With June seeing Nintendo launch Switch 2, and Xbox tease further developments, Sony's PlayStation - the third major console provider - decided to make its own intervention. It released a fireside chat featuring three top executives - Hideaki Nishino (President and CEO), Hermen Hulst (PlayStation Studio Business Group CEO), and Lynn Azar (SVP of Finance and Corporate Development) - that stirred up fans and detractors alike. But while news commentary has focused on the CEO’s comment that PlayStation is not pivoting from its console and the next generation platform is top of mind, it has largely overlooked five areas discussed that will define PlayStation’s future: product positioning, cloud gaming, multiplatform strategy, PlayStation Plus, and transmedia.

Q: Will PlayStation change its product strategy in response to the current landscape?

To put it simply, no. PlayStation’s product positioning and multi-platform strategy remain unchanged. Its product position will continue to be providing gamers with high fidelity immersive content on large screens. Its positioning is markedly different from Xbox and Nintendo’s: Xbox is focused on providing cloud gaming and software as a service, while Nintendo is focused on providing engaging games in a hybrid form factor. The trio’s varying strategies will impact Game publishers and studios’ business. While game studios are pursuing a multiplatform distribution strategy, developing content for multiple platforms with varying performance capabilities increases both development timelines and costs.

Q: Will PlayStation drop the console for cloud gaming?

Fans are correct they should expect a PlayStation 6 console as well as another Xbox console, but luckily for PS5 owners a new PlayStation 6 console is a few years from the market and in the R&D phase. Cloud gaming will not replace the consoles in the near term. Currently consumers are unwilling to pay the high cost to provide cloud gaming, and its scalability is limited due to the network quality variances across the globe and even within broadband countries.

Q: Will PlayStation release its games on competitor platforms?

PlayStation’s multi-platform strategy is focused on increasing its ecosystem’s game time so PlayStation is unlikely to release first-party titles on competitor platforms. However, PlayStation will continue to release its titles on PC in order to achieve sufficient concurrent users for new live services titles and incremental sales for single-player games. 

Q: What about PlayStation’s services and transmedia business?

PlayStation’s CEO confirmed the 2025 regional PS Plus price increases were in response to foreign exchange movements as covered in Ampere Analysis’ recent How will US import tariffs impact the Games industry insight. Additional PlayStation Plus price increases are unlikely given the current economic conditions. Instead, PlayStation will grow PS Plus revenue by differentiating and increasing subscription tier value. We expect the gaming industry to emphasise foreign exchange impacts and value propositions during fall investor presentations.

On the Transmedia side, PlayStation Studios will increase its Transmedia and Franchise building efforts. As transmedia shifts from an ancillary revenue source to a primary source, PlayStation’s shift indicates that all game publishers need to diversify their non-game revenue to recoup development costs. Additionally, game developers need franchises to compete in the attention economy. Franchises generate predictable revenue and reduce game portfolio risk, allowing studios to invest in new games or franchises: Electronic Arts and WB Games earlier this year realigned their game studios to focus on marquee franchises.