Sony Explores Multi-Platform Approach to Boost Profits for PlayStation Division
ICARO Media Group
In a recent Q&A session following Sony's financial results briefing, Hiroki Totoki, Sony president and PlayStation chairman, addressed concerns about the game division's increase in gross income without a corresponding rise in profits. Totoki revealed that the company plans to focus on two key areas to improve its bottom line: hardware and first-party games.
When discussing hardware, Totoki acknowledged the challenges of cost reduction in the current console cycle, suggesting that discounts may not be viable in the near future. He pondered how Sony could make their product lines more affordable without relying solely on discounts.
The solution, it seems, lies in expanding Sony's first-party titles to multiple platforms, particularly PC. Totoki emphasized the changing landscape, stating that the main purpose of first-party titles in the past was to popularize consoles. However, he believes that the growth of first-party games through multi-platform releases, including PC, can significantly improve operating profit.
Acknowledging the opportunities for margin improvement, Totoki expressed a proactive approach to enhancing margin performance. By leveraging strong first-party content on both Sony consoles and other platforms like PC, Sony aims to boost profitability.
While not a first-party studio, Arrowhead Game Studio recently released Helldivers 2, a game published by Sony simultaneously on PS5 and PC, and it proved to be an unexpected success. This experience will likely provide valuable insights when it comes to future first-party releases, ensuring sufficient network infrastructure is in place for a smooth launch.
Looking ahead, Sony predicts a potential decline in PS5 sales, as they currently have no major existing IPs planned before March 2025. This projection suggests that the company's multi-platform strategy is essential to maintain revenue growth and cater to a wider gaming audience.
The shift towards a more PC-friendly direction by Sony may surprise some, as it indicates the company's willingness to adapt to the evolving gaming landscape. With the prospect of playing PlayStation games on PC becoming more tempting for gamers, it remains to be seen how this strategy will shape the future of PlayStation gaming.
What are your thoughts on Sony's multi-platform approach? Are you enticed by the idea of playing PlayStation games on PC instead of using a PS5? Share your opinions in the comments section below.