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Sony Shifts Investment Strategy Towards Live Service Games

 1 year ago
source link: https://www.gizchina.com/2023/05/25/sony-shifts-investment-strategy-towards-live-service-games/
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Sony has announced that it will be investing more money in live service games than in traditional single-player games. This is a significant shift for the company, which has historically been known for its high-quality single-player experiences. Sony is not abandoning single-player games altogether. But it is clear that the company is placing a greater emphasis on live service games

Sony won’t leave single-player games behind completely

Sony has shifted its investment strategy for first-party games, with a greater focus on live service titles. In 2019, the company invested 88% of its budget in single-player games, with just 12% allocated for live service. However, this balance will begin to shift in 2023 itself.

Sony Investment on Live Service Game

As a part of a business presentation on Tuesday, Sony shared some updates on how it plans to invest in its portfolio. The company expects to increase the investment in live service games to 55% in the current fiscal year. And this investment is further set to increase to 60% by FY25.

The company’s decision to invest more in live-service games is likely due to the increasing popularity of these types of games. Live-service games are designed to be played over a long period of time, and they often have a recurring revenue model. This means that they can generate more revenue over time than traditional games, which are typically played once and then put away. Some of the example of live service games are Fortnite. DOTA 2, and CS: GO.

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Image: Live Service Game, CS: GO

Sony Interactive Entertainment (SIE) plans to release at least two first-party PS5 exclusives per year, covering every major genre. The games will come from a mix of established franchises and new IP and will include both single-player experiences and live service games. The proportion of spending on single-player games is set to decrease in the future. But SIE will still invest heavily in them. According to financial charts, SIE plans to spend marginally more money on single-player games in FY25 than it did in FY19. But we are not sure about the exact figure Sony is planning to invest.
SIE head Hermen Hulst recently shared that the company is currently working on 12 live service games. They aim to release these games in the market by the end of the fiscal year in March 2026. This is a significant increase from the three games they had in development during the previous business year, which concluded this March.

Sony is preparing for live service games for a long time

Sony has been making a number of moves in recent years to expand its live service game portfolio. The company has acquired several studios with experience in the genre, including Bungie, Jade Raymond’s Haven Studios, and Firewalk Studios.

Sony buys Bungie

In fact, SIE says it has made Destiny studio Bungie an integral part of its live service game strategy. SIE is taking advantage of Bungie’s wealth of experience in the genre to ensure its own live service games have the best chance of success. In addition, Horizon franchise developer Guerrilla Games has announced that it is working on a multiplayer Horizon game. These actions indicate that Sony recognizes the potential of the live service market.

Sony is clearly seeing the potential of live service games. These games can generate a lot of revenue from players who invest time and money into them. Fortnite and Destiny 2 are two examples of successful live-service games. Sony is hoping to replicate that success with its own live service games.

Sony’s move into live service games is a significant change for the company. In the past, Sony has focused on single-player games. However, live service games are becoming increasingly popular, and Sony is not wanting to miss out on this trend.

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