REPORT: Sony plans to invest $2.1 billion in research and development for its gaming arm, focusing most of its attention on live service

Papacheeks

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Successful live service games turn mid-size publishers into big-boy publishers. It's the difference between EA/ABK and Ubisoft/Square Enix. I thought the console manufacturers would remain immune to the allure of live-service games, especially Sony but it does not seem to be the case.

Sony wants to have their cake and eat it too. If Sony's titles were not pushing MO-CAP, animation, tech, in their titles and had a library closer to Nintendo let's say, their budgets would not be what they are.

Issue is Sony started with third party in the old days in courting them to their platform. So there's a long history there with association in those titles to the platform. Issue is those EA/ABK, Take 2, even Square change with the times and chase where the money is even if it doesnt pan out.

So Sony has no choice in a way, and needs to be self reliant in the case more consolidation happens or if a publisher makes the wrong bet in what they invest in and goes under?

Their competition like the competition for EA/ABK and the others are not just other titles, its different platforms where people can access different types of titles. So renewable income is a must so they can create passion projects that we continue to love and support.
 
24 Jun 2022
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PS5-investment.jpg

From FY19 to FY25 there will have been a very slight increase in traditional game according to Sony themselves, compared to investment in GaaS drastically increasing. The growth in traditional game investment doesn't even beat inflation if that is not accounted for.

TBF here, if the absolute funding in gaming budgets is growing by 2x or something like that between say FY23 and FY25, even if the relative budget for traditional games is smaller in FY25 than it was for FY23, and the percentage budget for traditional in FY25 is lower than the same for FY23, in absolute terms you'd be talking about an increase in traditional game funding from, say, $400 million in FY23 (out of $889.9 million) to $711.92 million in FY25 (out of $1.779 billion).

I don't think we know what Sony's funding allocation amount is for FY24 or FY25, vs FY23 in absolute dollar numbers. Hell, do we even know what it is for FY23 vs what it was for FY19?
 

Yurinka

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None in this FUD article is new stuff, this should be included in the other threads that already talk about this.

Or even better, all the 'sony is doomed, MS has a monopoly and their execs should be fired' crazy conspiracy theory threads should be merged into a specific one to keep all the related garbage there instead of constantly spamming new threads about this nonsensical, childish and baseless Sony hate and FUD bullshit.

Mind you all of the live service games will also be on PC.
Some of them will and some maybe won't, as happens with Sony's non GaaS games. The ones released until now like Destruction All Stars, Gran Turismo 7 or MLB aren't on PC.

While MS is successfuly following its strategy of spending Sony of out the business, Sony is too busy trying to become Xbox lite.
Bullshit, Sony outperforms MS in most console and game subs metrics by 2:1 or more. And Sony does it being profitable, while MS gaming division continues being an unprofitable business.

TBF here, if the absolute funding in gaming budgets is growing by 2x or something like that between say FY23 and FY25, even if the relative budget for traditional games is smaller in FY25 than it was for FY23, and the percentage budget for traditional in FY25 is lower than the same for FY23, in absolute terms you'd be talking about an increase in traditional game funding from, say, $400 million in FY23 (out of $889.9 million) to $711.92 million in FY25 (out of $1.779 billion).

I don't think we know what Sony's funding allocation amount is for FY24 or FY25, vs FY23 in absolute dollar numbers. Hell, do we even know what it is for FY23 vs what it was for FY19?
From the original Nikkei article (which doesn't add any new info, we have been talking about this for months), this is the gaming R&D allocation per FY:
  • FY21 144.5 billion yen
  • FY22 271.1 billion yen
  • FY23 (current one) 300 billion yen (about $2.13 billion)
Sony plans to spend in the current fiscal year over twice the amount of money on making games that the amount they spent two years ago.

Using the FY23 $2.13B number doing some pixel counting with these graphs you can extrapolate their investment estimate for their R&D in gaming for FY25 and FY19:

image.png


image.png


Remember, this is amount of money invested and not amount of games under development. Meaning, in 2025 they already will have in the market several GaaS., so part of that 60% GaaS investment will be to also pay servers and post launch content being developed for games released that year or in previous years.

Remember that they had 12 GaaS (already released 2) in the works out of MORE THAN 25 games (some of us estimated more than 30 and depending what you include like 2nd party/ports/VR/remasters/mobile/etc, more than 40) under development at PS Studios. Meaning that the majority of their games under development aren't GaaS.

300B yen is around 40% of the total Sony R&D allocation. Now it's the biggest group, above electronics and semiconductors.

"Earnings before interest, taxes, depreciation and amortization for the company's game business was about 337 billion yen last fiscal year, up more than 60% from five years ago.". This means that after removing the taxes etc. part, they plan to spend this fiscal year in all the money they earned last fiscal year in that same division (so will spend it pretty likely on making more games, signing 3rd party deals, any upcoming hardware, hiring more people, etc.)
 
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Nhomnhom

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TBF here, if the absolute funding in gaming budgets is growing by 2x or something like that between say FY23 and FY25, even if the relative budget for traditional games is smaller in FY25 than it was for FY23, and the percentage budget for traditional in FY25 is lower than the same for FY23, in absolute terms you'd be talking about an increase in traditional game funding from, say, $400 million in FY23 (out of $889.9 million) to $711.92 million in FY25 (out of $1.779 billion).

I don't think we know what Sony's funding allocation amount is for FY24 or FY25, vs FY23 in absolute dollar numbers. Hell, do we even know what it is for FY23 vs what it was for FY19?
The graph shows all that. FY19, FY23 and the projection for FY2025. We can interpolate the rest, for some reason they invested a lot less in traditional games in 2023 compared to how it was in 2019.
 

BroodCorp

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Ths is old news.

And the pushback against sony making ‘live service’ games continue to be stupid after Diablo just made over half a billon dollars in a week. Sony isn’t going to “out compete” Microsoft/Activision/Blizzard/Bethesda with single player games alone
Yes Diablo, the latest entry in a respected and established franchise.

You can’t just copy and paste that potentiality to PlayStation and tell people to shut up with their worries.
 

Nhomnhom

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Yes Diablo, the latest entry in a respected and established franchise.

You can’t just copy and paste that potentiality to PlayStation and tell people to shut up with their worries.
It only took Diablo 25+ years to get to where it's at. Not a single Sony IP fit that mold.

PS IPs with exception of GT and maybe TLoU aren't very suited for big GaaS.
 
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Danja1187

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It only took Diablo 25+ years to get to where it's at. Not a single Sony IP fit that mold.

PS IPs with exception of GT and maybe TLoU aren't very suited for big GaaS.

I still by Uncharted Multiplayer if it was nutured properly building off Uncharted 3 Multiplayer... They would have had a winner. And they wouldn't have needed dumb battle royal to get there.

Horizon had the potential to have it's one GaaS spin off. That ship sailed but they'll find out when Horizon Online bombs.

Ratchet also had potential but lack of vision has left the franchise stagnant
 
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Nhomnhom

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I still by Uncharted Multiplayer if it was nutured properly building off Uncharted 3 Multiplayer... They would have had a winner. And they wouldn't have needed dumb battle royal to get there.

Horizon had the potential to have it's one GaaS spin off. That ship sailed but they'll find out when Horizon Online bombs.

Ratchet also had potential but lack of vision has left the franchise stagnant
Horizon online is going to bomb hard, Sony puts too much faith into that IP.

I can see the potential in R&C for a good multiplayer mode with all the crazy weapons but I doubt it will ever be taped. Plenty of Sony IPs could result in good multiplayer games but not hugely successful ones.
 

Danja1187

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Horizon online is going to bomb hard, Sony puts too much faith into that IP.

I can see the potential in R&C for a good multiplayer mode with all the crazy weapons but I doubt it will ever be taped. Plenty of Sony IPs could result in good multiplayer games but not hugely successful ones.
Ratchet however has the potential it's not just the crazy weapons it's the slew of likeable characters, the sprawling worlds... There would be no limit as to what they can do as everything is pretty much acceptable in his universe. They'd have space, planet hopping, rifts, arenas, racing... Whatever they want... Similar to GTA Online.
 
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ksdixon

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Horizon online is going to bomb hard, Sony puts too much faith into that IP.

I can see the potential in R&C for a good multiplayer mode with all the crazy weapons but I doubt it will ever be taped. Plenty of Sony IPs could result in good multiplayer games but not hugely successful ones.
This is why they should ressurect them as standalone mp/online games, apply GAAS updates of new perks, weapons, levels from across all the games, modes of play, custom lobby rulesets, new missions/raids etc. Let them sit around on the back-end as evergreen titles, keeping the IP in people's mind, but not tied to a sequel coming out so gotta kill this MP, or we can't be arsed remastering the MP modes, we crunched enough on our UC/TLOU Remasters.

Tlou Factions 1 deserved so much more, and so did UC2/UC3's MP's I hear.
 
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