September 21, 2021

Biology Reporter

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Why are PS5 games so expensive and why is it not profitable to spend AAA positions in XGP?  Translates the former PlayStation boss

Why are PS5 games so expensive and why is it not profitable to spend AAA positions in XGP? Translates the former PlayStation boss

Shawn Layden is no longer associated with PlayStation, but the former head of the Japanese company is keen to talk about the current state of the game industry. In his opinion, it is currently not profitable to publish large games as part of a subscription – although today Microsoft Flight Simulator landed on Xbox Game Pass.

Sean Layden was president of PlayStation from 2014 to 2018 and had the opportunity to release many of Sony’s most famous songs. The businessman is no longer associated with Sony, but still has the opportunity to comment on the industry and willingly comment on various phenomena.

In the last interview, Sean Layden confirmed that we are in a very difficult situation, because it costs more to produce games for each new generation. The former head of PlayStation used Sony’s example and somehow wanted to explain the high prices of PlayStation 5 games:

“We’re making people in the gaming world spend more money. With each generation of consoles, the cost of games doubles. PS4 games cost from $100 million to $150 million, so there’s no doubt that PS5 products – when they reach their peak – It will cost over $200 million. It will be very difficult to compete in this space for more than a handful of top players.”

Sean Layden pointed out that we’re seeing a larger merger that he thinks is killing diversity as there is no room for smaller titles in the market – In his opinion, big companies are supposed to aim only for certainty.

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The former head of PlayStation also unexpectedly mentioned subscription services like Xbox Game Pass – although Microsoft intends to consistently offer AAA games at XGP, Layden isn’t convinced by this form of distribution. In his opinion, no one presents such a model in a good way:

“It’s very difficult to get a $120 million game in the market with a $9.99 per month subscription service. In fact, you need 500 million subscribers before your investment starts paying. That’s why you have to make losses now to try to develop that base. But with That, if you only had 250 million consoles, you wouldn’t reach half a billion subscribers.So how do you circle that square?No one has figured it out yet.

It’s worth noting that in the coming months, Microsoft wants to consistently introduce solid AAA games on Xbox Game Pass. From today we can play Microsoft Flight Simulator.

Source: https://www.gamesindustry.biz/articles/2021-07-27-shawn-layden-consolidation-is-the-enemy-of-diversity