As part of its transformation into a global entertainment company, Sony plans to focus more on creating new IPs. That’s what the company’s CEO Kenichiro Yoshida has said about this strategy.
The Last of Us series by HBO (left), The Last of Us Part I (right)
- “We have the technology and creation is the area where we like and where we can contribute the most,” Yoshida told the Financial Times, adding that Sony needs to move away from distribution in favor of producing more original content.
- The Japanese company has spent $10 billion over the past six years to boost its portfolio across three core areas: video games, films, and music. As a result, these segments currently account for 60% of its annual revenue.
- Yoshida believes Sony should be more involved in creating content at an early stage to get a higher return on investment.
- CFO Hiroki Totoki, which also briefly served as interim CEO of Sony Interactive Entertainment following the resignation of Jim Ryan, noted that the company doesn’t have “that much IP that we fostered from the beginning.”
- In terms of video games, Sony plans to create more transmedia content based on its franchises, especially following the success of The Last of Us TV series and the Uncharted film adaptation.
- Sony also wants to share technology and know-how between its various products and business units. One example is the PlayStation Network, which could be used to improve anime service Crunchyroll in terms of payments, data analysis, and security.
- While market analysts see this shift as Sony’s natural evolution into a “fully integrated media company,” some investors are concerned about the lack of concrete plans for this long-term strategy.
- “One thing that you need is IP, that is step one,” Jefferies analyst Atul Goyal told the FT. “And if you don’t start creating or buying in those that do, then the risk is someone else will do it. So the risk is not doing anything.”