Concord's failure redefines PlayStation Studios' strategy

The failure of Concord marked a turning point for PlayStation Studios. This game, which barely survived two weeks in active service, has become a point of reflection for the company on how to balance innovation and control in its projects.

Hermen Hulst, CEO of Sony's Studio Business Group, explained that the goal is to continue taking risks with new games, but under stricter conditions that limit the financial impact of potential failures. "I don't want teams to always play it safe, but I would like, when we fail, to do so quickly and without too much cost," Hulst said in an interview with the Financial Times.

The Concord example and the closure of Firewalk Studios have prompted PlayStation Studios to take a more deliberate approach to IP development. While these failures represent a small fraction of Sony's total revenue, which reached $32 billion last year, their impact on creative strategy has been significant.

Sony's top executives emphasize that these first-party studios, now 20 in total, are essential to defining PlayStation's unique personality. Each exclusive title helps differentiate the console from competitors like Xbox or Switch, offering iconic experiences and characters that transcend the world of gaming.

Hulst emphasizes that the company will continue to pursue innovative successes, but with greater control to limit inevitable failures. “The number of game-as-a-service releases isn't that important. What matters is having a diverse set of experiences and communities,” he stated. This approach explains the recent cancellations of major IPs, prioritizing quality and diversification over quantity.

Since the failure of Concord, PlayStation Studios has implemented more frequent and rigorous testing for each project. This allows risks to be identified early in development and ensures that new concepts can be transformed into iconic franchises that endure. Hulst says each failure has reinforced the understanding of the importance of creative control without stifling innovation.

The goal is clear: to continue taking risks in creating unique games, while ensuring that each release adds value and reduces unnecessary risks. The combination of experience diversification, execution control, and strategic testing seeks to maintain PlayStation's relevance in an increasingly competitive market.

Players can expect PlayStation Studios to continue innovating with new IPs and exclusive experiences, but under a model that prioritizes financial stability and game quality. The lesson from Concord has redefined the strategy: risk, yes, but always with responsibility.