Japan Studio Closed Because The “Double-A” Market Has Disappeared, Ex-Playstation Boss Says

In recent conversations on podcasts, former Sony Interactive Entertainment president Shuhei Yoshida has shared insights about his time at PlayStation. Notably, he mentioned that the decline of the mid-budget video game market, often referred to as the “double-A” games, significantly contributed to the closure of PlayStation’s Japan Studio.

During an appearance on Sacred Symbols podcast, Yoshida explained that while Japan Studio produced excellent products during his tenure at PlayStation, they lacked significant AAA-level successful titles beyond Gran Turismo. As big games grew in popularity, independent studios stepped up to fill the void, and it appears the double-A market is no longer thriving. Most of Japan Studio’s intellectual properties fell into the smaller double-A category, making it increasingly challenging for these types of games to succeed in a tough market.

In his discussion, Yoshida pointed out Gravity Rush 2 as a case in point. Keiichiro Toyama, the director, had proposed multiple concepts for a sequel, but unfortunately, Japan Studio couldn’t get approval for any of them due to market fluctuations. However, the closure of Japan Studio paved the way for Toyama to establish his own studio, leading to the 2024 release of Slitterhead. It was back in April 2021 when Sony decided to close down Japan Studio. Some of the studio’s most renowned titles include Ape Escape, the Knack series, and the remake of Demon’s Souls.

Though Japan Studio has been disbanded, traces of it remain in Team Asobi. This team, which originated from Japan Studio, was the one that recently created the critically acclaimed Astro Bot. This game received numerous honors, including being named “Game of the Year” at The Game Awards 2024.

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2025-02-19 22:10