Jim Ryan says investing in new IPs is “very risky”

“These days, it costs over $100 million to do something like that.”

Jim Ryan, PlayStation’s most famous CEO, has been outspoken about the risks involved in developing new IPs, even calling them “too risky”. In an interview, Ryan commented on Sony’s recent acquisitions and the risks involved in focusing on a new project.

“We have invested a lot organically over the course of PS4 and its generation, more than people think. We have in our ranks Insomniac Games – creators of Marvel’s Spider-Man and Spider-Man Miles Morales – through their acquisition. We are making great games right now and will continue to do so,” says Ryan.

“The thing is that these games need a pitch that is big. These days it costs over $100 million to create them, and in order to be able to do that, and bring a new IP to market – something we did up to four times in the PS4 generation – you need to know before the launch is going to be successful.”

Ryan also commented on how PlayStation controls the balance of new IPs with new game releases that are already a franchise. In short, he says that Sony thinks “very deeply and carefully” when it comes to balancing their agenda, as there are much-loved deliveries that can overshadow other games.”

“We have an organization that manages and sits down with the studios individually, and one of the things we take most notice of is the portfolio and how we balance the new arrivals of much-loved sagas, such as God of War or Uncharted, and the landing of new games like Horizon Zero Dawn or Ghost of Tsushima. We think about this very deeply and carefully.”

A Sony spokesperson commented, regarding the price of PS5 games, that it is “a reflection of the growth in resources needed for the development of these ambitious games”, but that Sony is selling some launch titles for less than that, with the “great games” costing 70$/80 ?. However, Jim Ryan denied that the prices of PS5 games will increase.