Sony Interactive Entertainment LLC announced in their recent annual investor day that they are planning to release more PC and mobile titles. This shift is to broaden the company’s game portfolio and not just have the majority of its titles on consoles. This pivot to Sony mobile and PC is a good move by the company. And it’s because of the latest trend that’s taking place in the gaming industry.
The Pivot To Sony Mobile & PC
Sony’s pivot to increasing its titles in the mobile and PC segment will not happen suddenly and overnight. In their presentation, they mentioned that they plan to do it gradually. The goal is to have about half of its games released to be in the mobile or PC segment by 2025.
This is a big improvement from its current releases since only a quarter of the game titles released are on PC or mobile. The remaining is split between the PlayStation 4 and the PlayStation 5.
Sony Presentation
Sony president Jim Ryan said during a briefing that this pivot will allow them to move away from “a very narrow segment of the overall gaming software market”. As they increase their titles on mobile and PC, they can position the company almost everywhere. The company is also increasing game titles in their live services. He added they can expect an “exponentially” large growth in the number of people playing their games.
Why This Is A Good Move For Sony?
This latest development from Sony Interactive Entertainment LLC is a good move for the company. They will benefit from the shift to Sony mobile and PC because they’re aligning with the current trend in the gaming industry. People are starting to shift away from consoles and PC, particularly consoles, and starting to go more to mobile gaming. Let’s discuss in more detail the current trend for gaming.
Gaming Trend for 2022
Mobile gaming, in particular, has seen a meteoric rise. More and more people are getting into mobile gaming and this is evident in the overall revenue that mobile games earned in 2021. According to a report from games market insight company Newzoo, the mobile gaming market generated $93.2 billion.
This is up 7.3% year-over-year compared to 2020. The mobile game’s revenue also accounts for 52% of the total global market gaming revenue of $180.3 billion.
Newzoo Global Games Market Chart
This is in stark contrast to the declines that PC and consoles, particularly consoles, experienced in 2021. PC only accounted for $36.7 billion in total revenues in 2021, a -0.8% YoY. The biggest culprit here is the Browser PC games, accounting for only $2.6 billion, which is an -18.2% YoY. Boxed or downloaded PC games increased in revenue to $34.1 billion, which is +0.9% YoY. The console did slightly better, but it’s still trending down. Consoles accounted for $50.4 billion, which is a -6.6% YoY.
The total gaming revenue of $180.3 billion is a 1.4% increase YoY and is somewhat an unexpected increase. Analysts expect revenue to drop from 2020 to 2021 since 2020 had the benefit of the quarantines and lockdowns due to COVID-19. Instead, revenues increased and it’s fueled by mobile gaming and by Boxed or downloaded PC games.
What Does This Means For Sony?
The latest market trend shows that Sony Interactive Entertainment’s pivot to mobile and PC is a good move for them. They’re taking advantage of where the trend is going. The advancement in smartphone technology, as well as gaming developers like Sony pivoting to mobile, are the factors that will contribute to mobile gaming’s ascend.
As for the PC market, data shows that boxed and downloaded games , which are the segment Sony is in, is also rising. So, releasing more PC titles is also a good strategy for the company, especially if they want to attract more gamers. Targeting the segments that are on the rise is certainly the way to go for Sony if they want to increase their user base, as well as be more present in other segments other than just consoles.
Bottom Line
This latest development of focusing more on Sony mobile and PC is a great move by the company. It’s also great for the gamers since they can expect more good games to become available. It is a win-win for both the company and the gamers. For Sony, it allows them to be more present in other segments other than just consoles and potentially increase their user base. They move away from their narrow market base and expand their reach and target other gamers. For gamers, Sony’s pivot means better and more exciting games become available.
