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Sony Considering Acquisitions of Game Developers as Content Becomes More Important than Ever

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Sony Considering Acquisitions of Game Developers as Content Becomes More Important than Ever

Today the online arm of the prestigious Japanese newspaper Nihon Keizai Shinbun published excerpts from an interview with Sony Interactive Entertainment Chief Executive Officer Jim Ryan.

According to the report (via Hachima Kikou) Ryan mentions that the house of PlayStation is considering M&A (mergers & acquisitions) of software production companies. Basically, they’re thinking about buying game development studios.

The reason is that as companies like Google decide to enter the gaming industry, “content becomes more important than ever.”

That being said, Ryan welcomes the entry of new players in the industry, and remarks that Sony has been in business for 25 years and has large assets to bring to bear. According to him, it’d be difficult for new entrants in the market to compete in terms of studios and exclusive games.

We also hear that Ryan is confident that profit margins will continue to increase in the future, despite the fact that every generational transition brought losses due to development costs. On top of that, the transition to cloud gaming will take time, which is why the company is carrying on with the video game console business.

Jim Ryan became CEO of Sony Interactive Entertainment in April, and outlined his plans for the next generation in May, including backward compatibility and more.

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