releasing PlayStation console exclusives on PC.

Regardless, Sony clearly sees great value in its first-party software, as it has continued to increase its investment in owned studios each year, highlighted in a graph (below) that shows first-party sales growing in line with that increased funding.

Sony added: "In addition to acquiring studios such as Bungie and Haven in recent years we have significantly increased our investment in content development in our existing studios. As a result our first-party software development has increased at a high rate."

That's not to say it's necessarily slowing down its purchasing of other developers, of course, as just last week Sony advertised a new position for director of corporate development to help identify acquisition opportunities.

It purchased Bungie in February for $3.6 billion and in the last year has also acquired several other studios, including Bluepoint and Housemarque. Sony Interactive Entertainment president Jim Ryan also said in April that it already has more purchases planned.

While software continues to do well for Sony, its hardware underperformed this year, as it also revealed in its financial results that PS5 hardware missed its initial sales target by 3.3 million units.

The underperformance was put down to ongoing component shortages that are slowing the production of consoles, which forced Sony to make a last-minute adjustment of its sales expectations.
 
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They’ll just continue to drip feed old games onto PC, a single studio isn’t enough to keep up with everything that’s releasing.
Yeah...this article is basically saying they will keep doing what they are doing right now.

I did expect them to release more PC games this year. Uncharted Collection is coming during the summer...so we might get only one more PC game this year.
 
Great news. Open up the audience with steam, get more revenue and invest back into games. This is possibly the only viable way for Sony to continue to make AAA games of high quality without having mtx.
 
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ANIMAL1975

Member
I feel like joint platforms could be ps5 and pc going forwards? They have acquired an established pc porting studio :)
And maybe mobile, there was some kind of restructure in Sony mobile too not long ago, can't remember exactly what it was but had something to do with that program for straightening collaboration between different departments, like with Sony pictures too. Just my two cents of course.
 

anthony2690

Member
And maybe mobile, there was some kind of restructure in Sony mobile too not long ago, can't remember exactly what it was but had something to do with that program for straightening collaboration between different departments, like with Sony pictures too. Just my two cents of course.
Oh yeah, did that wipeout mobile game ever come out?
 

Fredrik

Gold Member
Great news, I think I’ll just be all in on PC gaming going forward with all these titles coming to the platform eventually.
Have fun waiting I guess 😕
Personally I really don’t like Sony’s strategy, everything is timed exclusive to console and once the PC version is out the hype is gone and it’ll just be an old and expensive game I’ve already played or had the story spoiled. Takes away much of the fun even though it’ll be better versions. It’s such an annoying strategy even though I understand why they’re doing it.
 

IntentionalPun

Ask me about my wife's perfect butthole
Interesting to note that Sony doesn't put non-Playstation game sales in their Digital Software and Add-on Content results, but mixes it in/hides it in "Hardware and Others."

I don't think we'll get super clear numbers on PC game revenue any time soon, unless I'm missing something here.

I suppose it doesn't matter if it's in Digital Software, or Hardware / Others, unless they break it out specifically we won't know.. but still sort of odd it is in "Others" and not in software sales.
 
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yurinka

Member
Sony is investing a further $300 million into its first-party PlayStation studios as a two-pronged strategy to grow its gaming business – alongside releasing games on "multiple platforms".
Yes, Bungie games will be multiplatform day one including rival consoles. And they plan to continue porting a few old PS Studios games to PC per year. They also plan to bring some of their PS IPs to mobile, even if they already have Forwardworks and Lasengle I assume they'll outsource this or acquire some studio more to do it.

Revealed in its latest earnings call, Sony made clear this investment is for developing software at existing studios - such as God of War's Santa Monica Studio or Horizon: Forbidden West's Guerrilla Games - and is separate to its acquisition plans.

"We plan to increase software development expenses aimed at strengthening first-party software at our existing studios by approximately ¥40 billion [$308 million]," it said.

"Going forward we aim to grow the game business by strengthening our first-party software and deploying that software on multiple platforms."


Very interesting. I assume FY22 costs include Bungie and Haven plus some other recent acquisition that would be closed this year, plus organic growth from previously owned studios. It's interesting to see they grow in a sustainable way: they reinvest their revenue growth proportionally in growing their gamedev costs.

Sony didn't go into what platforms it means, but it likely refers to the joint PlayStation 4 and 5 release of games such as Spider-Man: Miles Morales and the incoming God of War: Ragnorok, in addition to its recent venture into releasing PlayStation console exclusives on PC.
By multiplatform they mean Bungie games will be multiplatform including rival consoles day one, and that they will keep porting old PS Studios games to PC.

Day and date PC releases?
Sony never said or hinted at releasing their PS Studios games on PC day one. They said that will experiment with the distance between PS and PC releases for PS Studio games, but that will continue focusing them as PS exclusives and that some (not all) will be ported time later to PC. Having dedicated porting teams supports this.

For Bungie they said instead that their future games will continue to be released everywhere -including rival consoles- day one.
 
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IntentionalPun

Ask me about my wife's perfect butthole

01011001

Gold Member
They’ll just continue to drip feed old games onto PC, a single studio isn’t enough to keep up with everything that’s releasing.

the stdio helps with PC ports, it doesn't make them alone.

and no, very soon all new Sony games will release soon after the console versions if not on the same day. everything points clearly to that conclusion
 

Metnut

Member
It makes sense for Sony to do easy PC ports of games years after they come out. Personally, I like playing these mega-hits pretty soon after launch so I’m glad I have a PS5 and that Sony is continuing to invest so much in its first-party studios. I think it’s a good strategy IMO.
 

IntentionalPun

Ask me about my wife's perfect butthole
Sigh. Someone should tell them they are in the business of selling consoles and console royalties. Releasing your games on other platforms is counterproductive.
Like every company they are in the business of getting returns on investments.

Nothing more, nothing less.

If the numbers indicate releasing games off of consoles is how to get the best ROI, they will go that route.. and clearly it's what the numbers are indicating.
 

64bitmodels

Member
Sigh. Someone should tell them they are in the business of selling consoles and console royalties. Releasing your games on other platforms is counterproductive.
Sony's also responsible for making movies, blu ray players, tvs, monitors, headphones etc.... they're not JUST in the business of the playstation brand, and they don't have any obligation to make games specifically for their platform. PC is becoming more popular and more people want to play their games on there, so that's where the money is. Only company not onboard is nintendo and that's cuz they're drowning in so much money that it's getting to their head
 
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Pejo

Member
I'm thinking big things here Jimbo, hear me out. There's just a bit of port begging that I'd like to pitch to you for PC versions.

Tokyo Jungle, Astro Bot, Gravity Rush 1&2, Freedom Wars, Motorstorm series, Driveclub, Resistance series.

You know what to do.
 
Sigh. Someone should tell them they are in the business of selling consoles and console royalties. Releasing your games on other platforms is counterproductive.
Sigh, consoles and console royalties only go so far if you can't provide enough consoles to satiate demand. Luckily there are other devices that can play games that they can tap into to make the money they want. Not to mention, most Console Manufactures break even or lose money on the console so that they can sell the services to you. Sony is trying to do what Microsoft is making profit doing.
 
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Ezekiel_

Member
So, instead of buying Square-Enix western studios and some IPs for that amount, they're investing in growing their studios, which most likely mean their big studios are 2+ teams working on multiple projets at the same time, Insomniac-style.

I think it's likely a much more effective strategy than spreading yourself too thin with adding more studios you have to manage adequately.
 

Hezekiah

Member
The natural result of the massive recruitment drive that their first-party studios have seen over the past few years, and continues to see.

That's why I don't take any notice of people who say Sony needs 40 studios.
 

tmlDan

Member
Drip feeding the games on pc, is still 2 platforms, plus with the push they are apparently doing with GAAS titles, I'd be surprise if they didn't push them titles to be same date as playstation and pc.
I am confident that they will put GAAS games on PC and PS5 simultaneously. That likely includes Factions and Jade Raymonds game.

These games need players to survive and be profitable.
 
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SlimySnake

Member
Sigh, consoles and console royalties only go so far if you can't provide enough consoles to satiate demand. Luckily there are other devices that can play games that they can tap into to make the money they want. Not to mention, most Console Manufactures break even or lose money on the console so that they can sell the services to you. Sony is trying to do what Microsoft is making profit doing.
Their main source of revenue are those PS+ subs, digital revenue from PS store and royalties. That's their business. First party sales are only a fraction of their actual gaming business.

We know this because they released the splits themselves.

70.5m units of PlayStation software for the Quarter -
14.5m units of first party games for the Quarter -
Digital Software Ratio 71%
47.4m PS+ Subscribers
106m Monthly Active Users

What's more important? 14 million first party sales in their biggest quarter with HFW and GT7 which they can only replicate once every year, maybe once every two years? Or 47 million users paying $60 every year?

They have 106 million active users on PS platforms. THAT is their moneymaker. A first party game that takes 5 years to come out and then sells an extra 1-2 million on PC is pennies compared to their main business which is making those 106 million users feel prioritized.

Insane reading a first party console manufacturer literally come out and say we are going multiplatform. If they want to go multiplatform, they should go third party.
 
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