Sony will spend more on live service games than traditional games starting this fiscal year

Sony will spend more on live service games than traditional games starting this fiscal year

William D’Angelo
posted 13 hours ago / 1,376 Views

Sony Interactive Entertainment President and CEO Jim Ryan, in a presentation during Sony’s business segment meetings, revealed that PlayStation will invest more in live service games than traditional games starting in the current fiscal year.

Just 12 percent of gaming investment on the PS5 went to live service games, while the remaining 88 percent went to traditional games. For the current fiscal year, ending March 31, 2024, the percentage of total investment in live service games will be 55%, compared to 45% for traditional games. Investment in live services will grow to an expected 60 percent in fiscal year 2025, while the percentage spent on traditional games will drop to 40 percent.

The total amount of money invested in the PS5 business model will increase in the coming years. The total amount spent on traditional games in fiscal year 2023 will be less than in fiscal year 2019. However, it will increase in fiscal year 2025 to be slightly higher than in fiscal year 2019. This is based on internal projections from Sony.

The amount of money in the gaming industry that is projected to be spent on full digital games is expected to decline in the coming years from $8.6 billion in 2022 to $7.4 billion in 2026. While the amount spent on content is expected to additional grow from $11.8 billion in 2022 to $19.2 billion. Subscriptions are also expected to see growth from $8.2 billion in 2022 to $12.0 billion in 2026.

Sony plans to have 12 live service games available on the market by the fiscal year ending March 2026, up from three in the previous fiscal year.

“We’ve been working with Bungie for almost a year and the learnings in both directions have been very significant,” Ryan said during the webcast (transcribed by VideoGamesChronicle). “They exceeded my expectations and equally, I think Bungie is very excited about what they can get from SIE in terms of market reach, marketing, collaboration, and the ability to amplify their intellectual property.”

He added: “We’ve brought a lot to Bungie, just as they’ve certainly brought a lot to us. Historically, they’ve been a very US-focused publisher. [with] its intellectual property is underexploited in key markets in Europe and Asia.

“[Sony Interactive Entertainment] is extremely strong and has a lot of experience in Europe and Asia, and we’re just beginning the process of rekindling Bungie’s presence and awareness of the game in those regions. I would also say… we have a marketing machine that, in my view, is world class and putting them to work on activating the games, the intellectual property and the Bungie brand I think will take their knowledge and the size of their business to a size they’ve never seen before.

PlayStation Studios boss Hermen Hulst has revealed that Bungie is now involved in the development of all of its live service games.

“Bungie’s learnings have been very important in many areas,” Hulst said. “Of course, when you’re developing live service titles, [require] capabilities you don’t have when working on single player narrative games.

“And these capabilities that we’ve set up within PlayStation Studios have been helped and guided by Bungie. We also understand more deeply what it means to be successful on live services. Historically, our games have always worked towards an end, and this is a big change. cultural”. …a game release is just the beginning, and it comes with a whole set of different [key performance indicators].

“We also work with Bungie through a fairly rigorous portfolio review process that we apply to the 12 live service titles we have in production, and these are just brief examples of some of the learnings we’ve learned from working with Bungie.”

An avid and lifelong gamer, William D’Angelo he first introduced himself to VGChartz in 2007. After years of supporting the site, he was hired in 2010 as a junior analyst, rising to lead analyst in 2012 and taking over hardware estimates in 2017. He has expanded his involvement in the community of players producing content on their own Youtube channel and contraction channel. You can contact the author. On twitter @TroncosWD.

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