In a recent interview, former PlayStation CEO Shawn Layden expressed his disapproval of the practice of making big-budget AAA games exclusive to specific platforms.
Layden raised concerns about the exclusivity of PlayStation games and suggested that this approach does not align well with the current landscape of the gaming industry. This topic holds significant relevance in light of the challenges faced by companies through closures and layoffs in 2023 and 2024, making it an important discussion for both the industry and players around the world.
What Does Shawn Layden Criticize?
In an interview with GamesBeat, Shawn Layden elaborated on his criticisms of companies choosing to keep their AAA games exclusive to particular platforms. He emphasized that restricting the player base limits the potential enjoyment of games by excluding potential fans. Layden also pointed out the significance of live service games and how catering solely to the same audience fails to expand the player base or enhance development budgets.
“When your costs for a game exceed $200 million, exclusivity becomes a hindrance. It shrinks your target market, especially in the realm of live service gaming or free-to-play. Embracing another platform is an opportunity to widen the audience, attracting more players. In a free-to-play environment, the majority of players may never spend money. Conversion rates are crucial. By broadening the reach, such as with Helldivers 2 launching on PC simultaneously with PlayStation, you can bring in more players.”
Layden further noted that limiting the potential market size diminishes the potential profits that companies could generate. Players desire access to a diverse range of games, and exclusivity prevents companies from showcasing their games to a broader audience. He highlighted that persisting with exclusive practices perpetuates the cycle of failing to attract non-console players to console gaming.
“If you invest $250 million, your aim is to sell to as many people as possible, even if it’s just a 10% increase. The global console installed base, from the PS1 onwards, has never exceeded 250 million. While revenues have grown, we’ve essentially been extracting more money from the same player base. The pandemic spurred many companies to overspend to chase escalating revenues. We need to draw in new players to console gaming, not by repeating existing strategies. Continually producing games like Call of Duty, Fortnite, and Grand Theft Auto won’t broaden our audience.”
Throughout the years, many gamers have voiced frustrations over exclusivity within the gaming industry, whether due to not owning the required platform for an exclusive game or missing out on cross-platform play in certain multiplayer titles. Ideally, in the future, there will be a shift where gamers can enjoy their desired games regardless of the platform they choose to play on.
This encapsulates the key points regarding former PlayStation CEO Shawn Layden’s critique of PlayStation’s exclusive approach to major AAA games.
