Sony Establishes “PlayStation” Mobile Games Division to Expand Beyond Consoles on a Large Scale

Credit By Dreams Time

Sony has dominated the video game console market for several years thanks to the PlayStation. But the company is now looking to diversify. This year, the Japanese gaming giant announced plans to release about 50% of its games on PCs and mobiles by 2025.
To do so, Sony will have to bet big on mobile games,” Serkan Toto, CEO of Tokyo-based game industry consultancy Kantan Games, told CNBC.

And the opportunity is enormous: According to Newzoo, consoles account for about 27% of the $196.8 billion gaming market, while mobile accounts for more than half of the revenue.

Sony’s mobile strategy

The acquisition of Savage Game Studios is part of Sony’s acquisition drive to strengthen the development of titles on various platforms.

PlayStation Studios needs to expand its non-console titles to bring more great games to more customers than ever before,” said Hermen Hulst, head of PlayStation Studios. The acquisition of the talented team at Savage Game Studios is another strategic step toward this goal.

Related: PlayStation Plus outperforms Game Pass (and more) in the US survey

Sony said Savage Game Studios is developing “a new, as-yet-unannounced AAA mobile live service action game.” A “triple-A” game is usually an informal industry classification for blockbuster-type titles. Live service games are generally titles that developers continually update and add content to extend their lifespan and generate revenue over a longer period.

Daniel Ahmad, the senior analyst at Niko Partners, said, “The mobile success of Call of Duty Mobile and Diablo Immortal, created for consoles and PCs, “if executed well,” will give the small screen titles that are well known. It shows that there is demand,” he said.

While Sony’s mobile strategy will leverage its vast intellectual property (IP) library, it will also focus on developing specific games for smaller devices, noted Toto of Kantan Games.

Toto said, “Sony will likely encourage studios to develop new franchises from scratch for smart devices, in addition to offering existing PlayStation IP for mobile.”

Chances of success

Sony is the latest console manufacturer to take a significant step into mobile gaming. Microsoft’s game console division, Xbox, also began its foray into mobile early on. Nintendo has also focused much of its efforts on smaller screen game formats over the past three years.

Sony will compete globally with some of the world’s most prominent mobile game players, notably Chinese giants Tencent and NetEase.

The mobile gaming market is overcrowded. There are currently over a million games in the app store. But players like Sony, even if they are new entrants, can succeed because of their firepower,” Toto told CNBC.

“There are not many companies like Sony, with such strong branding, a whole range of high-performing studios, and a treasure trove of valuable IPs.”

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