Has PS5 Market Disappeared for AA Games?

In a recent interview, Shuhei Yoshida explained that Japan Studio’s shutdown is due to the vanishing market for mid-tier (AA) video games.

Over time, Sony’s beloved in-house studio has been responsible for creating a diverse range of smaller PlayStation exclusives such as Patapon and Gravity Rush. Furthermore, this studio has significantly contributed to the release of games developed externally, like Everybody’s Golf from Clap-Hanz and Tokyo Jungle from Crispy’s, on Sony’s consoles.

During the PS3 and PS4 era, I was blown away by the diverse array of indie games Sony unleashed globally. From the intriguing world of Invizimals to the rhythmic brilliance of Sound Shapes, not forgetting the whimsical charm of Fat Princess, Sony’s publishing empire truly had something for everyone.

Except for a few exceptional titles such as LEGO Horizon Adventures and Sackboy: A Big Adventure, many game titles have been primarily removed from PlayStation’s library. This, combined with cross-generational releases, is one of the factors we think has contributed to PS5 fans expressing less contentment with its offerings compared to previous consoles.

But what has changed?

It’s clear to see that the price of video games, particularly high-end ones such as “Intergalactic: The Heretic Prophet” from Naughty Dog, has skyrocketed in recent times. This significant increase in cost significantly impacts the budget allocated by game platforms.

However, these escalating expenses affect smaller games too. Since expenses are on the rise everywhere, it might be simpler to approve projects with proven success; for instance, God of War Ragnarok could have cost significantly more than Gravity Rush 2 to produce, but it also sold over five million copies in a week.

As a passionate gamer, I can’t help but marvel at the extraordinary expansion of the independent gaming scene. In contrast to the humble beginnings when we’d eagerly await one or two new releases on the PS Store each week, today’s landscape is abuzz with an astounding 20 to 30 fresh indie games every day! This fierce competition has seen many of these indie games boasting budgets that rival those of AA titles. Titles like Kena: Bridge of Spirits, Stray, and Sifu have truly made a name for themselves in this space.

Sony might counterargue that it hasn’t completely abandoned the AA genre, but instead, it has adapted its strategy. The three games mentioned were extensively promoted by PlayStation, even though they weren’t strictly exclusive titles. These games played a significant part in Sony’s collection, providing an essential role.

But those are the success stories.

Yoshida shared that following the release of Gravity Rush 2, Keiichiro Toyama pitched several intriguing game ideas to him. However, due to current market conditions, these proposals were rejected by the publisher, leading ultimately to the closure of Japan Studio.

After establishing Bokeh Game Studios, Toyama launched Slitterhead, a title that can be seen as a spiritual successor to the Siren series. Although exact sales figures are not disclosed for this game, it’s been reported that in Japan, it only sold less than 5,000 physical copies and on Steam, its concurrent player count never exceeded 800.

Indeed, there’s been an abundance of stories about underperforming titles from AA developers (Second-tier game studios) in recent times. For instance, the highly praised Banishers: Ghosts of New Eden by Don’t Nod didn’t meet commercial expectations, much like Jusant.

There have been numerous instances of AA games failing to live up to their potential lately, such as Banishers: Ghosts of New Eden from Don’t Nod and Jusant. These critically acclaimed titles didn’t achieve the commercial success they were anticipating.

Simultaneously, the creators of the widely praised game, Prince of Persia: The Lost Crown, were dismantled, and Capcom’s Kunitsu-Gami: Path of the Goddess didn’t live up to their hopes either.

The Lost Crown was broken up, Capcom’s Kunitsu-Gami: Path of the Goddess also fell short of their expectations.

Many situations back up Yoshida’s statements, and this trend is evident among major game publishers. It’s accurate to say that Nintendo continues to be a stronghold for AA games, but its distinctiveness lies in the fact that it owns some of gaming’s most recognized brands such as Super Mario, Donkey Kong, and The Legend of Zelda. Unlike other companies, Nintendo doesn’t rely solely on the franchise appeal of these iconic titles.

An additional aspect we haven’t discussed yet is the growing popularity of live service games, such as Fortnite and Genshin Impact. These games are extensive and captivating, leading some players to opt for investing in V-Bucks or Primogems instead of buying new AA titles they might not have the time to play due to their immersive nature.

With services such as PS Plus Premium, which provide access to numerous games on-demand, it’s possible that some consumers might not feel as compelled as before to purchase older Activision-Blizzard (AA) titles as they once did in previous generations.

It’s unfortunate, as AA appears to address a growing problem that has been deteriorating over time: the high cost and lengthy production of blockbuster games.

As a dedicated gamer, I’ve noticed that even the popular AAA titles aren’t exempt from certain problems, and it seems like the gaming market isn’t providing the necessary sales volumes to justify their creation anymore.

2025-02-20 15:37

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