Video games are a bigger business than they’ve ever been, with major publishers spending ever-increasing amounts to stay competitive. Microsoft will likely soon close their $69 billion purchase of Activision Blizzard, and while Sony hasn’t announced any huge acquisitions lately, they are reportedly ramping up their investments in game development.

　　According to a report from Nikkei Business, Sony plans to spend around ¥300 billion (approximately $2.13 billion) on video game research and development in fiscal year 2024 (which goes until the end of March 2024). That’s more than double what the company typically spent on game dev during the previous console generation (they spent ¥144 billion in FY2020). Game dev now accounts for 40 percent of Sony’s overall R&D budget – more than any other segment of the company.

　　In addition to spending more than ever, Sony is shifting where that money goes, with live service titles getting the lion’s share of the cash. As we’ve heard, Sony hopes to have at least 10 live service titles up and running by the end of FY2026, and they expect to be spending 60 percent of their gaming R&D budget on live service by FY2025. That doesn’t necessarily mean they’re going to be spending less on traditional gaming experiences as their overall R&D spending increases, but live service is clearly going to be the main focus going forward.

　　According to Nikkei, extended reality (the umbrella term for virtual reality, mixed reality, and augmented reality) will also be a focus. Reportedly, Sony plans to have many of their newly acquired PlayStation studios focus on PS VR2 and other extended reality content.

　　For those who haven’t been keeping up with Sony’s latest moves, the company recently provided a first peek at their live-service-focused future during their big PlayStation Showcase. These include Marathon from Destiny-developer Bungie, Fairgame$ from the new Jade-Raymond-fronted studio Haven, and Concord, a mysterious title from UK-based Fire Studios. Meanwhile, Naughty Dog’s much-hyped The Last of Us multiplayer project has seemingly been put on ice after Bungie critiqued its money-making potential.

　　What do you think about PlayStation’s future plans? Are they making smart moves (even if they’re not to your personal tastes) or are they setting themselves up for disaster?