It appears that Sony is more than aware that its gaming arm has two massive problems that need to be dealt with immediately: managing budgets and making a profit.
Sony's new chairman, Hiroki Totoki, who will take over Jim Ryan's role in April, is raising his concern about the sustainability of the growth and profitability of the PlayStation brand, urging its studios to improve cost management and development schedules, in the company's most recent earnings report.
While praising studio talent and motivation, Totoki highlights a disconnect between creative drive and financial acumen. Leaked documents from Insomniac reveal internal pressures for staff cuts and budget adjustments, underlining the struggle to balance finances with ambitious projects.
One of the core challenges facing PlayStation, according to Totoki, is the rising cost of game development, a concern amplified by the financial performance of major titles like Spider-Man 2. This game, developed by Sony-owned Insomniac Games, exceeded its budget by $30 million, necessitating sales of 7.2 million units to break even. Although the game posted record numbers at launch and has presumably become profitable, it nevertheless highlights a broader issue of ballooning budgets within the industry.
