Sony Pledges to Double the Quantity of Games for Mobile by 2025
A new IP strategy announced by Sony today aims to double the quantity of mobile games the company produces by 2025. The company plans to produce mobile games through two main avenues – acquisition of Bungie and the creation of 12 live service franchises. We’ll discuss each one in detail. We’ll also explore which mobile games Sony is most likely to release. We’ll start with Bungie.
Sony’s new IP strategy
Sony’s new IP strategy for mobile games is likely to be based on the success of Bungie, which the company acquired for $3.6 billion earlier this year. Bungie is known for its high-quality mobile games, including Halo Infinite, and is likely to follow a similar path to Naughty Dog in its IP strategy. However, the company’s new IP strategy will be centered on mobile games, as opposed to traditional consoles.
The company has already seen success with the PlayStation franchise, and Jim Ryan, president of Sony Interactive Entertainment, outlined plans for bringing the popular franchises to mobile devices. The new IP strategy is based on the company’s plans to spend half of its PlayStation Studios budget on mobile games by 2025. In addition to mobile games, the company plans to bring two television series to mobile platforms, one for PlayStation consoles and the other for mobile devices.
While mobile gaming has come a long way in recent years, EA and Ubisoft are already making their presence felt with mobile titles, such as The Division and Battlefield. Sony is looking to grab a piece of this growing mobile gaming market with their own IP and mobile games. Sony has been establishing a large library of first-party IPs for its PlayStation games, and plans to use them outside of games as well, with new projects like the Uncharted movie or the HBO series based on The Last of Us.
The new IP strategy will allow Sony to expand its gaming division even further, reaching a wider audience and creating more stable cash flow from GaaS and subscriptions. In addition to expanding into new regions, Sony will also expand its PS Direct service into new territories, including Spain, Portugal, Italy, and Austria. Revenues from PlayStation Direct should triple by FY 2022. It’s also worth mentioning that PS Direct is now available in a wide variety of languages.
Its acquisition of Bungie
This acquisition has a few important implications for the industry as a whole. It will likely double the number of games for mobile, as the company plans to release as many as 20 games for every platform by 2025. It will also boost Sony’s budget for developing games. Sony paid US$3.6 billion to acquire Bungie, which includes deferred payments to employee shareholders and retention incentives. As a result, roughly two-thirds of the acquisition’s value will be paid out over the next several years.
One example of this strategy is the partnership between Bungie and PlayStation, which will provide the company with experience in developing games for mobile with live services. Sony plans to operate 12 live service franchises by 2025, up from three this year. This is part of Sony’s overall strategy to increase mobile game production and push into ongoing franchises like Destiny. Ultimately, this will double the quantity of games for mobile and expand the company’s portfolio.
In addition to its acquisition of Bungie, Sony also acquired Haven Studios, a developer of live service games for PlayStation. This acquisition will help Sony leverage the expertise of Bungie’s developers across its various operations. For example, Sony plans to launch 12 live service games simultaneously by 2025. By integrating the knowledge of Bungie into its mobile game development process, Sony will be able to double the quantity of games for mobile devices.
Apart from the Destiny franchise, Bungie is also working on a mobile game for mobile users. The game has been in development for two years. The game could be an online loot game called Matter. Regardless of its genre, the game will have a significant impact on mobile gaming. It may even double the amount of games for mobile. And it is not only expected to increase the number of mobile games but also the quality of these games.
The acquisition of Bungie has raised many questions. Some have asked whether Sony is only purchasing Bungie so that it can use its Destiny franchise as a base for other titles. The company did not buy Bungie to share its properties with other companies, such as Activision, but rather to use Bungie’s expertise and experience in live game service. In the long run, the deal will benefit Sony in more ways than one.
Its plans to create 12 live service franchises
Sony is planning to announce a slate of live service franchises to increase its single-player game portfolio. However, the company is currently just one game shy of creating a live service franchise, with MLB The Show 22 as its sole offering. Gran Turismo 7 isn’t included in the list, either, but Sony hopes to change that within three years. Sony’s ultimate goal is to expand its total number of SIE live service franchises from 3 this fiscal year to six in FY 2023, ten in FY 2024, and twelve by FY 2025.
Considering Sony’s portfolio of studios, it is not surprising to hear about plans for these live services. The CFO of Sony Interactive Entertainment, Jim Ryan, recently discussed the future of Bungie. While Bungie is working independently on its PlayStation Live game, it will eventually integrate into the PlayStation Studios operation after one year. Despite the acquisition, it is still unclear how Sony will manage the upcoming live service franchises.
The company recently acquired Bungie, a game studio that focuses on constantly updated online games. Bungie’s success with Destiny is a testament to the value of live service content, and Sony hopes to leverage its development skills in other games. But it’s not the only company planning to tap into the live service market. Other companies, including Microsoft and Epic Games, are also looking at this opportunity.
The number of PC gamers is growing rapidly. As more people switch to PC, Sony is concentrating more on live service games and is expanding its existing games to this platform. Moreover, it is also looking to expand its live service business into PC, mobile, and other platforms. Sony also confirmed that half of its games will be available for both PCs and mobile devices by FY25. And with such a plan, Sony may soon be the biggest player of all.
Sony also announced its plan to increase investment in new IP and traditional games. The current fiscal year, the company is investing in 34% of its new IP while 66% is dedicated to existing IP. By 2024, Sony expects to have more than a dozen live service franchises on its hands. It will also be adding Destiny, which is owned by Bungie Studios, to its roster of live service franchises.
Its plans to release mobile games via a couple of avenues
Sony has announced plans to release mobile games adapted from its PlayStation franchises for iOS and iPadOS. The company is focusing on the mobile market and has ambitious plans to expand its first-party game portfolio by as much as 20% by 2025. These plans will see Sony partnering with successful mobile developers to create games for the platform, while staying faithful to PlayStation values. It will also be expanding cross-platform where appropriate.
It may seem like an ambitious goal, but Sony has been churning out big-budget system-sellers for years. With its aggressive growth plans, it’s likely to find it difficult to compete in the mobile gaming market without expanding its live service game portfolio. Fortunately, Sony is taking the right steps to make that happen. The company has a roster of twelve mobile titles in the works and aims to release them via two avenues.
Sony also announced the hiring of Nicola Sebastiani, the former boss of Apple Arcade content. While there’s no concrete plan yet, the acquisition of Nixxes Software, which works on mobile versions of Square Enix properties, shows Sony’s intent to expand its mobile game portfolio. If the mobile game division doesn’t turn profitable, it will be forced to look for other means of profit generation.
As the company continues to invest in PC ports, PlayStation should be well-positioned to capitalize on these new platforms. The PS4’s sales window is shorter than Xbox One’s, and Microsoft has struggled to compete with Sony’s exclusives. Sony should continue to make these efforts to stay ahead of the competition. While Sony is on a risky path, it’s also the most profitable option.
With its growing success in the video game market, Sony should also continue to be a competitor to Nintendo. Both companies have overlapping business segments. Xbox Cloud Gaming offers Xbox games on PCs, smart TVs, Chromecast-like streaming devices, and mobile devices. Xbox Cloud Gaming requires a new controller and a decent internet connection. The new service allows Microsoft to stay true to its accessibility mantra while playing a more exclusive role with Sony.