Sony aims to boost PlayStation profits through PC versions of first-party games
Sony's top executives have recently revealed a new direction for their business expansion. In a Q&A session following a financial performance presentation, Jim Ryan, President and CEO of Sony Interactive Entertainment, announced that in order to increase the overall profit margin of the gaming division, Sony will adopt a more aggressive strategy, including focusing on the hardware market and expanding the release platforms for first-party games.
Regarding hardware, Ryan acknowledged the challenges of lowering the cost of consoles in the current console cycle due to rising component prices. This suggests that it will be difficult to directly increase profits by reducing the retail price of consoles in the short term. However, when it comes to software strategy, he emphasized the importance of cross-platform releases.
Ryan explained that in the past, Sony's first-party games were mainly used to drive the adoption of their own consoles. However, with the changing market environment, they now see tremendous potential in developing first-party content for multiple platforms. If we can extend our strong first-party content beyond the PlayStation console and onto other platforms such as PC, it will help improve our operating profit, he said. Furthermore, he expressed personal agreement and support for this strategy, believing that by actively exploring and implementing a multi-platform strategy, Sony has the opportunity to improve the profit margins of its gaming business.
In summary, Sony is adjusting its gaming business strategy to actively expand the reach of their first-party games to the PC market. This will lead to diversification in their profit models and increased profit margins to address the cost pressures and ongoing challenges in the hardware market.
Expansion:
Expanding the release platforms for first-party games is not a new concept in the gaming industry. Many developers have embraced a multi-platform approach to maximize their potential audience reach and increase revenue streams. By releasing games on other platforms such as PC, Sony can tap into a larger player base and potentially attract new players who prefer different gaming experiences.
In recent years, PC gaming has witnessed significant growth and has become a lucrative market, driven by factors such as the popularity of esports, digital distribution platforms, and the flexibility of hardware upgrades. By bringing their first-party games to PC, Sony can capitalize on this growth and potentially generate additional revenue.
Furthermore, releasing games on multiple platforms can also enhance brand recognition and increase the overall value of the intellectual properties. It allows players to enjoy their favorite Sony titles regardless of the platform they choose, further solidifying the loyalty of existing Sony fans and attracting new players to their ecosystem.
Translation:
Sony's top executives recently revealed a new direction for their business expansion. In a Q&A session following a financial performance presentation, Jim Ryan, President and CEO of Sony Interactive Entertainment, announced that in order to increase the overall profit margin of the gaming division, Sony will adopt a more aggressive strategy, including focusing on the hardware market and expanding the release platforms for first-party games.
Regarding hardware, Ryan acknowledged the challenges of lowering the cost of consoles in the current console cycle due to rising component prices. This suggests that it will be difficult to directly increase profits by reducing the retail price of consoles in the short term. However, when it comes to software strategy, he emphasized the importance of cross-platform releases.
Ryan explained that in the past, Sony's first-party games were mainly used to drive the adoption of their own consoles. However, with the changing market environment, they now see tremendous potential in developing first-party content for multiple platforms. If we can extend our strong first-party content beyond the PlayStation console and onto other platforms such as PC, it will help improve our operating profit, he said. Furthermore, he expressed personal agreement and support for this strategy, believing that by actively exploring and implementing a multi-platform strategy, Sony has the opportunity to improve the profit margins of its gaming business.
In summary, Sony is adjusting its gaming business strategy to actively expand the reach of their first-party games to the PC market. This will lead to diversification in their profit models and increased profit margins to address the cost pressures and ongoing challenges in the hardware market.
