Japan Studio Closed Because The "Double-A" Market Has Disappeared, Ex-PlayStation Boss Says

Former Sony Interactive Entertainment president Shuhei Yoshida has been speaking out about his time at PlayStation on podcasts, and he recently commented about the closure of PlayStation's Japan Studio. Specifically, he said that the disappearance of the "double-A" game market was a major reason for the downfall of the studio.

Speaking on the Sacred Symbols podcast, Yoshida stated that during his time with PlayStation, Japan Studio had "great products," but didn't have many "AAA-level successful products," other than Gran Turismo. "That became more and more important as the big games became bigger. The indies filled the gap and the double-A market seems to have disappeared. Most of the IPs that Japan Studio had were in that smaller double-A sized group, and the market became really difficult for these kinds of games."

He cited Gravity Rush 2 as an example, noting that its director Keiichiro Toyama pitched several ideas for a follow-up, but Japan Studio was not able to greenlight any of them due to market conditions. Yoshida noted that the closure of Japan Studio did allow Toyama to create his own studio, which eventually produced the 2024 release Slitterhead. Sony shut down Japan Studio back in April 2021. Some of the studio's best-known games include Ape Escape, the Knack series, and the Demon's Souls remake.

The remnants of Japan Studio can still be seen at Team Asobi, however. The studio, which spun off from Japan Studio, recently developed the acclaimed Astro Bot, which won The Game Awards' 2024 game of the year, among other accolades.