[Arkam]

A friend at PlayStation shared the following with me. It is an excerpt of an internal email from Jim Ryan.

In the near term, we are taking some steps to cut costs where we can. We are pausing approving new headcount for the time being and reviewing all open positions to enable leaders time to evaluate and refocus team objectives. We have been growing at a fast rate and just want to ensure that the next new hires will bein roles that will help us deliver against the most critical priorities. We are postponing plans for parties to celebrate the launch of the PlayStation 5. As much as we were looking forward to these gatherings, it is not the right time. While we don't want tp stop face-to-face meetings, we need to take a thoughtful approach to travel.

The overall mood of the rest of the email was somber and does not impart much positivity for the brand's near future. My friend confirmed that all their open headcount were closed, travel plans were canceled and that office perks were to be scaled back.

 

[Mickmrly]

I guess the high inflation global economy and increasing global interest rates are taking a bit of the wind out of their sails. It also doesn't help that PS4 sales dropped like a rock after the PS5 came out, unlike the PS2 which just kept trucking on.

 

[CAPTAIN RAINCOAT]

Hopefully re-focus does not mean more endless re-masters of older IP to make a quick buck

 

[HeresJohnny]

DIDN'T THE PS5 LAUNCH FUCKING TWO YEARS AGO? Why would you be having launch parties for a system that came out two years ago?

Also, Jim Ryan is a huge cuck. "We're gonna tighten those belts by not having launch parties that should have happened two years ago." Wow, what a concept. Bring Kaz back plz.

 

[HeresJohnny]

Hopefully re-focus does not mean more endless re-masters of older IP to make a quick buck

That's exactly what it means. And likely endless cross gen titles.

 

[zebraStraw]

I'm surprised PSVR2 hasn't been canceled yet. It's obviously going to be another vita.

 

[SpartanN92]

Weakened Euro has got to be crushing them right now.

 

[Hostile_18]

I'm trusting your source is legit

But yeah it's strange that despite the PS5 selling well, despite the £70 ($90) sales and the PC ports the company is still cutting back. Mind that been said companies often do this, make out there in tough times, then report record profits lol. I think every company right now is just tightening up where it can. Still if they really are hard up then maybe they shouldn't have paid 3.6 billion for Destiny studio, just to keep to multiplarform. Imagine how many new games, studios and IP that could have bought.

 

[Arkam]

I'm trusting your source is legit

But yeah it's strange that despite the PS5 selling well, despite the £70 ($90) sales and the PC ports the company is still cutting back. Mind that been said companies often do this, make out there in tough times, then report record profits lol. I think every company right now is just tightening up where it can. Still if they really are hard up then maybe they shouldn't have paid 3.6 billion for Destiny studio, just to keep to multiplarform. Imagine how many new games, studios and IP that could have bought.

Oh its legit. I am sure other sites will post about it soon enough. This was a D-Pad world exclusive. Surprised it wasn't on gamesindustry.biz yet.

Not going to re-type the whole email but Jim gave a few reasons for the poor performance:
- People are now traveling instead of staying home playing games
- Inflation and cost of living on the rise
- Pulling out of Russia (the 10th largest gaming market)

And here is the plan to mitigate:
- Lean on subscription models (PS+)
- More live service games (Bungie acquisition)
- Sell 18m PS5s in FY22 (ends April 2023)
- PS games on PC

 

[Nikana]

I would be betting they anticipated far more sales of digital goods and over estimated due to pandemic numbers.

I know quite a few people with ps5s that haven't turned them on due to $70 games and lack of new games.

 

[Hostile_18]

Its strange times to be sure. On one side MS saying games should be cheaper than ever and on the other Sony saying they should be more expensive than ever.

 

[Nikana]

Its strange times to be sure. On one side MS saying games should be cheaper than ever and on the other Sony saying they should be more expensive than ever.

While both rake in record profits. As usual the games will suffer in the end.

This competition is good at least. We probably wouldn't have things like GP and PS++ without competition.

 

[Grinchy]

Reminds me of when my brother worked for Apple and the company just made the news for becoming the world's first trillion dollar company. Internally they were being told they had to stop hiring and let people go bc of a bad quarter

 

[Boss Mog]

I'm surprised PSVR2 hasn't been canceled yet. It's obviously going to be another vita.

It's what I'm most looking forward to. VR is the future, of this I have no doubt. I don't expect PSVR2 to be uber successful but I expect it will be vastly more successful than the first one and a stepping stone to cement the VR future. First playthough of AstroBot rescue Mission is one of my life's best gaming memories, I want more experiences like that. I just can't wait til we get to the point where we can play a game like Cyberpunk in VR.

 

[zebraStraw]

It's what I'm most looking forward to. VR is the future, of this I have no doubt. I don't expect PSVR2 to be uber successful but I expect it will be vastly more successful than the first one and a stepping stone to cement the VR future. First playthough of AstroBot rescue Mission is one of my life's best gaming memories, I want more experiences like that. I just can't wait til we get to the point where we can play a game like Cyberpunk in VR.

I do think VR is cool, but I'm not sure about it being the future anymore. It really isn't taking off.

HL: Alyx was amazing, Boneworks is cool, Project Wingman is neat, but there's still a huge lack in software.

 

[regawdless]

Thanks for sharing!

It's a natural circle. Companies grow, hiring many people, getting bloated as fuck. Doesn't make the news.

At some point, you have to cut the fat and re-focus. Firing a most of the time comparatively small amount of people or doing a hiring stop = news.

It's a normal up with a bit of down in between.

 

[Stilton Disco]

It's what I'm most looking forward to. VR is the future, of this I have no doubt. I don't expect PSVR2 to be uber successful but I expect it will be vastly more successful than the first one and a stepping stone to cement the VR future. First playthough of AstroBot rescue Mission is one of my life's best gaming memories, I want more experiences like that. I just can't wait til we get to the point where we can play a game like Cyberpunk in VR.

I'm looking forward to PSVR2 too, infact it's the only thing I might buy a PS5 for currently, since they're going all in on PC, which makes their consoles pointless, but VR has been touted as 'the future' for 50 years now, and never ends up more than a fad with a few hardcore, true believers sticking with it for long.

Convenience and cheapness are the future, the same as they've always been. Strapping something to your face and being totally cut off from the world around you is appealing only to a minority, even more so when you need to do so over long and sustained periods of time, never minded the huge additional costs involved compared to a phone, console or PC.

There's a place for VR in gaming, but it's a similar niche to the ultra high end gaming that gets along of attention, but is only actually a reality to a tiny minority.

 

[Boss Mog]

I do think VR is cool, but I'm not sure about it being the future anymore. It really isn't taking off.

HL: Alyx was amazing, Boneworks is cool, Project Wingman is neat, but there's still a huge lack in software.

I'm looking forward to PSVR2 too, infact it's the only thing I might buy a PS5 for currently, since they're going all in on PC, which makes their consoles pointless, but VR has been touted as 'the future' for 50 years now, and never ends up more than a fad with a few hardcore, true believers sticking with it for long.

Convenience and cheapness are the future, the same as they've always been. Strapping something to your face and being totally cut off from the world around you is appealing only to a minority, even more so when you need to do so over long and sustained periods of time, never minded the huge additional costs involved compared to a phone, console or PC.

There's a place for VR in gaming, but it's a similar niche to the ultra high end gaming that gets along of attention, but is only actually a reality to a tiny minority.

Quest 2 has been selling really well, 15M units so far. If anything porn will drive VR and games will follow.

 

[Stifler's Mom]

DIDN'T THE PS5 LAUNCH FUCKING TWO YEARS AGO? Why would you be having launch parties for a system that came out two years ago?

Also, Jim Ryan is a huge cuck. "We're gonna tighten those belts by not having launch parties that should have happened two years ago." Wow, what a concept. Bring Kaz back plz.

Thanks for taking the words out of my mouth.

Damn, I hate that drunkard.

 

[Stilton Disco]

Quest 2 has been selling really well, 15M units so far. If anything porn will drive VR and games will follow.

So about as successful as the Vita and WiiU, grand.

And how many of those 15 million are used still? What's the game attachment rate? What are the killer apps VR has generally, that are the mainstream appeal drivers of adoption?

Sure, there's porn for the wankers that live alone, which is a not an insignificant market admitedly, but that's not likely to drive a large and sustainable number of customers towards gaming.

Honestly, I think VR has actually missed it's best shot at going mainstream with the lockdowns. There was an opportunity there to replicate theatre shows and public events via 360 camera streams, allow VR tourism, or sell on stage music and right by the action sports tickets.

Now we have ever rising inflation, global supply chain collapse and a cost of living crisis that's making any luxury good an increasingly hard sell, especially one that is more difficult to use, is either a bit crap or a very expensive add on to another expensive device and lacks any real must have experience or game to generate hype. Worse, it's becoming increasingly associated with the unpopular and unwanted metaverse and NFT bollocks big tech firms are pushing.

It's not even new tech anymore. It's iterative tech building on yesterday's news that was overhyped and under delivered.

I could be wrong of course, but I just don't see any reason why this sub platform of gaming and self abuse aid is going to even maintain it's current sales trajectory, let alone become the dominant gaming and lifestyle medium in the future.

 

[Boss Mog]

So about as successful as the Vita and WiiU, grand.

And how many of those 15 million are used still? What's the game attachment rate? What are the killer apps VR has generally, that are the mainstream appeal drivers of adoption?

Sure, there's porn for the wankers that live alone, which is a not an insignificant market admitedly, but that's not likely to drive a large and sustainable number of customers towards gaming.

Honestly, I think VR has actually missed it's best shot at going mainstream with the lockdowns. There was an opportunity there to replicate theatre shows and public events via 360 camera streams, allow VR tourism, or sell on stage music and right by the action sports tickets.

Now we have ever rising inflation, global supply chain collapse and a cost of living crisis that's making any luxury good an increasingly hard sell, especially one that is more difficult to use, is either a bit crap or a very expensive add on to another expensive device and lacks any real must have experience or game to generate hype. Worse, it's becoming increasingly associated with the unpopular and unwanted metaverse and NFT bollocks big tech firms are pushing.

It's not even new tech anymore. It's iterative tech building on yesterday's news that was overhyped and under delivered.

I could be wrong of course, but I just don't see any reason why this sub platform of gaming and self abuse aid is going to even maintain it's current sales trajectory, let alone become the dominant gaming and lifestyle medium in the future.

15M for a device that's been out a year and a half and still kinda niche is pretty good.

Also you seriously think only people who live alone watch porn?

 

[lock2k]

Bring back Kaz and make Playstation Japanese again.

 

[Stilton Disco]

15M for a device that's been out a year and a half and still kinda niche is pretty good.

Also you seriously think only people who live alone watch porn?

And as I say, what are the continued engagement of those 15m? What's the attach rate of games? I know 3 people who either bought one or got one free with a phone contract, 2 normal non gamers, and one casual console gamer, all of whom gasped and gushed in wonder at how cool it was, then shoved it in the back of a cupboard.

And I'm sure there are some that live with others, but given the complete sensory deprivation of VR, that's a hell of a dangerous wank to have around friends and family.

 

[Musky_Cheese]

I'm interested in PSVR 2. I enjoyed the first one. Especially that firewall game.