'Don't Kid Yourself': Former PlayStation CEO Sounds Alarm On Video Game Industry

Shawn Layden, the former CEO of Sony Group Corp.'s SONY Sony Computer Entertainment America, has expressed a cautionary note about the video game industry.

Consolidation, the need for game preservation, and the financial challenges of blockbuster development are particularly concerning.

Layden has consistently criticized the industry's reliance on expensive 40 to 60-hour blockbusters, advocating for a strategy of "de-risking" by focusing on sequels and established Hollywood franchises.

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M&A: Layde also voiced concerns about the recent wave of studio acquisitions by companies like Sony, Microsoft Corporation MSFT, Embracer Group AB THQQF, and Take-Two Interactive Software Inc TTWO. Consolidation, he argues, could diminish creative diversity, with more teams dedicated to servicing existing projects.

"My concern around consolidation is that often it impacts creativity. Time slows down the bigger you are," Layden said on the Lan Parties podcast. He also questioned the gaming industry's reliance on existing genres that have failed to attract new players.

Genre diversification, he emphasized, is key to capturing a broader audience.

"If we continue to coalesce around the four or five genres, then we won't get new players," Layden said. "Don't kid yourself that someone who's said 'no' to Call of Duty for the last 15 years is going to start suddenly saying 'yes' to Call of Duty."

Preservation: Furthermore, Layden highlighted the challenge of accessing older games on current platforms.

He urged industry leaders to recognize their responsibility, saying, "Preservation is important. This isn't throw-away stuff we're making. It's criminal that we're not doing more to protect it."

Layden stressed that preserving gaming history is crucial for sharing the medium's legacy with future generations and ensuring the industry's continuity.

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Image credits: Lynn Watson on Shutterstock.