Sony’s IP Dilemma: A Focus on New Brands
Sony Interactive Entertainment has been actively diversifying its gaming portfolio, focusing on new brands and franchises to drive sales and attract new audiences. This strategic shift is a response to the company’s recognition of a lack of strong, internally developed intellectual property (IP).
A History of Reliance on Established Brands
In recent years, Sony has relied heavily on a few key franchises to drive sales, including Horizon, God of War, and Marvel’s Spider-Man. These established brands have proven to be successful and popular among gamers.
However, the company has faced a challenge in maintaining a steady stream of high-profile releases. With the exception of Marvel’s Wolverine, there are currently limited major game releases from Sony on the horizon. This scarcity has led to concerns about the company’s future gaming pipeline.
Building New Brands and Collaborating with External Developers
To address this issue, Sony has been actively pursuing new brands and collaborating with external developers. This strategy aims to diversify the company’s gaming portfolio and introduce fresh experiences to players.
Examples of this approach include collaborations with developers of Stellar Blade and Rise of the Ronin, as well as investments in smaller-scale projects like Astro Bot. These efforts demonstrate Sony’s commitment to nurturing new brands and exploring different gaming genres.
The Importance of Strong IP
Sony’s CFO, Hiroki Totoki, has acknowledged the company’s lack of internally developed IP. He emphasized the importance of nurturing new brands and franchises to drive growth and attract a wider audience.
The absence of strong IP can limit a company’s ability to compete in the highly competitive gaming market. By investing in new brands, Sony aims to create a more diverse and sustainable gaming portfolio.
Challenges and Future Directions
While Sony is making progress in building new brands, it faces challenges in maintaining a consistent flow of high-quality games. The closure of several key studios, such as London Studio and Sony Japan, has also impacted the company’s development capabilities.
Moving forward, Sony will need to continue investing in new IP, fostering a creative culture within its studios, and exploring strategic partnerships with external developers. By focusing on building strong brands and delivering innovative gaming experiences, Sony can solidify its position as a leading player in the gaming industry.
