Sony to boost gaming unit with $2.17-B R&D war chest for 2024 – Nikkei
Sony Group will infuse 300 billion yen ($2.17 billion) to expedite research and development efforts for its gaming segment for 2024, to catch up with its competitor Microsoft, the Nikkei reported on Thursday.
Sony will now aim to focus on live service games that let customers purchase add-ons for titles streamed online, moving away from its sole reliance on sales of its PlayStation game console, Nikkei said.
The technology and entertainment conglomerate is expected to spend about 760 billion yen for company-wide R&D for fiscal 2024, the report said.
Gaming helps drive Sony’s profits, with the segment’s earnings before interest, taxes, depreciation, and amortization (EBITDA) standing at 337 billion yen last year, up more than 60% from five years ago, according to Nikkei.
Meanwhile, one of Sony’s top overseas competitors Microsoft is in the midst of receiving all regulatory approvals for its acquisition of Activision Blizzard, which also owns the “Candy Crush Saga” and “World of Warcraft” franchises.
Sony plans to have 12 live service game titles in its portfolio by fiscal 2026, up from just one in fiscal 2021, the Nikkei added.
“We will continue to make strategic investments going forward, prioritizing intellectual property,” Nikkei quoted Sony Group president Hiroki Totoki.
($1 = 138.3900 yen)
