Shuhei Yoshida, former president of Sony Interactive Entertainment, has offered an explanation for the closure of the acclaimed Japan Studio in April 2021, suggesting the decision stemmed from the studio's inability to consistently produce titles that significantly boosted PlayStation hardware sales. Yoshida indicated that Sony's strategic focus had shifted towards large-scale, AAA games akin to "God of War and Uncharted," which were seen as essential for driving hardware adoption.
During a speech at the Computer Entertainment Developers Conference on July 22, translated by GamesRadar, Yoshida addressed persistent questions about the closure. He acknowledged that many, including himself at the time, found the decision "unbelievable," given Japan Studio's legacy of creative and influential games such as "Ape Escape," "Shadow of the Colossus," and "Ico."
While Sony officially stated that Japan Studio was "re-organized" and its staff absorbed into Team Asobi, the developer of "Astro Bot," reports indicated that most of the studio's personnel were let go prior to this merger. Key figures, including "Demon's Souls" producer Teruyuki Toriyama and "Gravity Rush" director Keiichiro Toyama, had already departed.
Yoshida elaborated on the internal concerns, noting that while Japanese developers at the studio were capable of generating creative ideas, their output often consisted of smaller-scale "AA games." He suggested these titles were well-suited for platforms like the PlayStation Vita but less aligned with the company's growing emphasis on AAA development for the PlayStation 4 and PlayStation 5. "Sometimes it's difficult to scale up like that," Yoshida stated.
He emphasized that PlayStation's corporate objective was to produce games that served as system sellers, directly influencing hardware purchases. According to Yoshida, launching new console series, a task potentially suited to a studio like Japan Studio, proved challenging within this corporate directive. This strategic pivot aligns with Sony's subsequent focus on live-service games and a slower cadence for its major flagship titles.