Former PlayStation Boss: Japan Development Struggles Began During PS3 Era
Back during the PS1 and PS2 days, Japanese game studios like Capcom, Sega, and Square Enix were leaders in the gaming world, known for turning arcade favorites into solid home console ports. While the Japanese development scene is still a powerhouse today, it’s not as big as it was once,
According to former PlayStation boss Shawn Layden, the shift to the PS3 era marked the start of a tough road for many Japanese developers, pushing them into a new world of high-end gaming that was very different from the arcade-style games they had mastered.
In a recent interview with IGN Japan at gamescom Asia, Layden shared that Japan Studio’s closure in 2021 was “sad,” but it reflected a larger struggle for Japanese game development overall. Layden explained that these challenges began with the PS3 era, when Sony’s focus shifted from arcade-like gameplay to high-end experiences, which required a new approach.
When you got to PS3, and you had the Cell processor, and how do you code for that? And it was no longer an upgraded arcade experience, it was a high-end PC experience you’re offering at home. And I think that’s where the disconnect came for a lot of Japanese developers. And Japanese developers have been struggling ever since to try to get back to the top of the top of Olympus.
This change was especially hard for studios that struggled to make big hits in this new gaming world. Layden explained it was like “chasing the next one, like a drug”—the success of a hit makes you want to achieve it again. But over time, if hits don’t come, a studio can start to lose its skill to make great games.
Layden pointed out that although many studios still face challenges, some like Capcom and Sega have bounced back strongly. Capcom, he said, is “prosecuting that problem fairly directly,” while Sega is “in a pretty good place.”
Even companies like Bandai Namco and Koei Tecmo are finding their own paths forward. Layden noted, “Bandai Namco has got some refactoring to do. Koei Tecmo has its market, owns that market, and they seem happy with that.”
He also mentioned Square Enix, saying, “When they abandoned their overseas developer/publisher ambitions and brought it back to home truths, that was a good move for them, but it’ll still take a while for them to get out of the woods.”
Japan Studio’s closure was hard for fans, but Layden sees these challenges as part of a “pruning” process, like trimming a bonsai tree so it can grow back stronger. From Japan Studio’s legacy, Team Asobi has emerged, recently releasing Astro Bot, which earned a 94 on Metacritic and is already a strong contender for Game of the Year.
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