Exclusives are very important for the sale of consoles like the PS5. But when it becomes too expensive to produce, it becomes a weak point and even a big financial difficulty to overcome.
Former PlayStation executive Shawn Layden recently shared his views on the growing challenges of producing AAA exclusive games as development costs continue to rise. Speaking to VentureBeat, Layden pointed out that PS5 game budgets and Microsoft’s cross-platform strategy highlight the increasing difficulty of maintaining exclusivity for big-budget games.
The PS5 and the exclusives
According to Layden, when budgets exceed $200 million, exclusivity becomes an Achilles heel. He explains that exorbitant costs are forcing platform manufacturers to rethink their exclusivity strategy, especially in the case of games aimed at a large audience.
The former PlayStation chief says exclusivity makes more sense for single-player games than multiplayer games. He cites Helldivers 2 as an example of a game that benefited from a cross-platform release. While he’s not against single-player game exclusives, Layden believes that colossal budgets of over $200 million continue to make it difficult for console makers. This is what largely explains Sony’s current situation and the various layoffs that we were able to talk to you about on Gameblog.
Layden explains a crucial point: if a game costs $250 million to produce, developers and publishers want to sell it to as many players as possible, even if that’s only 10% more than their current base. He notes that, despite successive generations, the overall installed base of consoles has never exceeded 250 million units, a figure well below expectations given the increase in development costs.
Additionally, Layden criticizes the lack of corporate initiatives to attract more people to console gaming. This observation raises an important question: how can the industry innovate to expand its audience while managing increasing development costs? These comments from Layden invite reflection on the future of exclusive games and how companies can adapt their strategies to stay competitive in an ever-changing market.