Sony's Obsession with AAA Blockbusters Damages Small Studios and Leads to High Turnover

Sony’s strategic pivot toward high-budget AAA blockbusters has created significant internal friction and operational challenges within its PlayStation division. By prioritizing established, star-tier studios such as Naughty Dog, Santa Monica, and Guerrilla Games, the company has marginalized smaller teams and less experienced developers. This shift has resulted in the reorganization of legacy entities like Japan Studio, the rejection of sequels for commercially successful titles like Days Gone, and a general decline in support for experimental projects, such as the user-generated content platform Dreams.

The internal impact of this consolidation is characterized by high staff turnover and a loss of creative autonomy for secondary studios. A notable example involves the Visual Arts Service Group (VASG), which attempted to transition from a support division into a primary development studio by proposing a remake of The Last of Us. Despite initial progress, the project was ultimately reassigned to Naughty Dog, leading to the departure of key leadership at VASG. Similarly, developers at Bend Studio expressed concerns about being relegated to support roles for larger studios, fearing a loss of their unique identity.

This analysis, based on investigative reporting covering the period leading up to early 2021, highlights a broader trend of centralization within Sony’s global operations. While the focus on blockbuster titles serves as a clear business strategy, the findings suggest that this approach has stifled internal innovation and damaged morale. By consistently prioritizing the output of its most prominent studios, the company has effectively narrowed its development scope, leading to a culture where smaller teams are increasingly viewed as auxiliary support rather than independent creative contributors.