Sony reportedly investing $2.1 billion into PlayStation R&D with a focus on live service

Sony is said to be increasing R&D spending by 10% during the current fiscal year to push its PlayStation studios further into the live service space.

The details:

• According to the Japanese publication Nikkei, Sony Interactive Entertainment's (SIE) R&D spending in the fiscal year 2023/24 is expected to total 300 billion yen, accounting for 40% of Sony's total R&D investment and surpassing a number of its other notable departments, including its electronics businesses. This also means that 55% of the PlayStation 5's game development budget will go toward live service projects, with that figure expected to rise to 60% within the next three years.
• Bungie, the developer of Destiny 2, was acquired by Sony in 2022 to strengthen its live service capabilities, with the company previously stating its intention to have 12 live service titles on the market by 2026. Due to the studio's familiarity with the structure, Bungie is also being used to review its upcoming live service projects, with PlayStation Studios head Hermen Hulst stating that the "learnings from Bungie have been very substantial in many areas," and the company has worked on a "pretty rigorous portfolio review process" alongside Bungie for the 12 games.
• Sony appears to be looking for a stronger revenue source, as Microsoft appears to be just days away from completing its acquisition of publisher Activision Blizzard, a deal that has caused much concern at the company due to massive franchises such as Call of Duty now being in the hands of its rival. Xbox has also made major strides into the cloud gaming space with its Game Pass Ultimate subscription service, which allows players to stream games to non-Xbox devices, whereas PlayStation has focused on virtual reality and live service within its own ecosystem.

More Sony news:

• After 25 years, Naughty Dog Co-President Evan Wells is retiring, leaving fellow co-president Neil Druckmann to lead the studio. Wells joined the company as a designer during the development of Crash Bandicoot: Warped and worked on an assortment of projects, including the Jak and Daxter series and Crash Team Racing.
• Screenshots from Rise of the Ronin, Team Ninja's PlayStation 5 exclusive RPG, have leaked online, revealing the game's map, a quest description, and one of its skill trees. Along with the images, the leaker revealed some details, such as the fact that side quests will follow a pattern similar to Ubisoft's quest designs and that the game will be a "mix of Assassin's Creed, Ghost of Tsushima, and Dark Souls.”