Sony responds to concerns about Nintendo Switch 2 impacting PlayStation’s business
Following the recent Nintendo Switch 2 launch, Sony has responded to investor concerns that the system could have a negative impact on its PlayStation business.
The gaming industry is more collaborative than it used to be, but there’s still ultimately competition. Consumers only have a certain amount of money and time to spend on different platforms. And now here comes Nintendo Switch 2 – which seems to be off to a hot start and has significantly better technical specs than its predecessor.
Sony Interactive Entertainment president and CEO Hideaki Nishino first addressed investor concerns about increased competition for PlayStation and third-party relationships given Nintendo Switch 2’s improved specs. Regarding that, he said:
“We closely monitor the overall gaming industry, including the action of other market participants. Additionally, a catalyst in the market is great for the industry as a whole. As they invigorate excitement they demand more product, so it’s great to have people launching new things.
As I mentioned previously, we have a different strategy. PlayStation 5 is designed for immersive gaming experiences, and this includes the innovative DualSense controller features as well. We believe PS5-level performance is required to achieve a great experience on big screens, and in this way we have provided a unique offering for players and creators in this current console generation.
Publisher strategies are increasingly shifting towards being multi-platform, so more platforms can run the same game, which is great from a creator’s perspective. Among those platformers, our mission is that we will continue to be the best place to play and publish. As such, we have empowered our creators to leverage our offering and the services to create amazing, unique experiences for players with high engagement and great monetization opportunities. We have done this consistently as the industry and competitive dynamics have evolved.
PlayStation Studio and our franchises have a special role in showcasing the PlayStation experience and then strengthening the player’s relationship with us.”
The next question posed was about concerns over the younger generation not moving on to PlayStation as they age, leading to a potential decrease in market share. Nishino and PlayStation Studio boss Hermen Hulst both responded, stating:
Hideaki Nishino: The PlayStation brand and offering has resonated with a wide range of players over 3 decades now. The number of users engaged on our platform continues to grow. By supporting such a large number of creators, we are able to provide the largest range of content available, catering to all demographics, geographics and play styles, etc.
We believe that by constantly investing in players’ relationship with the brand and our relationship with creators, we will ensure we stay close to all players’ hearts through their lifetime.
Herman Hulst: On the first party content side, we’re also reaching to a greater range of audiences more directly, including younger players with our first party lineup in addition to our franchises with more multi-generational fan bases such as Marvel Spider-Man. We also have franchises that appeal to a range of different player segments. Horizon’s a good example, it’s very popular with female players. Astro Bot…has been a hit with children and adults alike.
We continue to drive engagement to PlayStation’s ecosystem and brand by bringing franchises to new formats; film, television and anime. Anime in particular is appealing to key younger audiences, so that’s going to be very helpful for us.
Nintendo said this week that it sold 3.5 million Switch 2 units during the system’s first four days on the market. It’s also Nintendo’s fastest-selling hardware ever in the United States.
