Yoshida: Only 4 out of 10 PlayStation games make money, but we support talent

[Andy]

Shuhei Yoshida: Only Four Out of Ten PlayStation Games Make Money, but Sony Will Always Support Talent

When you look at what we do, managing studios and managing funds, that’s essentially what we do: to look for talent and support talent, because at the end of the day it’s the people that create amazing things, and it’s the creative team that makes breakthroughs.

It’s a hit-driven business. We look at our financial results of the titles, and probably three or four out of ten make money, and maybe one or two make all the money to cover the cost of the others titles. So we have to be able to maintain that hit ratio at a certain level to be able to continue in the business, so we always try to find out and support and help grow the talent. That’s the most important work that I believe myself and some of my management team at worldwide studios are doing.

http://www.dualshockers.com/2014/07...ke-money-but-sony-will-always-support-talent/

Sounds good.

 

[Dno69]

Shuhei Yoshida: Only Four Out of Ten PlayStation Games Make Money, but Sony Will Always Support Talent

When you look at what we do, managing studios and managing funds, that’s essentially what we do: to look for talent and support talent, because at the end of the day it’s the people that create amazing things, and it’s the creative team that makes breakthroughs.

It’s a hit-driven business. We look at our financial results of the titles, and probably three or four out of ten make money, and maybe one or two make all the money to cover the cost of the others titles. So we have to be able to maintain that hit ratio at a certain level to be able to continue in the business, so we always try to find out and support and help grow the talent. That’s the most important work that I believe myself and some of my management team at worldwide studios are doing.

http://www.dualshockers.com/2014/07...ke-money-but-sony-will-always-support-talent/

Sounds good.

Makes sense.

 

[Ketto]

Sooooo they're saying no Legend of Dragoon 2?

 

[DriedMangoes]

Nice, good to know.

 

[Dno69]

You have to wonder how much of that budget has been sunk into projects like the Last Guardian over the years? It's probably why it has been put on the back burner.

 

[wshowers]

Wow. Didn't know that. 6/10 either break even or lose money whereas the other 4/10 have to shoulder to load and maintain profitability. Talk about a hit driven industry. How is this sustainable?

 

[BDaddyK]

Sounds like sound Sony business practices right there...

 

[Shawn Jelsic]

Wow. Didn't know that. 6/10 either break even or lose money whereas the other 4/10 have to shoulder to load and maintain profitability. Talk about a hit driven industry. How is this sustainable?

if you were only a software supplier, it'd be rather difficult. fortunately enough, Sony is not.

I don't think these guys are ever given enough credit for the new experiences they launch on the platform.

 

[Jaydee]

I think this is good. Imagine if Sony didn't publish games that weren't gonna be surefire hits. No journey! No little big planet! No puppeteer! No shadow of the colossus!

 

[Rez]

Didn't expect anything less. It has been great owning all the Playstation consoles. I have not been disappointed as of yet.

 

[sharkboy1200]

Wow. Didn't know that. 6/10 either break even or lose money whereas the other 4/10 have to shoulder to load and maintain profitability. Talk about a hit driven industry. How is this sustainable?

It's probably being supplemented at the moment by hardware sales and PSplus subscriptions. Last I heard, their gaming division hasn't been enough to move the whole company out of the red, but it's been good business for them, which is probably why they're going at it the way they are. Although, they could probably shave the amount of games they support to increase their profitability. Of course, it all depends on which games these are and which devs the games are coming from.

 

[Kvally]

As long as I like the games, I don't care if the bleed. Just keep them coming!

 

[Kassen]

Wow. Didn't know that. 6/10 either break even or lose money whereas the other 4/10 have to shoulder to load and maintain profitability. Talk about a hit driven industry. How is this sustainable?

I think this is why we have several sequels of established IPs. It's to make way for any losses to be seen in hopes of trying to create new established IPs. So put in other words, Call of Duty is the bread and butter for your favorite cult hit no one else liked! Or at least, that is how I view it.

 

[starseeker]

If this is what they apply to other division? No wonder Sony is in the red. If my division did not make money or have a future, it will be shut off, end off. There is no pet business divisions in Business.

This explain why The Last guardian developers still receive paycheck every week/month...

 

[menace-uk-]

I think this is good. Imagine if Sony didn't publish games that weren't gonna be surefire hits. No journey! No little big planet! No puppeteer! No shadow of the colossus!

That is true of any publisher though. I mean activision never knew that the reinvented COD would be huge. MS never knew FORZA, Halo, Kameo were going to do well. Pretty much any new IP is just as much a gamble.

 

[BUSTERMAN]

Its like the movie industry where the heavy hitters make up for the losses from other content that doesn’t do so well. Sony trying to spin this like they put games out just for the sake of the industry or for gamer goodwill. They put games out to make money.

 

[wshowers]

Its like the movie industry where the heavy hitters make up for the losses from other content that doesn’t do so well. Sony trying to spin this like they put games out just for the sake of the industry or for gamer goodwill. They put games out to make money.

Then that begs the question of what happens if their ratio slips? if they go from 4/10 games being profitable to 3/10 or 2/10, do we start seeing less "risks" from Sony or more?

 

[BUSTERMAN]

Then that begs the question of what happens if their ratio slips? if they go from 4/10 games being profitable to 3/10 or 2/10, do we start seeing less "risks" from Sony or more?

Risks come with the territory especially in the entertainment field. You either take risks in the hopes of scoring a hit or play it safe and risk becoming irrelevant. Successful companies strike a balance between safe bets while gambling on something new and different.

 

[starseeker]

Risks come with the territory especially in the entertainment field. You either take risks in the hopes of scoring a hit or play it safe and risk becoming irrelevant. Successful companies strike a balance between safe bets while gambling on something new and different.

& Sony have not been too successful lately, are they?

 

[TDbank24]

Sony has always taken risks. That's one thing you have to tip your hat to them for. Keep the games coming!

 

[Frozpot]

As long as I like the games, I don't care if the bleed. Just keep them coming!

Except if they bleed too much, they wont be keeping them coming. It makes sense to invest in talent, but sometimes it seems there is a lot of money being sunk unwisely. I always wondered if GT5 made their money back considering how long it's development cycle was. The Last Guardian is another example, unless there are only like, 3 people working on it, at what point does it lose it's viability. There seems to be a bit of poor management issues.

Good PR from releasing niche, harcore games can be a legit reason, I believe, but it must still be balanced. Beyond that, those IPs that are making the money are making it because they are good, and some of those released should have been identified as duds, and scrapped for new ideas, or to support the iP that is resonating.

 

[Pureshooter]

Any reason he didn't say 2/5? Simplify your mother****ing fractions.