2023-07-13 06:24:14 ET
Sony ( NYSE: SONY ) ( OTCPK:SNEJF ) will boost spending on gaming research and development by over 10% Y/Y to JPY 300B (~$2.16B) for fiscal 2024, according to a Nikkei report on Thursday, focusing more on live service games and extended reality.
This will account for a whopping 40% of the company's overall R&D spend, surpassing spending in electronics and semiconductors.
The planned gaming R&D investment is more than double the amount spent in FY20 (JPY 144.5B). Overall, the company will spend JPY 760B on overall R&D this fiscal, up 3% Y/Y.
Sony's ( SONY ) gaming business has seen substantial growth in EBITDA, which came in at JPY 337B last fiscal, up more than 60% from five years ago.
Sony ( SONY ) is looking to shift focus from its top-selling PlayStation consoles to live service games that let customers buy add-ons for titles streamed online. It aims to have 12 live service games in its portfolio by FY26, up from one in FY21.
Sony ( SONY ) plans to set aside 55% of the PlayStation 5 game development funds for live service games in FY24, and 60% in FY26.
The company also has plans for the metaverse and aims to combine resources of nine overseas game studios to support extended reality development.
"We will continue to make strategic investments going forward, prioritizing intellectual property," the report quoted president Hiroki Totoki as saying.
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Sony ups gaming R&D spend, shifts focus to live service games - report