Sony’s Acquisition of Bungie Signals Shift to Live Service Games Following Major Buyout
Sony’s Vision for Live Service Games: A New Era for PlayStation
In a recent investor presentation, Sony Interactive Entertainment CEO Jim Ryan outlined the company’s plans to integrate Bungie’s expertise into its broader vision. The acquisition of Bungie earlier this year has marked a significant shift in Sony’s approach to game development, with a focus on creating continually updated online games inspired by Destiny.
A Future Dominated by Live Service Games
Sony expects to spend 49% of its PlayStation Studios development budget on live service games by the end of the year. This figure is set to rise to 55% by 2025, up from just 12% in 2019. The company projects that it will have 12 different live service games of its own by the end of 2025, up from just one now.
Live service games are a lucrative business model that has proven successful for companies like Fortnite and Destiny 2. These games typically feature an in-game storefront where players can purchase digital goods such as character skins and clothing. The assets cycle in and out, creating scarcity and encouraging players to spend real cash to collect them.
Bungie’s Expertise
Bungie is best known for creating the Halo franchise, although most recently it has become synonymous with Destiny, a fresh sci-fi series developed after leaving Halo with Microsoft. Like Halo, Destiny is a futuristic first-person shooter with precise and satisfying mechanics. However, its real appeal lies in Bungie’s impressively seamless online multiplayer experience that brings players into central hubs where they can explore and run missions together.
The company has a 10-year partnership with Activision, which eventually split with Bungie, paving the way for Sony to acquire it earlier this year for $3.6 billion. Bungie will remain a standalone game studio on the other side of the deal, à la Naughty Dog.
A Strategic Acquisition
In bringing Bungie under its wing, Sony is buying knowledge about how to build online multiplayer games that expand over time, keeping players coming back for more. This kind of experience, usually called a "live service game," explains how Fortnite remains one of the world’s most popular games years after it first made headlines.
The Benefits of Live Service Games
Live service games have several benefits that make them an attractive business model:
- Long-term revenue: Unlike traditional single-player games, live service games can generate revenue for years rather than burning bright and fizzling out a few months post-launch.
- Player engagement: The constantly updated content keeps players engaged, reducing churn rates and increasing player loyalty.
- Monetization opportunities: In-game storefronts offer various monetization opportunities, including the sale of digital goods and subscriptions.
Sony’s Plans for Live Service Games
The company declined to answer questions about which of its franchises might get the live service treatment. However, a list of its noteworthy single-player first-party titles includes God of War, Horizon Forbidden West, Spider-Man, The Last of Us, and Uncharted. Bungie is best known for creating the Halo franchise, although most recently it has become synonymous with Destiny.
The acquisition of Bungie earlier this year marked a significant shift in Sony’s approach to game development, with a focus on creating continually updated online games inspired by Destiny. The company expects to spend 49% of its PlayStation Studios development budget on live service games by the end of the year, rising to 55% by 2025.
Conclusion
The acquisition of Bungie and Sony’s plans for live service games mark a significant shift in the gaming industry. With its focus on continually updated online games, Sony is poised to dominate the market with its new business model. As the industry continues to evolve, it will be interesting to see how other companies adapt to this new approach.
Related Articles
- The Benefits of Live Service Games
- Sony’s Acquisition of Bungie: A New Era for PlayStation
- The Future of Game Development: Live Service Games and Beyond
