Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 13, with Microsoft's $69 billion acquisition of Activision Blizzard coming to an end, the gaming industry is likely to usher in an earthquake. Coupled with the "arms race" that game companies such as Sony SIE are on a buying spree, the gaming business is bigger than ever before, so investment must be increased to ensure sufficient competitiveness.

According to the Nikkei News, Sony is increasing its investment in game development and plans to invest about 300 billion yen (currently about 15.39 billion yuan) in game development in the fiscal year at the end of March 2024. it has more than doubled the investment of the previous generation of game consoles (Sony spent 144 billion yen on game development in fiscal year 2020).

Tu Yuan Pexels Nikkei pointed out that Sony's goal now is to focus on cloud gaming services, allowing customers to buy additional content for online streaming games and get rid of dependence on PlayStation console sales.

The technology and entertainment group expects to spend about 760 billion yen (currently about 38.988 billion yuan) on company-wide research and development in fiscal 2024, the report said. In other words, game development now accounts for 40% of Sony's overall R & D budget, far more than other departments.

The investment game business is said to have helped boost Sony's profits, while the division's profit before interest, tax, depreciation and amortisation (EBITDA) last year was 337 billion yen (currently about 17.288 billion yuan), up more than 60% from five years ago.

Nikkei added that Sony plans to launch 12 online service games by fiscal year 2026, compared with only one in fiscal year 2021. Hiroki Totoki, president of Sony Group, said: "We will continue to make strategic investments, giving priority to intellectual property rights."

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