Sony Interactive Entertainment CEO Jim Ryan

By Liu Xiangming

Key Points:

1. In an exclusive interview with TMTPOST, Sony Interactive Entertainment CEO and President Jim Ryan revealed that the core of the PlayStation experience is emotion. “A best game can arouse certain emotions of the players, such as making the player feel excited, feel the adrenaline rush, or feel happy or sad,” said Ryan.

2. He also said one of the commonalities of the studios acquired by Sony is that Sony has had a working relationship with them for several years prior to their acquisitions, which means that Sony has a deep understanding of them.

3. “New IP is the lifeblood of any entertainment industry, but it is very difficult to create a new IP… I am very happy that we can do this in the past few years, but it requires great courage and the courage to bear financial risks. It also requires trust in the studio,” said Ryan.

BEIJING, July 14 (TMTPOST) -- "It was the best of times, it was the worst of times…” The famous opening sentence in Charles Dickens’ s A Tale of Two Cities may be very suitable for describing the current status of PlayStation5 (“PS5”).

The coronavirus pandemic has brought a significant increase in young people’s home time, which has triggered a major explosion in demand for digital entertainment. In this context, the sales of PS5 reached 7.8 million units in just five months of the fiscal year 2020, breaking the previous PS4 record of 7.6 million units in 2013. But also because of the pandemic, which has severely affected the global supply of semiconductors, the "chip shortage" has also put a lot of pressure on the production of PS5.

On the other hand, young people spend more and more time in the digital space. Various new digital entertainment ways-such as short videos or mobile games, constantly attracting users' attention, which impacts the console game industry, an industry represented by a brand like PlayStation, which provides well-produced, story-driven, immersive and experience focused console games. 

As the global CEO and President of Sony Interactive Entertainment, Jim Ryan has been trying to keep the company headed in the right direction in a new market environment. Throughout 2020, he had to stay at home in London to continue working. While taking care of his 12- and 14-year-old daughters getting up, having breakfast and preparing for school, he kept communication with colleagues around the world. In addition to switching working hours among Asia, the United States and the local, he also takes time to play games at noon and experience the company's products.

In this company with KANDO as the core of management and operation, the person at the helm of it firmly believes that "users will only remember the best games, and OK games might be forgotten." The standard for best games is "Be able to arouse players' specific emotions, for example, it makes players feel excited, feel the adrenaline rush, or feel happy or sad." To develop the best games, he believes that not only the new hardware platform of PS5 is important, the top-level game lineup and Sony’s 14 studios and a large number of high-quality partners are also needed.

Meanwhile, the performance of PS5 in the Chinese market surprised him. In May 2021, after the PS5 was officially released in China, its inventory was sold out within a few minutes, which gave him a lot of confidence.

Not long ago, Ryan sat down with Liu Xiangming, a senior PlayStation player and co-founder of TMTPOST, connected remotely to discuss some topics related to PS5.

TMTPOST: When did PS5 start planning, and what was the biggest challenge encountered during the period?

Ryan: We started early preparations in 2015 and encountered many challenges during the period. One of the biggest challenges is the global pandemic in 2020. At that time, we were just about to start production and had the final product design. However, in the event of the pandemic, the whole world was quarantining. There was no way for engineers to come to factories in China to complete the final production design. I think being able to complete production and finally breaking sales records under this circumstance is really an achievement. I am very proud of the team who made it!

TMTPOST: What is the impact of the pandemic on PS5's supply chain?

Ryan: It is a bit complicated. The global pandemic and some other factors have an impact on the entire semiconductor market, putting a lot of pressure on the supply chain. This is one of the problems we are facing. After all, our current production speed has also broken the record. To be honest, the market demand is very large now, and we cannot fully meet the demand. But we believe that 2021 will also be an unprecedented year for PlayStation. We are gradually entering the second-year of PS5, but the global pandemic is still ongoing, which is still affecting the semiconductor industry.

TMTPOST: What makes PS5 different from other platforms in terms of experience? Could you use one sentence to sell it to users?

Ryan: It's really challenging to answer it in one sentence. I would say that PlayStation5 gives players unparalleled performance, immersive experience, and high-quality games and gaming experience.

TMTPOST: Everyone is very interested in PlayStation's studio. Do PlayStation's studios and exclusive games play a big role in the entire game experience delivery?

Ryan: The PlayStation studios play a very important role. First of all, these studios provide us with a series of high-quality PlayStation exclusive games. Secondly, the exclusive games provided by these studios all demonstrate the functions and unique features of PlayStation. Ratchet & Clank: Rift Apart is one example. This game is also exclusive to PlayStation. It shows the performance and unique features of the console, and gives other developers some references to let them know what PlayStation can do, such as SSD, new controllers, etc. This is why the PlayStation studio is particularly important.

TMTPOST: What are the requirements for setting up a studio at Sony? What kind of assessment is there for these studios?

Ryan: In my opinion, these studios should have excellent development capabilities, but at the same time we also value artistic creation, excellent narrative and the ability to empathize with players. We believe that the core of the PlayStation experience is emotion. In general, it is necessary to have technology, but also to be able to propose and realize artistic concepts. We have 14 studios in Japan, Europe, and the United States. You will find that these studios all have the characteristics I mentioned.

TMTPOST: Do they need to submit a business plan in order to set up a studio?

Ryan: Many of our studios grew naturally. These studios were small before, and gradually grew from about 20 people to 500 people. The professional abilities and skills of these studios have grown naturally. We have also acquired a lot of studios. For example, in 2019 we acquired Insomniac Games, and many years ago we also acquired Guerrilla Games and Sucker Punch. One of the commonalities of these acquired studios is that we have had a working relationship with them for several years before the acquisition, which means that we have a deeper understanding of them. We know their operating mode, advantages and development capabilities and we also know where they need to improve, which makes it easier to merge studios. This process has never been easy, but it is far more better than buying some studios that we know little about.

TMTPOST: Many studios may spend a lot of time developing a game. As the company's leadership, how to keep your patience?

Ryan: This is a very good question. I think this is similar to a previous question, that is, what is the importance of PlayStation Studios, especially their ability to develop games and demonstrate platform advantages. Therefore, people like me need to keep those two things in mind and realize that it is better to wait and have a great game than to rush and have a game that is okay or quite good. Players only remember best games rather than OK games. If it is a best game, players may want a sequel, and they will also want to buy a sequel, but no one really cares about a game that is only OK. Of course, due to financial and product portfolio considerations, we will also give pressure to studios to deliver a certain product within the expected time. But in general, we don't want products that are OK, we want the best.

TMTPOST: The production of a game is very much like film production. Will you personally participate in the production process and give your opinion? Or is it someone else is responsible for this?

Ryan: No, I don't do this, because my suggestions are not good. Even if I give them, I hope that the developers will ignore them. Of course I think you are right. We have to consider the budget and time cost. It is indeed very similar to making a movie. But I think if you have built a mature development team, you have to employ people without any doubt, you have to trust your team and support them. This is how we operate the PlayStation Studio. We give them freedom to express their creativity, and we believe that they will give us a corresponding return and deliver the best games.

TMTPOST: How would you define a best game?

Ryan: I think a best game can arouse certain emotions of the players, such as making the player feel excited, feel the adrenaline rush, or feel happy or sad. I think best gaming experience should allow players to enter an immersive experience in the game, allowing players to fully integrate into the game and experience different emotions.

TMTPOST: As the CEO of an entertainment company, do you often play games?

Ryan: Not as often as I would like to, but I do play as often as I can. I’m currently playing Ratchet & Clank: Rift Apart. As I said before, this game stimulated my specific emotions and made me happy. For me this is a best game. Usually, I prefer slower-paced games, usually single player mode that requires me to think carefully and deeply. These are the emotions encountered when playing games, and can also reach users who like Hollywood movies.

High-quality games on PlayStation appeal to players by offering grand narratives, great details and intricate plots.  

TMTPOST: What was the best game you played last year?

Ryan: I personally think it is Ratchet & Clank: Rift Apart, which is my favorite and most enjoyable game in the last year. Although it is not a slow-paced game, the joy of the game and the performance of the console really surprised me. I feel that if our team can launch a best game like this within half a year after the launch of PS5, what about three or four years later? I feel very excited when I think of this.

TMTPOST: What is the most anticipated game for PS5?

Ryan: This is really a very difficult question to answer. In the next year or so, the games from our studios will include Horizon Forbidden West, and then we have a new game of GOD OF WAR. Of course, we also have many high-quality games developed by third parties available on PlayStation platform. FIFA has always been popular, and so is "Call of Duty". These games are very popular high-quality games in PlayStation community, whether it is from Sony or third-party. If we just talk about the works from our own studios, the most anticipated will be Horizon Forbidden West and the next God of War.

TMTPOST: Is the new IP important to the company? Sony already has a lot of very good IPs, how did you create a successful IP? Is there a plan within the company or is it grown naturally?

Ryan: I think your observation is very accurate. New IP is the lifeblood of any entertainment industry, but it is very difficult to create a new IP. We are lucky. On the PlayStation platform, the most recent Ghost of Tsushima from Sucker Punch is a very successful IP. Horizon Zero Dawn from Guerrilla Games is also a successful one. And Days Gone performed well in the market. The Astro Bot Rescue Mission on PS VR also has very good results which should be available in Chinese market now. I am very happy that we can do this in the past few years, but it requires great courage and the courage to bear financial risks. It also requires trust in the studio.

If your studio is doing well, then your confidence in the studio will grow over time, and you will be more willing to take risks and find the right time. Our relationship with the studio is in a period that I call a healthy circle. We need products, are willing to invest, and are willing to take risks. At the other end of this circle is the reputation of PlayStation Studios in the industry. The interaction between the game world is very close and positive, so players will also care about PlayStation Studios and are willing to buy their products. Of course, it is difficult to form such a virtuous circle.

TMTPOST: We talked about the cost and cycle of the game. The cost is getting higher, the cycle is getting longer and longer, and the profit and loss point of the game is getting higher and higher. How does the company balance this opportunity and cost? Will this capital be given to large projects or distributed to smaller projects?

Ryan: Very interesting question. My answer is that we will do both. Our internal studios typically make larger games, but we will also cooperate with partner studios to develop some smaller-scale games. We work closely with independent game studios and will provide them with some support in terms of development, funding, and marketing. These independent teams are usually very small, about 10-20 people. Through supporting these studios, we are also incubating game products and establishing relationships with these studios. Perhaps they will be the next generation of 3A game developer. Well, maybe in five years or ten years, our relationship with these independent game studios will be different.

TMTPOST: Nowadays, more and more young people are playing games, what impact will PlayStation have on this generation of young people? What kind of responsibilities will you take in this digital age?

Ryan: If we are talking about some very young players, I think one of our responsibilities is to ensure that they can enjoy the experience of the game in a safe and controlled environment. Safety means that parents need to know the games their children are playing and how those games work as far as in-game content that their children might want to purchase. We need to ensure that payment is rational and reasonable, and that children's payment behavior can be supervised and controlled by their parents. As for game content, we need to ensure that the content is appropriate, that the games we publish in different countries are approved by local authorities, and that the game content is appropriate and appropriate for a specific age group. I think these are responsibilities that we need to take.

TMTPOST: Compared with Sony's immersive and story-oriented experience, young Chinese players prefer to play mobile games. How does Sony attract these people? How to compete with mobile games? Do you think PlayStation’s main competitor is Xbox or mobile phone?

Ryan: Let me answer these two questions one by one. First of all, we have tried to bring some existing IP to the mobile platform. I think this is a way to bring game products to different groups of game players, including young players. As for competitors, I think PlayStation itself has a huge player base. We have more than 100 million players on PS4 and PS5, which is a huge number. What we need to pay attention to is the game time of players. When talking about competitors, we are actually competing with others for people' time. Any form of entertainment that requires users to spend time is competition, not just other game products. Everyone has limited entertainment time. Playing PlayStation is an option, and going to a theater is also an option. Therefore, what we need to do is to ensure that the entertainment we provide is interesting and attractive, as I said before.

TMTPOST: Almost all the CEOs I interviewed before have a headache when managing young people. Is it more difficult to manage so many young game talents?

Ryan: I think it is our honor to have so many young people working in our company. I think one of the advantages of PlayStation is that we bring together everyone's youth and vitality. Youth can actually be quantified in multiple dimensions. For example, the time you have is a dimension, but I think everyone’s mindset is also a dimension. Your mindset can be young. Even older people like me can also have a young heart. It is our way of thinking and behavior that determines whether we are young. I am not saying that I am very young. I am saying that some people can be older, but at the same time they are also very young. I think the big family of PlayStation has many advantages, focusing on youthful vitality and entertainment, which is one of the best parts of the team.

(For the Chinese version, please click 钛媒体独家专访索尼互娱CEO)