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Hermen Hulst: PlayStation is “Reevaluating how we operate” in light of the recent layoffs

rofif

Can’t Git Gud
Sharply declining profit margins is certainly a compelling reason for a strategy reevaluation



More like 20%, and not even piracy on the PS4 could significantly dampen their revenues from key first party games.

Sure, they give up 20% to Steam. But you might as well demand they stop selling physical games since there are non-trivial costs involved with physical retail sales including logistics, retailer cuts and price of the discs and cases etc. Not to mention losing on second hand sales.

By your logic, Sony should have made the PS5 all digital. Quite weird you're sneering at the 'great investment' part since the person you're talking to is speaking as a consumer.



Aren't you the one who's taken so much time to dump on Alan Wake 2, a project made with very prudent budget management, over small visual imperfections?
Alan Wake 2 is a terrible game big budget or not.
There have been ton of cheaper and better games.
 

fart town usa

Gold Member
Sony is arrogant as F when it comes to their 1st party games and I'm glad it's finally blowing up in their face.

A question for someone who knows more than I; is this stuff the result of Western Sony or Japan Sony? Cause I feel like PlayStation has totally lost their Japan-vibe and now it's just the most homogenized Western trope trash imaginable.
 
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Ozriel

M$FT
They give up a hell of a lot more than that to someone that decides to switch ecosystems

How many are switching ecosystems, though?
Their multiplayer games that generate PS+ basic subscriptions are already launching day and date on PC, so anyone that's mostly about multiplayer and has the means to get a beefy PC already has no reason to stay on console. Ditto for most third party games.

Most console buyers get consoles for the ease of use, standardized hardware and affordable hardware prices.

Alan Wake 2 is a terrible game big budget or not.
There have been ton of cheaper and better games.

Critic reviews say otherwise.
And most of your antipathy towards the game is tied to some - as you claim - visual imperfections
 

Crayon

Member
If they're selling gangbusters on consoles, games, and subs and still not making much profit then they gotta do something. Hopefully they don't make it worse lol.
 
How many are switching ecosystems, though?

If they go day and date, I would imagine that nearly all of their most hardcore fans would

And that’s exactly the consumer they don’t want to lose, the whales

If Xbox is day and date on PC….and PS is day and date PC…..then there’s literally only one obvious choice here
 
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Ozriel

M$FT
If they go day and date, I would imagine that nearly all of their most hardcore fans would

And that’s exactly the consumer they don’t want to lose, the whales

If Xbox is day and date on PC….and PS is day and date PC…..then there’s literally only one obvious choice here

Again…price, ease of use, standardized hardware and ‘comfy couch’ gaming are significant reasons why a ton of people will consistently stick to consoles.
 
Again…price, ease of use, standardized hardware and ‘comfy couch’ gaming are significant reasons why a ton of people will consistently stick to consoles.

Price is about the same as buying two consoles

Ease of use - probably will get better as I suspect steam type machines will be making a comeback that can fit into entertainment centers
 

Ozriel

M$FT
Price is about the same as buying two consoles

2x console price is a stretch for many people. There’s a reason financial constraint is a huge catalyst for console warring. Including on here.



Ease of use - probably will get better as I suspect steam type machines will be making a comeback that can fit into entertainment centers

You can’t be predicting a major decline in PlayStation hardware sales and significant defection to PC over Steam machines that don’t exist.
Market’s made it clear already that Windows is the dominant and preferred PC gaming OS. Not sure I’m as bullish as some of you with respect to Steam machines.
 
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Ozriel

M$FT
It's just temporarily band aid.
Cost of dev is not going to stop

Haven’t you guys spent the past few weeks arguing that releasing games to a larger install base would help the economics of game development?

You can either increase game prices or expand the audience or both.
 

lh032

I cry about Xbox and hate PlayStation.
Haven’t you guys spent the past few weeks arguing that releasing games to a larger install base would help the economics of game development?

You can either increase game prices or expand the audience or both.
sadly, that wont work either.
People would riot if companies attempt to raise game prices, and raising game prices is lower the chances of day 1 sales.

Expand the audience? where? the mobile space?
 

Neofire

Member
Oh lord Hermann Hulst running his mouth again. Layoffs aren't some new phenomenon, he acts like the company is in danger of shutting down from a few people being let go and what the hell does PC and Mobile have to do with it? I don't understand why he put layoffs and those platforms in the same sentences, are they supposed to stop the layoffs? 👀
 
Haven’t you guys spent the past few weeks arguing that releasing games to a larger install base would help the economics of game development?

You can either increase game prices or expand the audience or both.
It is a double edged sword.

You’re essentially paying for more staff to develop on more platforms.

I don’t know how many people work on an AAA game, let’s say for example 300.

Assume they all make $100K/year, that’s $30 million. Plus their benefits/payroll taxes, assume 20% of salaries. That’s already $36M on just people. Factor in other costs like equipment, bills, and whatever the fuck else. They’re probably already at $50M for the year. Assume the game takes 4 years to develop. That’s $200M.

Now if you want to develop for another platform to release at the same time. I don’t know how many people you need to hire for that. That means probably needing a bigger office space/more equipment, etc. Now add that to the theoretical $200M in costs.

Yea, releasing on more platforms for a bigger audience could help theoretically. But how can that be sustainable if games are going to keep costing that much???
 
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FunkMiller

Gold Member
Might be a good idea to have some studios making smaller scale AA games. Helldivers 2 seems like a success story and there's nothing stopping them funding single player experiences of a similar budget.

Not every fucking game has to be a huge cinematic story driven adventure game that costs hundreds of millions to make.

If you can’t claim a budget of 200 million dollars for your game, you can’t pad out your own personal executive salary.

Same as with the movie industry. If you start to make smaller budget games, there’s less wiggle room to skim off the top.
 
I fully expect PlayStation to diversify its offerings. I think those big narrative games will keep coming, but at a slower pace. I'm guessing we'll see a first-party that moves away from its PS4 look and gets back to its PS3 days.

Schitts Creek Yes GIF by CBC


More like PS3 with smaller games, more games, and more new IP. Less like PS4 and PS5.
 

Neofire

Member
Here’s my advice:

-Ditch the pc and mobile efforts
-Sell off Bungie
-Don’t focus on gaas (Helldivers 2 seems to be doing fine)
- Keep releasing amazing single player games
- Release smaller scale games akin to Lost Legacy, and Miles Morales.
Ditching Mobile they definitely need to do, that platforms does nothing that breeds shovel ware. PC is okay for live service but needs to be watched so it doesn't cannibalize sales on the ps5.

A hell yeah on pumping out the single player games.

The main thing Sony needs to do is better manage their spending on game budgets. As much as I hate it and it will definitely stifle innovation and risk that brought us games like Demon Souls, God of War and Spider Man but unfortunately they've got to get the spending under control.

As long as they don't scale it back to Nintendo levels I'm good lol.
 

Matsuchezz

Member
Spiderman wasn't cancelled as far as I am aware.
Spiderman had good scores and was a commercial success. Red fall was a big fat turd and was released to get mediocre scores and a failure, even gamepass subscribers thought it was shit, and those people can play shitty games all year long.
 

Arsic

Loves his juicy stink trail scent
It’s simple really.

Find a way to make less visually insane games that run at 60fps, are fun to play, and require 3-4 years of development.

I assure you the $70 AAAA you keep chasing will eventually be your downfall.

You can aim for 1-2 of those in a 5-7 year development time cycle, and then get the rest needs to be more focused titles.

Sell Bungie and buy Devolver instead.

Day one PC your titles as well.
 
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Interesting thread - fascinating to see the different takes. For me, I think there’s a seismic shift coming to the gaming industry, and Sony isn’t well positioned for it and they know it. They are attempting a necessary course correction here.

The thing some in this thread want - doubling down on the big single player PS5 exclusives (remaining exclusive) and fuck everything else - I think is both the least likely incoming strategy and the fastest way to oblivion.

Someone mentioned the gift that keeps on giving, Eric Ten Hag, earlier in the thread, but as he said, eras come to an and history is littered with dominant forces that failed to adapt. Sony is smart to try and get ahead of it (albeit a little late).
 

Puscifer

Member
How vague can you be Herman. Are you still investing in those narrative driven Blockbusters or not.
God I hope not. Ragnarok showed us the cracks were showing and Spiderman having me spray painting shit about racism and going for bike rides and not eating MFs heads off with Venom showed me I'm fucking done with these walky talky shits.

More Returnal and Infamous and less Naughty Dog inspired shit.


Uncharted 2 has been a disaster for PlayStation studios
 
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Fishels

Member
Stop canceling your multi player games please. Helldivers 2 is fun. I’m tired of 30 hour story games being the only thing Sony releases
 

Fishels

Member
God I hope not. Ragnarok showed us the cracks were showing and Spiderman having me spray painting shit about racism and going for bike rides and not eating MFs heads off with Venom showed me I'm fucking done with these walky talky shits.

More Returnal and Infamous and less Naughty Dog inspired shit.


Uncharted 2 has been a disaster for PlayStation studios
God of war 2018 and Spider-Man 2018 were both superior to their sequels
 

Neofire

Member
God I hope not. Ragnarok showed us the cracks were showing and Spiderman having me spray painting shit about racism and going for bike rides and not eating MFs heads off with Venom showed me I'm fucking done with these walky talky shits.

More Returnal and Infamous and less Naughty Dog inspired shit.


Uncharted 2 has been a disaster for PlayStation studios
Yeah that pesky racism tagging in Miles Morales is Sonys downfall.
 
I hope they go back to the drawing board to understand what games truly are. They lost their way somewhere around PS3.

Wishful thinking: Try to think what made everyone love Uncharted 2 vs what controversy Spiderman 2 had. If you still think those 2 games are "narrative story driven games" then go back again to the drawing board
 
Here’s my advice:

-Ditch the pc and mobile efforts
-Sell off Bungie
-Don’t focus on gaas (Helldivers 2 seems to be doing fine)
- Keep releasing amazing single player games
- Release smaller scale games akin to Lost Legacy, and Miles Morales.
This and please stop it with the preachy games, we got enough preaching outside gaming, this is a place for fun not to hear what is the latest US Political Correctness thing
 

Fishels

Member
I’m not sure I can even be a PlayStation fan anymore. All the interesting games are either so far off it’s not worth thinking about or cancelled (factions, Twisted metal etc).

Hell if Sony owned arrowhead they’d have probably canned Helldivers 2. It’s so depressing playing an amazing game like HD2 knowing Sony just canceled more games that would have probably been fun. You’d have to actually try to fuck factions or twisted metal multiplayer to make it not fun.

Oh but we will get another 30 hour story game that is third person. How exciting.
 
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That would be a risky move in and of itself and could risk them losing their entire player base to PC.

If they choose to relax and rest on their laurels now that MS has checked out, they will regret it. It will have a net negative effect on their console business and will not lead to increased profitability.

Casual console gamers will never move over to PC.

Stop it.
 
Sony is arrogant as F when it comes to their 1st party games and I'm glad it's finally blowing up in their face.

A question for someone who knows more than I; is this stuff the result of Western Sony or Japan Sony? Cause I feel like PlayStation has totally lost their Japan-vibe and now it's just the most homogenized Western trope trash imaginable.

HQs based in California.

PS Studios Director: Herman Hulst

PS CEO: Jim Ryan

Flagship titles: TLOU, Uncharted, Spiderman, GOW, Horizon

That pretty much answers your question.

Certainly, Uncharted 2 was the game that turned things around for PS but they have gone overboard with their "western identity". This links the brand to a certain type of game, despite there being so much more to PS exclusives, like Astrobot, Returnal, The Last Guardian, or Bloodborne. We have reached a point where they cannot sustain themselves only with those titles (which are a huge gamble, too) and need second or third-party exclusives to diversify its catalog. If not for Shuei Yoshida, Playstation would have missed big games by rising developers from Korea, japan, and China (Stellar Blade, Mihoyo games, Wuthering Waves, Granblue Fantasy)

Now PS is in a tight spot because its main franchises have finished their cycle (Uncharted, GOW, TLOU) and we have no guarantees on the quality of the new games. Insomniac with the superhero IPs is the only safe bet right now.
 

Men_in_Boxes

Snake Oil Salesman
A AA sequel no one expected to do numbers - least of all Sony? That's not really indicative of Ryan's "GAAS push". I think their biggest, most lauded, most expensive, traditionally single player focused studio cancelling a multi-year GAAS project after their recently-acquired-GAAS-centric studio told them it wasn't up to par is more indicative.

Fortunately, we don't have to weigh which is more indicative when we have PlayStation leadership saying their Live Service ambitions in the mid to long term remain unchanged.
 
God I hope not. Ragnarok showed us the cracks were showing and Spiderman having me spray painting shit about racism and going for bike rides and not eating MFs heads off with Venom showed me I'm fucking done with these walky talky shits.

More Returnal and Infamous and less Naughty Dog inspired shit.


Uncharted 2 has been a disaster for PlayStation studios

That style of game has been very successful for Sony, but I do agree with you that their creative output has suffered immensely since Uncharted really blew up. Now every game they make is like that. It makes sense that their competitive advantage is in movie-like games considering the size of their other entertainment divisions. But I much prefer oldschool Japanese Sony and their approach to gaming compared to this soulless western take.
 

StreetsofBeige

Gold Member
HQs based in California.

PS Studios Director: Herman Hulst

PS CEO: Jim Ryan

Flagship titles: TLOU, Uncharted, Spiderman, GOW, Horizon

That pretty much answers your question.

Certainly, Uncharted 2 was the game that turned things around for PS but they have gone overboard with their "western identity". This links the brand to a certain type of game, despite there being so much more to PS exclusives, like Astrobot, Returnal, The Last Guardian, or Bloodborne. We have reached a point where they cannot sustain themselves only with those titles (which are a huge gamble, too) and need second or third-party exclusives to diversify its catalog. If not for Shuei Yoshida, Playstation would have missed big games by rising developers from Korea, japan, and China (Stellar Blade, Mihoyo games, Wuthering Waves, Granblue Fantasy)

Now PS is in a tight spot because its main franchises have finished their cycle (Uncharted, GOW, TLOU) and we have no guarantees on the quality of the new games. Insomniac with the superhero IPs is the only safe bet right now.
Problem with Sony is their big selling franchises take forever to come out now. So they do quick remasters or remakes to fill gaps. Or do UC LL or Miles Morales V1.5 kind of games. They dont want to expand the studios to work on more games at a time like instead of ND being a LOU studio now, they could also had done more Uncharted games like before when they made both at once. But since LOU is bigger, then it's LOU all the way. Same with GG. They are a Horizon studio, but they could also be a Killzone one too. PD has always been a GT studio, Sony SM GOW, Sony SD MLB baseball, Insomniac is a superhero studio with the occasional R&C game.

If this was the PS2 or PS3 era, their big hits had sequels every 2-3 years like clockwork. The industry as a whole was like that. Gears, Halo and Forza MS did too. And so did Sony with Resistance, KZ, UC, Motorstorm, GOW etc... You could get good games that had high production values. But now, they prefer going all or nothing with even higher budgets. Although there are some outliers. UBI seems to be able to crank out Ass Creed games every year or two.

Since Sony's gaming division is the biggest pillar and the key growth driver, they need all those gap fillers and GAAS to fill the years with steady revenue since a big game might take 5 years now. There's only so much sales SP games can do on PS5. Hence, growth from GAAS and PC ports.
 
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