What is the story about?
What's Happening?
PlayStation CEO Hermen Hulst has announced a strategic shift in the company's approach to game development following the costly failure of the game Concord. The company plans to reduce the number of live service games and focus on developing larger franchises with stricter oversight of its owned studios. Concord, which was shut down shortly after its launch due to poor sales, cost Sony approximately $250 million. In contrast, Astro Bot, another game launched last year, achieved significant success, selling 2.3 million copies and winning multiple awards. Hulst emphasized the importance of failing early and cheaply, and has introduced more rigorous and frequent testing to prevent similar failures. This includes increased group testing, better communication between studios, and closer relationships among top executives. The company aims to create iconic franchises that can extend beyond gaming, similar to The Last of Us and Uncharted.
Why It's Important?
The changes in PlayStation's strategy reflect a broader industry trend towards minimizing risks associated with game development. By focusing on fewer live service games and more substantial franchises, PlayStation aims to enhance its market position and profitability. The rigorous testing and oversight could lead to higher quality games, benefiting consumers and potentially increasing sales. This shift may also influence other gaming companies to adopt similar strategies, impacting the overall landscape of the gaming industry. The success of Astro Bot demonstrates the potential for well-developed franchises to achieve commercial and critical acclaim, setting a precedent for future projects.
What's Next?
PlayStation plans to release several new games, including Ghost of Yōtei and Lost Soul Aside this year, and Marvel Tōkon: Fighting Souls and Housemarque's Saros in 2026. The company is also working on other projects such as Fairgames, Marvel's Wolverine, and Naughty Dog's Intergalactic: The Heretic Prophet. The upcoming release of Bungie's Marathon is anticipated, although concerns have been raised due to delays and staff layoffs. PlayStation's focus on developing massive IPs suggests a long-term strategy to create enduring franchises that can expand beyond gaming.
Beyond the Headlines
The shift in PlayStation's strategy highlights the ethical and cultural dimensions of game development, emphasizing the importance of responsible management and innovation. The failure of Concord serves as a cautionary tale about the risks of oversaturation in the market, particularly with multiplayer, live service shooters. PlayStation's approach to IP creation reflects a cultural shift towards storytelling and franchise building, which could influence the types of games developed and the narratives explored.
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