230°

Sony's Gaming Business Is in Trouble

The Sony (NYSE: SNE ) PlayStation 4 is off to an explosive start. Official statements from the company indicate that it had sold more than 6 million units to consumers as of March 2, substantially eclipsing the 5-million-unit sales target that it expected to hit in its current fiscal year. What's more, the competition hasn't done a great job of keeping up. Current estimates put the Xbox One from Microsoft (NASDAQ: MSFT ) somewhere in the neighborhood of 4 million units sold, with a substantial drop-off in momentum since the console's launch. Meanwhile, the performance of the Nintendo (NASDAQOTH: NTDOY ) console has become something of a recurring punchline.

Anon19743709d ago (Edited 3709d ago )

I'm not following. So after moving Santa Monica Studios to new offices, Sony's gaming business is in trouble because they canned an unannounced title and laid off those working on it, and because "The Last Guardian" has been in development for awhile?

From the same guy who wrote such riveting articles as "Watchdogs will flop", "Will Nintendo Abandon the Wii-U", "Can Spiderman save Sony Pictures" and "Is this the end of the Microsoft Xbox?" They should call this guy Dr. Doom.

Seriously, Sony has more first party developers than MS and Nintendo combined. One unannounced project we knew nothing about canned and suddenly "Sony's gaming business is in trouble!" Give me a break. I usually take the fool.com seriously (I know how that sounds to those who aren't familiar with the site) as a well respected investment site, but this guy clearly doesn't have a clue.

Axios23709d ago (Edited 3709d ago )

I think this is how the studios pan out.

Feel free to update if I have erred

1st party developers

Microsoft:

1. 343 Industries
2. Good Science Studio
3. Microsoft Studios Core Games Publishing
4. Microsoft Studios Family
5. Microsoft StudiosKids and Lifestyle Entertainment
6. Microsoft Studios LEAP
7. Microsoft Studios Platform Next
8. Microsoft Studios Sports Entertainment
9. Turn 10 Studios
10. Twisted Pixel Games
11. Xbox Live Productions
12. Lionhead Studios
13. Microsoft Studios Soho
14. Rare Ltd
15. BigPark Studios
16. Playful Learning
17. Microsoft Flight Development Team
18. Team Dakota
19. Lift London
20. Microsoft Studios EMEA Publishing
21. Press Play
22. Black Tusk
23. LXP
Sony:

1. SCE Japan
2. Polyphony Digital
3. Naughty Dog
4. SCE Santa Monica
5. SCE San Diego
6. SCE Bend
7. SCE Foster City
8. Sucker Punch
9. SCE London
10. SCE Cambridge
11. Evolution Studios
12. Guerilla Games
13. Media Molecule
14. SOE
15. XDev (manages independent studios)
16. ICE Team (support studio)

Edit: Thanks below for the info

updated
-added ICE Team and XDev
-omitted SCE Liverpool
-omitted MSGS Vancouver for Black Tusk
-Sports and Entertainment have job listings so they're still around

Godchild10203709d ago (Edited 3709d ago )

Microsoft does have more first party studios, but how many of them made games? Oppose to Sony's first party studios, where I can name 2 or more games made by them since they came about.

christocolus3709d ago (Edited 3709d ago )

Not sure MS still has their sports entertainment studios..i think they sold the division off to take two also Ms vancouver is now black tusk but there is a new studio called LXP i guess we will see something from them at E3 or GDC also the flight studio made the popular pc flight simulator theyve been quiet for a while....i keep forgetting about Good science too.thats one nice little studio.

THC CELL3709d ago

wow how many of them ms exclusive studios has the highest rated games in the world or award winning games, also u missed Sony online entertainment currently porting planet side 2, wont be long before QD joins

TIER1xWOLFPACKx3709d ago

SOE SONY ONLINE ENTERTAINMENT
XDEV
ICE TEAM

Also pretty sure they are coming close to acquiring quantic dream, ready ay dawn which are currently second party

dirigiblebill3709d ago

SCE Liverpool has been shut, hasn't it? Bit of a tragedy :(

Anon19743709d ago

@ Axios2. I stand corrected. Don't know where the hell I got my information from but I should have verified it before I made that statement regarding first party studios. The site I quoted must have been considering 3rd party studios contracted out by Sony as well or something, but I was still dead wrong about that.

Regardless, the point of this article is ridiculous. If you're going to make the argument that a division is in trouble, certainly you need to come up with better reasons then what this guy lists here.

@ dirigiblebill. Sounds like SCE Liverpool formed a new studio, Firesprite. I've got fond memories of playing Psygnosis games back in the early 90's. Glad they still exist in some form.

kingdom183709d ago

Aren't a few of those MS studios Kinect based though?

Naga3709d ago

@ Darkride66

Way to own up to that one. People on here don't do that very often.

Gamer19823709d ago

OH God why do the MS fanboys keep listing all those MS studios when only around 6 of them actually make Xbox games?? Nearly every one of those studios run all sorts of other stuff like software, XBL, windows mobile, tablet software etc..

Akuma2K3708d ago

@Axious2, at least get the list right for sony's game studios.

First Party (SCE WWS)......

Asia
SCE Japan Studio – Ape Escape, LocoRoco, Patapon, Knack Team Ico – Ico, Shadow of the Colossus, The Last Guardian
Project Siren – Siren series, Gravity Rush

Polyphony Digital – Gran Turismo series, Tourist Trophy

North America
Naughty Dog – Crash Bandicoot series, Jak and Daxter series, Uncharted series, The Last of Us ICE Team

SCE Santa Monica Studio – Kinetica, God of War series, PlayStation All-Stars Battle Royale
SCE San Diego Studio – MLB: The Show, ModNation Racers
SCE Bend Studio – Syphon Filter, Resistance: Retribution, Uncharted: Golden Abyss
SCE Foster City Studio - supported studio for SCE Worldwide Studios
Sucker Punch Productions – Sly Cooper series, Infamous series

Europe

SCE London Studio – SingStar, EyeToy, PlayStation Home
Evolution Studios – World Rally Championship, MotorStorm series, Driveclub
Guerrilla Games – Killzone series Guerrilla Cambridge – MediEvil, Killzone: Mercenary

Media Molecule – LittleBigPlanet series, Tearaway
XDev - External Dev Studio

Second Party....

Asia
Clap Hanz – Everybody's Golf series

North America
Insomniac Games[32] – Spyro the Dragon series, Ratchet & Clank series, Resistance series
Ready at Dawn Studios – God of War: Chains of Olympus, God of War: Ghost of Sparta, Daxter, God of War: Origins Collection, The Order: 1886
Idol Minds – Pain, Warrior's Lair, Ratchet & Clank Collection
Sanzaru Games - Secret Agent Clank, The Sly Collection, Sly Cooper: Thieves in Time
Zindagi Games – Sports Champions, Medieval Moves: Deadmund's Quest
Giant Sparrow - The Unfinished Swan, Edith Finch

Europe
Quantic Dream – Heavy Rain, Beyond: Two Souls, The Dark Sorcerer
Tarsier Studios – Rag Doll Kung Fu: Fists of Plastic, LittleBigPlanet PS Vita
Double Eleven – LittleBigPlanet PS Vita
Novarama – Invizimals, Reality Fighters
Supermassive Games – Start the Party!, Until Dawn, Tumble, walking with dinosaurs
Plastic Games - Linger in Shadows, Datura
Ovosonico[33] - Murasaki Baby
CCP Games - DUST 514
Firesprite - The Playroom

Third Party.....

Asia
Level-5 – White Knight Chronicles, Dark Cloud, Rogue Galaxy, Jeanne D'arc, Ni No Kuni
Q-Games – PixelJunk series

North America
High Impact Games – Ratchet & Clank: Size Matters, Secret Agent Clank, Jak and Daxter: The Lost Frontier
ThatGameCompany – Flow, Flower, Journey
United Front Games – ModNation Racers
Bluepoint Games - God of War Collection, The Ico & Shadow of the Colossus Collection, PlayStation All-Stars Battle Royale
Magic Pixel Games - Carnival Island
Mass Media Inc. - Jak and Daxter Collection, The Midway
Fun Bits - Escape Plan
The Workshop - Sorcery
VooFoo Studios - Hustle Kings
Superbot Entertainment - PlayStation All-Stars Battle Royale

Europe
Housemarque - Super Stardust HD, Dead Nation, Resogun
Ninja Theory - Heavenly Sword

fear883708d ago

Why would you list Microsoft Studios so many times?

On Topic

A lot of those reasons don't seem to be long term causes of failure. They are challenges but lets not forget the recent weight dropped from microsoft too. Fact is that the industry is more focused on dev relations to indies and third parties. Titanfall will not have a sequel exclusive to Xbox unless Microsoft buys the IP from respawn and EA.

I also have to question the integrity and objectivity of the analyst when in the article it says...
"The Motley Fool owns shares of Microsoft."

Either way, its difficult to predict anything in this market and industry because of the accelerated changes in strategy and landscape. The only thing that can secure long term success will be the versatility and willingness to innovate on tech, content, and service by the companies that are in this industry.

+ Show (8) more repliesLast reply 3708d ago
ElementX3709d ago (Edited 3709d ago )

Sony may be own a lot of studios, but if Sony profits are non-existent how are they going to pay their employees? The movie division is down, electronic division is down, they are making some money selling cameras to mobile companies however that could always change if they switch suppliers. I bet we'll see some studios closing down to reduce losses. The only good thing about owning studios is exclusives, however what if the employees move on? What if the budget runs out? Basically Sony owns the IPs and if they can't keep the paychecks coming there are going to lose their talent.

Anon19743709d ago

That's ludicrous. Where on earth did you get the idea that Sony was anywhere close to not being able to pay it's employees? If they were in that much trouble, their credit rating have been slashed another 8-9 times, not just below investment grade (which is where most Japanese electronics makers currently are rated). The company has sales of roughly 78 billion annually, has 148 billion in assets.

While Sony certainly faces challenges while they restructure the company, there isn't a reputable analyst on earth that's predicting Sony bankruptcy or has even commented on Sony having problems with their cash flow, because there are no problems with their cash flow. Even when the bond rating agencies downgraded Sony's long term debt to just below investment grade, they commented that Sony was considered "stable" and said they'd most likely reverse the downgrade in the near future as restructuring efforts started to have an impact.

The notion that Sony suddenly won't be able to pay their employees is not grounded in reality.

ElementX3709d ago

I wasn't saying they can't, but they've been laying off people left and right, closing offices, etc. Sony will probably be around a long time, I don't want Playstation going anywhere.

Anon19743709d ago

The layoffs are to be expected though due to the restructuring efforts they've been doing for years. They're supposed to be streamlining operations. It would be more worrying if they continued to post losses and weren't taking measures to turn the company around.

I often see people acting like Sony's a step removed from bankruptcy in internet forums based on some ridiculously over-simplified statistic tool online. There's no truth to it at all, and, as I mentioned, there isn't a reputable analyst out there that's even using the words "Sony" and "bankruptcy" in the same sentence, which is the only way Sony wouldn't be paying their employees.

trywizardo3709d ago

im not gonna argue about who got more games sony or MS but more than nintendo , naaa i think N have more games than both of those , i hate N games i really do but because N is like nearly only company who release games on the Wii and WiiU ...

iamnsuperman3709d ago (Edited 3709d ago )

I don't think the author has released the reasoning behind laying off people from an unannounced game. We do not know what it was cancelled. We can take an educated guess the game was cancelled because it was making the quality grade/no progress. We don't really know what the game genre was. All we knew was it was different from SSM other games. When a game gets cancelled why keep people on if they are specialised in a specific genre (they will be). That is a far more logical reason for laying off. It is like SSM is downsizing or stop hiring in general. They got rid of a team who were making a game that, we can only assume, didn't make the grade and such Sony decide not to pursue this genre/game (4 years is a long time).

Tretton leaving is pretty straight forward. He is leaving on a successful launch (on a high). He is young enough to get bigger positions elsewhere and he will not get any higher in Sony that he already is. He has been in the company long enough.

lashes2ashes3709d ago

The game was canceled because it was very similar to destiny. It was a space based game that was being written by one of the show runners from battle star galactics. Podcast beyond talked about it a couple of shows ago.

Mikelarry3709d ago (Edited 3709d ago )

this are the same people that MS is doomed after the xbox one had only been out for 3 months.... yeah ok buddy

TheLyonKing3709d ago

This website has no structured reasoning to suggest sonys gaming division is in trouble.

Anon19743709d ago

That was my point as well. While I generally hold the motely fool website in high regard, this particular author, looking at his past articles, seems to have a tenuous grasp on reality when it comes to making his doom predictions, which he seems to do fairly often.

Sony has enough problems and is going through a massive, company wide restructuring which will take years to complete. This isn't a secret and nobody is saying Sony's not working through some challenges. You'd think that in writing an article like this he'd be able to cite some evidence related to performance or data of some kind but he doesn't even try. Just makes some vague references to an employee who was with the company for 20 years retiring, mentions a game we know nothing about being canned by one studio and then brings up another game that hasn't been released yet.

And we're supposed to buy that these factors are somehow going to scuttle the entire division? It's just highlights, to me, that this guy doesn't know what he's talking about. Sony Santa Monica could close completely and The Last Guardian could get canned and it wouldn't suddenly spell doom for the entire division. I just don't get where this guy is coming from.

OrangePowerz3709d ago

Of all the departments Sony has the gaming one has the least problems.

People get layed off constantly and games get cancelled in the industry. MS cancelled the Black Tusk game to make another Gears of War does that mean their gaming division is goung down?

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150°

Sony Patents To Prevent You From In-Game Harassment By Reading Your Emotions

A new patent recently published by Sony wants to gather biometric data of gamers to track whether one is being harassed using AI tools.

Profchaos17d ago (Edited 17d ago )

I hope this is one of those patents that never comes to fruition.

I already dislike the fact you can pay a significant amount for a online service buy associated games and content on said service and get banned from that service over potentially a misunderstanding the bans are already handed out for flimsy reasons

I'd rather see money invested in a ban that simply removes the offensive players ability to communicate with unknown players allow them to continue party chats with friends but not with Joe blow on cod.

exputers17d ago

Agreed. Blizzard recently banned a college Overwatch 2 player who's dependent for saying "shit." Pretty harsh.

Profchaos16d ago (Edited 16d ago )

How rediculas really. You can't say a word that's allowed in most PG films and prime time TV but the game is based around killing the enemy team using guns, explosives etc.

It's just backwards.

just_looken16d ago

What your talking about is called block list

In 2006 a spaceship dropped of the playstation 3/xbox 360 i say that that generation was the last great gen with game functions/tech that has yet to comeback

Anyhow the playstation 3 if you block listed a id they could not talk to you in chatroom with either text or voice. But that was pre mind fucked 2018 when people were more human than sheep.

But hey gta 6 is coming out billion dollar budget without a single player custom character creator and without singeplayer coop off/online something saints row 1-3 had on the xbox 360.

z2g17d ago

Take my social security and bank account numbers too! Here’s a picture of my wife and our address.

phoenixwing17d ago

Cmon where's the pictures of your children. Don't hold out on them.

H917d ago

At this rate I feel Sony will eventually sell a room to play games in it where they can monitor your every breath

jambola16d ago

I genuinely get a bit worried sometimes when a friend says something that could be offensive In a party
Because I have no trouble believing some bans would happen when in a private party for saying something wrong

SegaSaturn66917d ago

I want them to censor erotic content by measuring my groin temperature so i dont get too distracted while playing black ops 2.

Popsicle16d ago

Terrible idea. Not only do I not consent to providing my biometric data, the potential for mishandling biometric data is almost a certainty. Positive stress and negative stress can produce similar changes in biometrics. Interpreting the precise emotion a person is feeling is not only invasive but could be easily misconstrued. I hope this never comes to fruition.

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130°

Sony Could Increase Your Game's Difficulty If It Sees You Complain About It

Sony has recently published a new patent that wants to dynamically handle the games' difficulty and gameplay based on the player's emotions.

jznrpg17d ago

This is something I might use. Sometimes I play some good games but they don’t have difficulty option and are a little too easy.

Profchaos17d ago

Souls games will be like that players struggling make it harder

PassNextquestion17d ago (Edited 17d ago )

I think if used correctly it could work well

jambola17d ago

cool idea
cool idea for horror games especially
the way it's explained here sounds like it could never be forced hopefully, so that's ok with me

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280°

Sony Taps Bungie's Head of Revenue to Lead Live-Service Games

Sony has recruited Bungie's head of revenue Jaremy Rich to head up its live-service gaming division, Rich has announced on social media.

Read Full Story >>
techraptor.net
ChasterMies38d ago

Please do not put Destiny’s monetization into Sony’s first party games. The monetization is what’s driving players away from Destiny.

just_looken37d ago

The new temp boss is the sony cfo bean counter so i can see this being a thing get every penny.

Cacabunga37d ago

PlayStation officially losing it.. fans will never support gaas games

just_looken37d ago

@car

The new boss did a interview in japan he wants to tap into the mobile market like nintendio so he give 0 fucks about gamers/fans

https://www.pushsquare.com/...

Redemption-6437d ago

@Cacabunga
You only speak for you and those who think like you, but most fans will support what they want. Playstation and PC fans are literally supporting Helldivers 2 and that is a gaas. Maybe you wouldn't, but many more would if they like it.

Huey_My_D_Long37d ago

@Redemption-64
Look, Im not making any judgement calls about this guy, but I will say that Helldivers 2 GaaS model is unique to Helldivers, and legit the only other game I can think of thats similiar was the Avengers game except HD2 pass is still better.
The fact that you can earn in game currency in a way that doesnt make you feel like you have to grind forever, as well you being able work on that pass that you bought...on your own time without a time limit...that right there is fucking huge to me, and I can't name any game other than avengers that avoided trapping players with FOMO logic...I think GaaS on HD2 shouldn't be compared to the rest of the industry...it should be copied.

Einhander197237d ago

Cacabunga

Helldivers 2...

Redemption-64

In Europe it's a 60 40 split favoring PC.
In the US its a 60 40 split favoring PS5.

So PlayStation owners supported the game just fine, it's not getting carried by PC or anything like that.

FinalFantasyFanatic37d ago

@just_looken,
I'm perfectly fine with the way Nintendo entered the mobile market, I never touched their mobile games, meanwhile, the console/handheld stayed the way it is. As for being a bean counter, he's probably going to reel in these massive budgets that Sony's studios have had lately, I haven't played Spiderman 2, but I cannot see how they almost tripled the budget for that game.

@Redemption-64,
That's an exception to the rule, I'm expecting a lot of these GAAS games from Sony to fail, to be fair, they only need a few to succeed, but I would have preferred that they put more of their resources into other types of games.

+ Show (3) more repliesLast reply 37d ago
DivineHand12537d ago

True their monetization is driving players away and at the same time, their decision to chop out content and convoluted systems is keeping new players away from the game.

Joe91337d ago

I don't think that will happen based on how things worked out at Naughty Dog now that we know what we do, seems they had the option to fully commit to live service games or stay making single player experences so they gave up on their live service game. We are not sure how things came about with Bend making a live service game but I hope that was not a forced situation. Sony doesnt seem like they are forcing studios to switch up but we will see, Sony's bread and butter is single player games it is how they dominated the console market.

Obscure_Observer37d ago

Yeah, I though Sony learned something from all their failures in the LS segment under Bungie´s disastrous leadership and supervision which led to games been cancelled, studios closed and all the people laid off.

Looks like Bungie still plays a major role in Sony´s LS initiative and Sony is not backtracking on their GaaS plans.

S2Killinit37d ago (Edited 37d ago )

Are we forgetting that Destiny is also a highly successful franchise? I feel like that definitely deserves mention here.

Besides, there is no reason why a person cant learn from past experiences.

Joe91337d ago

I agree, people act as if Destiny flopped when it came out lol it took 9 to 10 years for the numbers to fall yet people are still playing it add the success of Helldivers 2 no wonder Sony is going forward down this path.

S2Killinit37d ago

Personally, I see no problem with Sony also having service games as long as they make good ones, and more importantly they deliver the AAA story driven games that they are known for. So yeah, I agree 100% with you.

+ Show (2) more repliesLast reply 37d ago
Christopher37d ago

I mean, this person made some pretty bad decisions at Bungie. I hope they've learned from them because I definitely don't see those type of ideas as good for PlaySation in general.

CrimsonWing6937d ago (Edited 37d ago )

Honestly, what’s to learn from? How to make people happily continuously dump money into a single game over its life-time? Buy season passes continuously for several years with a smile on our faces?

GaaS is a design decision that is everything wrong with this industry. The fact that Helldivers 2 did so well and people defend the monetization because it was $40 and is a fun game, scares the sh*t out of me to see that the door is open and all shift will probably be to replicate that in future games. We already know the ROI for traditional game dev cost isn’t doing it for them.

I thought with Jimbo leaving we’d see a change for the better… I’m not so sure now.

S2Killinit37d ago

Service games are being offered by everyone. Sony cannot afford to only create single player AAA games. No one can. They already said they will be doing both.

Abnor_Mal37d ago (Edited 37d ago )

Ps5 gamers in 2023 seemed to play more live service types of games, so regardless to how people feel about them, numbers don’t lie and Sony is going where the money is. I mean look at the excitement around Helldivers2, people are showing that they want live service games.

Christopher37d ago

They play long-time existing live service games like CoD, Fortnite, Apex Legends, Destiny 2, and the like. Mass majority of new live service games are considered failures and aren't moving gamers away from older games.

just_looken37d ago

Yep the huge issue with live service is they need paid players along with a reason to play them.

You forgot mobile market that also taps into that player base as well as the eve online style games there is only a certain amount of krakens/whales blind supporters compared to the amount of live service games we have its not sustainable math wise.

700 restaurants making food for every seat for 1000-3000 eaters just does not work out

Einhander197237d ago (Edited 37d ago )

Christopher

I am not a big live service fan and literally own zero of the games you listed, but that is not true, unless you call games that aren't the top games to be failures.

There are tons of live service games that are profitable.

Games don't have to be the biggest game ever they just need to make more than they cost.

I challenge you to show professionally prepared data that shows that more live service games fail than make enough to keep going.

Because all the data that I have seen shows that live service is less of a gamble than making a big AAA budget game which needs to survive off retail sales.

FinalFantasyFanatic37d ago

I sometimes wonder if we're at saturation point, where it's hard for a new game to join those ranks unless it's particularly exceptional, people only have so much time and money to devote to these types of games.

romulus2337d ago

Correction, they have no issue playing good live service games

shinoff218337d ago

Lol it's not even a quarter of the ps5s sold. Helldivers may have been a hit but let's not say most are enjoying it because truth is most(the real most ) don't care about it.

S2Killinit37d ago (Edited 37d ago )

I play what is fun. If a live service game is good I’ll play it as long as its not a money scheme which Helldivers is not.

And Im a single player gamer.

mastershredder37d ago

How do you kill a franchise that already been killed?
Destiny’s grind, cash-in-on-playbass-cha-Ching, and pop-culture-insertion mainstream-me-too bs totally killed any rep Bungie had. Sony/Bungie, if you are doing this to ward-off players, it’s already working.

crazyCoconuts37d ago

Headline truncated:
"... off a cliff"

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