The Sony group will increase its research and development (R&D) spending in gaming to refine the technology in multiplayer games and develop an augmented reality (XR) business that will bridge the real and of the digital world beats. In the company’s fiscal year ending March 2024, 300 billion yen (approximately US$2.13 billion) will be allocated for these purposes.
Sony currently spends about 40% of its total R&D money on game development. Year-over-year, R&D spending in the gaming division increased by about 10%, more than doubling 2020 levels. This fiscal year, Sony plans to spend 760 billion yen on company-wide R&D, up 3% year-on-year.
Games are one of the main parts of the Japanese company’s business. Sony’s transition from hardware to a subscription-based business model is pushing the company to accelerate research and development. For a long time, the manufacturer focused on selling PlayStation game consoles, but now the company wants to focus on the development of online games and separate paid additions to them.
At the same time, Sony has turned its gaze towards augmented reality, a combination of virtual reality (VR), augmented reality (AR) and mixed reality (MR) technologies. This technology promises an immersive gaming experience involving all five human senses. Sony intends to pool the resources of nine overseas game studios it has acquired or invested in over the past two years to accelerate the development of its augmented reality business.