PlayStation Ex-Exec Wants More AA Games, Exclusivity “Achilles’ Heel” with $200M+ Budgets
It seems like the gaming industry, at least the traditional console-driven industry, is rapidly approaching some sort of inflection point. Xbox is bringing more of their games to other platforms, amid consistent speculation they may be stepping back from the console business, and PlayStation is hinting they may pursue a more aggressive PC release schedule even as PS5 sales continue to outpace the PS4. Meanwhile, one publisher after another announces deep layoffs and cancellations.
It can be hard to square what’s going on, as games are still selling well, and there are certainly many factors at play, but perhaps the biggest problem facing the industry right now is the rapidly-rising cost of development. While the leap to the current generation may not have felt that transformative, it been hugely expensive – for example, the recently released Spider-Man 2 cost over $300 million to make, triple the $100 million its 2018 predecessor cost. This is what has PlayStation sweating – their products are selling as well as ever, but their profit margins are the lowest in a decade. It’s these ballooning costs that are going to lead to changes, whether players like them or not.
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In a new interview with The Verge, former PlayStation Studios boss Shawn Layden touches on the subject of rising developing costs, admitting exclusivity becomes an “Achilles’ heel” at a certain point…
“When your costs for a game exceed $200 million, exclusivity is your Achilles’ heel. It reduces your addressable market. Particularly when you’re in the world of live service gaming or free-to-play. Another platform is just another way of opening the funnel, getting more people in. In a free-to-play world, as we know, 95% percent of those people will never spend a nickel. The business is all about conversion. You have to improve your odds by cracking the funnel open. Helldivers 2
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