Ex Playstation Exec Claims Japan Studio Closed Due to AA Market Vanishing
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Key points
- Shuhei Yoshida, former Sony Interactive Entertainment (SIE) President, said Japan Studio was closed due to a lack of Double-A market.
- Modern game development prioritizes Triple-A titles and live-service updates.
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Indie titles “filled the gap” while the Double-A market disappeared.
Former Playstation executive Shuhei Yoshida has revealed that Japan Studio was closed due to the lack of demand for Double-A video game titles. During an interview on the Sacred Symbols+ Podcast, Yoshida explained that modern game development largely prioritizes Triple-A titles.
“Other than Gran Turismo, we had many great products but didn’t really have many triple-A-level successful products,” he told Sacred Symbols+ Podcast.
“Big games became bigger – the indies filled the gap and the double-A market seems to have disappeared. Most of the IPs that Japan Studio had were in that smaller double-A sized group and the market became really difficult for these kinds of games.”
Yoshida’s insight is supported by other industry trends. Recent revenue analysis shows a decline in new game downloads, with many opting to stay committed to their usual titles. Though the revenue analysis was for mobile games, the trend applies across the entire video game industry.
Developers now face greater pressure to provide stronger incentives to attract buyers, hence the increase in Triple-A title demands and the disappearance of the Double-A market.
Shuhei Yoshida was president of SIE Worldwide Studios for 11 years – after which he became heavily involved in other SIE-related projects. The former executive left Sony in January of 2025.
Japan Studio was dissolved in 2021, with Sony having moved many of the staff to other parts of SIE. The development studio created the Knack series, while also having helped create Bloodborne.
