Load the Game

Exclusivity poses a significant challenge for major blockbusters, according to a former PlayStation executive

• Jacob Chambers
• March 11th, 2024

There is a lot of discussion surrounding exclusivity following Microsoft’s choice to bring certain titles to PlayStation, causing some turbulence in the industry. This year has witnessed numerous game developers being laid off as the industry tries to adjust its course after overinvesting during the coronavirus pandemic.

With the rising budgets for major titles such as Marvel’s Spider-Man 2, there is a growing skepticism about the sustainability of the traditional exclusivity model. PlayStation’s former executive Shawn Layden discussed the topic in a significant interview with Games Beat, suggesting that focusing on a single format could be detrimental to the industry’s most costly releases.

“When a game’s costs surpass $200 million, exclusivity becomes a major vulnerability,” he elaborated. It limits your potential audience. Especially in the realm of live-service gaming or free-to-play. Introducing another platform can help expand the reach and attract a wider audience. In a world where free-to-play games dominate, it’s a fact that the majority of players will never make any in-game purchases. It’s all about maximizing conversions. To increase your chances, you need to figure out how to open up the funnel.

Layden highlighted the recent triumph of Helldivers 2, a PlayStation-published game that launched simultaneously on both the PS5 and PC. This new strategy from Sony has clearly paid off.

Helldivers 2 being a live-service game raises questions about the impact on the platform’s traditional single-player titles. “If a substantial amount is invested, the goal is to maximize the potential audience reach, even if it’s just a slight increase,” he emphasized. “The cumulative number of consoles worldwide, from the PS1 onwards, never exceeds 250 million at any point in time.” It simply does not. The currency has increased in value over the years. However, upon closer inspection, it appears that we are simply extracting additional funds from the identical individuals.

Layden suggests that the industry should broaden its current market reach. “We should make more efforts to attract people who are not currently console gamers,” he pointed out. “We won’t be able to appeal to them by continuing with our current approach.” Will the gaming industry continue to produce more Call of Duty, Fortnite, and Grand Theft Auto even if 95% of the world is not interested in playing them? That approach won’t attract anyone else.

PlayStation is currently experiencing record revenues, but its expenses are extremely high. Rumors suggest that games such as Marvel’s Spider-Man 2, as hinted at by Layden, have production costs exceeding $200 million, leaving little room for mistakes. It’s uncertain how the industry will handle the challenge of rising budgets while meeting the demands for larger and more advanced games.