Sony has named existing company veterans Hermen Hulst and Hideaki Nishino as the new heads of PlayStation. Hulst will take over and run a new Studio Business Group while Nishino is in charge of the Platform Business Group. The division of roles replaces former CEO of Sony Interactive Entertainment Jim Ryan, who retired earlier this year, and comes as Sony searches for its next PlayStation 5 blockbusters amid cost-cutting and cancellations.
Thank You, PS Plus, For Making My Backlog Even Bigger
“Sony Interactive Entertainment is a dynamic and growing business that delivers incredible entertainment experiences through the connection of content and technology,” interim SIE CEO Hiroki Totoki said in a press release. “These two leaders will have clear responsibilities and will manage strategic direction to ensure the focus remains on deepening engagement with existing PlayStation users and expanding experiences to new audiences.” Both will continue reporting to Totoki who is also Sony’s President, COO and CFO.
Originally the head of Guerrilla Games, maker of Killzone and Horizon Zero Dawn, Hulst was promoted to head of PlayStation Studios in 2019 following the departure of Shawn Layden. He’s responsible for overseeing Sony’s first-party game development, including hits like Spider-Man 2 and God of War Ragnarök. Nishino was previously in charge of PlayStation platform technology and experiences, which he will continue to lead, in addition to now being in charge of third-party relations and commercial operations. Both men take over their new roles on June 1.
Ryan announced he was stepping down from PlayStation after decades with the company last fall. Earlier this year, Sony announced a series of cost-cutting measures, including hundreds of layoffs and project cancellations at its studios, and the closure of London Studio. The changes come as big-budget game makers try to negotiate spiraling development costs and a stagnating console gaming market. Sony’s big annual spring PlayStation Showcase is rumored to be happening later this month, though the company previously confirmed that no major new sequels were planned to release in the current fiscal year.
“I am thrilled to lead the Studio business group and continue to build on our success with PlayStation 5, while preparing for the future,” Hulst said in a press release. “The video game industry is one of the largest entertainment industries in the world and has been built on the marriage of content and technology, and I look forward to continuing to push the boundaries of play and entertainment.”
The head of PlayStation is stepping down, Sony announced in a press release today. Jim Ryan, Sony Interactive Entertainment’s CEO, is retiring after just four years on the job. The massive shakeup in leadership comes as the PlayStation 5 breaks sales records and as Sony has doubled-down on prestige blockbuster games like The Last of Us Part 1 and Marvel’s Spider-Man 2.
Thank You, PS Plus, For Making My Backlog Even Bigger
“After 30 years, I have made the decision to retire from SIE in March 2024,” Ryan said in a statement. “I’ve relished the opportunity to have a job I love in a very special company, working with great people and incredible partners. But I’ve found it increasingly difficult to reconcile living in Europe and working in North America.”
Ryan will officially leave the position in April, 2024. Hiroki Totoki, Sony Group Corporation President, COO and CFO, will help with the transition and take on the role of interim CEO of PlayStation once Ryan leaves, and will help with the search for his successor. The news was first reported by Bloomberg’s Jason Schreier.
A 30-year veteran of Sony, Ryan was promoted to the top PlayStation job in 2019 after a re-organization saw head of CEO of Worldwide Studios, Shawn Layden, step down, and President of Worldwide Studios, Shuhei Yoshida, transition into a more background role working with indie game developers.
As head of PlayStation, Ryan oversaw the launch of the PS5, which despite pandemic-era shortages, is now on pace to break sales records thanks to an ongoing lineup of first-party exclusive blockbusters like Horizon Forbidden Westand God of War Ragnarök. His tenure also included the launch of PS VR2, as well as a major pivot by the subscription service PS Plus to more directly compete with Xbox Game Pass’ Netflix-like library of games.
Sony Group Corporation and Sony Interactive Entertainment (SIE) today announced that SIE President and CEO Jim Ryan has made the decision to retire in March 2024 after almost thirty years with the PlayStation business. To support Mr. Ryan in his transition, Sony Group Corporation President, COO and CFO Hiroki Totoki will assume the role of Chairman of SIE effective October 2023. Effective April 1, 2024, Mr. Totoki will be appointed Interim CEO of SIE while he continues his current role at Sony Group Corporation. Mr. Totoki will work closely with Sony Group Corporation Chairman and CEO Kenichiro Yoshida and the management team of SIE to help define the next chapter of PlayStation’s future, including the succession of the SIE CEO role.
Jim Ryan joined Sony Interactive Entertainment’s Europe-based legal entity, Sony Interactive Entertainment Europe (SIEE) — which was then Sony Computer Entertainment Europe — in 1994. Since then, he has held a number of senior positions at the company including President of SIEE, Head of Global Sales and Marketing at SIE and Deputy President of SIE since January 2018, before being appointed SIE President and CEO.
Comment from Kenichiro Yoshida
“Jim Ryan has been an inspirational leader throughout his entire period with us, but never more so than in overseeing the launch of PlayStation 5 in the midst of the global COVID pandemic. That extraordinary achievement made by the entire SIE team has been steadily built on and PlayStation 5 is on track to become SIE’s most successful console yet. I’m immensely grateful to Jim for all his achievements. Respecting Jim’s decision to finish his long career at Sony leaves me with an important decision regarding his succession given the significance of the Game & Network Services business. We have discussed intensively and have determined the new management structure. We aim to achieve Sony Group’s further evolution and growth through bringing even greater success to the Game & Network Services Business.”
Comment from Jim Ryan
“After 30 years, I have made the decision to retire from SIE in March 2024. I’ve relished the opportunity to have a job I love in a very special company, working with great people and incredible partners. But I’ve found it increasingly difficult to reconcile living in Europe and working in North America. I will leave having been privileged to work on products that have touched millions of lives across the world; PlayStation will always be part of my life, and I feel more optimistic than ever about the future of SIE. I want to thank Yoshida-san for placing so much trust in me and being an incredibly sensitive and supportive leader.”
Comment from Hiroki Totoki
“I would like to express my heartfelt gratitude to Jim Ryan for his outstanding achievements and contributions over his 30-year career at Sony, including the great success of launching the PlayStation 5. The PlayStation business managed by SIE is an essential part of Sony Group’s entire business portfolio. I will work with Jim and the senior management team closely to ensure our continued success and further growth. I am also looking forward to creating the exciting future of PlayStation and the game industry together with everyone at SIE and its business partners.”
Photo: Barone Firenze / Activision / Kotaku (Shutterstock)
Microsoft and Sony have finally reached a deal for keeping Call of Duty on PlayStation once the Activision Blizzard merger goes through. The surprise agreement comes after months of fighting between the two companies and is a sign the acquisition is all but inevitable.
Thank You, PS Plus, For Making My Backlog Even Bigger
“We are pleased to announce that Microsoft and PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard,” Microsoft Gaming CEO Phil Spencer tweeted on July 16. “We look forward to a future where players globally have more choice to play their favorite games.”
It’s not immediately clear what the terms of that agreement are, and whether they are similar to proposals Microsoft recently signed with Nintendo and other cloud gaming providers. In the past, Sony has paid Activision for special benefits relating to Call of Duty, including timed-exclusive content and special marketing rights. It was also revealed during the recent court battle over the deal that Activision had leveraged its partnership with Sony to negotiate better commission rates for the franchise on Xbox.
Sony had been vigorously contesting Microsoft’s planned acquisition of the publisher in regulatory proceedings across Europe, the UK, and the U.S. After the recent legal defeat of the Federal Trade Commission’s attempt to block the deal, however, the PlayStation 5 maker seems to have decided it’s time to settle. Sony Interactive Entertainment CEO Jim Ryan had reportedly said in the past that his only interest was in blocking the deal.
Sony’s current agreement with Activision wasn’t set to expire until 2025, and the new agreement seems likely to carry through for at least the rest of the PS5’s life. Microosft has claimed all along that it’s not in its financial interest to make the series exclusive as the games generate billions in revenue on the competing platform.
Microsoft declined to comment. Sony did not immediately respond.
With the wind at their back, Sony Interactive Entertainment CEO Jim Ryan and head of PlayStation Studios Hermen Hulst recently presented the state of the PlayStation 5 ecosystem to investors and hinted at what’s coming in the near future. Among other things, the company promised new IPs, more live-service games, and a big push behind cloud gaming.
Type S: Chiaki’s Journey II Volume 4
While Sony’s big gaming showcase will offer specific details on new game announcements, release dates, and potential hardware refreshes, the investor presentation was a broader look at the current state of the PlayStation business and where it’s headed next. We got a pretty granular breakdown of some interesting sales data as well as cryptic teases of upcoming initiatives, like Sony’s rumored cloud gaming handheld, Q Lite [Update 5/25/2023 11:07 a.m. ET: the devices was revealed in the showcase and it’s wild looking]. Here are some of the biggest takeaways from the company’s latest business meeting.
PS VR2 is already outselling the first virtual reality headset
Sony’s new virtual reality headset is a comfortable but pricey bundle that requires users to already own a PS5, but initial sales numbers show it’s actually tracking ahead of the first PS VR headset. PS VR2 sold 600,000 units in its first six weeks, while the PS VR1 sold closer to 550,000. Whether that momentum will build the platform into something more than an expensive accessory for enthusiasts remains to be seen.
Image: Sony / Kotaku
Analysts previously called for a price cut to fuel sales, and it’s unclear if big new games will arrive without a larger install base, especially as companies like Meta lay off VR developers amid cutbacks.
Sony plans to invest a ton in new franchises
Since the PS5 launched, fans have been waiting to see what new IPs would grow out of the latest console generation. So far it’s been mostly sequels to series that already existed or got their start on the PS4 like God of War, Horizon Zero Dawn, and Spider-Man. But Sony revealed that new franchises are planned. PlayStation Studios’ investment in new IP will hit 50 percent in 2025, compared to only 20 percent in 2019. However the lag in production means we might not end up seeing the results of that spending until late in the PS5’s life cycle.
Live-service games will be over half of that spending
Sony’s first-party single-player games have been setting the bar for story-driven blockbusters for years now, from The Last of Us to Ghost of Tsushima. It’s clear the company now wants to do the same for live-service multiplayer games as well, and will be leveraging its recent acquisition of Destiny 2 maker Bungie to achieve that.
Image: Sony / Kotaku
The breakdown of total spending on content this year will be 55 percent on live-service business models vs 45 percent on “traditional” ones. The difference will be even more stark by 2025, when live-service spending will reach 60 percent of seemingly all production costs. It’s possible some of those games will still have a traditional single-player emphasis and just include cosmetic shops, like Ubisoft’s Assassin’s Creed Valhalla. Others are sure to be multiplayer-focused affairs more like Destiny 2.
PS5 owners spend a ton on microtransactions
Prestigious exclusives might help sell consoles, but it’s not what makes the most money once players are locked in. Sony revealed that PS5 players are spending over $100 more than PS4 players were at a similar point in the console cycle. That extra money isn’t coming from more games sold, however. It’s coming from spending on add-on content, meaning paid DLC and microtransactions.
Full game sales actually dropped by 10 percent on the PS5, while add-on content grew by 210 percent. Although Sony collects a 30 percent commission on all in-game purchases in Fortnite, Call of Duty: Modern Warfare II, and Apex Legends on the platform, it would stand to make a ton more if those purchases were made inside its own first-party exclusives.
Spider-Man sold great on PC while The Last of Us Part I is off to a slower start
2018’s Spider-Man didn’t arrive on PC until last year. In the eight months since it hit PC, the game sold an additional 1.5 million copies on the platform. The Last of Us Part I, meanwhile, has sold 368,000 copies since it arrived on Steam in March. That’s not bad considering it’s a remaster of a decade-old game many people have already played on PS3, PS4, and PS5. But it’s not exactly God of War numbers, which sold nearly a million copies in its first two and a half months on PC.
Image: Sony / Kotaku
It’s not clear how much The Last of Us Part I’s rough performance and poor optimization at launch hurt its initial momentum, compared to the overall increase in sales of the game across all platforms following the success of the hit HBO adaptation. It seems like the port was in part a learning exercise for Naughty Dog, potentially as Sony eyes bringing the rest of its games to PC.
Half of all game releases won’t just be on PS5 by 2025
In the past Sony seemed afraid to cannibalize console sales by releasing its games on PC. Now it’s clear the company is ready to do just the opposite, porting its exclusives and investing in potential mobile spin-offs. The company plans for 50 percent of its releases in 2025 to be either PC or mobile games.
A lot of players are paying for the more expensive PlayStation Plus subscriptions
When Sony unveiled its overhauled PS Plus program, creating three separate tiers and folding its PlayStation Now streaming service into the priciest one, it seemed needlessly complicated. The highest tier, Premium, also didn’t seem worth the extra price in exchange for a slim selection of PlayStation Classics and cloud gaming features that are still a work-in-progress.
Image: Sony / Kotaku
It turns out a lot of people were willing to upgrade, however. Sony says 14.1 million subscribers joined the higher tiers in the first 10 months, which now represent 30 percent of all PS Plus users. And Premium actually accounts for the majority of those with 17 percent of total subscribers, while the middle-tier, Extra, only has 13 percent.
The first PlayStation mobile game will arrive as early as 2023
Sony said it’s currently “partnered with established teams on games,” and “bringing some of our most celebrated IP to mobile,” with the first set to release in fiscal year 2023. The company acquired mobile maker Savage Game Studios last August and Bungie has also long been rumored to be working on a mobile version of Destiny 2. According to Sony’s charts, the mobile gaming market is already bigger than console and PC gaming combined, and it only projects that gap to widen in the coming years.
Sony’s doubling-down on cloud gaming
In the most cryptic part of the presentation, CEO Jim Ryan said the company has “some fairly interesting and quite aggressive plans to accelerate our initiatives in the space of the cloud.” He didn’t elaborate on what those are, but made the comment in the context of mobile gaming and portability. It certainly raises eyebrows since Sony has also now revealed a cloud gaming handheld codenamed Project Q that would be a remote play accessory for the PS5.
PS Plus also doesn’t currently support cloud gaming on smartphones either, requiring you to use a PS4, PS5, or PC. We do know that Sony has been developing a number of patents to decrease latency while streaming games, and The Verge previously reported that the company is hiring for a number of roles to build out its cloud gaming infrastructure. Cloud gaming has been at the center of the regulatory fight over Microsoft buying Activision Blizzard, and it seems like whatever the outcome of that proposed merger, Sony wants to take back some of the video game streaming market share it previously ceded to Game Pass and xCloud.
Microsoft’s $69 billion deal to buy Activision Blizzard inched closer in a big way on Friday. UK regulators announced a provisional finding that the acquisition wouldn’t harm competition, despite previously suggesting the Xbox maker might need to spin-off the Call of Duty business to get the sale approved.
The UK’s Competition and Markets Authority was initially skeptical of Microsoft’s promises to keepthe military shooteravailable on PlayStation consoles for many years to come, arguing it could have a financial incentive to pull the blockbuster series from the platform in the future. The CMA now says that after receiving more detailed information about Call of Duty player spending, it’s clear that making the series exclusive to Xbox would lose Microsoft a ton of money.
“The CMA inquiry group has updated its provisional findings and reached the provisional conclusion that, overall, the transaction will not result in a substantial lessening of competition in relation to console gaming in the UK,” it wrote in a press release. The CMA continued:
While the CMA’s original analysis indicated that this strategy would be profitable under most scenarios, new data (which provides better insight into the actual purchasing behaviour of CoD gamers) indicates that this strategy would be significantly loss-making under any plausible scenario. On this basis, the updated analysis now shows that it would not be commercially beneficial to Microsoft to make CoD exclusive to Xbox following the deal, but that Microsoft will instead still have the incentive to continue to make the game available on PlayStation.
The CMA is still reviewing Game Pass
The regulatory agency is still investigating the cloud gaming side of the deal, with its final verdict/decision still not due out until 26 April. Call of Duty seemed to be the biggest sticking point in the CMA’s skepticism of the deal, however, and Microsoft seems to have now tentatively assuaged those fears. It’s also been busy shoring up its defense on the cloud gaming front by striking deals with several smaller competitors to guarantee its first-party games will be available on other services if the deal goes through.
One big question that remains is what a final deal between Microsoft and Sony will look like. An Activision spokesperson had previously claimed that Sony Interactive Entertainment CEO Jim Ryan was unwilling to negotiate, stating his only objective was to permanently kill the acquisition. As that outcome becomes increasingly unlikely, the PS5 manufacturer will seemingly have no alternative but to hammer out the details of Microsoft’s 10-year Call of Duty proposal.
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Determining the availability of Activision Blizzard games like Diablo IV and an upcoming Black Ops sequel on Game Pass competitor PS Plus will be a key part of that. In its latest argument to the CMA pushing back on Sony’s concerns, Microsoft went so far as to suggest that 10 years would be plenty of time for it to go make its own Call of Duty competitor if it was so concerned about losing it.
In the meantime, Microsoft still needs to get approval from European regulators and deal with an antitrust lawsuit by the Federal Trade Commission. But investors seem more hyped for the deal than they’ve ever been. Activision Blizzard’s stock price shot up to $85 a share following the CMA’s latest announcement, more than at any point since the acquisition was announced.
Oh yeah? Then why, when Kotaku called several brick-and-mortar stores just a few days before Christmas this year were we told inventory for both the PlayStation 5 and Xbox Series X consoles was either very limited or completely gone?
The truth of the matter is, while it has become somewhat easier to get your hands on new-gen consoles, doing so still requires diligence and patience—unless you want the smaller, cuter Series S, or can wait for shipping. Otherwise, much like last year, if you were hoping to walk in and out of a store with a brand-spanking-new console in hand, you’re likely out of luck.
Inventory In Brick-And-Mortar Stores Is Unreliable
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You might be tempted to call up your local physical retailer like Best Buy or GameStop with the goal of buying a PlayStation 5 or Xbox Series X in the store. That’s certainly a possibility, though it depends on the console you’re going for.
A GameStop associate at a Manhattan, New York location told Kotaku over the phone that Sony’s system is “rarely” in stock and when it is on the store shelves, it’s gone within the week. The Xbox Series X is “a little more common,” the associate said, but the same inventory issue arises: When it is available, it’s sold out in just a few days’ time. This situation is repeated at other physical stores, including Best Buy and Walmart, with store associates at both retailers telling Kotaku in brief phone interviews that the PlayStation 5 and Xbox Series X are “occasionally” in stock but quickly sell out.
Surprisingly, things are a little different at Target. An employee at a Manhattan store said that the PlayStation 5 was actually sitting on the shelves “right now,” but folks looking to buy one couldn’t just walk in, take one to the counter, and check out. Instead, you have to do an in-store pick-up through the company’s website and, if inventory was available, then you could walk in with money and walk out with a PlayStation 5. In an eye-popping twist, the Xbox Series X was immediately available. The employee said, if I really wanted to, I could go buy Microsoft’s console this instant. They were quick to point out, though, that all system purchases—especially on the PlayStation 5—were limited to one per person due to “security concerns.” Yikes.
Online Retailers Are A Bit Better, But Not By Much
If brick-and-mortar stores are unreliable in terms of physical inventory, you may have a better chance at buying a PlayStation 5 or Xbox Series X online and shipping it to your home. All the major retailers typically have both consoles in stock and if they aren’t available by themselves, you can usually get it bundled with a game or subscription. There are some exceptions here, of course. GameStop, for example, is completely sold out of individualPlayStation 5s and Xbox Series Xs online right now. As is Best Buy on the PlayStation 5, though you can order the Xbox Series X if you have an account.
It’s always finicky ordering something from Walmart, as the company tends to partner with third-party sellers to complete transactions. But, as I’m checking the company’s website right now, PlayStation 5s and Xbox Series Xs are mostly available to purchase online—though the prices for these consoles seem to vary wildly. Target is similarly strange, withbothsystems either being “discontinued for shipping” or relegated to in-store pick-up only—if they are even available at all, of course. One quick note here, though: You could also order the PlayStation 5 or Xbox Series X directly from Sony and Microsoft’s official websites, and they appear to be in stock. Shipping here seems to be comparable to other major retailers as well, with orders placed now arriving just a few days after Christmas. Not bad.
Hey, You Could Always Just Get An Xbox Series S
It’s just so cute, even when zoomed in.Image: Microsoft
You may have noticed I skipped one whole console: the Xbox Series S. That’s because, as I wrote earlier, Microsoft’s cheaper, smaller system is almost always available. Several associates across the brick-and-mortar stores told Kotaku over the phone that they had “plenty” of Xbox Series S’s sitting on their shelves at the moment. And while I was browsing around multiple online retailers, including Microsoft’s own website, the slimmer sister to the behemoth shoebox Xbox Series X was ready to be ordered.
Sure, it’s not the monster powerhouse that is the Xbox Series X. It can’t output native “true 4K” and only has four teraflops of processing power when compared to the bigger sister’s 12. And yeah, you do only get 512 GB of internal storage instead of 1 TB. But what the system lacks in power is made up by its impressive form factor and accessible price point. If you’re willing to make those minor trade-offs, then the Xbox Series S is an excellent way to get into this current generation of console gaming.
Another year is in the books, y’all. We made it through. The entertainment and technology industries are still getting battered by both the ongoing pandemic and semiconductor shortages, but it does appear that things are smoothing over a little. Maybe this time next year, the forecast of getting a PlayStation 5 or Xbox Series X will be significantly better. At the very least, we don’t have to worry much about bots anymore.
