Former PlayStation boss plans to revive Double-A games

Shawn Layden, the former president and CEO of Sony Interactive Entertainment America, is developing a plan to fund Double-A games as a sustainable alternative to rising Triple-A budgets.

Layden has long argued that blockbuster game development costs have grown unsustainable. He noted that expenses double each generation, reaching around $150 million for top PlayStation 4 titles and potentially $300 million to $400 million for PlayStation 5 games.

The executive pointed to the unchanged publishing model from the 1990s as a core issue. This structure favors sequels and major franchises while limiting quirky or original projects that once helped expand the audience, he said.

Layden aims to create a publishing concern focused on Double-A titles made by smaller teams. These games would require fewer resources and appeal to time-poor players who often do not finish longer experiences.

He observed market fatigue in live-service games and a shift toward single-player titles. Layden added that less than half of players complete today's biggest releases.

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News illustration showing the impact of Xbox layoffs with employees in an office packing boxes.
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Xbox announces 3200 layoffs in major restructuring

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Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

IO Interactive CEO Hakan Abrak stated that AAA single-player games can be developed for roughly half the budgets commonly reported in the industry. He highlighted the studio's efficient approach with its engine and talent to control costs on ambitious projects like 007 First Light. Abrak emphasized sustainable development over short-term recouping.

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Shawn Layden, who oversaw PlayStation Studios until 2019, said Microsoft must choose between becoming the world's largest game publisher or a competitive console platform. He argued the two paths cannot converge.

Epic Games CEO Tim Sweeney spoke at the State of Unreal event yesterday about challenges in the triple-A game sector.

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Former PlayStation executive Shawn Layden has called Sony's plan to end physical disc releases kind of sad from a fan perspective. The company announced the shift on July 1, with all releases becoming digital-only from January 2028. The European Union has confirmed it cannot intervene.

Xbox is preparing to shut down Compulsion Games and is in talks to close Double Fine and Ninja Theory as well. Studio leaders are negotiating with Microsoft over the studios' futures. Heavy job losses are expected even if some studios go independent.

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Xbox CEO Asha Sharma has suggested the company will introduce new approaches to console sales later this year amid rising hardware costs. In a Fortune interview, she pointed to challenges with RAM and storage prices that are now 2.75 times higher than at launch. Sharma said the firm is exploring options beyond price increases to keep consoles accessible.

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