PlayStation Devs Need To Manage Budgets More Effectively, Says Sony

Expert Verified By

PlayStation Studios Must Improve At Business Aspect!

Story Highlight
  • PlayStation’s profits declined last quarter, and the PS5 missed sales targets.
  • Sony’s Hiroki Totoki states that PlayStation’s studios need to improve in terms of business management for better profits.
  • He pointed to better management of budgets and schedules during game development.

Jim Ryan, the former CEO of PlayStation and Sony Interactive Entertainment announced his retirement last year. Meanwhile, Sony president Hiroki Totoki has taken the role of Sony Interactive Entertainment chairman as the company prepares for the transition.

He recently evaluated the business, sharing impressions about PlayStation and its teams. According to Hiroki Totoki, there is much room for improvement in these studios’ business decisions.

Why it matters: The gaming industry continues to become more risky with each passing year, making profits and revenue more important for big corporations like Sony.

PlayStation 5 Slim
PlayStation 5 Slim

Hiroki Totoki commended the team for its hard work and passion. However, he believes these teams need to learn how to generate profits.

“They don’t necessarily have deep understanding of how their work is being translated to sustainable profits.”

-Hiroki Totoki

The Sony president remarked that he visited various PlayStation studios in the past four months, conducting meetings with these teams.

In doing so, he has observed that everyone is working hard to fulfill their responsibility. However, their major shortcoming lies in their failure to budget and schedule with profits in mind.

There is room for improvement. That’s to do with how to use money, and the schedule of development.

-Hiroki Totoki

Hiroki Totoki also noted that while PlayStation’s developers generate impressive revenue, they don’t necessarily translate it into profit. His comment is quite appropriate since PlayStation’s year-on-year profit dropped by 25% this quarter despite record revenue.

The chairman will continue to observe the business in depth since four months is not necessarily enough time for a valid conclusion.

PlayStation 5
PlayStation 5 (Image By Tech4Gamers)

Recently, studios like Insomniac Games spent over $300 million on Spider-Man 2.

This is just one example of a PlayStation developer spending more than Sony may have liked for AAA titles. However, with the industry’s current state, such budgets and figures are not too shocking.

PlayStation has found itself in a tough spot after missing Fiscal Year sales targets for the PS5. While Sony confirmed a record 123 million Monthly Active Users last quarter, these records did not translate into meaningful profits.

This, according to Hiroki Totoki, is a major challenge, and he hopes to address it during his time at Sony Interactive Entertainment.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Tomb Raider Developer Crystal Dynamics Is The Latest Studio To Face Layoffs

Crystal Dynamics, the developer studio behind Tomb Raider games, has just announced that it is cutting its workforce.

CD Projekt Red: Single-Player Games Like The Witcher & Cyberpunk Are Here to Stay

The co-CEO of CD Projekt Red believes that the demand for single-player games like The Witcher 4 and Cyberpunk Sequel will not disappear.

5 Out of 8 Major AAA Japanese Studios Already Hit Record-Breaking Share Prices This Year

Japan's AAA presence in the gaming industry has gotten stronger, as 5 of the 8 companies in the region reached record-breaking share prices.

Indiana Jones and The Great Circle Tops PlayStation Pre-Orders

With Indiana Jones and the Great Circle now available to pre-order for the PS5, the game is topping the PlayStation charts.

Rocksteady’s Next Batman Game Being Developed Using Unreal Engine 5

Rocksteady's latest job openings confirm that the team is working with Unreal Engine 5 for its next AAA project.