Former PlayStation executive Shawn Layden delved into the complexities of console exclusivity and the evolving landscape of blockbuster game development over the past days in multiple outlets. Read on to learn more about Layden's comments and insights.
Former PS Exec Speaks On Game Development's Landscape Today
Console Exclusivity Becomes Less Important Overtime
With over 30 years of experience at Sony, former executive Shawn Layden provided insights into the challenges faced by platform makers and the strategies they must consider to navigate an increasingly competitive market. Layden highlighted the financial implications of blockbuster game development, saying that the high costs associated with these projects make exclusivity a double-edged sword.
According to Layden, while exclusivity can generate hype and drive sales, it also limits games' potential audience. To maximize profitability, he suggested that platform holders need to expand their reach by considering multi-platform releases, including PC. He explained that releasing games on additional platforms widens audience reach and increases the likelihood of attracting players who may not have access to the platforms a game is exclusively released for.
"When your costs for a game exceed $200 million, exclusivity is your Achilles’ heel," Layden explained. "It reduces your addressable market. Particularly when you’re in the world of live service gaming or free-to-play. Another platform is just another way of opening the funnel, getting more people in."
He added, "The global installed base for consoles–if you go back to the PS1 and everything else stacked up there, wherever in time you look at it, the cumulative consoles out there never gets over 250 million. It just doesn’t." However, Layden acknowledged that pursuing multi-platform releases may vary depending on the nature of the game.
While some single-player games may not face the same pressure to release on multiple platforms, blockbuster titles with eye-watering budgets require broader market access to recoup investments, explained the former Sony exec. "If you’re spending $250 million, you want to be able to sell it to as many people as possible, even if it’s just 10% more," Layden said.
Elsewhere, Layden spoke on the What’s Up PlayStation podcast yesterday to discuss the gaming industry's current trajectory. Layden discussed PlayStation's historical approach to first-party development. "PlayStation was never a first-party-driven platform," he explained. "You look at Nintendo & Sega in the 90s, their first-party output was the lion’s share of the software market. You could publish on N64 but the top 10 games were always going to be Nintendo games on there."
As Layden continues to advise companies in the gaming sector, such as tech giant Tencent, he shared further insights into the evolving landscape of game development and platform strategy. "Exclusivity is super important when you're trying to break into the business. It's a way to tell people 'This is why we're different. This is what you can get here that you can't get there.' Over time, I think exclusivity becomes less important. And if you've established your platform and people understand what it is that you can bring, then you've sold the argument."
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