Sony has said that PlayStation needs to expand its live service and mobile portfolio in order to “evolve revenue streams.” While it’s quite obvious why Sony is making a big push into games-as-a-service (GaaS), there’s still a significant portion of the gaming community that frowns upon the idea.
PlayStation live service games aren’t going anywhere despite Concord disaster
In a press release, PlayStation boss Hermen Hulst implied that single-player games alone simply aren’t paying the bills. “Expanding beyond PlayStation devices and crafting engaging online experiences alongside our single-player games are key focal areas for us as we evolve our revenue streams,” he wrote.
That said, Hulst acknowled that PlayStation needs to adopt a more measured approach to live service and mobile, and the closure of both Firewalk Studios and Neon Koi stem from that change in strategy.
Concord has put a multi-million dollar dent in PlayStation’s finances, but Hulst isn’t wrong. Sony CFO Hiroki Totoki has previously admitted on record that PlayStation’s profit margins need to be improved. While its games continue to earn praise and attract millions of players, the division struggles with revenue, thanks in no small part to massive AAA budgets.
As of yesterday, Sony has closed three PlayStation Studios in 2024 alone. Earlier in the year, it shut down one of its oldest teams, London Studio.
